Info Are the P/E Investments Funds genuine?

[FX123]

Are P/E Investments genuine?

They claim to have $12.4 billion assets under management, their FX trading returns look too good to be true.

Does anyone know about them?

Fund factsheet attached for details...

 

[Pharaoh]

$1 million minimim investment? First and foremost, ask them about their regulation and then personally check it directly with the regulators. This says the are doing commodities and are in the US, so the CFTC and NFA are the first regulators to check with. You may also want to check with the SEC and FINRA.org. If and only if a fund is very strongly regulated can you have any confidence in the numbers provided.

For the sake of proceeding, let's assume you personally make absolutely sure that they are strongly regulated and the fund involved is covered under that regulation. Does this automatically mean you should toss a million to them? Not yet. You need to look at a few more things first.

If you go in at the minimum, don't forget you're in for a 2% management fee. That means they need to make 2% just to put you back to breakeven. If they have an exact breakeven, you end up -2%. Funds this size often do charge fees, but perhaps there are alternatives with lower fees or that waive fees during periods of extened poor performance. Shopping around will give you a better idea what's out there. Logically, the market to manage a 7 figure sum of someone else's money should be a very competitive one.

Scroll down to page 3 and check the Drawdown Report. No one ends every month positive, but some of those drawdowns are a bit large and long-lasting. Can you handle drawdowns that last that long, go that deep, and take that long to recover? Some investors who DEEPLY believe in an account manager can. Others would never accept that level of drawdown no matter how much they believe in an account manager. Bailing out near the bottom and then waiting for a fund to recover before reinvesting is a bad move, but so is riding a fund that's heading deeper and deeper into drawdown. Ask yourself much risk appetite do you have and how much of a loss you are willing to trust will eventially be recovered? If I buy a DOW tracking ETF and there's a big recession that cuts the DOW 20-30%, I'm fairly confident it will come back up within a few years. On the other hand, I don't know enough about how this fund is run it to know what the odds really are.

If you have that much money, spend some serious time (or pay a licensed professional to do it for you) and dig into the history of the company and its traders. Compare not just their overall long term performance, but also their fees and drawdowns with competitors. When you are done, you'll be in a much better position to decide whether you want to let them handle your money or not.