Ok well this has been a lot of time and thinking looking at the list and others that have popped up.
One of the things that concern me about many of the funds is their woeful lack of liquidity. And considering liquidity is almost non existent when things are currently relatively good, I fear what would happen in a crash. Seems to me it would be something similar to property trusts where it becomes impossible to convert units to cash and the investor just gets eaten alive as things collapse. I always fear lack of liquidity as I have seen some disastrous outcomes when people were sent broke through owning illiquid investments - they don't even have money for food sometimes. Many of the shortlisted LIC's mentioned in this forum trade just a few thousand units per day which is practically nothing. So just how do you guys counter that thought and just what would happen in a collapse which is sure to come one day?
Also I have never ventured into cash funds so I know SFA about them and have always used fixed interest term deposits under $250K with the major banks only when maintaining cash holdings. This is about as solid as I can find for doomsday thinking, and unless the banks collapse entirely there is no risk to the capital with the attached government backing. However this time around I cannot find any major bank returning anything decent (last rate was 3% for 12 months with ANZ CBA WBC) so that is why I began asking about alternatives.
Anyhow to cut to the chase what can anyone tell me about these products and the people involved including the structure and liquidity outcomes if/when things go pearshaped. These returns look a lot more meaty than other similar products run by others. Look forward to experienced opinions on this.
