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10 May 2017

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

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