I have been an investor in M&G's European Index Tracker Fund for the last 5
years. During that period the fund has risen 23% whilst the FTSE World
Europe ex UK Index has risen 31.5% This seems like an enormous difference
to me; a dismal failure to actually track the index. Am I being naive?
M&G's explanation is "the fund's performance was behind that if the index
due to a timing differerential. The index is priced at the end of the day,
whilst the fund is priced at 12 noon".
On a more positive side the managed M&G European Fund has risen only 18.9%
in 5 years so this could have been worse!
- posted 13 years ago