The BlackRock mutual fund company’s filing with the SEC…should send shivers down the spine of anyone with funds invested in any BlackRock fund. (In fact, it should horrify anyone invested in any mutual fund.) Here’s why.
The above words (and those below) are edited excerpts from an article* by Dave Kranzler (investmentresearchdynamics.com) originally entitled BlackRock’s Warning: Get Your Money Out Of All Mutual Funds.
Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
According to Bloomberg News, BlackRock Inc. is seeking government clearance to set up an internal program in which mutual funds that get hit with client redemptions could temporarily borrow money from sister funds that are flush with cash.
The elitists running BlackRock [Larry Fink et al]…[are preparing] for any coming events that would trigger a redemption run because the company is seeking SEC approval for the ability to take cash from funds with cash and lend that cash to funds that will need cash when the redemption rush begins. [Knowing this:]
- everyone should call up their mutual fund company, financial adviser or 401k administrator NOW and get all of their money out of any mutual fund they happen to own [and frankly,]
- anyone who…does not take action immediately is either a complete idiot or simply does not care about having their money taken from them by the criminal elite.
While BlackRock has already arranged credit lines from banks to cover the possibility of a redemption stampede from its riskier funds [a successful filing]…would add even more leverage to the equation by enabling riskier mutual funds – derivative-laced high yield and equity funds – to transfer a portion of their risk to its more “conservative” funds, like high grade, short duration fixed income funds.[The proposed move, if successful, would mean, for example,] that the BlackRock Treasury fund in which your IRA or 401k was invested would become “invested” in any fund that borrowed money from the fund with your money. The risk profile of your “conservative” fund would assume the risk profile of the riskier fund which would not have been your original understanding of the definition and risk parameters of the fund at the time of investment.
The SEC should deny BlackRock’s filing – but it won’t – because Wall Street IS the SEC.
[That being said, as I see it,] there is absolutely no reason for anyone to leave any of their money in any of BlackRock’s mutual funds. In fact, it should horrify anyone invested in any mutual fund.
Disagree? Concur? Have your say on the subject via:
We’d like to know what you have to say.
Related Articles from the munKNEE.com Vault:
While 36% of mutual funds, on average, have outperformed their benchmarks (after fees) over the past 10 years, the truth of the matter is that only 43% of mutual funds have outperformed the S&P 500 so far in 2015. In other words, 57% of funds are still underperforming the market this year. Here’s why.
The amount of evidence stacking up that mutual funds do not provide value for their investors is just staggering. While there are certainly signs that the public’s tolerance of excessive fees and executive pay is falling, the likelihood of significant structural change in the finance industry is still remote. Given such a backdrop the probability remains that investors in funds will, on average, continue to under-perform their benchmarks. So what’s an investor to do?