Spanish fixed income and money market funds have lost purchasing power in 2007. Only 9 out of a total of 360 so-called conservative funds have been able to outperform inflation. Poor management and the prices charged for it have led 351 funds to obtain a paltry return or even losses. Attention to the percentage: 97.5% of these funds failed in 2007. Well, in reality, it was the investor who failed, as he wanted to keep his capital away from risk and the manager's overheating, which has cost him so much money and so much trouble in the past. Strategic lurches that take him from one extreme to another in terms of risk and investment profiles, but at the hands of the same advisor. A crass and double mistake.
But to return to the Spanish money market and RF funds, their mediocrity is appalling. The curious thing is that there are many millions of euros invested in these funds. capital freezers that only produce cubes of ice to cool the cubatas with which their managers and custodians celebrate their astonishing ability to win clients., The toast to the naivety of those who prefer their investment funds to a simple fixed-term deposit, without going any further. Among their audience, we will find uninformed and weak-willed people who succumb to the pressure of the grandiloquent corsage that the entity places in the front line. But we will also find as participants in these funds the remnants of investors who have been chastened by turbos, forex and other highly speculative investments that are not at all suited to their family's needs, and which have done them far more harm than their manager will ever want to know, let alone know about. take on (I recommend this article of Echevarri).
It seems to be commonly accepted that a money market or conservative RF fund is not capable of
equal a simple bank deposit. It is as if, in order to exceed this minimum requirement, it is necessary to take on equity or equity risk. alternative inevitably. Those who believe so must have been viciously hypnotised by their vampiric managers/advisors, in order to bleed them for a bigger slice of their succulent wealth pie through the assumption of higher risk and fees. A way of deprogramming the minds of these investors. handicapped The first way to bring them back to the realities of fixed income markets would be to replace their managers with competent and independent Counsellors. And another, perhaps much more accessible one, would be to participate in the monthly colloquium by Francisco Llinares. Although both the former and the latter may make mistakes and say some foolish things, there is no doubt that the informational and ethical shock they will receive will awaken more than one.
Let us all make sure that next summer the managers of these funds and the advisors who recommend them will have to toast with a toast with a glass of wine. of time, no matter how sweaty and hot they are. And may their irritated chattering throats not be cooled. on the rocks at the expense of the uninformed, the misinformed and the weak. Repeat after me: Not with my ice cubes!
(value on the rocks)