"But some people really do want to underperform!" is not a persuasive argument.
bogus guru thread
- Thread starter billyjoerob
- Start date
the other day i was looking into the funds avaliable at one of my relatives IRA plan:
https://www.tiaa-cref.org/public/tcfpi/InvestResearch
TIAA CREF is one of the biggest in the industry,now look at their expense ratios:
CREF Equity Index Account
https://www.tiaa-cref.org/public/tcfpi/investment/profile?symbol=41082540
which is essentially their variation of SPY or R3K, but they charge hefty 0.42% in expenses, compared to 0.09% on SPY. and btw-i don't see any dividends paid to the account holders. maybe they are reinvested? but then there is should be difference in performance? i did read their prospectus, i've asked the questions yet no one can answer where is the divs go from stocks they are holding. they are thiefs. plain and simple. why can't i just buy a f** SPY on my pension plan? why im FORCED to be with them?
i've also looked into PA muni ETF's,which right now traded at decent yields. yields are good,but expenses? holy s**t!
http://www.cefconnect.com/Details/Summary.aspx?Ticker=NVY
Management Fees 0.93%
Other Expenses: 0.29%
Baseline Expense: 1.22%
Interest Expense: 1.21%
Total: 2.43%
2.5 f** % for a year to hold few municipal bonds? can you tell me what what the f** is going on here? do you seriously believe that they have to pay huge commissions to get into those bonds? f** no. there is no commissions for that. specially,if you are such big firm and buying them directly. they (local gvt's )will serve you those bonds on a f** silver platter and will kiss you ass on your way to the door. this whole industry is nothing but SCAM,created and existed to extract those bogus 'fees'. at least one have choice here-don't like it-then don't buy. but again-imo-this is outrageous amount
https://www.tiaa-cref.org/public/tcfpi/InvestResearch
TIAA CREF is one of the biggest in the industry,now look at their expense ratios:
CREF Equity Index Account
https://www.tiaa-cref.org/public/tcfpi/investment/profile?symbol=41082540
which is essentially their variation of SPY or R3K, but they charge hefty 0.42% in expenses, compared to 0.09% on SPY. and btw-i don't see any dividends paid to the account holders. maybe they are reinvested? but then there is should be difference in performance? i did read their prospectus, i've asked the questions yet no one can answer where is the divs go from stocks they are holding. they are thiefs. plain and simple. why can't i just buy a f** SPY on my pension plan? why im FORCED to be with them?
i've also looked into PA muni ETF's,which right now traded at decent yields. yields are good,but expenses? holy s**t!
http://www.cefconnect.com/Details/Summary.aspx?Ticker=NVY
Management Fees 0.93%
Other Expenses: 0.29%
Baseline Expense: 1.22%
Interest Expense: 1.21%
Total: 2.43%
2.5 f** % for a year to hold few municipal bonds? can you tell me what what the f** is going on here? do you seriously believe that they have to pay huge commissions to get into those bonds? f** no. there is no commissions for that. specially,if you are such big firm and buying them directly. they (local gvt's )will serve you those bonds on a f** silver platter and will kiss you ass on your way to the door. this whole industry is nothing but SCAM,created and existed to extract those bogus 'fees'. at least one have choice here-don't like it-then don't buy. but again-imo-this is outrageous amount
When someone wants to pigeon hole you (your trading style) they will want to bench mark you against something.
The MSCI World Index, the S&P, cash rates.....
They still do it even if you are a 'hedge fund'.
So what would be your benchmark?
Its one of the few ways they can tell if you are really adding value or can compare you to similar type funds.....or if you are just managing to take extra risk, or do nothing more than suck fees out.
Of course outperformance requires usually a longer period of time to properly assess, but most managers are not worth the fees they charge unless they really do provide less risk, similar returns, ,non correlated returns or simply better returns.
If you are a retail punter then the fees will always get you regardless....and the biggest scandal is that most of the fee money does not go to the actual manager but to the sales guys, platforms and third party folk.
Do you share profits??
Are there any fees associated with what you do?
Are you paying fees and passing thme along or do you list these as operating costs?
Are you using a MAT approach?
What is the form of your business structure?
Please answer anyways you wish or simply diect me to a reference I could not find by researching you
Capitalism at its best. Many of these funds are only available only to accredited investors, so I really could care less if a rich guy wants to put money in some other rich guy's pocket for underperformance.
Chances are these "sophisticated investors" made their money in a similar fashion, albeit in a different industry.
Chances are these "sophisticated investors" made their money in a similar fashion, albeit in a different industry.
