Dear
Clients
10 May
2017
Our latest estimate in the
case of your investment in our Kanaan Hedge FoF for April 2017, nett of
all fees at this stage, is 1.27% and the early results for May 2017 taking Polar
Star fund into account who is trading daily, is now already at 2.35% for the
1st two weeks of May 2017.
The Switching of
Administrators
Investors find it
sometimes inconvenient when we switch from one administrator to another, but
they should understand that we are doing that in their own interest. The
decision to make use of an active fund of fund manager who will mostly pick
underlying funds that are actively managed, has huge benefits compared to fund
of fund managers who follow a passive management style and who are inclined to
pick funds which are passively managed. There is nothing wrong with the
passively managed style, if that suits you personally and your circumstances.
We believe that passively managed funds which follow a strategy of “buy and
hold” even in the face of share market crashes, which usually happens once every
ten years where markets can crash more than 50% and stay there for many months
or even years, can cause investors who can not follow that strategy of “buy and
hold” because they need some cash or they need a monthly income, irreparable
damage. Clients who have been using our services since 1983 are witnesses to
the fact that we switched timeously to cash during the October 1987 crash, the
Far East Pacific crash of 1998, the IT Bubble crash of 2000, the Currency crash
of 2001 and the Credit Crunch crash of 2008.
Active fund management is
more expensive as you need a bigger back office with the necessary skilled
personal, but we nevertheless try to keep the cost as low as possible,
especially as far as the administrators are concerned. We do not necessary shop
around for the administrator with the lower fee, but rather the best service for
the lowest price.
Clients may recall that we
have moved since 1995 our unit trust funds of funds, from TMA, from Investec
Bank, from Metropolitan and 3 years ago from Momentum Life to
Bci.
In the case of our
Kanaan Hedge FoF we have completed the move from the administrator Oak
Advisory to IDS which has prevented a substantial increase in administration
fees. You can not as yet log onto our website so as to see your values, but
Andries from our back office informed me that it should be accessible within the
next two weeks but in the meantime clients who need their statements can contact
us.
I would be very pleased if
you can undersign and email us the IDS documents we’ve sent you previously as
well as your FICA documents, if you have not done it
already.
Friendly
greetings
Andre
Delport