Fischer Investments

[Big Rig]

They are trying to get $500,000 minimum from me for their world index fund sold only to those who have $$$$ so you think you are getting special insider stuff. They claim to beat the MSCI world index by 1.5% since 1995 after their 1.5% fee. I currently have that money in the S&P so that is my comparison.

THIS IS MY LETTER TO THEIR SALESMAN.

S&P vs MSCI world


No meaningful diversification benefit during crashes – both move largely in sync.

since 1995

msci 9.5% S&P 10.5% so your claim of beating msci by1.5% after fees offers very little over s&p that I get for a tiny fraction of your MER plus your past performance is no guarantee of future performance


So, you are asking me to pay a guaranteed 1.25% annual fee—which amounts to hundreds of thousands of dollars over a lifetime—for a possible 0.5% extra return. But to get that 0.5%, your team must consistently beat the MSCI World by roughly 2.75% per year before fees—putting you in the top ~5% of active managers globally. The data shows that over 10–15 years, 95% of you fall back to the mean or die out entirely.

So my expected value here is negative. I am risking a massive, guaranteed fee drag for a tiny, statistically improbable upside.

Also, I fear gamesmanship is afoot in the twisting of truth that I am unaware of.

 

[Ponderling]

They are trying to make it that you are a 'qualified investor'.
Big minimums allows no public prospectus, etc.
It is presumed that it is limited to knowledgeable investor - so buyer beware.

Beating the 'index' by 1.5%, and then laying a 1.5% mananegment fee, that they collect in good years as well as bad really makes this one smell bad to me.

But investing beyond the S&P can be a prudent thing to do.
I know that S&P has been roaring ahead in last half decade, but I still spread my money around.
In fact I view the S&P to be overheated.
So I now own a small slice of S&P in an ETF focussed on just the tech stocks (IYW).

And then put the rest of my US equities into a small cap value fund, VBR.
Small cap in US market equates to average sized Canadian company, so it is not really too risky, when the title says small cap.

That way if S&P does a melt down, when people figure all the hot tech stocks driving S&P big returns are investing in each other, which increases collapse risk, I should see some downside protection.

 

[niniveh]

They are trying to get $500,000 minimum from me for their world index fund sold only to those who have $$$$ so you think you are getting special insider stuff. They claim to beat the MSCI world index by 1.5% since 1995 after their 1.5% fee. I currently have that money in the S&P so that is my comparison.

THIS IS MY LETTER TO THEIR SALESMAN.

S&P vs MSCI world


No meaningful diversification benefit during crashes – both move largely in sync.

since 1995

msci 9.5% S&P 10.5% so your claim of beating msci by1.5% after fees offers very little over s&p that I get for a tiny fraction of your MER plus your past performance is no guarantee of future performance


So, you are asking me to pay a guaranteed 1.25% annual fee—which amounts to hundreds of thousands of dollars over a lifetime—for a possible 0.5% extra return. But to get that 0.5%, your team must consistently beat the MSCI World by roughly 2.75% per year before fees—putting you in the top ~5% of active managers globally. The data shows that over 10–15 years, 95% of you fall back to the mean or die out entirely.

So my expected value here is negative. I am risking a massive, guaranteed fee drag for a tiny, statistically improbable upside. t?

Also, I fear gamesmanship is afoot in the twisting of truth that I am unaware of.

Once you peel the sugar-coated layers of their marketing spiel, it becomes evident that there is little difference. All of them have the same objective; how get a slice off your life-savings. As parasitical as realtors.

 

[Big Rig]

Another kicker is they claim to be fiduciaries

A fiduciary is concerned only with my well being by definition

Yet, they want all my monies to go into their investments

The only proper fiduciary are the ones who charge a hourly fee IMHO not a %

Another kicker is this guy claims to be a financial advisor when he is clearly a salesman

I will wait for his response

 

[Indiana]

Don’t deal with them.

 

[jeff2]

I believe there was something that got him into trouble in the U.S., equating getting new customers with trying to get into a woman's pants if I recall correctly. However, I also remember that he counselled a woman who lost money in the 2008/2009 crash to try to forget about that period and look forward. He got that one right. Then again, what else would he say?
And the $ 500,000. in Canada appears to be 1,000,000 in the U.S. if watching the U.S. ads.