I finally phoned an under-performing mutual fund manager!

[RickLee]

After months of forcing myself to look at my wife's investment updates during this bear market, I finally gathered the nerve to call one mutual fund manager for their under-performance. It is one of those funds that managed to under-perform an under-performing market. We're talking a loss of 80% of original value. I first called the President and CEO and left a message to call me back. I next called the Chief Financial Officer and he answered on the 1st ring. I introduced myself, vented in a polite way, and asked some pointed questions.

Question 1: What is your plan for reinstating the monthly cash distributions for this income fund, which have been halted since March 2008?

Question 2: What is your business case for investors to hold on to their investment rather than cashing out today?

Question 3: How, if any, has management sympathized with the losses experienced by investors, especially regarding management expenses of the fund?

Question 4: Why has the quarterly reporting been scant to none lately?

I got my questions answered. But I did not like the answers, nor did I get much confidence to hang on patiently. It seemed I was a better salesperson than the Chief Financial Officer, because I was coming up with reasons why we should hold the investment that the CFO failed to bring to the discussion.

I am committed to hold accountable those who are paid to manage my money. I hope you all do as well.

[isentropic]

This is so awesome! Kudos!

[starshard0]

I don't think I'd ever bother to deal with management. If I don't like the fund I can take my business elsewhere.

[Shawanda]

I can't remember the statistic exactly, but something like 75% to 80% of actively managed funds underperform the S&P 500 every year. That's absurd. Especially since you have to pay these people a percentage of your underperforming portfolio. Personally, I couldn't care less how many hours the decision makers at the mutual funds work. You get paid for results. The result I'm looking for is better returns than the stock market. If a mutual fund manager can't do that (and most can't), then I'll just stick my cash in a low cost, index fund or ETF.

[starshard0]

Originally Posted by fast1

so did things improve after that call?[IMG]http://*********.com/img/3322/n09x0302vnsn/clear.gif[/IMG]

I doubt things would improve quickly enough to notice right away.

[flipchick1127]

Originally Posted by starshard0

I don't think I'd ever bother to deal with management. If I don't like the fund I can take my business elsewhere.

I agree. If the fund isn't performing to my satisfaction, I am going to take my money elsewhere. I don't care what the management has "planned" for the future. If someone else is already doing something that works, then I am going to go with them.

[talkwithtim]

Good job standing up for yourself.

Most people get intimidated and don't say anything. Especially since most people know little to nothing about investing. No one cares about your money like you... So, brushing up on your financial IQ is in your own best interest. (By "you" and "your", I'm not directing this at anyone...I'm using the plural [pronoun] form.)