Investments

Please note that the information and comments made on this website represent my own personal investment philosophy and does not constitute financial advise.


Methodology

I am a believer in the core and satellite approach to investing in equities. The approach involves investing the majority of your funds in diversified exchange traded funds (I have elected a minimum of 60%) and the remaining portion (a maximum of 40%) in either carefully selected shares of individual companies or with an asset manager with an active approach to share selection.

Target Portfolio

Based on the above methodology, the portfolio should be structured as follows:

Core and Satellite Split

Core

60%

Satellite

40%

Portfolio Components

Ticker Code

Share Name

Weight

Type

CSP500

Coreshares S&P 500 ETF More

24%

Core

ASHGEQ

Ashburton Global 1200 ETF More

27%

Core

STXEMG

Satrix Emerging Markets ETF More

9%

Core

None

Orbis Global Equity More

27%

Satellite

None

 Orbis Emerging Markets More

13%

Satellite



At the end of each month, I will provide an update on the performance of the portfolio as well as provide commentary on the movement, if applicable. The portfolio will be rebalanced on a quarterly basis to ensure that all of the components remain as close as possible to their ideal weightings as reflected in the above table. The start date of the portfolio for the purposes of tracking is 6 October 2017 as this is the first date upon which all of the components making up the portfolio were traded on the Johannesburg Stock Exchange (JSE).

For the purposes of measuring the performance of the portfolio, I will make the assumption that one invested a total of R100 000 across the 5 components.

Please note that one does not need to invest such a large amount at once and one does not need to achieve the exact weightings immediately. That is, one could start by investing R10 000 in a single component of the portfolio and make further purchases of the various components at a later date to bring their investment in line with their ideal weightings. For example, one could purchase R10 000 worth of the Coreshares S&P500 ETF in month 1, then purchase another R10 000 in month 2, then purchase R10 000 worth of the Ashburton Global 1200 and so on until their holdings approximate the above percentages.

Lastly, I would strongly advise against rebalancing your portfolio unless you have a significant amount of funds invested in it (more than R1 million) as the trading costs incurred in doing so would be quite significant on a low value portfolio.

Quarterly Performance Analysis
Coming soon