Hi All, do'nt know if anyone seen the article in Moneyweb two days ago. Only 29% of fund morons (sorry managers) achieved more than a 13% growth last year. It will be interesting to see what the total yearly management fee is for all the fund managers vs what the total returns have been for their clients. Anyone has any figures?
Well, 17.94% + 3.05% divi. I didn't touch my cousins porfolio for the 2012 fin year. 0% Effort, 0% cost like it should be. Portfolio consists of : OML, REM, JSE, TBS, SBK, SOL, EXX, MTN, REI, BAT, RMBMID. 13.44% for the year thus far, excl divi's. Best performer this year, SOL - 32%, worst performer TBS - (8,9%).
It is weird how many professionals APPEAR to under achieve. I've also done next to nothing with my portfolio for the last year and am looking at better than that figure as well - closer to 18%. I've been helped by holding Coronation, Richemont, and Naspers in my list, but I'm really an amateur at this.
a bit silly to compare a single year's performance, since the dates set are arbitrary.If you compare holdings from the beginning of 2012, then you are taking the stock market at a seasonal high point, and will be prejudicing any fund manager who has held stock over the previous year. That growth will simply be ignored in the year on year comparison. If you want an accurate measure of fund management performance, you need to do it over multiple years (5 years IMO) - to allow their strategies to show effect.
Another thing, if you only watched Traders Corner with Garth Mckenzie and NO other program, you would have made approximately a 50% return last year and he's currently up around mid 40% odd year to date. Beauty part its all FREE!!!!
That is why if you take a look at Coronations past performance and alpha and their stock picks,I would be little concerned to think where they are going to run to or hide to create positive absolute performance if we see a healthy major correction.So what I am saying yes they are good(dont get me wrong) but have they just not ridden the crest of the wave and last 10 years have been extraordinary,which the man on the street thinks is now ordinary .I used CML as a exampple but it could apply to any fund manager in a very long bull market,with so called superskills
Firstly, I manage my own funds - I do it because I maintain that I have a strategic advantage over any fund in SA - in that I can take advantage of the smaller price swings on the market (i.e. buy the dips). Funds can't do this - because of their constitutions and the size of the positions they have to take (or offload). But funds have their place. My nephews' trust fund, for example, set up for their university education, needs to be managed by an independent 3rd party. As do all pensions / ra's, as well as countless other examples. The saying in the industry is that any fool in the investment world can manage R100m, the skill lies in managing billion rand funds.
Have held Naspers for about 9 years (bought at R50) being holding PSG for 5 years , Sasol for 4 years and VOD for 4 years. Return since investing for 9 years is more than 600%. This excludes any dividends as I have a policy of spending my dividends (cant alwasy invest, need to spoil yourself sometimes) 80% of my holdings is Napsers therefore the big %. Done this all by myself. will always manage my own money. The only thing I dont manage myself is my pesion fund.
Skaaptjop, is not about the size of the fund, its about the skill of the fund manager. I have no problem paying high fees, provide that the returns are also superior. I've had first hand interaction with a lot of fund managers and honestly, most of them are jokes. Unfortunately the majority of the public are not well educated when it comes to their own finance management. Unfortunately the put their hard earned money into hands which in most cases are not looking after their best interest of their clients but themselves. Most of these guys sound intellegent to the normal man on the street and spin their yarn. When things go wrong, the client must pay as the excuse is always the stock market tanked. Have you ever seen any fund managers take a pay cut???????
easy to manage billion rand funds, the skill is in getting others to invest to move the share price...the buffet way, buy something, make a media circus, the next day and see the price move, now you a big shareholder, go to the meeting, fire the useless people, sell them you vision of the company, thats how you turn a good poorly run company into an excellent well run company...common sense, see an opportunity, wait for a good price and then buy it off....
Well said Rams, thats why I spoke about the competence of the fund manager. Its for that reason the likes of Buffet became billionares. They have the ability to change their strategies to maximaize shareholder returns. Thats what Buffet did