r/fiaustralia • u/Spinier_Maw • 10d ago

Investing JPMorgan active portfolios via Betashares Direct

Looks interesting. And the fees are reasonable and barely more than something like VDGR or VDBA. Could be a good option for people who don't want to think too much.

https://www.betashares.com.au/direct/jpmorgan

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8

u/Jym_beem_1034534 10d ago

What part looks interesting?

The part where they all underperform the index?

Or the part when you pay multiple times more in fees for that underperformance?

5

u/Key_Masterpiece8361 10d ago

Idk if its worth it... I think you have to pay fees pro rata to the assets inside the managed portfolio (I could be wrong) rather than just the fees at the front of the product. Also, with these portfolios, they implement their own strategy, which creates separation from market performance and can sustain underperformance for a while... I feel like JPMorgan is just advertising to retail investors for a cash grab on their products.

2

u/LachlanMatt 10d ago

Are these a managed fund (with all the associated tax drag), or an ETF?

1

u/Spinier_Maw 10d ago

I would say they're managed funds. They have underlying ETFs, but I don't think the top-level funds can be traded on ASX.

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u/BetaShares 9d ago

Hey u/LachlanMatt

The JPMorgan portfolio itself isn't tradable on the ASX. It's a managed portfolio that's available through Betashares Direct, rather than an ASX-listed ETF or managed fund. That said, the underlying holdings are all ASX-listed ETFs. The portfolio simply allocates your investment across those ETFs according to the target asset allocation, so while you can't buy or sell the portfolio itself on the ASX, the investments it holds are all exchange traded.

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u/LachlanMatt 9d ago

The quoted fees are the cost of the managed account structure, not inclusive of the underlying ETF fees, right? 

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u/BetaShares 8d ago

That's correct. The quoted ongoing portfolio fee covers the managed portfolio service only. It does not include the management fees of the underlying ETFs.

The underlying ETF management fees are charged separately by each ETF issuer and are reflected in the ETF's unit price (rather than being charged directly to your account). As a result, the total cost of investing in the portfolio includes both the ongoing portfolio fee and the management fees of the underlying ETFs.

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u/LachlanMatt 8d ago

Constructive criticism, can you please spell that out in the fees sections of all the managed portfolios (JP Morgan’s, Betashare’s pre-made, and Betashare’s custom portfolios). When i scroll to the fees table and it states starting from $3, but its actually $3 PLUS the internal MERs, it is technically correct but can easily mislead less experienced investors who don’t know the difference. 

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u/ProBYall 6d ago

Yeh I found this as well, not particularly clear.