Index funds shouldn’t charge fees, says Alexander Forbes investment chief

Passive asset managers need to do more than just track the index if they want to charge any fee, says Alexander Forbes’s chief investment strategist Vladimir Nedeljkovic.

In 2018, US fund manager Fidelity became the first to launch two zero-fee index funds. In SA index funds charges range from 20 basis points to around 100 basis points or 1%. He however acknowledged that some index funds are doing more than just tracking the JSE All-share Index . He said there is a shift to tracking a host of other indices in order to outperform the average index bucket over time.“Passive is not passive anymore. These days it’s gone to factor investing and to try and look at market efficiencies in a more systemic way.”

Index funds in SA are however not as popular as in the US where about 50% of assets are managed by index tracking managers. Gryphon chief investment officer Reuben Beelders said only about 18% of assets are allocated to index funds in SA.Beelders argued that indexation delivers consistent performance and overcomes inherent biases that active asset managers may have.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Global stocks tumble as bond markets sound U.S. recession warning - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Investors ditched shares on Monday and fled to the safety of bonds while the Japanese yen hovered near a six-week high as risk assets fell out of favor on growing fears about a U.S. recession, sending global yields plunging. U.S. stocks futures fell, with E-minis for the S&P 500 skidding 0.5 percent. MSCI’s broadest index …
La source: SABC News Online - 🏆 32. / 51 Lire la suite »

Alexander Forbes ready to ditch insurance arm | IOL Business ReportSanlam is in pole position to acquire the assets, insiders say
La source: IOL - 🏆 46. / 51 Lire la suite »

EAC leaders say political differences, protectionism impede investment'We need to be honest with each other and ask what we really want from this union,' says a Tanzanian businessman.
La source: TheCitizen_News - 🏆 6. / 75 Lire la suite »