Investments

Inversion, submersion and dispersion

Global equity markets enjoyed a temporary bounce last week when the US government said it would postpone the imposition of tariffs on some Chinese goods, while some items would not be taxed at all. President Trump initially planned to impose 10% tariffs on $300 billion Chinese imports at the start of next month. It does show that the Trump administration is worried about the impact of tariffs on the US economy, and wants to avoid prices on consumer items jumping ahead of the Christmas shopping season. However, this was soon overtaken by renewed concerns over the health of the global economy.

Structure is the order of the day

Outcomes based investing is a relatively new approach to wealth preservation. Outcomes based investing not only generates alpha for clients but works in tandem with financial advisers to ensure that the investments are in line with lifestyle and risk changes as well as different investment goals.

Value and Momentum Smart Beta - different sides of the coin

Over the rolling 12-months to June 2019 the Momentum Trending Equity Unit Trust delivered a return of 14.1% against 1.5% return of the average peer in the SA General Equity sector. The fund was ranked 2nd out of 157 peers in the Morningstar survey over this period. Over the 24 months to June 2019 this fund returned 15.3% p.a. against the average peer’s 4.7%, resulting in it being ranked 3rd out of 146 peers in the sector.

Should you take investment advice from family and friends?