[PODCAST] 'Understand why you are investing in these products, their roles, and what you’re giving up when choosing them,' Francis Marais – MorningstarInc on MoneywebNow with SimonPB. Download the podcast below. Moneyweb InvestmentPortfolio
SIMON BROWN: I’m chatting with Francis Marais, product director at Morningstar Investment Management SA. Francis, I appreciate the time today. When markets get tough, which we certainly saw a lot of last year, particularly globally but locally as well, a lot of talk then turns to guaranteed products. We’re delved into some of the details of them, but they can have a space in a portfolio.
SIMON BROWN: That’s a great point. Rushing in because you’re scared of the market is truthfully not really a strategy, but there is perhaps a part of your portfolio where you need – as it says on the sticker – that guarantee, that removal of uncertainty, because markets are by their inherent nature uncertain.
Other ones I think are a bit more sort of opaque, and I would question the payoff profile and what you pay or give up for that – whether you are not able to also replicate that with a normal or traditional asset class at much lower fees. So as soon as you try and reduce the risk, you must also then accept perhaps a lower return, and that lower return could be in the form of either higher fees or an opportunity cost that you then pay for engaging or entering into a guaranteed product.
FRANCIS MARAIS: Yes it can, but it can also be an asset from a utility perspective. If we don’t turn [to] risk in isolation, maybe more from a utility perspective, it can add liquidity to your portfolio. So when you have unforeseen expenses it’s useful to have that liquidity in your portfolio, and obviously it also adds some optionality to your portfolio. That is, you’re able to take advantage of investment opportunities as they present themselves.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Capitec is expensive relative to peers[ICYMI] MoneywebNow podcast with SimonPB, analysis of results from Capitec and PPS and a look at the role of guaranteed products in investment portfolios. Download podcast:
Read more »
PERSONAL FINANCE: How to protect your investment portfolio from Eskom’s power crisisWith parts of the Western Cape already experiencing temperatures as low as 9°C, the new Electricity Minister, Kgosientsho Ramokgopa, has warned the country to brace for possible Stage 10 blackouts this winter as energy use ramps up.
Read more »
DUMA GQUBULE: Our leaders are ready to take us over the precipiceRamaphosa must stop his pointless investment summits and end the public sector investment strike
Read more »
Japan invites African Union to G7 summit, excludes SAJapan’s government invited the African Union to the forthcoming G7 summit and excluded regular attendee South Africa. Moneyweb G7
Read more »
Bulls chasing points against Leinster ahead of URC playoffs | The Citizen🏉The Bulls are ready to chase points against Leinster in a crucial URC clash! A win this weekend could potentially see them move up the standings to sixth place 🏆 URC RugbyNews URC TheCitizenSport Read the story⬇️
Read more »
Place your brand in front of the right audience with banner ads on BusinessTech[Promoted] Place your brand in front of the right audience with banner ads on BusinessTech
Read more »