Since Investonline.co.za’s launch six months ago on 1 March 2010 their recommended portfolios have produced superior returns. Their suite of aggressive, moderately aggressive and moderate funds have produced returns of 3.7%, 4.5% and 3.1% respectively. This is in comparison with an average return of 2.7% from the general equity unit trust sector and the All Share Index’s 2.9%.
Investonline’s philosophy is to promote long-term investing in selected premium-branded unit trusts. Our directors continue to monitor and assess each unit trust over short and longer investment periods to ensure that mandates are followed and that performance is in line with the relevant mandate.
Investonline’s performance since inception for the six months to August 2010 is as follows:
Performance table for the six months to August 2010
| Investonline Aggressive Portfolio (5/5) | 3.7% |
| Investonline Moderately Aggressive Portfolio (4/5) | 4.5% |
| Investonline Moderate Portfolio (3/5) | 3.1% |
| General Equity Unit Trusts Index – mean of 83 funds | 2.7% |
| All Share index return (J203) | 2.9% |
Source: Morningstar performance figures
The Investonline portfolios were selected on 1 March 2010, and have not changed in the period measured. Each portfolio comprises three premium branded unit trusts. Nick Brummer, director at Investonline.co.za, says the makeup of the portfolios are unlikely to change for the next year, given their view of the current fund managers and their respective investment philosophies. “Our methodology enables us to recommend the most appropriate underlying unit trust funds for you to choose a structured portfolio that best suits your risk profile”, says Brummer.
In a market that currently offers single digit growth, all costs related to investments are important. Investonline.co.za charges low advisor and administrative fees of 0.5% and no upfront fees are charged at all. Thus, the client benefits especially in a low returning market.
The company’s fund manager selection method is based partly on historical performance, but mostly on selecting the best quality fund management companies and individuals who Investonline believe should out-perform their peers in the long-term.
Says Brummer, “We have a neutral investment style bias, which means we believe in a flexible approach that appreciates both value and growth. Our view is that above average performance is the result of a recipe that successfully combines science and art and is consistently applied. We research the funds and scrutinize the management processes enabling us to pick the best quality firms and individual fund managers.”
Investonline.co.za has chosen Allan Gray’s investment platform as the underlying investment administrator which provides access to the foremost 46 unit trusts with proven track records in terms of performance, consistency, and process over various measurable periods.
Click here to see our recommended portfolios performance.