Message:

<p>[QUOTE=&quot;Del Pinto, post: 2096120, member: 73128&quot;]beef1020 said: ↑ &quot;This fund puts to rest the argument that people could not buy an investment vehicle with similar returns to the full market, at least from 1931 on, as well as the effects of total loss and index re-balancing on return over that period.&quot;</p><p><br /></p><p>Pick a fund, any fund. Pick a year, any year. &quot;Voya Corporate Leaders Trust Fund (the “Trust”) was created in 1935 with the objective of seeking long term capital growth and income through investment generally in an equal number of shares of the common stocks of a fixed list of American blue chip corporations.&quot; This particular share scheme was sold door-to-door from 1930 on. Survivorship bias is huge. Lots of losers, swept into the dustbin of history. Don&#039;t count those! Better to make-believe you invested in Berkshire Hathaway back in 1955, with no brokerage cost or taxes lol. In the first six years (when stocks were cheap!) ~15% of these investment trust schemes failed completely. It would be interesting to know how many failed by 1940, or in the first ten years of the funds&#039; existence. Who here would accept that kind of risk, total loss, today?</p><p><br /></p><p>Oh ya, best for last. Typical load? 10%! Who here would pay that for a unit trust? These funds were intentionally marketed and sold to poor people who didn&#039;t know better, apparently. Front load, initial fee, secondary load (deductions from dividends, etc.) service fees, management fee, and a raft of other charges, taxes, etc. The average total load among installment investment plans was 16.58%. (Corporate Leaders Trust Fund Certificates A was 14.07% on $1,200. in 1936.) Insurance premiums bumped that avg up to 23.77%. Still sound like a good deal to you?</p><p><br /></p><p>Investor performance MUST factor all fees &amp;costs: this &quot;performance&quot; obviously did NOT. If it isn&#039;t already clear, NO the fund&#039;s real return WAS NOT equivalent to &quot;the full market&quot; or even an index fund after 1974. And that&#039;s why this fund was - according the owners! - &quot;dead in the water&quot; by the mid 1980s. &quot;Voya&quot; was NOT even competitive with the crummiest index fund, and for decades, by the owner&#039;s own admission.</p><p><br /></p><p>&gt;&gt;The fund has made a comeback since 1988, when it was reorganized by Lexington Management in Saddle Brook, New Jersey. Former Lexington executive Lawrence Kantor said <b>high fees tied to its outdated trust structure kept it from getting any flows</b>, and changing to a unit investment trust made it competitive with modern funds. <b>The fund &quot;was dead in the water for like 20 years&quot; because &quot;it had such an outdated structure that <i>it wasn&#039;t saleable</i></b>,&quot; Kantor said. Told the fund now has $1.7 billion, Kantor, 67, said &quot;That’s incredible, because when we reopened the fund I think it had $60 million in assets.&quot;</p><p><br /></p><p>&quot;<b>It would be interesting to know how many of the people who actually put their money into (the fund) actually know what it is</b>,&quot; said Rob Brown, chief investment strategist at United Capital Management, an investment advisory firm. &quot;<b>In a lot of cases, I bet they don&#039;t</b>.&quot;&lt;&lt;</p><p><br /></p><p>Sheeze-Louise. $1 bln or more in dumb money, or Got Lucky?[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in