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