Discovery Balanced Fund is a flagship fund offered by Discovery Invest. It is only available on the Discovery Invest platform. It is managed by Chris Freund of Investec Asset Management, a very experienced and successful portfolio manager. He manages investments using an earnings revision approach. Discovery Balanced Fund has attracted a lot of inflows, in fact the fastest growing balanced fund in South Africa, thanks to clients and advisors' support, benefiting from the integration and unique features of a range of Discovery Invest products. Discovery Balanced has been a consistent top-quartile performer in the high-equity balanced fund sector, with the (annualised) performances figures as follows: 10 years: 10.14% 5 years: 11.52% 3 years: 8.05% 1 year: 11.34% This fund has a high cost, with a Total Investment Charge (TIC) of 2.12%. This makes it one of the most expensive balanced funds to invest in. I question this high fund management fee, even given its good performance figures. Were it not for various integration and fee reduction structures offered by Discovery Invest for investing in a Discovery fund, this will erode net returns to investors over the long term. Discovery Balanced Fund is suitable for general long-term investment. Being Regulation 28 compliant, it is suitable for use in a retirement product. Below is the link to download Discovery Balanced Fund's fund fact sheet as at end December 2017.
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Around this time of the year, we would like to remind you to consider topping up your retirement annuity fund. According to the current legislation, you may contribute up to 27.5% of your taxable income (strictly speaking, non-retirement funding income) to a retirement annuity fund and enjoy tax deductions. As 28 February is the end of the tax year, you must calculate and pay the additional amount to your retirement annuity prior to this date, in order to qualify for tax deductions and tax refunds.
Below is an example of topping up your retirement annuity: Mr Jackson has a monthly salary of R50,000. In December he received a bonus of R100,000. Every month he contributes R3,000 to a personal retirement annuity fund. His annual income is then R50,000*12 + R100,000 = R700,000. The maximum tax-deductible contribution to retirement annuity is R700,000 * 27.5% = R192,500. Over the year he has contributed the following to a retirement annuity fund: R3,000 * 12 = R36,000 The additional amount he may top up in his retirement annuity (RA) is R192,500 Less R36,000 R156,500 He can expect a tax refund of R156,500*39% = R61,035 from his additional retirement annuity contributions. Should you require assistance to calculate the retirement annuity top-up amount, please contact Su-Lan or Su-Chin, (011)658-1333, email finance@daberistic.com Fund Managers Trust Index 2018
I have created a Fund Managers Trust Index, based on my own interactions with fund managers, research and market events. The fund managers I would trust to manage my money and risks. Out of 10, 10 being total trust, 0 being no trust whatsoever. Allan Gray/Orbis - 10 Prudential - 9 PSG - 9 Coronation - 8 Rezco - 8 Marriott - 7 Truffle - 7 Nedgroup Investments - 7 Investec - 6 Foord - 6 Old Mutual - 6 Discovery - 5 Satrix - 5 Stanlib - 4 |
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