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...
Q3 2024
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...
Through the looking glass: Capturing structural change
To date, 2024 has been another year of surprises in global financial markets, with global equities managing to outperform expectations across many markets. The MSCI World Index (developed markets) returned an impressive 11% over the six months to 12 June 2024 despite...
Navigating high-yield hard currency sovereign debt with an African edge
The high-yield sovereign debt category is often overlooked, given the risk premium attached to the asset class. However, investors seeking a balance between the safety of fixed income and the growth potential of equities would do well to consider high-yield hard...
Tackling water security
Water security is arguably one of the most critical risks to South Africa's social, economic and political long-term future. In particular, water stands as a critical business imperative, indispensable for a myriad of functions including employee-related health and...
Legislative and regulatory update
Two-pot update Pension Funds Amendment Bill signed into law on 21 July 2024 The Pension Funds Amendment Act provides for the following Two-Pot related changes:Amendments to the Post and Telecommunications-related Matters Act, 1958, the Transnet Pension Fund...
Financial advice and the “new dawn” of the retirement matrix in SA A new chapter in South African retirement reform
On 21 July 2024, President Cyril Ramaphosa signed the Pension Funds Amendment Bill (PFAB) into law, marking an important milestone in South Africa's retirement reform. This new legislation paves the way for the two-pot retirement system, which aims to...