Read This if Your Retirement Fund is Invested in the Stock Market

November 10, 2014 at 8:56 AM Leave a comment

Money Tree via ppiblog.com

(Image via ppiblog.com)

 

If you have money in an account managed by an “institutional investor,” good luck:

Rising Secrecy, Fees and Theft Make This The Most Dangerous Of Times

Money management fees have exponentially grown to unprecedented levels, thanks to the proliferation of alternative investments such as hedge, venture and private equity funds. While it was assumed decades ago that the public would be unwilling to continue to pay retail fees of even 1%, today many of the largest institutional investors eagerly pay fees of 2% and 20% of gains— a near 400% increase.

[…]

Alternative investment offerings commonly dictate that the manager has the right to withhold any and all information, or to provide certain investors with enhanced disclosure that can be used to profit at the expense of other clueless investors.

[…]

Managers reserve the right to withhold from investors any information that may negatively impact their reputations, including criminal activity.

Disclosure like the Madoff feeder-funds’ explicit warning, “the manager could abscond with the assets,” no longer seems outrageous. As long as clients consent to thievery obliquely disclosed, details of the theft can be withheld and the crime will never be detected, or prosecuted.

More…

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Entry filed under: Corporatocracy.

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