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Global conditions have improved for active managers to outperform

23 May 2017 | General

The best reason for South African investors to gain offshore exposure is diversification. It offers various benefits, and specifically, access to sectors and industries that are not available in South Africa. A key benefit for investors using strong global active managers is their ability to navigate uncertain times and remove emotion from the investment decision-making process.

One scandal too many

23 May 2017 | Economy

For US equity investors, the latest controversy around President Donald Trump was one too many. After the US election, equities and the US dollar rallied on the expectation that Trump would deliver business-friendly tax cuts, regulatory reform and infrastructure spending. The S&P500 and Nasdaq indices roared ahead to new record highs a few days ago. Moreover, an eerie calm had descended on markets, with actual and implied volatility declining to multi-year lows. The CBOE Volatility Index (VIX), also known as Wall Street’s fear gauge, fell to a level last seen in 1993. Volatility has also been subdued on bond and currency markets.

How innovation is disrupting the financial industry

22 May 2017 | General

Innovation and new technology continues to change the way in which people invest, and the robo-advisor - an automated investment platform – is fast emerging as a ground-breaking investment tool. Robo-advisors have been making their appearance in South Africa with many finding it difficult to survive on their own as they struggle to attain the required economies of scale. Robo-advisors are expensive to build, require rare technology and skilled people plus a host of particular financial services licenses, rarely present in one organisation, making the operating costs and barriers to entry very high for current and potential new entrants. Robo-advisors with brand clout will stand a better chance than those without. Those with crazy names that have no recognizable face will struggle to get investors to convert to a sale.

Momentum calls for investment industry to put clients first

22 May 2017 | General

Momentum Group head of Investments and Savings Marketing Steven Schultz has called for a fundamental mindset shift in the investment industry, from an obsession with past performance to delivering on client goals.

quick poll

Question

Do you think short-term insurance broking will survive the AI plus humanoid robotics age?

Answer

Human first always Not a chance Possibly maybe Yes, but reimagined

View the Results