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The super costly feeder layer fund! |
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Written by Wilfred Ling
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Thursday, 20 September 2007 |
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Does anyone know that Manulife's Pacific Equity fund feeds into Aberdeen Pacific Equity fund which is available as a standalone unit trust? Due to the the extra layer at the Manulife's side, this fund is extremely costly:
As at end of July 2007, the bid-bid 1 year return of Manulife's Pacific Equity fund is 34.65%. As at end of July 2007, the bid-bid 1 year return of Aberdeen Pacific Equity fund is 37.4% The difference is a whopping 2.75% of annual extra expense! Why invest in identical underlying fund only to pay so much more? Perhaps the extra layer is due to both the extra layer at Manulife's side and some goes to the adviser as trailer fees. I know everybody must make a living but to charge the customer 2.75% extra of annual fee?? This is ridiculous! Give your comments |
