Recent headlines about inflation, oil prices, the Rand and global politics can make it feel as if something unusual is happening in markets. In reality, market volatility is normal. Financial markets move in cycles. Prices rise, fall, and sometimes react quickly to global events or economic news. While headlines change constantly, the principles of long-term investing remain the same. Your financial plan was never designed around perfect market conditions. It was designed to work through uncertainty. […]
Continue readingCategory: Investments
Retirement Funds are Getting a “Smartphone” Upgrade
For the last 20 years, the rules governing how your retirement fund is managed were stuck in 2002. Think of it like a Nokia 3310: it was reliable and did the basics, but it wasn’t built for a world of cyber threats, instant data, and high expectations. That changed recently with the introduction of the FSCA Conduct Standard 2 of 2025. This new regulation officially “retires” the old rules and moves your retirement fund into the […]
Continue reading
Closing the Gap: Using Your Benefit Statement to Win
In our last post, we looked at why your benefit statement is the ultimate “health check” for your retirement. But once you have that information, what do you actually do with it? At Exponential Financial Services, we believe that understanding your employer fund is the secret to a smarter overall financial plan. Bridging the Retirement Gap If your benefit statement shows a low Net Replacement Ratio (NRR)—meaning you might only receive 40% of your salary at […]
Continue reading
Passive Investing: The Power of Autopilot
Investing often feels like it should be complicated, but some of the most successful strategies are actually the simplest. Passive funds have surged in popularity for a reason: they offer a cost-effective, transparent way to grow wealth without the stress of constant market-timing. What Exactly is a Passive Fund? Think of a passive fund as a “mirror.” Instead of a manager trying to guess which individual stocks will win, the fund aims to replicate the performance […]
Continue reading
Active vs. Passive Investing: Which Strategy Wins?
If you’ve been following our recent series, we’ve dived deep into the worlds of Hedge Funds and Active Management. But a fundamental question remains for every investor: Should you pay for a professional to “beat the market,” or simply aim to “match the market” at a lower cost? Understanding the trade-offs between Active and Passive management is key to building a portfolio that actually works for you. The Strategy: Hands-On vs. Hands-Off Active Management: Think of […]
Continue reading
Picking a Winner: How to Evaluate Active Funds
In our previous post, we explored how actively managed funds can provide agility and the potential for higher returns. However, the success of an active strategy depends heavily on the skill of the manager. Not all funds are created equal, and “fee drag”—the impact of higher management costs—means you must be selective. Here is how to evaluate whether an active fund earns its place in your portfolio. 1. Look Beyond the Track Record While historical performance […]
Continue reading
The Case for Active Management: Beyond the Index
In a world where “set and forget” passive investing often dominates the conversation, many investors overlook the strategic advantages of professional oversight. While passive funds aim to replicate market performance, actively managed funds strive for something more: outperformance. What is Active Management? At its core, active management is about human expertise. Unlike passive funds that simply track an index, active managers take a hands-on approach. They analyse market trends, economic data, and company fundamentals to hand-pick […]
Continue reading
Hedge Funds in South Africa
After attending an international conference in Australia, I realised how little is known about Hedge Funds in South Africa. As part of my supervision for a CAT II license*, we have spent time on hedge funds. This article is to give you insight in the use of Hedge funds and what the risk return for investors. Hedge Funds: Understanding Their Role in Client Portfolios and the Returns vs. Risk Trade off Introduction Hedge funds have long […]
Continue reading
February is retirement annuity month.
What is a retirement annuity (RA)? It is a retirement fund that everybody can contribute to. Many taxpayers, especially businessowners make ad-hoc payments to RAs before the end of February to reduce their tax liability. What are the benefits of an RA? You are investing for retirement. Your contributions to it are tax-deductible within certain limits, and the first R550 000 can be withdrawn tax-free at retirement, subject to the Income tax Act.; Investment growth is […]
Continue reading
Lessons Learnt from Investing in 2016
Having recently read a report from the CEO of PSG Asset Management, Anet Ahern, here are a few key pointers that our top minds in the investment sector will be carrying with them as we start 2017. 1. The best investment decisions aren’t always the most comfortable During the first two weeks of 2016, a few of the top investment vehicles were down between 8% and 10% – the worst start to a year ever. All […]
Continue reading