Two performance ratios that often pop-up on the fact sheets of unit trusts are the Sharpe Ratio and the Sortino Ratio. Many do not however know that the Sortino Ratio was developed to overcome some of the short-comings of the Sharpe Ratio. Firstly the Sharpe Ratio measures how well a fund has performed given its [...]
Ever heard fund managers boast about how they outperformed their benchmark for the last decade? Maybe your financial advisor informed you that fund XYZ invests in blue chip companies – wait a second, I thought blue chips belong on the poker table? All of these clichés and buzzwords can be overwhelming and cause a great [...]
The world woke up a different place this morning, shaken up by global financial markets misbehaving en masse. Some of the headlines on Fin24.com throughout the day did nothing to give nervous investors a warm-and-fuzzy feeling: WATCH: Is this the start of a global economic slowdown? Equity bloodbath spreads through Asia Rand sinks most since [...]
Without any doubt, the need for a properly diversified and professionally managed investment is vital. We have seen a number of investigations by the Financial Services Board, where investors have lost a lot of money due to investment strategies that are not suitable to their needs; financial goals or THEIR money is invested in portfolios [...]
While reading the latest fact sheets of your favourite unit trusts, you may have noticed a section dealing with income distributions. Then you may have thought to yourself “Hey that’s quite nice, but what does it all mean?” First off, when invested in unit trusts, whether it’s a high equity fund, a low equity fund [...]
So many Trustees have found themselves in court due to Trusts not managing a Trust properly as required by the Trust Property Control Act No 57 of 1988. A Trust can have a many benefits but Trustees need to understand: What the purpose of a Trust is. The costs of running the Trust. What are [...]
While looking at the performance over the previous 12 months (or any time period for that matter), we need to be cognizant of the base that we are working from. You might have heard investor gurus talk about “Coming off a low base” or “Coming off a high base”, but what does that actually mean? [...]
Most people think estate planning is something you should think about when you enter the last stages of your life. The question is: is it? Is it not more important what happens to your assets during your lifetime? When does estate planning become important? Estate planning is important when you are alive and well; when [...]
Equity. Shares. Stock. It all sounds the same, and when your adviser speaks about these things interchangeably you might be left in the dark if you don't stop and ask what she's actually talking about. By asking and understanding how your money is making money you will go a long way in developing your own [...]
It is never too early to start planning for your retirement and it is important to obtain the right retirement advice as early as possible. The reality is that a large number of people, employed or even-self-employed, retire on less income than they would like. Countless studies have tested what level of income is [...]
