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I left the UK for Canada some 10 years ago, leaving a SIPP to be managed by a well respected private company in London.

After 10 full years the return on my investment is less than 8%. I'm stunned and wondering if I have any legal recourse on what is clearly an under performance on a drastic scale.

I have lodged a formal complaint with them but I get the feeling that this is very much "asking the chef to comment on the food"

Can anyone offer some helpful advice?

Many thanks

Martin
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Why in the last 10 years haven't you checked on it?
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I left the UK for Canada some 10 years ago, leaving a SIPP to be managed by a well respected private company in London.

After 10 full years the return on my investment is less than 8%. I'm stunned and wondering if I have any legal recourse on what is clearly an under performance on a drastic scale.


I don't know what you were invested in, but on April 2, 2001 (10 years ago), the S&P index closed at 1,224.38 Today, it closed at 1,332.41 That's an 8.82% return over the same 10 years. You should check the values for general stock market indices of whatever countries you were invested in to see if there is a similar comparison.

If they charged fees, they probably actually outperformed the market, but you probably paid them more than the premium over the market that they made.

I have lodged a formal complaint with them but I get the feeling that this is very much "asking the chef to comment on the food"

Can anyone offer some helpful advice?


Invest the money yourself instead of trusting/paying someone else to do so. If you do pay someone to invest your money for you, check it more often than every 10 years.

AJ
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I did periodically check in and was always assured "we're ahead of the indices". I guess I always trusted that it would be okay given time.
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Are you saying that the fund should always just follow the index at large? I had some mutual fund investments in Canada that performed at over 50% in the same period. I'm dismayed that a so-called fund manager can't do better than 8% over ten years.

I agree that I should have paid much more attention and I feel really dumb now that this has reached its conclusion
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Are you saying that the fund should always just follow the index at large?

Well, it depends on the objective of the fund. Is the objective to follow the index? Is the objective to beat the index? And does the objective take any fees into account?

I had some mutual fund investments in Canada that performed at over 50% in the same period.

Were they similar investments - in the same asset class(es)? If not, then the comparison isn't fair.

I'm dismayed that a so-called fund manager can't do better than 8% over ten years.

Again, what was the objective, and did they meet that objective?

AJ
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Invest the money yourself instead of trusting/paying someone else to do so. If you do pay someone to invest your money for you, check it more often than every 10 years.

Bingo!

Ye gods... To leave ANY of my money lying somewhere for 10 years and not know what it was doing seems crazy!

Hell, I want to know DAILY, let alone 10 months or (shudder) 10 years.

Vermonter
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Martin,

A return of 8% per year over the past decade would be decent for managed money. If that isn't what they achieved for you, then hire the most expensive lawyer you can find and sue them. But keep this in mind. If the judge has any common sense, the suit will be thrown out of court as "frivolous" for the obvious reason that you exercised not the least bit of due-diligence and that you are as negligently culpable as they are.

In other words, be glad you got your money back and write the opportunity losses off as a cheap lesson.

Charlie (who long ago stopped letting others manage his money)
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