Moneyweb InvestorCONSUMER SPENDING: IS IT JUST A RAINBOW?

www.moneyweb.co.za | Michael Porter l October 2017

Some indicators suggest capacity for growth.

This year started with promise – we anticipated that our economy would grow at 1.7% this year. That is nothing to write home about, but it would have been an improvement on the past  two years, and a chance to let momentum develop. Then politics intervened. What has transpired since has been well documented, and our economy remains in critical condition ...read the rest of the article.

 

shutterstock 237785803-555x370ALLAN GRAY STAYS TOP IN LATEST PLEXCROWN SURVEY

While Marriott makes the biggest gains. Patrick Cairns  |  12 September 2016 00:06

CAPE TOWN – In its most recent survey of the local unit trust industry, PlexCrown has again named Allan Gray as the top collective investment scheme (CIS) management company in the country. The latest ratings take into account performance up to June 30 2016.

PlexCrown’s ratings are based on risk-adjusted performance, meaning it is not just absolute returns that are measured, but the return generated per unit of risk taken. This aims to give a more balanced ...read the rest of the article.

 reality in retirementTHE REALITY OF RETIREMENT

CAPE TOWN In this advice column Robin Gibson from Harvard House answers a question from a reader who only has ten years to save up for retirement.

Q: I am 56 years old, healthy, have a reasonable job and presume I can work for the next 10 years.

I have a home which is worth about R2.5 million, with a relatively small bond. However, apart from an annuity worth about R300 000 I have no other savings.

My youngest child is almost independent, and in a couple of months time I will be able to save R10 000 per month. This amount can increase to R20 000 in the next 18 months.

How should I invest this money and how much trouble am I in? ....click here to read the response from Robin Gibson.

 

30.05.2016SHOULD MONEY MARKET INVESTORS BE AFRAID OF A DOWNGRADE?

Reader’s questions answered.

www.moneyweb.co.za | Patrick Cairns |  26 May 2016 12:17 

In this advice column Robin Gibson from Harvard House answers a question from a reader who is concerned about the effects of a credit downgrade on her savings.

Q: My husband and I are retired. Our pensions are adequate to cover our monthly expenses, but we have a substantial amount of money invested in a major financial institution.

With all the discussion around a credit downgrade, we are concerned about the money markets and how this would affect our investments.

Because of the above, and our advanced age, we would like to know whether we should rather take the money out and invest some in short term fixed deposits in the bank. We are aware of the tax implications.....click here to read the response from Robin Gibson.

 finweek logo

FUND IN FOCUS: HARVARD HOUSE FLEXIBLE INCOME FUND

www.fin24.com/finweek  | Jaco Visser | 28 April 2016

Good for a stable income, capital protection

The fund aims to achieve a high level of sustainable income while preserving the stability of the capital invested. It is skewed to fixed-income assets such as bonds, money-market instruments and listed property stocks.

Fund manager insights:

In an environment where equities are delivering sub-optimal returns to investors, stable and income funds are starting to become attractive in the bid to protect capital. One such fund is the Harvard House Group’s Flexible Income Fund...Click here to download and read the rest of the article.  

WHERE MUST A 21younginvestor-YEAR OLD INVEST?

Reader’s questions answered.

www.moneyweb.co.za | Patrick Cairns | 14 January 2016 00:44

CAPE TOWN In this advice column Robin Gibson from Harvard House answers a question from a reader who is making his first investments.

Q: I recently turned 21 and have been working full-time for the last seven months. I am still living with my parents so am in the fortunate position of having very low monthly costs and being able to save 50% of my salary. I understand that this is not a long-term arrangement, but I am making the most of it while I still can.

The first R20 000 that I saved I converted into Euros and sent to a foreign account (I have a German passport). I have now saved another R20 000 which I would like to put into a more fruitful mid-term investment.

Initially, I considered putting the money into a local ETF through a tax-free investment account, but have recently also thought of buying gold in Krugerrands. The appeal of high liquidity and a form of hedging against the rand make gold seem the better option to me.

Am I right in my line of thinking, or should I consider other investments? I am adamant that I want to learn how to invest directly rather than using firms that charge fees that will eat into my interest....read the rest of the article.

 5notablesFIVE NOTABLE UNIT TRUSTS LAUNCHED DURING 2015

Funds worth watching.

www.moneyweb.co.za  Patrick Cairns | 04 January 2016 00:01

Cape Town – The choice for investors in South African unit trusts is huge. There are currently over 1 300 funds available on the local market.

During 2015 around another 100 new funds were added to this list. It is therefore becoming increasingly difficult for investors to know where they should be putting their money.

To provide some guidance, Moneyweb took a look at five funds launched this year that may be worth keeping an eye on as they establish their track records.

Harvard House BCI Property Fund

The boutique asset manager in Howick has established quite a reputation over the last decade due to the performance of its flagship equity fund, which has received both Morningstar and Raging Bull awards.

It is therefore notable when a manager this successful launches a new product. What makes this even more compelling is that astute investments in listed property have been one of the driving forces behind Harvard House’s equity fund producing constant out-performance.

“We have always been large investors in listed property, believing that the asset class is superior to bonds in terms of long term growth in both income and capital,” says chief investment officer Michael Porter. “So we understand the sector well, and we have a large exposure to it. We wanted a fund that would be suitable for smaller clients but that was focused so that those clients could enjoy the same benefits as if they have a discretionary property portfolio. 

Porter adds that while listed property ...read the rest of the article.

diamondsInROUGHDIAMONDS IN THE ROUGH

The JSE-listed companies that are under-valued and unloved.

www.moneyweb.co.za  Sasha Planting | 11 December 2015 06:25

The JSE is trading on a price:earnings multiple of 19.6, well above its ten-year average of 16.2x. While valuations are still high, in many cases share prices have retreated slightly and for those prepared to do the legwork, value can be found.

The Moneyweb Investor invited suggestions from analysts on ‘diamonds in the rough’, shares they felt were over-looked and un-loved but which could reward patient investors over the next twelve to 36 months. We present the ten we found most interesting.

AngloGold Ashanti

ANG’s share price follows the gold price.  The share is down 9% this year but Lonwabo Maqubela of Perpetua Investment Managers believes this discounts the work that the management team has done in improving the business and capital structure.

He notes that South Africa now contributes only 25% of ANG’s production, which means it is not highly exposed to the SA environment.

Since 2012, ANG has reduced its all in costs of mining by some 40% and mines at  a cash cost $750/oz. Emerging market currencies and the low oil price  act to counter the falling gold price. As the company focuses on improving its safety record in South Africa there is scope to cut costs further. Furthermore ANG has reduced its debt over the past year. At marginally higher gold price we think the company can continue to cut debt....read the rest of the article.

acerosKEEP CALM AND CARRY ON: What the Fund Managers say.

The Investor   | October 2015

The words of the most famous World War II poster never to be issued (or uttered by Winston Churchill) have never seemed quite so prescient.

The past few months have not been kind to equity investors. After peaking in late April at a level of 55 188, the JSE's All Share Index fell to 47 500 in August, and has  since recovered to 51 045.               

Adding to investor stress is the volatility of the last month in particular.  Apparently it has only been eclipsed by October 2008 and the Great Depression.

In previous articles managers managing multi asset flexible funds and multi asset medium equity funds had one thing in common, minimal exposure to South African equities.

So what do you do when you run an SA – focused general equity fund, which needs to remain at least 80% invested in equities at all times, in a time of high valuations and extreme volatility? 

You keep calm and carry on ...read the rest of the article.

RetirementWILL YOU RUN OUT OF MONEY IN RETIREMENT?

www.moneyweb.co.z  Patrick Cairns | 29 October 2015 00:05

Reader’s questions answered.

Cape Town – In this advice column Robin Gibson from Harvard House answers a question from a reader who is concerned about his retirement savings.

Q:  I am 73 years old and recently retired. My wife is now 80. We are currently withdrawing R37 500 per month from our equity portfolio of R4.2 million that is handled by my investment adviser.

What is frightening me is that at the rate our investment is going down we won’t have anything left in a few years time. My financial adviser is telling me that we must be patient as all will be well after three years, but that seems like too much of a risk to me.

Currently we save R20 000 from our income every month. This is because I used to give my wife R40 000 every month before I retired and she always saved half of it. We have continued to do that and have around R400 000 put away.

Please could you advise what we should do?...read the rest of the article.

UNIT hh-shutterstock 235278187-500x328TRUST MANAGERS THAT CAN ‘LOOK YOU IN THE EYE’

Five reasons to include a boutique manager in your portfolio.

www.moneyweb.co.za  Patrick Cairns | 10 July 2015 00:20

CAPE TOWN – One of the major themes in the South African unit trust industry over the last decade has been the rise of boutique managers. Dozens of new fund houses have been launched in the country, many of them by experienced managers who have left big corporates to start their own firms.

These boutiques offer investors something distinctly different from the bigger players. They are small, focused, and are generally owned by the same people who are making the investment decisions.

“I consider boutique managers to be companies where the assets under management are under R10 billion, the fund managers have comprehensive experience, and the core fund management decisions are made in-house,” says Hardi Swart, marketing director at Autus. “More than 50% of the company should also be owned by the people who manage the money.”...read the rest of the article.

THE WITNESSMAKING ‘CENTS’ OF EXECUTORS FEES

Funeral & Estate Planning Supplement  | Melanie-Ann Govindsamy, Harvard House | 30 June 2015 00:11

EXECUTOR’S fees always seem to be a contentious issue and therefore it is important for people to understand what fees can be charged, how they are calculated and what executors’ responsibilities are in order to receive this fee....Click here to download and read the rest of the article.      

tax free accountsTHE THREE MAJOR BENEFITS OF TAX FREE ACCOUNTS

Reader’s question answered.

www.moneyweb.co.za   Patrick Cairns| 25 June 2015 00:45

CAPE TOWN – In this advice column Robin Gibson from Harvard House answers a question from a reader who wants advice on when to use a retirement annuity and when to use a tax free savings account.

Q: With the introduction of tax free savings accounts, I’m thinking of changing how I save for retirement. Should I split my monthly contributions between a retirement annuity and a tax free account? I know there are limits on how much you can put into a tax free account, but it does allow me to be more aggressive and invest 100% in equities. What is the best way to make use of these new accounts?

To start with, it is important to note the specific differences between a retirement annuity (RA) and a tax free savings account (TFSA)...read the rest of the article.

dataminedDATA MINED: MOST POPULAR UNIT TRUSTS

Coronation remains front of mind, but property sector smokes it.

www.moneyweb.co.za   Marc Ashton | 16 April 2015 09:53

Unit trusts managed by Coronation Fund Managers dominate the rankings of the most searched for unit trusts in the Moneyweb Unit Trust data section but the little-known Harvard House General Equity Fund has been the most searched for fund since our new data section went live in March 2015....read the rest of the article.

LESSONSLESSONS FROM SA’S BEST EQUITY FUND

The power of dividends, listed property and staying invested for the long term.

www.moneyweb.co.za Patrick Cairns | 10 March 2015 00:08

CAPE TOWN – The Natal Midlands might be a great place for dairy farmers and antique shops, but it’s probably not the place you would expect to find a top asset manager. And yet, South Africa’s best equity fund is run from offices that are within earshot of where the Umgeni River makes its famous 95 metre drop over the Howick Falls.

The Harvard House BCI Equity Fund has won two awards in as many months, making it the current undisputed champion of this category. Yet this fund run by an independent firm in Howick is far from a heavyweight.

The fund manages a little over R100 million in assets, which is hardly worth a mention in a category with an overall size of R300 billion. The Allan Gray Equity Fund, which dominates this sector, manages over R40 billion alone.

At the end of January, Harvard House won the Raging Bull award for the best South African general equity fund for the three years to December 2014. That was calculated on a pure three year performance basis...read the rest of the article.

fa newsA MEASURE OF CONSISTENCY

www.fanews.co.za   05 March 2015 Michael Porter, Harvard House

Michael Porter, Harvard House chief investment officer.

HARVARD House Investment Management has walked away with its second industry recognition in as many months when the Howick-based independent financial services group won the Morningstar Best South African Equity Fund award last night/Wednesday night.

In January the company won three Raging Bull honours in the Sanlam Plexus Profile Media Raging Bull awards, securing recognition for the Best South African Multi-Asset Income Fund (Absolute Performance) certificate for the Harvard House BCI Flexible Income Fund and Raging Bull awards for the Best South African Equity General Fund (Absolute Performance) and the Best South African Interest-bearing Fund (Absolute Performance) for its BCI General Equity Fund and BCI Flexible Income Fund respectively.

In winning the Morningstar Award, Harvard House beat the entire general equity category including well-established household names...read the rest of the article.

moneypotSHOULD YOU DIVERSIFY YOUR PORTFOLIO ACROSS MORE THAN ONE ADVISER?

Moneyweb.co.za  Patrick Cairns | 5 March 2015 00:11

Reader’s questions answered.

CAPE TOWN – In this advice column Robin Gibson from Harvard House answers a question from a reader who is concerned about the risk of having all his assets with a single financial manager.

Q: I am a pensioner and have a small pension from my last employer. The rest of my income is derived from my investments.

Nearly all of my investments are managed by a single financial manager. I am happy with his performance and investment philosophy and I am sure that I can rely on his integrity and the security of my investment.

 However, I am very conscious of the ‘all eggs in one basket’ risk. If my financial manager were to become the victim of a dishonest employee, all my investments would be at risk.

 What would you suggest?...read the rest of the article.

morningstar logoMORNINGSTAR ANNOUNCES FINALISTS FOR THE 2015 MORNINGSTAR SOUTH AFRICA FUND AWARDS

CAPE TOWN, 31 Jan. 2015—Morningstar Research Limited - South Africa, a subsidiary of leading independent investment research provider Morningstar, Inc. (NASDAQ: MORN), today announced the finalists of its 2015 South Africa Fund Awards.

Morningstar annually recognises unit trusts that have delivered excellent risk-adjusted returns for investors. The Morningstar Awards are designed to help investors identify the country's most exceptional funds and fund managers for the previous year.

“Each year, Morningstar identifies retail funds and fund groups that have delivered impressive performance not only in the past year, but also excellent risk-adjusted returns for their investors over the longer term,” Tal Nieburg, managing director for Morningstar South Africa, said.

The finalists for the 2015 Morningstar South Africa Fund Awards are, in alphabetical order...Click here to download the article

 citinews

 

 

HARVARD HOUSE WALKS AWAY WITH THREE RAGING BULL HONOURS

04 February 2015 http://www.itinews.co.za , Author Paul Green

'SMALLER, INDEPENDENT FINANCIAL HOUSES ARE EQUAL TO THE TASK'

HOWICK-based independent asset manager Harvard House Investment Management, scooped three Raging Bull honours at Personal Finance Profile Media Raging Bull awards ceremony, highlighting the ability of smaller institutions to deliver capacity and service to their clients.

The Harvard House BCI Flexible Income Fund won a certificate as the Best South African Multi-Asset Income Fund and in addition won the Raging Bull for the Best South African Interest Bearing Fund

Earlier the Harvard House BCI General Equity Fund won the coveted Raging Bull as the Best South African Equity General Fund.

The funds were both awarded in the Top Outright Performer category for the three-year period to December 2014...read the rest of article.

 SAs unsung unit trust heroesSA'S UNSUNG UNIT TRUST HEROES

04 February 2015 00:31, Moneyweb, Investment Insights, Author: Patrick Cairns

THE FUNDS YOU MAY BE OVERLOOKING.

CAPE TOWN - Last week we looked at the top-performing general equity unit trusts in South Africa over the last one, five and ten years. It is natural for investors looking at equity investments to gravitate towards this category, as it is one of the most high profile. 

However, it must be noted that not all equity funds are to be found here. There are a number of very good equity funds in other places that investors may overlook simply because they are classified differently.

If one spreads the net a little wider, one can find a number of funds that have delivered performances as good or better than the top-performing general equity funds. One just needs to know where to look.

Perhaps the most obvious place is in the equity large cap and equity small cap categories. These are funds that either focus exclusively on stocks within the top 40, or exclusively those outside it.

They may not necessarily be best-used as a core holding in an investment portfolio, but they can be used to tilt the bias one way or another....read the rest of the article

iol pf wp

BEING CONTRARIAN ABOUT PROPERTY GIVES INCOME FUND THE EDGE

January 31 2015 at 06:25pm Iol Personal Finance

The Harvard House BCI Flexible Income Fund won the Raging Bull Award for the Best South African Interest-bearing Fund. Willie Pelser (centre), a director at Harvard House, accepts the award from Laura du Preez, the editor of Personal Finance, and Ernie Alexander, the managing director of ProfileData.

HARVARD HOUSE BCI FLEXIBLE INCOME FUND

Raging Bull Award for the Best South African Interest-bearing Fund – the top-performing fund on straight performance in the South African interest-bearing short-term and variable-term sub-categories, as well as the South African multi-asset income sub-category over three years to December 31, 2014

A relatively high exposure to listed property probably gave a multi-asset income fund the edge over its competitors in the bond, income and multi-asset income sub-categories...read the rest of the article

iol pf mipSMALL MANAGER PUNCHES ABOVE ITS WEIGHT

January 31 2015 at 06:30pm By Laura du Preez, Iol Personal Finance

Michael Porter, the chief investment officer at Harvard House, accepts the Raging Bull Award for the Best SA Equity General Fund on straight performance from Laura du Preez, the editor of Personal Finance. The award was won by the Harvard House BCI General Equity Fund. With them is Ernie Alexander, the managing director of ProfileData

HARVARD HOUSE BCI GENERAL EQUITY FUND

Raging Bull Award for the Best South African Equity General Fund – the top-performing fund on straight performance in the South African equity general sub-category over three years to December 31, 2014

A small fund managed on a long-term buy-and-hold strategy, mostly for the benefit of private clients, has taken the honours as the top-performing equity fund over three years at this year’s Raging Bull Awards.

The Harvard House BCI General Equity Fund out-performed its peers, with an average return of 24.78 percent a year over the three years to December 31, 2014...read the rest of the article

directorsHARVARD HOUSE BAGS THREE RAGING BULLS

The Witness, Friday January 30, 2015

HOWICK-BASED independent asset manager Harvard House Investment Management scooped three Raging Bull honours at an awards ceremony on Wednesday night.

The awards also highlight the ability of smaller institutions to deliver capacity and service to clients.

The Harvard House BCI Flexible Income Fund won a certificate as Best South African Multi-Asset Income Fund, and in addition won the Raging Bull for the Best South African Interest Bearing Fund. The Harvard House BCI General Equity Fund won the Raging Bull as the Best South African Equity General Fund. The funds were both awarded in the Top Outright Performer category for the three-year period To December 2014. Click here to download the article

patrickcairns3siteSA'S TOP PERFORMING EQUITY FUNDS

Moneyweb.co.za  January 27, 2015 Investment Insights by Patrick Cairns

 Over one, five and ten years.

CAPE TOWN – At the end of last year there were 124 domestic general equity unit trusts in South Africa that had at least a one-year track record. How much of a boom this represents in the local asset management industry is reflected in the fact that only 46 of those funds have been active for more than ten years…read the rest of the article

retirementIS HOLDING R4M IN CASH A GOOD RETIREMENT STRATEGY?
Moneyweb.co.za  November 27, 2014 Investment Insights by Patrick Cairns

Robin Gibson from Harvard House answers a question from a reader who is concerned about his mother-in-law's retirement planning…read the rest of the article

 

 

 

TAXES FEAclassic fmTURE: How will your listed Property Holding be Taxed?

21 October 2014, Tuesday

Classic FM’s Anchor Michael Avery interviews Shelly Moreno, Tax Manager at Harvard House Group.

Download or listen to the podcast here...1.16mb

REITREIT INVESTMENTS AND TAX

Moneyweb.co.za  13 October 2014 Master Your Money by Patrick Cairns

How your listed property holding will be taxed.

CAPE TOWN – By the middle of this year, most of South Africa's listed property companies had converted themselves into real estate investment trusts (REITs) under legislation adopted in 2013. This brings the sector in line with global standards…read the rest of the article

 

9years to returementHOW DO YOU INVEST WITH ONLY NINE YEARS TO RETIREMENT?

Moneyweb.co.za  09 October 2014 Master Your Money by Patrick Cairns

CAPE TOWN – In this advice column Robin Gibson from Harvard House answers a question from a reader who only has a short period to save before retirement…read the rest of the article

 

 

nsq investigation

GET ADVICE FROM THE RIGHT KIND OF PEOPLE

Moneyweb.co.za  23 September 2014 Investment Insight by Patrick Cairns

CAPE TOWN – If you are going to hire any professional to take care of some aspect of your life, you need to be sure that they are really looking after your best interests. This is as true for a financial adviser as it is for a doctor...read the rest of the article.

 

 jse5siteSHARES AND TAX: THE FACTS

Moneyweb.co.za  05 August 2014 Investment Insight by Patrick Cairns

UNDERSTAND HOW YOU WILL BE TAXED WHEN YOU SELL SHARES

CAPE TOWN - For anyone investing directly in the stock market, one of the most important things to consider is the tax implications. While a fund manager can buy and sell stocks in a portfolio without attracting any tax, this is not the case for individuals...read the rest of article

 

 imA PASSIVE APPROACH PAYS OFF

 Business Day article, July 2014 publication by Warren Dick

 Every young boy grows up thinking he’ll be Lionel Messi, just like every fund manager goes into business thinking they will beat the index. What Index? Any index! Such is the desire to beat the index that some equity fund managers are making their benchmark the return you get ….click here to download the article(656kb)

 moncsbudget2ALLOW ME TO REPEAT MYSELF

Moneyweb.co.za  22 July 2014 Investment Insight by Patrick Cairns

THE PROBLEM WITH HISTORICAL RETURNS

CAPE TOWN - One of the most often-repeated warnings when it comes to unit trust investing is that historical performance is not a guarantee of future returns. Every unit trust fact sheet even includes a line to that effect, just like every cigarette packet carries a cautionary about what smoking does to your health...read the rest of article

Finweek-Eng 17-July-2014 preview-1-page-001HARVARD HOUSE BCI FUND

Finweek article, 17 July 2014 publication by Warren Dick

A SIMPLE STRATEGY WELL EXECUTED

It seems to pay to keep things simple. The fund has delivered excellent returns for investors over a sustained period of time. Over five and seven years to end of June, the has beaten its benchmark by 1.65% and 0.54% per annum, placing it in an exclusive group of funds.  click here to download the article (386kb)

 

 

patrickcairns3siteTHE BEST FINANCIAL ADVICE YOU MIGHT EVER READ

Moneyweb.co.za 10 July 2014

Readers question answered.

CAPE TOWN - In this advice column, Robin Gibson from Harvard House answers a question from a reader who is feeling pressure from supporting his wider family...read the rest of article

 

 2ARE PENSIONERS FACING A GREATER TAX BURDEN?

Moneyweb.co.za 29 May 2014

Readers question answered.

CAPE TOWN – In this column, Shelly Moreno from Harvard House answers a reader's question about income tax in retirement...read the rest of article

 

3 SA'S LEAST VOLATILE EQUITY UNIT TRUSTS

Moneyweb.co.za 21 May 2014

 Looking for the best risk-adjusted return.

CAPE TOWN – In many parts of the world low volatility investment strategies are coming into vogue. These approaches were first captured by exchange-traded funds (ETFs), which are now some of the most popular products in markets like the US....read the rest of article

4MANAGED EQUITY FUNDS VS EFTS

Moneyweb.co.za 24 January 2013

How did their performances compare in 2012?

ORAPA – Unit trust fund managers have a hell of a job. That should be acknowledged from the outset. They are responsible for millions of rands of other people's money, and....read the rest of article

5 WEIGHING UP A TERTIARY SAVINGS SCHEME

Moneyweb.co.za 04 November 2012

Fundisa seems great on the surface, but is it?

This article explores the pros and cons of investing in ‘Fundisa' - a savings initiative subsidised by the government and open to all citizens...read the rest of article

 

6 SHOULD YOU INVEST IN POOR PERFORMERS?

Moneyweb.co.za  18 September 2012

Does the theory hold water that one year's poor performers outshine the top performing funds the next year?

Including exchange traded products, there are currently 119 general equity funds registered in South Africa. Not one of them has delivered a negative return over the last...read the rest of article

7 THE HOLY GRAIL OF INVESTING

Moneyweb.co.za  Community blog 14 February 2008

Harvard House Investment Management gives its views on the market and economy.

In an attempt to predict the future direction of markets, many analysts look back over history to try and ascertain patterns or trends that develop over time. This type of analysis spawned the so-called "January effect"...read the rest of article