Superannuation

[Shellee]

I wrote to Hunter Hall again on 26 February (as detailed in my last post here) but no response to that and it is 4 Marcy 2010. I guess that is normal considering they do not care one iota about me.

[Shellee]

Hi Computer Flyer

Thanks for the very logical and good advice. I should have checked and thought about what you said before I emailed the PR person at Hunter Hall today forwarding them a copy of the Standard & Poor's report specifically alluding to the fund's internal review, staff changes & focus on small caps which results in more severe losses during a downturn than other funds with stronger stock choices experience.

My email to HH was good in that it expressed my concerns with their disclosure and failure to address the above issues when questioned on them. I did however say a few things I could have re-phrased and it was sent with 1 or 2 typos, as happens when rushing personal work during and overlapping lunch hour. agh

I also told PR person emailed that he should forward my concerns to the board of directors as part of my complaint which he said he was going to do. I added that I would forward my concerns to relevant authorities for comment.

I sometimes tend to rush things then may sound a bit off kilter I know!. I will do as you say, and take my time, research the people I should contact then put together a file on the whole thing, sending copies of relevant emails etc

I have not decided what to do with the fund as it exists. I might go see a financial adviser soon but I don't trust them! I have a few friends who have been badly burned financially taking advice from professionals.

That is too sad about ur investment in bond market losing 30% off the capital in short time. I thought I had chosen my super to be placed with a prudent organisation with HH "Ethical" "Trust" but it turns out not so. They were buying small/micro caps which are hi risk but their promos said GET invests "in international companies without incurring significant risk to capital".

I can't get my losses back from HH, no matter how much responsibility they admit to. It makes no difference to my personal holding's outcome if they tell me the whole truth and nothing but the truth or refuse to respond and/or deny any liability.

They have disclaimers in print about no guarantees etc. I don't know how legally liable they are. I think that all I want now is some education, with proper explanations, revelations, facts, figures and no cover up. No sugar coated spin/shrugging me off.

I have asked a few times about where the cash component of each GET unit is (over 21.64% at the moment) and what is intended for it. No response. I am not sure I understand this concept. However no wiser for having asked questions yet. In fact while I have been trying to get some answers, the value of my super holding has fallen another couple of thousand!

There was something else I was going to say, but I forget now. Enough said however, I am sure :-)

thanks for listening..

[computerflyer]

Shellee,

Every fund can have a really bad spell, and most are honest although experts at sugar coating or spinning it to look better if not good. However issues such as changes of managers, etc, are very public issues.

I suggest you try the following, depending on your personal level of stress and just wanting to do...

Lodge formal and specific (receipted) complaints with every governmental body, state and federal, that has any regulation authority over securities and super issues. Include your MP who doesn't really care and will not do anything, but it looks nice on the cc list, and you never know if that helps. cc Hunter Halls CEO, MD or GM as applicable. Be specific in what you want, not just post a gripe.

Prior to mailing the letters, read them again and consider what reasonable outcome you can expect and at what cost, and whether cutting your loses and moving on is a reasonable option. Then mail the letters with a clear mind on what you will do.

As an Aussiecan I bought into a US bond fund sold as low risk that was in reality speculative high risk and took about 30% loss on capital in a short time. In the tradition of the American system, specialists in class actions against dodgy or less than up front securities issues sprang up in weeks, and the management company was sued for misrepresentation. (That takes years for any outcome!) While being suit-happy in the American way is not a good thing, Australia might benefit from more than we have, because we have consumer (er I mean business) protection laws that allow for all sorts of hi-jinks by the financial community as well as dodgy businesses.

[Shellee]

Another issue is that I read a 2010 report on Hunter Hall Global Ethical Trust from Standard & Poors which is accessible online.

The report commented on the poor performance of the HH Global Ethical Trust fund and quite clearly directed the responsibility on the fund managers and their criteria for selecting stocks.

The S&P report also noted that the fund management had an internal review which resulted in some leaving and a restructuring in the strategy going forward etc etc to improve the fund's performance.

Well when I mentioned reading about this to the PR person at Hunter Hall he denied there had been any change in staff etc etc.

The Standard and Poors report I think would not be as cloudy as the self serving letter allegedly explaining the fund's downwardly spiralling trajectory while not explaining it at all. A Clayton's review of the situation whereas S&P's was far more believable.

I think the reality is even more alarming than that but how can I discover it all. I would need to access S&P's data. Where and how do they get all their information? This is what I want to know.

Right now I am just venting as it is all very frustrating. HH are a brick wall when it comes to getting any real communication going with them about where my money has gone and other questions about the present real status of my personal super fund.

There is a lot more I can vent about in discrepancies and contradictions in available information on the HH Global Ethical Trust but I am done with it. I have to soon decide where to go with this. Chatting can only go so far.

At times I feel that I am getting it wrong and am making a fuss about nothing but I do know I its not about nothing. Its my future! I wish others would get het up about their super funds' downfall/s - something is definitely amiss in this industry!

Too many people are just copping it without a whimper and the funds are not having to face up to them at all. They are meant to be financial experts!

[Shellee]

another thing that I found bewildering and unacceptable.

When I recently spoke with the PR person I mentioned to him my concern that my super fund the Hunter Hall Global Ethical Trust was incurring more losses than the other Hunter Hall funds, he said "its the currency hedging".

I think he favoured me with one more sentence when I wanted more information as to what that meant, he reminded me that I had bought into the global fund (as if I didn't know) and said something about currencies.

What he said was inadequate to explain anything and then when I checked the website I noted that this particular global fund used no currency hedging, so what he was saying was inapplicable as well.

They just don't even care whether the little they tell me is appropriate or not, I'm just meant to go away.

My superannuation fund is not worth millions of dollars and that is the bottom line. I dont' matter.

[Shellee]

I replied to Computer Flyer's response but it does not appear here. I dont' have the energy to type it all again right now. Suffice to say I am self managing the fund from now on with current and future contributions by buying shares of my selection from the ASX, but with the existing holding in the fund managed by Hunter Hall Global Ethical Investments I am not sure what to decide to do. Its a significant decision and I needed their responses before I took action with it. Maybe I will contact APRA for their involvement. Yes, I think that there is a lot of window dressing that gives a fake impression of the reality of performance of the funds which are not reflected in reality. This should be illegal. At one point I was told what I was reading on the site in Feb 2010 were figures reflecting December 2008 situation!!! And people make investment decisions in respect of managed funds on this kind of information. Is this legal?

[computerflyer]

Why haven't you cut and run to another manager if you are not happy with their responses over a long period?

I would also be lodging a formal complaint with the APRA (I believe that is the proper agency) if you suspect they are being less than honest, but remember that Australian consumer protection laws are designed to protect businesses, not us (unless you are a business).

Regarding claims of annual profits, they are based on specific dates; unless you buy-sell on those dates the numbers are what they are. Managers do window dressing for those dates to assure the best looking numbers (buying-selling to maximise profits on the specific dates to get good numbers for their reports; and that record would rarely be reflected throughout the year).

[Shellee]

My super fund has details posted on their website providing information on how my fund is doing which does not coincide with the reality of my specific super fund performance.

The website disclosure and performance reports represent a better picture than what I can see on the figures on my personal fund holdings.

There are quite a few discrepancies for example, I only signed up in August 2005 for this fund rolling over from a previous fund, but the online report shows transactions in my account from 2004 and all through 2005 up to August 2005. How can this be?

I have asked questions about these issues and others to the fund and have received no adequate reply. There are quite a few questions over past few weeks I have put to the fund managers for explanations on my personal superannuation performance, but I only get phone call from the PR person who just says they will answer my questions in writing. The written response I finally received after some weeks is evasive and totally self serving, very cloudy!

I wanted to speak to a fund manager one particular day and I was told he was not in that day. After some weeks of following them up for answers I finally got an email with some responses but they are not satisfactory and do not properly address the questions I asked. It is really hopeless and no one is willing to talk to me there. They cannot explain.

I just get some spin and no real discussion from them to clarify issues I need more information on. I have now decided to self manage my super fund in relation to current and future contributions but am not sure about what to do with the existing portfolio which has been making serious losses.

I could turn to a financial adviser but from my discussions with one or two over past years, I have decided that I would prefer to do my own research as they are not infallible merely seeking commissions.

Hunter Hall's recent letter to me allude to their good performance on a few years of allegedly significant gains before the GFC. Those poor gains in fact amount to less than the regular low bank interest on the amount I had invested for capital growth and yield. Their response is patronising and ignoring my concerns. I cannot get anywhere in getting someone from their office who honestly directly can discuss the matters with expertise.

I think they owe me a respectful honest response targetting my concerns for all the money they have made from management fees I have paid over past six years I've been 'invested' (negatively) with them.

All I get is fudging and being treated as if I am rather stupid and will just go away if they just push the same lines over and over and over.