#235: Still hating active fees

Still hating active fees

Simon Shares

• With SABMiller exiting the JSE new weightings in the indices with Naspers (JSE code: NPN) now 19% in the Top40 and 31% in the Indi25.
• Rating downgrade to junk, still on the cards?
• Deutsche Bank and the deal on their ETFs and ETNs.
• Live followup reversal patterns video is online.
• Two events next week;
  • Trading Master Class on Tuesday covering binary options.
  • JSE Power Hour on Thursday on listed property.

Still hating active fees

• Is the benchmark being used a total return index (TRI) that includes dividends? If not the active manager wins because they get dividends that immediately put them ahead of the benchmark by a few percent.
• Are performance fees paid back when the fund manager under performs? If not the manager and clients are not aligned as performance is paid when they do well but not returned when they do poorly.

We Get Mail

• George
  • I have a CFD acc on the JSE, it has buy and sell options, but I want to short shares when they go down, must I buy it and then sell or do I sell something and later buy it back.
• Myron
  
  • Difference between book and intrinsic value?

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