We make investing in the market simple
We make investing simple, easy and cost effective for everybody. Exchange Traded Products (ETPs) are becoming a popular choice of investment products because of their simplicity and low costs. The South African market is overcrowded with a myriad of investment products, many of them complex and expensive, making investing a daunting experience for the everyday investor who simply wants the best return at the lowest possible cost.
Access leading South African and international asset managers and banks, all in place for your convenience
We are the largest source of Exchange Traded Products (ETPs) in South Africa offering over 70 products from 11 product providers. Our ETF portfolios are represented by the most efficient ETFs in each asset class, ensuring you receive optimal investment returns all the time
Don’t let the costs of investing cost you your investment!
Exchange Traded Funds (ETFs) are on average five times less expensive than traditional unit trusts. Exchange Traded Products don’t try to do better than the market, but because of their lower costs they often end up beating the funds that try.
The effect of costs over time
Exchange Traded Funds (ETFs) are low cost because they are simple. Complexity results in higher costs. Costs destroy returns, and each percentage point saved can have a remarkable outcome over time.
"We never employ fund managers (some of the world’s most highly paid people) since we discovered their best kept secret – they could never consistently beat the stock market index"
- Richard Branson
"It is a failure of the system when money managers are paid huge sums to move money around while nobody but the investors themselves suffer the costs of under-performance"
- Trevor Manuel
"Most institutional and individual investors will find the best way to own common stock is through an index fund that charges minimal fees. Those following this path are sure to beat the net results [after fees and expenses] delivered by the great majority of investment professionals."
- Warren Buffett
The example below illustrates the devastating costs effect of costs over time.
R 100,000 lump sum investment
20 Year term
Total return of 15% per annum, before costs, less inflation of 6% per annum = real return of 9% per annum before costs
|Cost per annum||Effect of costs|
|In an ideal world with no costs||You keep 100% of your real return (Nice)|
|1% costs||You lose 17% of your returns (Unavoidable)|
|2% costs||You lose 31% of your returns (The hurt starts)|
|3% costs||You lose 42 % of your returns (Substantial loss)|
|4% costs||You lose 50% of your returns (A dire situation)|
|5% costs||You lose 61% of your returns (Catastrophic)|
|6% costs||You lose almost 90% (Criminal)|
Why does this happen? Just like your investment growth compounds, so do your costs. Investment growth is variable (which means sometimes they may be less than the average) – but costs are fixed.
When you are told that your fees are “only 3%” (and for ease of understanding lets assume your return before costs is a mere 10%) it means that your actual costs are 30%!!
Exchange Traded Products don’t try to do better than the market, but because of their lower costs they often end up beating the funds that try.
|Passive Investing||Active Investing|
|Passively managed funds don’t try to beat the market. They are the market and therefore have lower fees associated with them.||Actively managed funds try to beat the market. This costs more and therefore have higher fees associated with them.|
|A passively managed fund buys the haystack. It buys all the shares in the index and holds them.||Active fund managers constantly buy and sell, looking for needles in the haystack – the star performers.|
|A passively managed fund does not attempt to beat the market, it simply provides the performance of the index, no more, and no less.||An actively managed fund’s performance depends on the fund manager’s skill and luck. It may or may not outperform its investment objectives.|
|Passively managed funds are 100% transparent. The constituents of the index are published daily in the press.||Most actively managed funds do not disclose their holdings regularly – they would be disclosing information to rival companies.|
Our ETF portfolios are 100% transparent.
Exchange Traded Funds (ETFs) are 100% transparent. The shares of the index that the ETF tracks are published daily in the press. Most other type of unit trust funds do not disclose their holdings regularly as they would be disclosing information to rival companies.
We also indicate what you can expect to earn from your investment and what risks you are running for your selected time frame. You can then check to see if your portfolios are in line with what is expected. We don't try to confuse investors by explaining away under-performance in quarterly newsletters (ETFs can’t underperform the market – they are the market)
We provide you with online access to the performance of your portfolio 365 days a year.
For your peace of mind, our portfolios are subject to robust regulations such as the Financial Markets (FMA), Collective Investment Schemes (CISCA) and Financial Advisory & Intermediaries (FAIS) Acts. An approved trustee company looks after your money on your behalf which means that the ETF managers, portfolio managers and the administrator do not hold your money or your securities in their name.
We store your data with state of the art technology using 256-bit AES encryption and use an SSL/TLS secure tunnel to transfer information between you and us.
All your information is protected under the Protection of Personal Information and Promotion (POPI) of Access to Information (PAIA) Acts.