Active Fund Management Beats Index Tracking

A lot has been written about the apparent virtues of tracking as means of obtaining equity exposure in South Africa. In all the years of Silke Financial Services’ existence we have never recommended index tracking funds. The reason for this is that the Top 40 index is not an efficient index to track due to its very high bias towards large capitalisation resource shares.

Silke Financial Services only places equity investors with skilled active portfolio managers who have shown that they consistently beaten the FTSE/JSE All Share Index and the Top 40 Index. As you are well-aware, the past 12 months have been a very trying time for equity investors given the Global financial turmoil the entire world has experienced.

The figures below clearly show how active portfolio managers have managed to control risk. One of the major attributes of using active unit trust equity fund managers is that risk is largely contained in a bear market. Looking at investment periods over the past 12 months, 3 years and 10 years [in the case of the FTSE/JSE All Share Index], it is interesting to look at how the three equity funds listed below have outperformed both the FTSE/JSE All Share Index and the Satrix 40 Fund.

Silke Financial Services constantly conducts research and due diligence on fund managers so that our clients investing in equity portfolio get access to the top active managers in South Africa.

Silke Financial Services are skilled risk and investment strategy consultants that provide a unique service offering not available elsewhere in the marketplace.