Quote:
Originally Posted by Slava
I just don't understand how you expect the due diligence of a mutual fund company to find something that no one else did? I think that you are also missing the point of the MERs'...but that is a whole other discussion.
Fact is that while mutual funds are not the best option for everyone and for all of their money they were not the cause of the problem here. A lot of very smart people lost a lot of money with this scumbag. Its not like Mackenzie hired him and brought him in as a star manager for one of their funds. They were paying someone who was paying him to manage some money. They are surely responsible for that, but if the SEC and countless others couldn't see the Ponzi scheme than its obvious that Mackenzie didn't know either.
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The SEC has missed a few things recently that cause one to shake their head. How can one guy scam $50 Billion and nobody had a clue about what was going on. I think the entire system looks pretty weak in this case. As for Mackenzie it is disappointing that they would be caught in bed with a serial fraud artist like this and they should stick to their own star managers such as Peter Cundil. What were they thinking. I say just cut the fund manager right out of the picture and if you aren't able to manage your own portfolio you can now have an actively managed ETF (Beta-Pro) that would at least offer you more transparency as to what exactly you are investing in. If there is no trust in the mutual fund / hedge fund industry people will find alternative ways to make money. I guess mutual funds and hedge funds do have a place but they don't belong in my portfolio thats all.