Passive investing involves investing in index funds or exchange-traded funds where investment securities are selected to match those of an index or a segment of the market, rather than being actively chosen by a portfolio manager with the goal of...
Special Feature
Index Investing – A Global Investing Revolution growing in SA
A global investing revolution has been underway for the past few decades. Increasingly, trillions of assets belonging to pension funds, institutions and retail investors have moved away from active fund managers. As fund performance transparency has...
Structural shifts supporting index or passive allocations within pension funds and what still needs to happen
According to Morningstar global research, passive (or index-based) funds in the US matched active funds in assets under management at the end of 2023. This emphasises the monumental rise in this investment approach and comparative market share which has...
Is passive and active like oil and water..?
South Africa vs global trend Not all trends are worth following, but the passive investment one may well be worth taking note of. In the investment market in South Africa we have seen slow uptake of passive investments. However it should be noted that we have, in the...
Are compounding fees jeopardising South Africans’ financial freedom at retirement?
In the world of investing, the adverse impact of high fees on long-term returns is well documented. Just as compound returns work their magic to create wealth over time, compounded high fees have a stunting effect on growth in the long term. This understanding is...
Two component checklist for retirement funds
With both the Pension Funds Amendment Bill and the Revenue Laws Amendment Bill having been passed by the National Treasury, the President must sign the bills into law. However, a few steps remain in finalising the implementation of the Two Component system,...
The two-pot system: Long term tax implications for members
Everybody loves tax – not! Unfortunately, in South Africa taxation is unavoidable and very high. It is also very complicated. The two-pot system has introduced a new way to tax our retirement funds. Any withdrawal from your savings pots will be based on...
The two-pot retirement system comes into effect on 1 September 2024 – so what now?
If your employees belong to a retirement fund, you can take some important steps right now to avoid dissatisfaction and a deluge of complaints. The National Treasury is anticipating a R5 billion revenue windfall from taxing two-pot withdrawals in the next...
Financial advisers face information gap as two-pot system nears
With the expected advent of the two-pot retirement system in September 2024, South Africa stands on the brink of a significant overhaul in retirement savings. Yet, a recent Old Mutual survey reveals a concerning trend: half of the independent financial...
Are SA’s pension funds secure enough for the two-pot pension system?
The implementation of the two-pot retirement system edges nearer as the NCOP passed the Pension Funds Amendment Bill on 25 April 2024, incorporating alterations that resolve certain inconsistencies and bringing it one step closer to fruition on September 1st...
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