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Messages - Ejectzero

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1
Shares / Re: Collateral Loan Program Options
« on: December 14, 2021, 12:59:44 pm »
Having a monologue here, but so be it. 

I contacted PSG - no response on my questions wrt STXWDM. 
I realised Interactive brokers have something similar - finally a compelling reason to move funds offshore :)

2
Shares / Re: Collateral Loan Program Options
« on: December 07, 2021, 11:14:53 am »
Specifically if you know of offshore options, with loans against the USD - that would be magnificent indeed. 

3
Shares / Re: TD Ameritrade no longer serving South Africans ... recommendations?
« on: December 07, 2021, 11:14:06 am »
This sucks, thanks for the heads up

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Shares / Re: Collateral Loan Program Options
« on: December 07, 2021, 11:13:32 am »
Thing is - the low fees of EE is a plus at this stage.

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Shares / Collateral Loan Program Options
« on: December 07, 2021, 11:12:25 am »
Hi All,

I'm looking for collateral loan programs, where I can take a loan off of my share portfolio.  The portfolio would just be a world ETF, the collateral will be used to make more money actively.
You can made 24% APY on USD denominated stablecoin liquidity farming and autostaking - this is the low risk option the bulk of this loan would feed into. 

I know PSG has Scriptfin: http://download.psg.co.za/files/wealth/forms/PSG-Scriptfin-Product-rules.pdf
It allows you to borrow upto 30% - but ideally with STXWDM instead of JSE 40 - at prime. 

Does any of the other banks offer this kind of facility?  I'd ideally want one with a lower barrier of entry.  Else I guess I need to get my credit card limit increased xD

Ez

6
Shares / Re: UNit trust linked RA or ETF linked RA
« on: June 15, 2021, 09:45:55 am »
Hi Adrian,

Well done on the move from Liberty, I did the same a few years back after my financial advisor (who earned a commission even) couldn't comprehend that I wanted to move from an active to a passive UT, yikes!  And those policy structures ensure they take more than they are worth from us uninformed investors!

Same as you, I've moved my RA to EE, initially, only bundles were available and I bought those, whereas now the UT options also exist.  In my view the Satrix Balanced Fund is the best bang for the buck, it indexes and its fee structure is lower.  Since you won't be trading frequently on this account, the differences between it shouldn't matter significantly.  I still keep my bundles, which is subject to a management fee, ETF TERs, ETF buy-sell spreads and the like.  In a rough Excel sheet I calculated that I'll incur a ~0.4% loss in investment if I sell the bundles and moved it to the UTs, not even factoring in the brokerage of the UT purchase yet. 

There's an abundance of UT vs ETF information on the internet.  I think the main advantage is that UTsFor an RA, I think it is largely negligible, and you should pick the best investment / cost structure you would like to pursue.  I am more in favour of the UT as its 100% passive, whereas the Bundles command a fee to select ETFs (and some shares in some options) on your behalf - which isn't rocket science any case and would not necessarily maximise your returns.  If the bundle had some hedge funds or exotic assets not already on EE, then sure, but otherwise, Satrix Balanced every month.

Hope this helps, let me know what you opted for :)

Ez


7
Shares / COVID Investment strategy
« on: May 06, 2020, 11:06:39 am »
Hello World,

Thought I'd share my thinking around investing in this turbulent time. 

I invest a fixed portion of my salary every month into discretionary accounts after I 1) maxed my RA (monthly basis) and 2) made provision for short term cash requirements. 

I then look at my overall portfolio (no property) and allocate roughly 50:50 offshore:local.  My approach is lacking in that I do not take the money abroad into a more stable currency, rather I buy foreign currency denominated ETFs.  I also consider for instance any ZAR denominated investment as 100% local, even though a portion would be held offshore due to global companies. 

For global I'd usually buy ~90% STXWDM and 10% STXEMG, but given the rand's dire state, I opted to buy SYGUK instead - the SYGUK if GBP denominated, and has a high TER, but given the GBPs low performance relative to the USD - I am exploiting some relative discount by buying SYGUK instead of SYGUS for instance. 

Do you agree or is this all a rubbish thinking? 

On the local portion I am of opinion that REITs are incredibly undervalued.  S&P's market inteliigence seems to agree in their analyst sentiment sections for the top 5 holdings in STXPRO/CSPROP. 

8
Shares / Re: ETF buy/sell spread awareness
« on: February 20, 2017, 12:31:34 pm »
Thanks Moneychief, your buying and selling strategy sounds like a good plan!  I'm considering to only buy 2/4 every month based loosely on the same criteria.

At some stage in the future I will check if the Expense ratio and the spreads are linked.  I suspect its rather linked to liquidity, because my experiments points out that the spread is higher on average when selling four small holdings, opposed to one big one.  MAPPSG is presumably not a popular ETF to buy and sell.  Obviously this leaves a lot of questions, which we can investigate in the future. 

EZ

9
Shares / ETF buy/sell spread awareness
« on: February 20, 2017, 10:27:48 am »
I've conducted an informal experiment today and thought it interesting enough to share here.

I hold an ETF-only portfolio on EE in four diverse ETFs.  I save remaining money distributed evenly in these monthly.  I considered broadening my portfolio to contain more ETFs but wanted to first see the difference in brokerage commissions.

I used the demo account and bought 4 R1000 ETFs and compared the buy and sell costs with 1 R4000 ETF.  I bought everything (4X R1000 + 1X R4000) and then sold it immediately and repeated this exercise twice.  For good measure I bought and sold a third R4000 ETF.  ETFs were chosen at random. 

In terms of brokerage costs alone I saved a marginal R0.36 (0.01%) by only buying and selling one specific ETF compared to 4 different ones.  However, The buy and sell spreads made a startling difference:  On average I lost R38.46 (1.0%) more to the buy-sell spread when selling the four small ETFs (hence the repetition of the experiment - to consolidate this). 

One ETF: MAPPSG's R1000 investment was sold at only R650 and was removed from above calculations.

The take-home for me is:  Less, but better ETFs are key.  From now on I will evaluate and ETFs' buy-sell spreads in the demo account before considering its purchase.  This is why I would never day trade! 

I'd love to see somebody with an ABSA account replicate this perhaps?  I can provide raw data if required.  What are your experiences/ strategies for your passive investing accounts?

EZ


10
The Investor Challenge / Re: Blog post: You bought a new car and 4 other signs that tell everyone you’re bad
« on: December 07, 2016, 09:55:22 am »
Thanks indeed.  I like your numbers based strategy.

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The Investor Challenge / Re: Blog post: You bought a new car and 4 other signs that tell everyone you’re bad
« on: December 06, 2016, 09:29:50 am »
Dear Patrick,

I read your article.  Sure, I get it, you save money with a used car and you lose less money due to depreciation. 

I argue that driving is probably the most dangerous thing we do and something that is of no compromise.  You we're lucky - you bought an excellent car without any issues.  A colleague recently bought a used Mazda 3 and everything just went haywire.  I personally believe that the risk associated with used car purchases is not worth the cost saving.  Cars are complicated pieces of equipment, anything can go wrong.

I depend quite heavily on my aging car and therefore do not care to splurge on quality car insurance - in my case Discovery.  I like their preventative maintenance and tracking approach to driving and believe I am in competent hands with their roadside assistance crew.  Technically I can also make a portion of my fuel spend back by using Ucount+Credit Card and BP/Shell (I did the calculation - its not that amazing though).

It's a case of you get what you pay for - what does it help you have spare money to invest if you never reach retirement age?  I would've bought that Kia too, with a smile of reassurance.  I am not bad at math - I merely factored life expectancy into that calculation too.

I'd love to hear about your strategy when you are buying used cars, maybe I am too cautious.

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