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The recently published Morningstar[2] ‘Global Fund Investor Experience 2015’ study, which analyses 25 countries that offer investment funds, highlights high fees, poor disclosure levels and advisors’ lack of fiduciary duty as some of the key issues plaguing South Africa’s investment industry.
Making do with less is always tough, but that’s the challenge now facing retail investors, according to Imara Asset Management South Africa, a fund manager and advisor that believes now’s a good time for a reality-check.
African pension fund capital has reached $340bn and is growing rapidly. In addition, increasing adoption of insurance around the continent is causing insurance company investment portfolios to grow, and they are now estimated to be around $270bn. These figures come from the Bright Africa 2015 report, released today by RisCura, which looks at the drivers, enablers and managers of investment on the continent.
The perception that passive investing generates lower returns than its active counterpart is being countered by the recent outperformance of passive funds when compared with active funds in South Africa and globally. As a result, passive investing is likely to increasingly find favour as part of a diversified approach.
Do you think short-term insurance broking will survive the AI plus humanoid robotics age?