Are you getting the fund returns that you’re being told you’re getting?

Are you getting the fund returns that you’re being told you’re getting?

This week I received an alarming email from a Rivkin member.

He was concerned that the returns being published by his fund manager were vastly different to what he had experienced in simple net returns; i.e., what the actual redemption value of the managed fund units were when he requested to withdraw. The fund fact sheets and marketing literature that he read were saying one thing, his actual returns were saying another. There are often valid reasons for these anomalies, and there are varying levels of transparency with regard to how fund managers report their returns.

But what shocked me was this – an excerpt lifted directly from the response he received from the manager:

This was not being written to a data analyst or an institutional investor, but an ordinary retail investor looking to grow his wealth and understand where that growth came from. It is as though the aim was to confuse the client to the point of capitulation. 

We are often asked, “If you’re so good at picking stocks, why do you tell others? Why not just manage your own money?” The answer is that we choose to do both. Helping others invest well in exchange for membership fees is a good business, and to make it even better we invest our own money alongside them to create transparent, indisputable results that can be understood by anyone. 

If you’re confused about your managed fund returns and would like to understand the transparency benefits of direct investment, please email or phone 1300 748 546 and ask to speak with a Rivkin Relationship Manager.

 Scott Schuberg

CEO, Rivkin Securities

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