Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

I Do Not Wish to Manage My Own Funds Anymore

Reply
Not applicable
Please advise me. I would prefer professional investment managers to manage my funds. Where do I go? Who is the cheapest in terms of brokerage? Who has achieved superior returns?
0 Kudos
33 REPLIES 33
SimonPB
Valued Contributor
0 Kudos
HateGauteng
Super Contributor
Hi Nimo. So what brings you to this conclusion?
0 Kudos
CrownA
Super Contributor
0 Kudos
SimonPB
Valued Contributor
becoz he/she has made so much moeny they don't know what to do with it ??
0 Kudos
Not applicable
I feel the same way. I decided to set up an account with Allan Gray and split my purchases between the balanced and equity funds. Also have some capital in Coronations top 20 and Cadiz equity ladder. No fund manager is guaranteed to outperform so try get exposure through different managers in DIFFERENT funds as the same objectives could lead to similar results and therefore would not achieve diversification (i.e. do not buy two equity funds with similar exposure). Otherwise watch for FEES, and if completely uncertain an EFT such as Satrix top 40 may be your lowest cost choice. But don't expect it to beat the benchmark as it tries to replicate the benchmark. In conclusion, it depends on your age, amount of capital, risk TOLERANCE, time frame & EXPECTATIONS to make the most rationale decision. I am 20 so I feel time is on my side (started trading at 17).
0 Kudos
Not applicable
Buy ETF's. You get maximum diversification so much less risk and your profits dont get killed by management fees.Over time there are not many funds that can outperform them. And whats the chance of you actually picking those funds...
0 Kudos
HateGauteng
Super Contributor
Its sad to se people with long term plans on the market. The Dow is heading for 1200 or below within the next few years and then you're all gonna DIE!
0 Kudos
Spoegs
Contributor
The way I see it you may be a little stuck, because some of the professional asset managers are also saying in a round about way they don't want to manage any more money at the moment - see the post on value managers below. Watch out for the fees! From what I read regarding AG/Investec they've got up to 30% of some of their funds in cash. This may be helluva prudent, but in my opinion you can't charge fees like they do and effectively act as a bank. I realise that they are constrained by legislation etc, but in my opinion you're paying them to come up with cunning plans to make money. Furthermore a lot of these fund managers battle to create any alpha and when they do it's all eroded by fees and you're back to getting beta or worse. Glad I could get that off my chest.
0 Kudos
SD
Contributor
try Warwick private wealth. They create and actively manage your share portfolio and give excellent customer service at very good rates.
0 Kudos
Not applicable
I've reached the conclusion that I suck at investing. lol. It's not easy beating the brokerage fees with a reasonably small capital outlay. I also realised that that I've actually been gambling this whole time. I accept any research recommendation as true without reading the reasoning. I haven't made a cent to date (since January). I've actually lost R150 (not bad, but frustrating because of the amount of effort put into monitoring, etc). I love the ETF idea guys - but one huge problem - the fact that it mimics the index means that my personal preferences/constraints will not be met (eg. I am not allowed to invest in "sin stocks" such as alcohol, gambling and interest). Is there a way to remove certain shares from the ETF? And how liquid is this ETF (ie. will I be able to sell the security and receive my money pronto?)
0 Kudos
HateGauteng
Super Contributor
Lose your first R100K and then complain. A fund manager can lose your money just as effectively as you can but you won't learn anything.
0 Kudos
Blik
Super Contributor
Are there any squeaky clean ethically cleansed and moral companies at all? Surely to make a profit, someone or something is going to be exploited somewhere along the entire chain. Maybe not all companies are sin-product companies, but I am pretty sure they all drive a hard bargain against their workers at pay rise time for example. I personally try to keep my moral code out of investing, and when I feel guilty I donate a bit to CANCA or the SPCA, and in doing so have a direct effect on my local charities. In that way I am not constrained to a certain set of companies. IMHO.
0 Kudos
Not applicable
exchange traded funds are mechanical investment strategies. That means that you don't have a choice in the basket of funds they invest in. If you are trying to avoid alcohol, tobacco & firearms, then you will not want to be trading Satrix 40, since South African Breweries is probably the biggest weighted stock on the top40. And you will find it difficult to avoid British American Tobacco, because while it might not officially be part of the Top40 (I don't know if it is or isn't?), holding companies such as Reinet will have a stake in it (and I think Remgro still does?). Still, you can invest in Satrix FINI - which is restricted to financial services companies, or Satrix Resi - which is restricted to resources. The fini though, will not guarantee exclusion of hte 'sin' industries, since a lot of financial services companies that make up the index, do a lot of business directly with SAB and BATS, so indirectly you will still be exposed. I guess the best is to stick with the Resi
0 Kudos
SimonPB
Valued Contributor
NFSH40 .. absa shariah compliant ETF ..
0 Kudos
Not applicable
OK, I guess FINI is out of hte question, you want to avoid interest. So the RESI it is. To answer your question, liquidity is guaranteed by the ETF, so you will always be able to exit your position.
0 Kudos
Goldbull
Frequent Contributor
Quantitative Analysis (a way of measuring things e.g. includes everything from simple financial ratios such as earnings per share, to something as complicated as discounted cash flow, or option pricing)is applied to the Satrix 40.
0 Kudos
ACEP_
Regular Contributor
So, GB whith QA brings QE? Jus' asking?
0 Kudos
ACEP_
Regular Contributor
Dear Nimo, with due respect, bring your money here... manage it yourself. You make an error you pay! You learn quicker that way! Otherwise go ETF's. Hmmm... start a wishlist!
0 Kudos
partridge
Super Contributor
If the author reads this it will be a miracle given the volume of responses. What frightens me is the diversity of views, albeit from different compass points -all indicating "their (profferred )solutions". What really matters is YOUR SOLUTION. The real question to ask is what are your financial objectives and over what time do you want to realise them - that determines where and how you invest and the level of volatility you can live with. If you are going to "go outside" = there are excellent Managers of investments/money out there with proven track records - some of whom have been mentioned. Sustainable net performance is what you want to head towards. Try not to invest with asset gatherers - rather opt for privately owned groups. Ask yourself is the house DNA the same today as it was 10 years ago. If anyone has been around for less time - bin them as an option. Whatever you do: be aware of actual charges, these come in a variety of guises - and you need to ask hard questions.
0 Kudos