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18.10.2010 ( Independent user - B2) (Writing practice - index)

CUSTOMERS LOSING THOUSANDS ON PENSION FEES

I found this article really interesting because it treats the subject of fees paid in plan pensions from the two different points of view: on one hand subscriptors and on the other hand pension industry.

Firstable we have to consider what customers expect from a pension plan: an important return and tax profits. Within this context, we can notice that 1.5% in fees of pension plans is a very high amount, even though if we compare this figure with the 0.5% in average paid in portfolio management or private banking.

And in my opinion, this situation is due to different reasons, but mainly is related to how pension plans are being managed and to customers perception of their investment.

Nowadays pension plans are supporting lots of types of fees like management fees, annual fund manager charge, establishment fees, dealing fees, broker bonuses, etc, which reduce considerably earnings of these investment vehicles. In fact, it is very illustrated what this article highlights about that “the net return to pension funds collectively has reduced. And it is reduced by the amount that fees have gone up by”.

But i think the most important point is that pension plans are long term investments and many customers are not aware of all their conditions. And sometimes, there is not a problem of transparency -because banks and big companys usually inform them in a proper way- but a problem of investors financial culture.

Therefore, it is necessary to improve invertors training in financial area so that they can recognise advantages and disadvantages of this kind of products, fix an aim of net return based on their economic situation and risk tolerance and analyse continuously the evolution of the investment so that they can take appropriate decisions about that.

My suggestions: Index .

CUSTOMERS LOSING THOUSANDS ON PENSION FEES

I found this article really interesting because it deals with the subject of fees paid in plan pensions from the two different points of view: on one hand policyholders/clients and on the other hand the pension industry.

Firstly we have to consider what customers expect from a pension plan: an important return and tax benefits. Within this context, we can notice that 1.5% in fees of pension plans is a very high amount, especially / particularly if we compare this figure with the 0.5% in average paid for portfolio management or private banking.

And in my opinion, this situation is due to different reasons, but mainly it is related to how pension plans are being managed and to customers' perception of their investment.

Nowadays pension plans establish / charge many types of fees like management fees, annual fund manager charge, establishment fees, dealing fees, broker bonuses, etc, which considerably reduce earnings of these investment products. In fact, it is very significant / interesting / coincidental what this article highlights about that “the net return to pension funds collectively has reduced. And it is reduced by the amount that fees have gone up by”.

But I think the most important point is that pension plans are long term investments and many customers are not aware of all their conditions. And sometimes, there is not a problem of transparency -because banks and big companies usually inform them in a proper way- but a problem of investors' financial knowledge / awareness.

Therefore, it is necessary to improve investors' training in financial areas so that they can recognise advantages and disadvantages of these kinds of products, fix an objective of net return based on their economic situation and risk tolerance and continuously analyse the evolution of the investment so that they can take appropriate decisions.

Self assessment checklist B2

Writing

I can write clear and detailed texts (compositions, reports or texts of presentations) on various topics related to my field of interest.

I can write summaries of articles on topics of general interest.

I can summarise information from different sources and media.

I can discuss a topic in a composition or "letter to the editor", giving reasons for or against a specific point of view.

I can develop an argument systematically in a composition or report, emphasising decisive points and including supporting details.

I can write about events and real or fictional experiences in a detailed and easily readable way.

I can write a short review of a film or a book.

I can express in a personal letter different feelings and attitudes and can report the news of the day making clear what - in my opinion - are the important aspects of an event.