The JSE and finance forum for South Africa
General Category => Shares => Topic started by: indexer on December 02, 2015, 02:39:45 pm
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Hi everybody
As part of moving investments to low cost index funds I took over the portfolio that a "wealth manager" managed for me. The admin and brokerage costs were insane.
What should I do now?
1. Do I just keep it as is for the long term.
2. Sell specific shares and move to ETF's?
3. Sell all these individual shares and replace with ETF's? (I'll probably replace with DIXTRX and INDI as ETF alternatives.)
+------------------------------------+
|Symbol|Last price|Portfolio %|Gain %|
+------------------------------------+
|AGL |8598,00 |2,39 |-69,83|
|BGA |15740,00 |5,82 |5,91 |
|CCO |9560,00 |8,84 |54,47 |
|CFR |10803,00 |8,99 |3,46 |
|GLN |2000,00 |1,85 |-69,60|
|ITU |7016,00 |6,49 |31,53 |
|KIO |4272,00 |0,79 |-87,72|
|MDC |11030,00 |6,63 |43,64 |
|MMI |2315,00 |6,42 |-11,44|
|MTN |14817,00 |3,43 |-34,15|
|NPN |210616,00 |9,74 |77,25 |
|NTC |3443,00 |3,18 |-14,18|
|OML |4512,00 |8,35 |22,68 |
|SAB |87400,00 |8,08 |42,84 |
|SHF |8550,00 |7,91 |17,45 |
|SOL |40072,00 |5,56 |-27,46|
|WHL |9955,00 |5,52 |23,68 |
+------------------------------------+
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???
If the brokerage bothered you, how did you feel about some of the losses. Didn't he know how to operate a stop loss?
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Don't rush to do anything and keep in mind any taxes and/or tax breaks (R30K CGT allowance). Personally I would start slowly backing out of the resources and buy your ETF's. But I would keep a fair amount of those stocks - NPN, CCO, ITU, MDC, MMI, OML, SAB, SHF, WHL and probably SOL. Sold my MTN - but basically because I felt the dividend was threatened - if you happy with not getting a divi for a year might be worth keeping them. But don't just sell the lot - there some good shares in there.
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Don't rush to do anything and keep in mind any taxes and/or tax breaks (R30K CGT allowance). Personally I would start slowly backing out of the resources and buy your ETF's. But I would keep a fair amount of those stocks - NPN, CCO, ITU, MDC, MMI, OML, SAB, SHF, WHL and probably SOL. Sold my MTN - but basically because I felt the dividend was threatened - if you happy with not getting a divi for a year might be worth keeping them. But don't just sell the lot - there some good shares in there.
Agree - don't rush in and sell. You can also down the road look at some that you are likely to sustain a loss use them to your advantage for tax purposes - so look to selling after this tax year (Feb 2016)
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Over what time period is that performance?
Some of the resources are shares I am looking to buy in the next 2-6 months.
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Thanks Mr_Dividend and gcr.
@BussoV6, that has been over roughly 24 months.
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Hi everybody
As part of moving investments to low cost index funds I took over the portfolio that a "wealth manager" managed for me. The admin and brokerage costs were insane.
What should I do now?
1. Do I just keep it as is for the long term.
2. Sell specific shares and move to ETF's?
3. Sell all these individual shares and replace with ETF's? (I'll probably replace with DIXTRX and INDI as ETF alternatives.)
+------------------------------------+
|Symbol|Last price|Portfolio %|Gain %|
+------------------------------------+
|AGL |8598,00 |2,39 |-69,83|
|BGA |15740,00 |5,82 |5,91 |
|CCO |9560,00 |8,84 |54,47 |
|CFR |10803,00 |8,99 |3,46 |
|GLN |2000,00 |1,85 |-69,60|
|ITU |7016,00 |6,49 |31,53 |
|KIO |4272,00 |0,79 |-87,72|
|MDC |11030,00 |6,63 |43,64 |
|MMI |2315,00 |6,42 |-11,44|
|MTN |14817,00 |3,43 |-34,15|
|NPN |210616,00 |9,74 |77,25 |
|NTC |3443,00 |3,18 |-14,18|
|OML |4512,00 |8,35 |22,68 |
|SAB |87400,00 |8,08 |42,84 |
|SHF |8550,00 |7,91 |17,45 |
|SOL |40072,00 |5,56 |-27,46|
|WHL |9955,00 |5,52 |23,68 |
+------------------------------------+
Lots of losses in that list.
If you are adding to the portfolio (monthly for the last 2 years, i would say just adding new contributions to an ETF should be ok.
If the initial investment was very large, i would think option 2 ( eg sell shares with gains, or shares with losses that doesn't look like they will recover.)