Dear Readers

Welcome to the November issue of the Views newsletter.

While the year is rapidly drawing to a close and “crazy busy” seems an understatement, can I encourage you to steal away for a few moments and be absorbed by something other than your usual day-to-day routine.

Our first article on offer here is by AJ Cilliers, and is a follow-up to his previous piece highlighting the bright future of the super computer in the investing space. The good news is that humans have not made themselves obsolete quite yet, with some interesting research on just how much more successful some fund managers are than computers when it comes to selecting winning shares. You’ll also find tips on how to apply their strategies to your own investment decisions.

How Fund Managers Beat The Computers

20 October 2017 | AJ Cilliers AJ Cilliers’ companion piece to Will Your Next Fund Manager Be A Super Computer? While computers seem to be better at share trading than humans, share picking remains best done by humans. Find out why… Read more >

Moving on to the commodities arena, Wim Prinsloo investigates the progress of the electric vehicle revolution, and discovers the looming shift in the demand for commodities for use in batteries and vehicle bodies. Platinum, for one, may not be as much of a ‘precious’ metal in the near future. Don’t be asleep for this, as most of us were for the entrance of Microsoft and computers – you can’t afford to miss it!

The EV Revolution: Which Commodities Will Be The Winners And Losers?

17 October 2017 | Wim Prinsloo Government support for tighter emission targets is necessitating a faster move towards electric vehicles (EVs) than previously anticipated. Not only will this have far-reaching implications for the global vehicle industry, it will also impact a number of commodity markets over the long-run. Read more >

Finally, on a more personal note, Nicole Cameron interviews Kim Potgieter on her career as a financial planner. If you’ve ever been curious about making a change into this career and where it can take you, this article will inspire you. A woman passionate about supporting other women in the financial services industry, find out what drives Kim and discover her ingredients for success and happiness at work.

FEMMES in FINANCE: Meet Kim Potgieter, Head of Financial Life Planning at Chartered Wealth Solutions

27 October 2017 | Nicole Cameron Kim is an authority on financial life planning and helps clients gain a holistic approach towards making healthy money-related decisions. Read more >

The Simplest Way To Invest

3 November 2017 | Kobus Louw You only have to consider these four funds for a long-term investment. We have made investments simple by narrowing down the choice to only four funds. You can choose between a conservative, a moderate and an aggressive fund, each fund designed for long-term investors with a specific risk profile in mind. Read more >

Wishing you good reading and a successful month on the markets,

Natalie Mayer

Editor

editor@sharenet.co.za

Q:

What is a unit trust fund and how does it work?

A:

Simply put, a unit trust fund is a way for you to invest your money.  You can invest in a unit trust fund through financial services providers such as a broker; an Investment Management Company or in some cases through your bank. A unit trust fund is a pooled resource, which means that it allows a group of investors to combine their cash and invest it.  Think of it like going in on a group gift. Taken altogether, those investments are called the fund’s assets.

So how does it work?

A unit trust fund is made up of equal shares which are called “units”; these “units” have a price called a Net Asset Value. While you as an individual invest in a unit trust fund, the fund itself is run by a fund manager, whose aim is to grow the overall value of unit trust fund.  The fund manager does this by investing the fund’s assets, usually by buying stocks, bonds, or a combination of these two securities which are listed on the Stock Exchange. These stocks or bonds are often referred to as a fund’s “holdings” and all of a fund’s holdings together are its “portfolio.”

A fund’s type depends on the kinds of securities it holds. For example, a small-company stock fund invests in the stocks of small companies. What you get as an investor or shareholder is a portion of that portfolio. Regardless of how much or how little you invest, your shares are the portfolio in miniature.

Source: Morningstar

It is never too early to start investing, but it is also never too late. At Sharenet, we offer a wide range of investing opportunities and will help you tailor your portfolio to your needs.

Visit www.sharenetinvestments.co.za for more information or contact our investment team on investments@sharenet.co.za.

Got an investing question? Ask our friendly Financial Services Advisor

Email: editor@sharenet.co.za