Author Topic: CML  (Read 201048 times)

Fawkes85

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Re: CML
« Reply #300 on: November 17, 2015, 07:30:09 am »
This from Moneyweb and it backs up what I have been saying:

"A second major factor in fund selection, in the US at least, is fees. There is clear evidence that investors are demanding, and increasingly getting, lower cost products.

“A recent report by Morningstar indicates that the asset-weighted expense ratios across all US funds have declined to 0.64% in 2014 compared with 0.76% in 2009,” the study notes. “Coinciding with this fee decline, the report finds that flows into passive investments far outstrip their active counterparts. Even within US active funds, Morningstar found that the funds in the cheapest quintile received approximately 95% of the estimated net new flows during that past decade.”

This is an astonishing finding – that just 20% of the actively-managed funds in the US saw 95% of new investments into such funds, and their common attribute is that their fees are below average. It’s even more compelling when one considers that Morningstar found that US equity funds with a higher than average net expense ratio experienced negative flows over the same period.

The study did note that this demand for lower cost is far more pronounced in the US than it is anywhere else, but that should not be taken as cause for relief by fund managers elsewhere. The US is at the forefront of the world’s mutual fund market and trends that take hold there almost inevitably spread across the globe."

So what conclusion can we get from this? The days of charging high fees on actively managed funds are done. That is why I won't invest in Coronation, Peregrine, Anchor, etc. Long term their prospects aren't looking good.


Nivek

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Re: CML
« Reply #301 on: November 17, 2015, 07:50:41 am »
So what conclusion can we get from this? The days of charging high fees on actively managed funds are done. That is why I won't invest in Coronation, Peregrine, Anchor, etc. Long term their prospects aren't looking good.
I'm with you on that one. As Buffet has said: “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” Can't do that with fund managers any more I'm afraid.

Orca

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Re: CML
« Reply #302 on: November 17, 2015, 12:02:39 pm »
@Fawkes85. You can remove Peregrine from your list. Income from performance fees is mainly from high net worth individuals and institutional investors that do not have the expertise in hedge funds or derivatives. Performance fees constitute a small part of their earnings.
Peregrine houses one of South Africa’s leading derivatives, equity and prime broking operations through Peregrine Securities.
Broking and structuring business Peregrine Securities benefited from increased trading volumes in its specialist areas of prime broking and derivative broking and structuring.
 
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jaDEB

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Re: CML
« Reply #303 on: November 30, 2015, 03:21:07 pm »
 :-X

Who would have thought?

Orca your input please.
jaDEB

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Orca

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Re: CML
« Reply #304 on: November 30, 2015, 03:52:27 pm »
HEPS down 9,7% compared to previous reporting period and ex divi today. This is not too bad considering the market turmoil. I expected worse and the price to drop to the mid 50's so my personal feeling is that it is oversold at this point.

She was carried up over the years by momentum investors going in for the ride but they have abandoned ship so don't expect her to shoot the lights out soon. I sold at around 8700.
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JohnnyH

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Re: CML
« Reply #305 on: December 08, 2015, 02:26:41 pm »
I see CML is still trending downwards. I bought a few a few months ago at ~R72, so the long term (10+ years) appeal looks even better now if I add a few more.

Maybe I should wait for ~52 :)


Fawkes85

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Re: CML
« Reply #306 on: December 08, 2015, 02:43:02 pm »
I see CML is still trending downwards. I bought a few a few months ago at ~R72, so the long term (10+ years) appeal looks even better now if I add a few more.

Maybe I should wait for ~52 :)



I wouldn't if I were you. ETFs are gonna kill companies like CML.