Daily Insider: Sean Peche drops nuclear bomb on SA’s fat and flourishing asset managers

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Sean Peche drops nuclear bomb on overfed SA asset managers 

London-based Sean Peche tells me one of the first people he met after arriving in SA yesterday was a gent who congratulated him on our recent interview about Balanced Fund unit trusts charging big fees for pathetic performance.

Sean told his new associate to “watch this space” – and within hours we’d published a story he describes as a “Nuclear Bomb” compared with the balanced Funds “Scud Missile”. There are so many shocking conclusions into his investigation into SA unit trust Performance Fees that best you watch the recording (click here) or have a listen (click here).  

And don’t just take my word for it. Shortly after the already gone-viral video had been published on YouTube, independent financial advisor Magnus Heystek dropped me an email to say “it must rank as one of the most compelling financial exposés I’ve seen in many years, if not decades.”

Sean is in SA ahead of delivering a keynote address at the BizNews Conference in the Drakensberg next week. If you’d like to shake the hand of a man determined to put billions back into the pockets of SA savers, there are still ways to get into the event. Click here to register your interest. 

WATCH: After his recent expose’ on the massively underperforming, but big fee charging Balanced Fund unit trusts, Ranmore Funds founder Sean Peche has taken his attack on money management ripoffs to a new level. The highly qualified asset management insider (CA, CFA) describes results of a lengthy and thorough investigation into unit trust Fact Sheets and in particular the Performance Fees charged in SA, as a “Nuclear Bomb” compared with his Balanced Funds “Scud Missile”. He notes that Performance Fees on retail funds are a uniquely South African feature, having been abandoned elswhere by competition and regulator action. Peche took BizNews.com’s Alec Hogg through a presentation where he lays out the shocking results uncovered by his research. It shows, inter alia, that SA’s Big Three asset managers – Allan Gray, Coronation and Ninety One – are generating billions in unwarranted fees through applying self-serving self benchmarks to deliver huge “Performance Fees” – in some instances even when they have been losing money for investors.

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