Magnet Funds

S

sunnyside

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Hi all, I am thinking of buying into some of the magent funds provided by Friends First. (via my pension).

Has anyone any experience of them? The mgt fees seem to be 1.25% for the year. Which seems okay,...

Has anyone anything positive to say about them or prehaps experience of similar / better funds,...

Thanks for any and all advice.
 
The Magnet Explorer brochure mentions a charge of 1.25%, although

The Magnet Explorer fund is an element of the overall portfolio. It offers investors easy access to a unique combination of actively managed emerging markets where the fund managers believe that significant potential growth opportunities exist in the medium to long term.
Click to expand...

More info.
 
Yeah, sorry, there are 2 different funds you can join.
The magner explorer has higher charges,..
I have an appetite for riskier funds at the moment, I suppose my question is, is this the best available ( i know there are no crystal balls). The charging structure to me looks fair, or am I wrong??
And after that I suppose I am in the lap of the Gods as regards performance,..
 
Your post does not include any details of any other charges that apply to the pension product.

Is there a policy fee, bid/offer spread or reduced allocation rate on the contribution invested or exit charges should you wish to transfer out of the scheme?
 
From reading the brochure, the Magnet Explorer fund invests in a set of actively managed funds, so to a large extent this all depends on whether you believe active fund managers can outperform indexes.

It’s generally agreed that active management does not provide superior returns in mature markets but with developing markets like these, fund managers can (theoretically) get greater returns by taking advantage of mispricing in these less efficient markets. So by going the Magnet route you are basically taking a bet that the fund mangers can exploit inefficiency in the less developed markets to gain superior returns and that these returns outweigh the management charge.

Alternatively, you could just buy ETFs for the markets concerned (e.g. products like IFF.L, LTAM.L, BRIC.L - Russia and India ETFs are sold on the NYSE, or something like IEEM.L) and sit back and enjoy the whole market gains or suffer the losses, and also benefit from low expense ratios. (You might also want to read some of the articles on developing country ETFs on before you go this route).
 
Thank you very much for the info PMU, I will read up on your suggestions.

One quickie, I was hoping to use money from my pension, (well my employers money!!), can I still buy these ETF's through my pension?
Thanks
 
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