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Many of us became more comfortable with using technology for everyday purposes like buying groceries, clothing and medication. One aspect of investing that was magnified during the lockdown was the importance of diversification. Introducing different asset classes and geographies into a portfolio can certainly be put down as one of the major lessons from last year.
Soviet dictator Joseph Stalin infamously noted that while a single death is a tragedy, a million deaths is simply a statistic. That grim milestone has now been passed by the coronavirus. It has claimed more than a million lives worldwide.
I recently saw multi-asset funds described as a 'balanced investment ready-meal'. I thought it such an apt description. A balanced meal has a variety of food groups represented, each providing different nutritional benefits. You’ll have some protein, some carbohydrates, some healthy fats and some vegetables.
Systematic investing is a scientific, evidence-based approach that takes the emotion out of investing and allows for better investment outcomes as decisions are based on rules. This mathematical approach offers more science and less art; has a higher success rate; is more predictable and generates higher returns for investors, with lower fees.
An interview with Stephen Katzenellenbogen, Senior Executive, Private Wealth Manager, NFB Private Wealth Management, and Dr Ivor Blumenthal, CEO, ArkKonsult, discussing an article penned by Andrew Duvenage, Managing Director, NFB Private Wealth Management, apropos the ANC’s Economic Transformation Committee proposal outlining changes to Regulation 28 of the Pension Funds Act.
Earlier this year, the ANC’s Economic Transformation Committee published a proposal outlining changes to Regulation 28 of the Pension Funds Act. Regulation 28, which controls the extent to which retirement funds may invest in particular asset classes.
South African investors are still absorbing the twin blows of being downgraded by Moody’s into junk territory and, just four days later, the expected Fitch decision to take the South African sovereign debt rating down a further notch into junk territory.
South Africa’s equity market capitalisation equates to more than 200% of the country’s gross domestic product (GDP), the highest proportion in the world and a level that is simply not sustainable.
Investing offshore should never be a knee-jerk reaction to current events, but rather a decision that is taken as part of an overall financial plan. With elections looming and many investors in panic mode, South Africans need to make sure they are investing offshore for the right reasons.