Quotes of the week
04 May 2012
FE Trustnet reviews the most noteworthy comments from this week’s news stories and the most interesting responses from our readers.
By Mark Smith,
Reporter, FE Trustnet
"There’ll be abysmal growth in the eurozone for the next five years and there’s every chance the UK will be dragged into it as well. Unemployment is steadily drifting up, real earnings are declining – this is hardly a recipe for a sustained rally."
MAM’s Martin Gray tells investors exactly what they want to hear.
"When you pick up a paper, whether it’s the Times, the Mirror or the Guardian, one gets the impression that the world is ending. In many ways it’s because of what we’ve gone through recently – most of us had a terrible experience in 2008. However, I feel compelled to quarrel this pessimism."
James Anderson, manager of the Scottish Mortgage Investment Trust, is tired of all the negative news stories.
"Everybody seems to think that everyone in the world is going to have an iPad or an iPhone but the market is led by fashion. As soon as kids see their dads wanting Apple products then they will want something else. It reminds me of Nokia in the 1990s."
David Jane, manager of the TM Darwin Multi Asset fund, thinks Apple has underestimated the effect dads can have on its street cred.
"China is where the US was in 1941 in terms of GDP growth, and India in 1882. This shows the sort of potential there is on offer."
Fidelity’s Amit Lodha puts the emerging market growth story into context.
"I don't understand why multi-manager funds have to be so expensive. It seems outrageous for them to charge 1.5 per cent-plus a year on top of the charges in the underlying funds, for simply picking funds. These funds have access to institutional class units which have a lower management charge than retail class. If the asset managers charged a more reasonable fee they would be closer in terms of charges to a standard managed fund. As for the ‘you get what you pay for’ argument, there are so many examples where this simply isn't true."
FE Trustnet reader Jonathan Edwards calls for multi-manager funds to lower their fees.
"The failure of multi-manager funds over five years is not really surprising. They invariably invest in past best performers and as it has been firmly established, that has no effect on future performance. But if they fail over five years, imagine what happens over the investor's lifetime, when the effect of charges really will have come into effect."
Regular reader Theo Pantzaris comments on a recent FE Trustnet study that highlighted the poor performance of funds-of-funds.
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