That article is misleading in a number of respects.The above article focuses on Friends first Irish Commercial property fund stating the fund typically wipes 3.35 percentage points a year from performance off the return of 7.46% since 1984.
From the figures can you calculate the historic expense ratio?That article is misleading in a number of respects.
The 7.46% figure is the (self-reported) annualised return on the retail institutional fund class (gross-roll up) of their Irish commercial property fund from March 1984 to October 2017.
The 3.37% figure represents the projected impact of investment costs on the projected return (moderate scenario) on the same fund under a particular investment plan.
In other words, the article confuses:
It's not comparing apples to apples – it's comparing oranges to bananas!
- Different products;
- Gross and net figures; and
- Projections and historic returns.
Links to the relevant documents:-
https://www.friendsfirst.ie/wp-content/uploads/Friends-First-Irish-Property-Quarterly-Customer-Report.pdf
https://www.friendsfirst.ie/wp-content/uploads/active/Active/FUND_ZSSS360_606.pdf
https://www.friendsfirst.ie/wp-content/uploads/PRIIPs-KIDS-and-Friends-First-QA.pdf
No, I'm afraid not.From the figures can you calculate the historic expense ratio?
.....is a huge failure of our regulatory system.
This might be one of those apples v. oranges comparisons.
The charges on your pension are the fund management charges whilst the charges in the article are presumably all charges. SBarrett discussed this a few days ago on this link - https://www.askaboutmoney.com/threads/behind-the-pripss-curtain.206606/
It hardly matters wether it is apples or oranges if you must pay for both.
I'll have a shot at explaining the different terms but I'm afraid it does get fairly complicated.I don't consider my self either stupid or uneducated but I didn't understand a word of that thread.
No, distribution costs (intermediary commissions, platform charges, etc.) wouldn't fall within the scope of the AMC.Are marketing costs included in the AMC
Yes, the RIY is calculated on the basis of the moderate scenario, over the recommended holding period, indicated in the KID. Funds with different returns over the same holding period will exhibit slightly different figures for similar costs.Is the RIY affected by the projected return
I don't consider my self either stupid or uneducated but I didn't understand a word of that thread.
I invested 200k a sizeable amount to me through a crowd called Liberty Asset management back in 2007. Today it is worth 204k.
It is with New Ireland currently in their evergreen fund. The current AMC charge is stated at 1%.
I will be closing off fund over the coming weeks and investing directly due to the dismal performance and charges i dont understand or have control over.
Cold anyone offer a rough idea what the actual charges per annum are on such a fund.
Also a small number of units are added to the fund each month. I phoned and spoke to an agent in New ireland and all they could say was that this was the structure set up with the broker at the start of the policy--no detail.
Could anyone explain in simple terms?
Cheers.
Sarenco that is a very helpful introduction to PRIIPS. Now what I am going to say is no criticism of FF but it seems to me that this PRIIPS stuff has really lost the plot, unless I am reading it wrong.Links to the relevant documents:-
https://www.friendsfirst.ie/wp-content/uploads/Friends-First-Irish-Property-Quarterly-Customer-Report.pdf
https://www.friendsfirst.ie/wp-content/uploads/active/Active/FUND_ZSSS360_606.pdf
https://www.friendsfirst.ie/wp-content/uploads/PRIIPs-KIDS-and-Friends-First-QA.pdf
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