This weekend my attention was drawn (thank you to PSG Asset Management's Shaun le Roux) to an article on the FT website with the title above. There is no doubt that many tracker funds and ETFs have had very strong performance in recent years as we have seen a powerful momentum trend push the prices … Continue reading Index trackers break basic rules of portfolio management
Prudential Investment Managers' Johnny Lambridis penned an interesting article last month in the Active/Passive debate. Some of the points he made were: Passive investing is gaining ground in the South African market, mainly due to the (generally) lower fees involved compared to actively managed funds, but also based on some misperceptions stemming largely from the … Continue reading Prudential Investment Managers: Why active management beats passive in South Africa
When it comes to your investment outcomes, what is the one most important thing you need to get right? What is the one thing that if you get it right will give you the best chance of meeting your investment goals over the chosen time periods? What is the thing that I as an adviser … Continue reading In investing: What THE most important thing is to get right?
Investors frequently want to know what return they can expect from an investment. This is a normal question and the answer is crucial in managing their expectations. An investor who is placed in a product that fails to meet their expectations is sure to be unhappy and likely to want to switch out of it … Continue reading Average returns are not normal
Diversification Diversification is strategy of investing in multiple asset classes and among many securities in an attempt to lower overall investment risk. Whilst we all know that, broadly speaking, equities return more than bonds which return more than cash over time, it is also true that these average returns are not normal. The table below … Continue reading Investing for beginners: Diversification
Writing in the latest PSG Asset Management quarterly newsletter my friend and former colleague, Philipp Wörz has highlighted that it's not just foreign asset managers who think that developed market valuations are starting to feel quite stretched, but local managers are very aware of this too. "Global equities have been in a bull market ever … Continue reading PSG: Be selective when investing offshore and don’t discount South Africa
"Prescribed assets" That's a phrase which should send chills down the spine of all South Africans who contribute to a regulated retirement fund, retirement annuity and the like. Many of our older clients may remember the dark days of the 1970s when the Apartheid Government of the day prescribed that a certain percentage of all … Continue reading Prescribed assets: I’m watching this space