Possible value fluctuation made clear in statement

Categories:
Investing
Summary:
Timoti invested in a superannuation fund sold through his bank. He made monthly contributions for the next eight years before selling his units in the fund. He received 3.5 per cent less money than he had put in.

Timoti alleged the bank had managed the fund incompetently and misled him by not informing him the superannuation fund was high risk. He sought reimbursement for a year in which the fund performed poorly.

Our investigation

We did not consider Timoti had been misled. The investment statement contained clear warnings that its value could fluctuate, and that an investor could receive less than he or she invested. Timoti had signed an acknowledgment that he understood this. We considered the superannuation was appropriate for his risk profile, investment timeframe and stated needs.

Timoti had withdrawn from the fund at a time when market conditions were particularly unfavourable to him. The low price he received when he sold his units was not the fault of the bank. 

Outcome

We declined his complaint.

Print this page