Divided Income Funds

It seems investors and advisers alike have forgotten the benefit of tax exempt returns on the lower side of the yield curve. Cash-type instruments are once again moving to the forefront and justifiably so, with market conditions that question the continual sustainability of weekly record highs within the All Share Index. Slow to almost recessionary economic growth, a struggling currency, rising inflation coupled with soaring unemployment and continuous threats by the Reserve Bank Governor of forced rate hikes, due to inflation being above the target range, all signal danger. But where to go in the vast world that is the conservative investment?

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Market Matters

The world’s first stock market index was created in 1896, exactly 120 years ago. The Dow Jones Industrial
Average was created to give the investing public some indication of what the US stock market returned
over a specific time period. Today when you listen to the news in South Africa, you will notice that reporters
talk about the market being up or down a certain amount brought about by accumulating performances
from various sectors. The market is generally a broad index representing most listed entities and in our
case we refer to the JSE All Share Index Total Return (J203T) as calculated by FTSE / JSE: a joint venture
between the Johannesburg Stock Exchange (JSE) and the FTSE Group (FTSE), a world leader in the
creation and management of indices. There is also the S&P South Africa Composite Index which by
definition is constructed in a very similar way, but for simplicity sake we will only refer to the J203T during
the course of this article.

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Exploring Gryphon's Multi-Asset Funds

CNBC Africa's Lindsay Williams speaks to Reuben Beelders, Portfolio Manager at Gryphon Asset Management about the Gryphon Multi-Asset Funds. They explore Gryphon's Flexible Fund of Funds as well as Gryphon's Prudential Fund of Funds, the primary objective of the funds is to generate real wealth for investors, at the lowest possible cost, with due cognisance of risk in particular secular down side risk.

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Why Invest in the Tracker Fund?

In our opinion any investor that pays more than 0.5% for exposure to the South African stock market is paying too much! Currently, the All Share Tracker fund have a total expense ratio of 0.32% and charges a management fee of only 0.2%. This compares to South African funds that have up to 3% in fees per annum attached to them.

It is well known that Investment Managers fail to outperform the total return earned on stock market indexes; and due to the fees that they charge it is no surprise that we get the following graphical representation of what the funds earn over the long term:

Gryphon Research

Performance: End of April 2015

12 MTH % 24 MTH % 36 MTH % 60 MTH %
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark
15.94% 14.84% 21.84% 21.85% 20.37% 20.38% 17.13% 17.16%

 

We recommend switching to the All Share Tracker Fund.

Clear thinking leads to clear benefits

 

CL Treurnicht

May 2015

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ETF's? Time to think unit trusts

The JSE all share index (Alsi) presents another tracking opportunity. Leading the field is the Gryphon All Share Tracker unit trust, which comes at a low 0.35% management fee. "We intend reducing the fee to 0.2%" says Gryphon Asset Management CEO Abri du Plessis. Thanks to its low fee and astute management, Gryphon's fund has excelled, producing a return of 19.82%/year after costs in the 36 months to August. This was the best net return of any unit trust or ETF tracking the Alsi or Top 40.

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Financial Mail, October 2013

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