Investing Allan Gray, Coronation?

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mintydroid

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Between my SO and myself we have skimped on some luxuries and have saved up a small sum of money and would like to invest it.

So far we're looking at Allan Gray Equity Fund, and Coronation Top 20 fund. Both are performing similarly. Anybody has experience with them? We don't understand the fee structure and mainly that associated with the fund performing better than benchmark.

We do know that we will have to pay capital gains tax when we remove the money from fund.

Looking at something to deposit the money and forget about it for the next couple of years. Looked at Satrix top 40 as well but not sure if it's safe to invest with them or a properly managed fund.

Please help out with any other advice you may have.
 
Speak to a good financial advisor. Your requirements and risk profile might not match those of others.
 
Messugga said:
Speak to a good financial advisor. Your requirements and risk profile might not match those of others.
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I have spoken to them but I've picked up more information from MyBB. They don't seem very clued up and I always get directed to investments such as the property ones where the money gets locked up for 5 years and earns 15% if I'm lucky with the money still at risk.

I've read that equities provide decent returns without investing directly into shares. It's a basket of shares so that risk is lower.
 
I'm pretty much all-in on the Coronation Top 20 fund and I can't really complain. But that being said, I DO believe equities are overvalued at the moment and a correction is looming soon. But then again, everyone's been saying that since 2011.

If you're in for the long haul (10 years +)- go for either. 50/50 is always a good idea.

If not, look at other options.
 
mintydroid said:
I have spoken to them but I've picked up more information from MyBB. They don't seem very clued up and I always get directed to investments such as the property ones where the money gets locked up for 5 years and earns 15% if I'm lucky with the money still at risk.

I've read that equities provide decent returns without investing directly into shares. It's a basket of shares so that risk is lower.
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Equities = shares. You're thinking of a unit trust or exchange traded fund.
The guys point you at property because your risk profile is low - you don't have oodles of disposable income to potentially lose. Equities is risky. More so than property.
 
Messugga said:
Equities = shares. You're thinking of a unit trust or exchange traded fund.
The guys point you at property because your risk profile is low - you don't have oodles of disposable income to potentially lose. Equities is risky. More so than property.
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This, but yeah, equities is way more liquid, especially if you invest in unit trusts, like the funds you are suggesting
 
mintydroid said:
They don't seem very clued up and I always get directed to investments such as the property ones where the money gets locked up for 5 years and earns 15% if I'm lucky with the money still at risk.
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Yep that seems about right, currently got a 50/50 split on Allan Gray/Investec. Coronation was not doing as well.

If you feel risky try normal share trading(like FNB) or just get top 20.
 
It's money we're willing to lose. We would've blown it splurging anyway.

So let me get this right......both the Coronation Top 20 and Allan Gray Equity fund invest directly into shares but proportion your money into companies according to percentages as per what the fund dictates. This is a unit trust?
 
mintydroid said:
It's money we're willing to lose. We would've blown it splurging anyway.

So let me get this right......both the Coronation Top 20 and Allan Gray Equity fund invest directly into shares but proportion your money into companies according to percentages as per what the fund dictates. This is a unit trust?
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Yes, broadly speaking you are correct. I have 75% of my funds in AG Equity Fund since July last year...making a slight loss at the moment but invested at the top of the market essentially.
 
Chris said:
Yes, broadly speaking you are correct. I have 75% of my funds in AG Equity Fund since July last year...making a slight loss at the moment but invested at the top of the market essentially.
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What's an equity then?
 
I have funds in the AG Equity and Balanced funds (also using Balanced fund for retirement annuity). They don't always perform well (sometimes has negative growth for a few months), but not bad in the long term. You should be able to find the past performance online. It's also really easy to manage online (view performance and add/withdraw funds), which is a big plus for me. In general I like it as a place where I can just send my savings to, without worrying about what happens with it.

My wife's financial adviser recommended the Coronation fund to her. Seems like similar performance, but it sounds like a lot more trouble to manage - typically involves sending an email to the adviser, as well as signing and scanning forms. I'm not sure what the process is if you do it directly though.
 
mintydroid said:
It's money we're willing to lose. We would've blown it splurging anyway.

So let me get this right......both the Coronation Top 20 and Allan Gray Equity fund invest directly into shares but proportion your money into companies according to percentages as per what the fund dictates. This is a unit trust?
Click to expand...

Yes, the manager/s running the funds analyse shares according to their mandate, the Coronation Top 20 managers look at which 20 shares out of the biggest 50 they think (after analysis) will give the best returns and also how much weight of the fund a particular companies shares must have. 6% (currently, it varies) is even in property.

http://www.coronation.com/Assets/za...y/2014/DECEMBER/2014-December-Top-20-Fund.pdf

There are now index tracking unit trusts (similar to the Exchange Traded Funds) where there is no manager deciding what to hold, they just follow the index. If Sasol is 50% of the Top 40 index, they will have 50% of the fund in it.
 
supersunbird said:
There are now index tracking unit trusts (similar to the Exchange Traded Funds) where there is no manager deciding what to hold, they just follow the index. If Sasol is 50% of the Top 40 index, they will have 50% of the fund in it.
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So an exchange traded fund (etf) is when shares are bought according to their position in the top 40 for example and are weighted accordingly?

Unit trust, I think grasp the principle.

And then equity is shares directly?
 
mintydroid said:
Between my SO and myself we have skimped on some luxuries and have saved up a small sum of money and would like to invest it.

So far we're looking at Allan Gray Equity Fund, and Coronation Top 20 fund. Both are performing similarly. Anybody has experience with them? We don't understand the fee structure and mainly that associated with the fund performing better than benchmark.

We do know that we will have to pay capital gains tax when we remove the money from fund.

Looking at something to deposit the money and forget about it for the next couple of years. Looked at Satrix top 40 as well but not sure if it's safe to invest with them or a properly managed fund.

Please help out with any other advice you may have.
Click to expand...

I have heard great things of them. I spoke to one of their "consultants" and I'm currently in for R95k. People have seen growth of 30% year on year. These guys know what they are doing in my personal opinion. I'm only with them now for about 3 months though, can't tell you yet.

@PP, check there is a thread in the finance section of the forum
 
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I am with Allan gray. Been with them for several years. Had great service and good solid returns.

I'm researching orbis now. Need some off shore exposure.
 
midnightcaller said:
I am with Allan gray. Been with them for several years. Had great service and good solid returns.

I'm researching orbis now. Need some off shore exposure.
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I was also looking at that but the returns are not as high as our local funds.
 
mintydroid said:
So an exchange traded fund (etf) is when shares are bought according to their position in the top 40 for example and are weighted accordingly?

Unit trust, I think grasp the principle.

And then equity is shares directly?
Click to expand...

Regarding weight, not necessarily, you get the Equally Weighted Top 40 for example, where every companies shares holds only 2.5% (adjusted twice a year or whatever the mandate is to rebalance), even the hypothetical Sasol at 50% market cap will just have 2.5% in that product, maybe it will grow to 3.5% but come rebalancing time the excess is sold. As I said, its the mandate/index it follows that controls it.

ETFs have a few differences to unit trusts, some positive, some negative, but are overall very similar, and as I said, you get index tracking unit trusts now, from Sygnia for example. Cant recall it all diffrences now.

No, equity is shares. Investing directly isn shares is investing directly in shares.

Some unit trusts (most are called balanced funds) invest in equity, listed property, bonds and cash at whatever % their mandate allows.
 
I know Coronation, Allan Gray and the like are well known asset managers managing pension funds and such however, how does Satrix compare to them?

Can Satrix just disappear of the face of the earth with everyone's cash?
 
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