The 9 Funds Available on MFF Platform

I thought it works as follows.

I am aged 30. I choose the High Risk fund.

Then NEARSA take my conts and place them into three high-risk funds:

1/3 Amundi
1/3 Blackrock
1/3 I can't remeber the name of the third fund manager
 
On the perceived complexity of the fund information via the KIIDs, this is what the MFF website states:

Each Investment Manager has provided a simple overview of their investment principles for each investment strategy. These overviews are called Key Investor Information Documents (KIIDs).

You can find the KIIDs for each of the investment strategies below. You should read these documents if you are considering switching investment strategies.

TBF to Almundi & Blackrock, their KIIDs include/disclose the total costs via the AMC, OFCs & PTCs @ (up to) 0.10%. ILAC continue to be vague on PTCs -This (0.024% ongoing charge) figure does not include portfolio transaction costs. - and you can rest assured they will apply as all these funds are actively/passively managed. And, the entry/exit/switch costs on the ILAC KIID are a bit of a curve ball.

Looks like outcomes for savers have been sacrifised at the altar of (headline) AMC and I doubt there will be a demand for fund switching unless those people read discussion forums or pay for advice. Will they even care? Probably not.
 
These KIDs are absolutely useless. For example this is the indication of how the Amundi funds will perform:
1766939003726.webp

EU law requires that this information is given based on an analysis of daily movements in the fund or its index if it is a tracker over the last 5 years. I mean who would ever choose the Low Risk Fund instead of the High Risk Fund?
ILIM do not provide these figures as their funds are too new to have any past performance.
 
ClubMan said:
People who are misguidedly too risk averse?
People who are automatically switched to the low risk fund via the default lifestyling strategy?
People who don't know any better?
Click to expand...

I'll add - people who won't read these documents. And before anyone takes the high moral ground, do all of you read the warning leaflets on every packet of painkillers you use? And then make a decision as to whether you want paracetamol or aspirin because of the differences?

In my day job, I send people similar documents about fund choices and encourage them to read over them. I know many don't and prefer to rely on the advice I'm giving them, ask me questions etc. This is one of my big fears about the MFF project - NAERSA can't / won't provide any advice. This is not a self-serving / sour grapes comment by someone working in "the industry". Personally I'm not a million years from when I could choose to retire. I'd genuinely be happy if NAERSA employed sufficient numbers of qualified staff to explain that fund values can and will go up and down and other basic concepts that AAM regulars take for granted. Otherwise, the first time that fund values drop, as they inevitably will (including the low-risk choices) then the public outcry will be huge - see post #6 above.

In my day job, I also try to substitute the word "volatility" for "risk" when talking to people about the concepts of volatility vs reward, with people who don't already understand the concept. Many people will choose "low risk" because they believe that their money will be "safest" in this choice, based purely on the name alone.
 
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