• Sharebar
September 2010
It’s hard to wipe away the TERs

The Total Expense Ratio (TER) of a portfolio is:
• a measure of the fund’s assets that have been sacrificed as payment for services rendered in the management of the fund;
• it is expressed as a...

September 2010
How to register for free support

Southern Africa Fraud Prevention Service (SAFPS) reports that in the half year to end of June 2010, an alarming increase in reports of Victim of Impersonation has been noted. In the same period in 2009, 596 reports...

September 2010
Geyser gets hot under the collar

A consumer who wants to invest in a home solar water heating system should be careful to choose one that is able to withstand the weather conditions in the area where he or she lives.

Graham Mundy, MD of...

September 2010
Book review

The Financial Advisory and Intermediary Service Guide is published by LexisNexis, and aims to inform financial services providers of the latest requirements and implications of the Financial Advisory and Intermediary...

September 2010
Price earnings multiple

Chart of the day in the US had a very interesting long term chart on the price to earnings multiple of the S&P500 index going back to 1935. This is what they noted:

...

September 2010
Whose theory works?

Way back in the 1930s John Maynard Keynes committed economic heresy when he argued against neoclassical economics. Economic theory at the time advocated that free markets could self regulate in that as long as wages...

September 2010
Free to clients

Risk Benefit Solutions (RBS) says it is making the Emergency 9 (E9) service free to its clients. E9 is “an an intelligent location, information and distress service”. It effectively turns a person’s cell phone into a...

September 2010
Post hoc ergo propter hoc!

When choosing a fund manager, we believe 70% of the trustee’s decision is based on two factors that have no bearing on a fund’s future performance: past performance and the brand of the asset manager. “Investment...

September 2010
Sticking with it

There are two kinds of market participants: speculators and investors. Speculators hope to sell their stock for a higher price, preferably as quickly as possible, in order to put their capital to use in the next trade...

September 2010
Measuring propsects

One way to compare different investments is to assess their relative yields. While most investors understand the PE, using the earnings yield is less common. “But in many respects, assessing yields makes more sense,”...

September 2010
Make no promises

No one would dispute the fact that the quality of life for the majority of South Africans has improved considerably the last decade. Unemployment has reduced from 36% in 2000 to 25% in 2010. The homes we live in have...

September 2010
Can’t handle it.....

Paris Hilton recently arrived in South Africa during the 2010 FIFA World Cup for a week-long country tour, accompanied by 13 pieces of genuine Louis Vuitton luggage that was worth hundreds of thousands of rands....

September 2010
Minefield for marketers

The new regulations relating to the labelling and advertising of foodstuffs (R146 of 2010), which were recently published by the Department of Health (DOH\”) will have far reaching consequences for the food industry....

September 2010
Out, damned spot!

Harmful bacteria or germs such as Salmonella and Listeria can cause food poisoning. It can be serious, even fatal. These germs cannot be seen and they spread very quickly, especially at warm temperatures. In fact, one...

September 2010
Notice workshop notice

The whole question of disclaimers and indemnities, so beloved of the aviation industry, has been called into question following the introduction of the Consumer Protection Act, which hits our pockets from October this...

September 2010
Scoring well

Analysis by Deloitte, the business advisory firm, has found that revenue per available room, a key performance indicator for the hotel industry, jumped 121.7% to R1 099 in South Africa during the month of June,...

September 2010
Basically.....

With the provisional tax deadline around the corner, many taxpayers will be pondering how best to calculate their liability, given the fact that over the past few years the methodology for computing estimates of...

September 2010
All that glitters is not.....

The Johannesburg Stock Exchange (JSE) announced early August that it had extended its existing licensing agreement with CME Group, the world’s leading and most diverse derivatives exchange, to list rand-denominated...

September 2010
Scared into cash

The same short-term outlook preventing South Africans from saving is probably also keeping the majority of investors out of equity unit trust funds and in fixed interest collective investment schemes.

...

September 2010
Unconfirmed confirmation

I have never understood bumping of passengers by airlines. You buy a seat and have it confirmed but when you arrive at the airport you are told, with no apology, that your seat has been given away and you can’t get on...

September 2010
Bads vehicles

Unroadworthy vehicles account for approximately one in 10 fatal accidents on South African roads. There is a ‘Road Transport Quality System’ (RTQS) supported by legislation, intended to ensure roadworthiness of our...

September 2010
Targeting costs

Short-term insurers are beginning to revise the terms and conditions of their agreements with brokers. This is in response to:

The tough economic climate; and,
• increasing pressure from regulatory...