TED WERNHAM CALLS OUT THE GLOBE & MAIL

We shared our research about Money Market Funds with you on our BUILDING WEALTH radio program on am980.ca, podcast here, and posted our research at our blog TED WERNHAM, read here.

In summary, we told you that Money Market Funds are not created equally, and concluded that one could earn $3,434.18 from the largest money market fund in Canada (by deposits), or $13,149.85 from the money market fund that we recommend to our clients.  Both results from the same deposit over the same period of time, as at October 06, 2010.

So we noted with interest, an article posted October 04, 2010 about Canadian Money Market Funds, in the Globe and Mail.

Here is our response to that article so that you can make an informed decision and benefit from our research.*

The article indicated “we screened for the 8 best ….. performers over one year ended August 31.”, but went on to say “segregated funds excluded”!

Not only interested, now we are curious. 

We agreed that high management expense ratios on a Money Market Fund are hard to explain.  The fund we recommend has a management expense ratio of 0%.

We disagree with excluding segregated funds from the study, particularly with all the advantages pertaining; which we would be pleased to explain to you.

The “leaders” listed at the Globe and Mail, would have you believe that the Fund with an MER of 0.53%, net assets of 3.9 million, and a one-year return as at August 31, 2010 of 0.72% is the best of the leaders!

Ted Wernham has news for you! 

The Money Market Fund that we have recommended has an MER of 0%, net assets of 226.7 million, and a one-year return as at August 31, 2010 of 1.04%.

Enjoying the benefit of our recommendation over the past year as at October 06, 2010, could have provided you $2,794.79, while the Globe and Mail top leader could have provided you $1,133.27.   Both results from the same deposit over the same period of time, as at October 06, 2010.

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*Note: past performance is not a guarantee of future results.  This article is not intended as a recommendation and should not be considered without thinking advice on legal, tax, and investment matters.  For further information contact 519-670-3177. 

 

Ted Wernham
Ted Wernham

Ranked # 1 in London by MDRT, the Premier Association of Financial Professionals. retirement income manager, Host Retirement Ready! Radio on AM1290 Ted Wernham