In 2023, his Visa application was approved and he withdrew his money. He was surprised to learn some stocks in which the bank had invested had not performed well, and others had a longer duration than he required. He also learned the bank had bought and sold stocks during the four-year period. He complained to the bank about the performance of his investment, but the bank said both its advice and the management of his funds had been appropriate.

Our investigation

We concluded the bank had met its obligation to disclose key information about the managed fund, and that it had managed the investment in accordance with the contract it had signed with Bodhi. The contract said the managed fund pooled money from other investors and managed the combined amount as a group. The contract authorised the bank to buy and sell stocks on his behalf, and he was not able to give the bank instructions about the make-up of the stocks it bought. The contract also allowed the bank to buy and sell stocks to achieve the fund’s overall investment objectives. It noted that some stocks the bank invested in would be held for longer than the four years Bodhi was required to commit his money for. Finally, it said there were no guarantees of returns, and his investment might not even be able to keep up with inflation.

Outcome

We did not uphold Bodhi’s complaint.