Definition of Madness...

Here we are again, the start of a new year.

What can we expect in 2011; we know about the Budgetary changes, we know there will be an election & we know that there will be a new government.

However we are still in a state of flux with our economy and planning 3-5 years out remains difficult. I suspect most of the general public are looking at their current financial situation & at a minimum are looking to learn from the past. Less consumer debt, more saving etc …

Clients we meet are far more aware of their financial world and what represents value for money. Despite this, the majority of the Irish public continue to invest with fund managers who average negative returns over 3 and 5 years. The average managed fund return is -4.1% per annum over the past three years. The five year returns to the end of December are mostly negative, with an average return of -0.6% per annum over this period.

This begs the question: where is the value for money in this relationship, particularly with an average annual management charge of 1% per annum?

Everyone is aware of the well worn definition of madness, doing the same thing but expecting different results. This also applies to pensions!

Michael Keyes