The primary objective in investing is to deliver the best risk-adjusted returns possible. Since return and risk are two sides of the same coin, an interrogation of one without a full understanding of the other is meaningless (and dangerous). How does coronation manage risk? Managing risk is not something that you should have to clear at the final hurdle in an investment process. We believe it needs to be woven into the DNA of the process, as we endeavour to do in ours. In the research process: Through a strong valuation discipline (i.e. paying less for assets than they are intrinsically worth) and a long-time horizon (i.e. looking through the cycle). Together, these are a great defence against the risk of getting sucked in at the top of the cycle, when prices are high and the risk of permanent capital loss is pronounced. Click here to Read FAQ. To find out more on the Coronation funds that we recommend, please contact Kevin or Thato, email: invest@daberistic.com tel no: (011 658-1333) Source: Coronation There is one day I look forward to in my calendar as a Financial Advisor, and that is the publication of the Annual Raging Bull Awards. This morning after I dropped my son Enxuan at the gym for his swimming session, I rushed to the local Pick n Pay store to buy a copy of the Saturday Star, to read about the hot-off-the-press Personal Finance section, which focuses on the 2016 Raging Bull Awards. I already know more or less who the winners are likely to be, the usual suspects of Allan Gray, Nedgroup, PSG etc, as I monitor the developments of larger fund managers closely. But it is still important to get the official results. So here it is: The winner is Allan Gray, second place PSG, third place Nedgroup Investments. Below is the full list. PlaxCrown ranking of management companies to December,2016 I did an analysis of the past winners, dating back to 2007. It looks like this: Allan Gray has won five times, Coronation 3 times, Nedgroup once, and Stanlib once. If I give the winner 3 points, the runner-up 2 points, and 3rd place 1 points, and tally the points over the 10 years, it gives an interesting picture of the consistently best larger fund managers in South Africa: Allan Gray: 20 points Nedgroup Investments: 13 points Coronation: 12 points Prudential: 7 points PSG: 4 points Allan Gray and Nedgroup Investments have been strong performers for a long time. PSG certainly is becoming a strong contender. Coronation has been underperforming over the last 12 months, but given its experience and depth of investment skills, it will make a comeback sometime. Prudential was featured prominently in the top 3 between 2007 to 2010, but since then it may be finding the competition heating up, now reducing to number 4 or 5. The analysis above does not mean managers not mentioned above are not worthy of consideration. Veterans like Investec and Old Mutual have some good funds worth considering. Boutiques like Rezco and Truffle also have some good offering. But the headline in the newspaper is true, "Larger and Mostly Independent Asset Managers Dominate Raging Bull Awards." Asset managers under insurance companies have consistently struggled to break into the top 5 positions. Should you require assistance and advice on what funds to invest in contact Thato or Kevin , tel 011-658-133, or email invest@daberistic.com Source: Kevin Yeh |
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