Sygnia’s decision last week to close all of its hedge funds has raised important questions about this industry. What are hedge funds supposed to do, and how should investors judge whether they are delivering?
In particular, many investors have been asking how you should measure their performance against traditional unit trusts. Since balanced funds are also designed to manage risk while delivering returns close to the stock market, are they directly comparable?
While this may seem logical, Werner Opperman from 27four Investment Managers says that contrasting these strategies against each other may not be entirely the right approach.
Proceed to Source : MoneyWeb
South African money manager Sygnia Ltd. closed all its hedge-fund products, ending a 13-year history with an investment strategy its chief executive officer now calls a ruse to pocket fees.
“Once you know that the emperor has no clothes you cannot in good conscience support what has become a management-fee racket,” Chief Executive Officer Magda Wierzycka wrote in an opinion piece in Johannesburg-based daily newspaper, Business Day.
Proceed to Source : Biznews
The JSE’s number of exchange-traded funds (ETFs) has grown by 12 so far in 2018, taking the total to 74.
Sygnia has overtaken Sanlam — which owns the Satrix range of ETFs — as the second largest player in the local exchange-traded product market, and is rapidly gaining on Absa’s lead, etfSA.co.za MD Mike Brown said in an industry update e-mailed on Wednesday.
The number of exchange-traded notes (ETNs) trading on the JSE has remained constant at 20 this year. Exchange-traded products is an umbrella term for ETFs and ETNs. The two differ in that ETFs have to own the underlying commodities, share portfolios or whatever they represent, whereas ETNs do not.
Proceed to Source : BusinessLive
Big players are continuing to roll out cryptocurrency services in South Africa, from international exchanges to major asset managers.
While the country may fall behind in other sectors of cutting-edge technology, South Africa’s cryptocurrency industry is alive and well.
Locals have shown a great interest in cryptocurrencies, with South Africa consistently ranking highest worldwide in search interest for “Bitcoin”, according to data from Google Trends.
Proceed to Source : MyBroadband
The cryptocurrency industry allowed several businesses to start new investments which have been very profitable. But cryptocurrency exchanges have provided extraordinary returns to their funders. This may be one of the reasons why Sygnia is moving to that industry.