The Fund Damagers Cometh – again

I’ve previously had a spray at Fund Damagers. Today whilst confined indoors after being blessed by a visit from the Snot Fairy, I did the latest numbers.

My own investment, which carries no management fees, has given a total increase in portfolio value of a mere 10%. This is a difficult figure to do anything meaningful with because there are things there that have been bought anytime between 10 days and 10 years. In fact, I’ve lost a fortune in what I’ve been buying in the last 12 months. The downturn in stockmarkets has been pretty severe.

Nevertheless, let’s compare that with the returns from the 3 managed funds that I have invested in as well:

Fund 1: Increase in Funds Under Management: -24.8%

Fund 2: Increase in Funds Under Management: -33.75%

Fund 3: Increase in Funds Under Management: -2.36%

Yes, that’s right, the returns are ALL NEGATIVE.

All of the managed funds are now worth less than I paid. In all cases, I bought into those funds during 2002. You’d think that with the good times that have been, the funds would be streets ahead, even with the stock markets being down.

Now, will the Fund Managers Damagers give back any of those fees they have been using to buy their BMW’s? I don’t think so!

Fund Managers win irrespective of the market because they just charge a percentage of funds under their management. These fees will have fallen, but the point is: If I lose, they win. If I win, they win. Something is not right here.

Reason for buying a few managed funds: To set aside a few quid to pay the HECS fees should the chaps decide to go on to University. I’d have done better to have put the money in a term deposit.

I shudder to think what the superannuation statement will look like :(

3 Comments

Mine is looking pretty ugly. Or at least it was last time I looked. I just decided to stop looking for a while. I don’t need it immediately and it will only cause me angst.

Comment by Trundling Grunt | July 14th, 2008 9:48 am | Permalink

Yes, the option of sticking the fingers in the ears and humming is looking pretty attractive.

Comment by Wally | July 14th, 2008 10:14 am | Permalink

My super fund performance bears a scary resemblance to your managed funds’ performance. I can’t wait until I eventually accumulate/inject my super with sufficient funds to justify me running my own SMSF.
Term deposits in general suck! Their worth is valuable only when interest rates are high and you want to lock in your rates. Even still, the online saving account rates are usually much more attractive, with interest compounding monthly and are flexible with regards to withdrawals and depositing.

Comment by Laks | October 2nd, 2009 10:49 pm | Permalink

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