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Client says underlying funds performed well, but fees absorbed most of his growth. 00:01
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A look at the fund statements shows that Mr G is right on some points, but wrong in others in that he is not comparing like with like. Image: Shutterstock
A lot of people complain that investment returns a few years down the line fail to match their expectations at the time they signed up for an investment policy, including a concerned Moneyweb reader who started investing in a retirement annuity (RA) 16 years ago.
âIt looks like high fees absorbed most of my returns. The underlying funds performed better than [I expected], but when I look through my statements the fees are very high,â he says, adding that there is a large discrepancy between the performance figures quoted by the individual funds included in his RA and the returns shown by the investment manager.