I have purchased Unit Trusts with a bank through Wealth Manager, however, the Gain/loss & Profit/Loss the results have appeared to be far different with the Morningstar platform (created portfolio)?

Hello there,

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some information for your consideration

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1) morningstar usually shows Year til date performance of the fund or certain period of the fund eg 1y/3y/5y.

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So in order to get a precise comparison, your buy in date of the fund will need to be exactly the same date as morningstar when they try to tabulate the numbers. which in this case, its quite rare.

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2) 5% sales charge is abit on the high side. usually its around 2-3%

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Looking at how banks make revenue, they usually encourage transactions from clients making an upfront fee, and after that they usually no longer oversee your portfolio as there are no other incentive to keep u updated, unless they are trying to get you to take profit and go into something else/ or cut loss to go into something else.

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Their pitch is to encourage you to make more transactions to earn an upfront from you and with high turnover of relationship/wealth managers. its difficult to stick with someone to help you with a comprehensive investment strategies over the long term with regular yearly review.

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I may suggest speaking to an independent professional whom fees structures are aligned to your growth rather than a transactional one.

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There are also professionals who provide a fixed one off fees for clients to provide unbias opinion for their investment plans and financial plans. I would advocate those services over banks..

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But again its just my 2 cents worth, Hope its able to to shed some light to aid you in your considerations in finding the right platform/tools for your investments !

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Cheers !

Isaac Tan

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When it comes to tracking the performance of your Unit Trust investments, it's important to understand that different platforms or sources may provide slightly different figures due to various factors. Let's address your specific questions:

1. Accuracy of information: Morningstar is a reputable platform that provides investment data and analysis. While it is generally considered reliable, it's important to note that even reputable platforms may have variations in their calculations based on factors such as data sources, timing of updates, and methodology. It's always a good idea to cross-reference the information from multiple sources to get a more comprehensive view.

2. Trustworthiness of Morningstar: Morningstar is widely used and respected in the investment industry. Their platform provides comprehensive analysis, ratings, and information on mutual funds and other investment products. Many investors and financial professionals rely on Morningstar as a valuable resource for research and evaluation. However, it's important to note that while Morningstar provides valuable insights, it does not guarantee future performance or accuracy of its calculations.

3. Bank's tracking vs. Morningstar: Banks may offer their own tracking tools or platforms to monitor investment performance. These tools are designed to provide an overview of your investments within the specific bank's ecosystem. However, the level of detail and accuracy of these tools can vary. Morningstar, on the other hand, is an independent platform that offers a broader analysis of investment products from multiple providers. It may provide a more comprehensive and unbiased view of your investment's performance.

In order to get a clearer understanding of your investment performance, it's advisable to compare the figures provided by the bank with other reliable sources, such as Morningstar or other investment tracking tools. Additionally, reviewing your investment statements, including purchase and sale transactions, can help clarify any discrepancies.

If you have concerns about the accuracy or transparency of the information provided by your bank, it's recommended to reach out to your bank's Wealth Manager or customer support for clarification. They should be able to address any questions or discrepancies you have regarding your investment performance.

Remember, it's important to consider various factors when evaluating your investment performance, such as the time period being assessed, fees and expenses, and the overall market conditions. Regularly reviewing your investment performance and seeking professional advice when needed can help you make informed decisions about your investments.