06 Sep 2017

We highlight two points in our attached newsletter: Focus on the long-term Global equity markets continued to perform well. At end August, the Developed Market equity index was within 1% of its all me high (achieved last month) and the Emerging Market equity index was at its all me high. In the US, almost $3bn a day is flowing into index funds and exchange traded funds (ET...

05 Jul 2017

We highlight two points in our attached newsletter: In the US, the strong recent performance in equity markets has been matched by massive flows into equity mutual funds (unit trusts) and ETFs. In the UK, the Financial Conduct Authority released its latest findings report on the asset management industry.  A key focus of the proposed reform revolves around better disclosu...

14 Jun 2017

Recently, Morningstar reported US asset flows for the year till end April: nearly $1trn swing from active to passive. Active funds had a $304bn outflow and passive funds a $666bn inflow, resulting in a $970bn change in investor preference. Read our attached newsletter. 201705 Monthly Newsletter USD...

25 May 2017

Recently, ETFGI reported that global ETFs have passed the $4trn milestone at end April. An FT article described that the trend to passive is continuing in full force and Sanford Bernstein has predicted that by January next year 50% of equity assets under management in the US would be passively managed. Read our attached newsletter. 201704 Monthly Newsletter USD...

01 Feb 2017

There were strong relative flows to passive: In the US mutual fund (unit trust) and ETF savings pool, net flows in 2016 were $340bn out of active and $505bn into passive. Even more dramatic is the story for equity funds since 2008; investors have invested $1.3trn into passive equity funds and withdrawn $0.9trn from active equity funds. That’s a $2.2trn switch in investment style ove...

01 Feb 2017

We are pleased to let you know that we have launched three global Rand-based unit trusts with Prescient Management Company. Now our low-cost global investment style is accessible to retail clients and we are in discussion to have them listed on the main LISP platforms. We have three funds: Stylo Global Equity Prescient FOF Stylo Global Bond Prescient FOF Stylo Global Real E...

19 Jan 2017

I believe we add significant value to you, the adviser. We evaluate the thousands of  ETFs available and select ones we believe are most appropriate for each asset class or sub-asset class. We then build risk profiled solutions using these ETFs. We have three model portfolios: Growth: High Equity (75% equity target) Balanced: Medium Equity (50% equity target) Conservative: Low...

19 Jan 2017

Global ETF assets under management are now $3.5trn. Large institutional clients are expected to allocate more money to ETFs with a survey result forecasting that the market will double in the next five years. Retail flows in the US mutual fund and ETF industry have once again maintained the strong trend to low-cost funds. Morningstar estimates annual flows (to end April 2016): A...

12 Aug 2016

INVESTMENT LESSONS Lesson 2 - Taxes and Costs The next investment lesson is to keep taxes and costs down. Your investments grow from compounding as we have seen but they also reduce with tax and costs. The new tax free savings account (introduced last year) allows you to save tax free. How beneficial is this? There are different tax charges on investment returns and there are ma...