From 16/04/2021 Monash Absolute Active Trust - PDS. Page 21:
- Adds up to 4.28%
- Plus 0.3% buy spread and 0.3% sell spread!
Let's use the Money Smart Fee Calculator:
https://moneysmart.gov.au/managed-funds-and-etfs/managed-funds-fee-calculatorLet's say you can get the nearest passive equivalent exposure in an ETF for around 0.28%
(That makes the Total Expense Ratio difference an even 4% for our calculation)
With $50,000 invested for 20 years and a 7% investment return we can figure the effect of this 4% cost difference:
- Your $50,000 in the passive ETF would have grown to $193,485
- But in MAAT $106,270 of the gain is lost!!
- Leaving you with a meagre gain of $37,215
Where are the customer's yachts? Stolen!
Over the long run MAAT investors are on a hiding to nothing. The smartest active managers in the world couldn't overwhelm a 4% handicap in the long run. Indeed I predict MAAT will clearly be on track to massive underperformance within 5 years.
MA1 investors will also be paying an astronomical TER for the much smaller MA1 vehicle after MAAT is launched (till they fully wind it up)
