STEPHEN CRANSTON: New musketeer band brought in to reverse iWyze’s losing ways
There may be a gap in the market for this direct insurer, but is there a market in the gap?
I have always favoured an equity-centric investment strategy, and this is accommodated in the majority of unit trusts on the market. But even low-equity funds can go up to 40% in shares. Fortunately, there are some good options lower down the risk spectrum. I don’t mean money market funds, which are often a lot less competitive than some banking products. Bond funds make even less sense; they can’t deviate very far from the average duration of the all bond index. With the average bonds in these funds being five or six years from maturity, there is a substantial risk of capital loss if yields spike. But I do see a place for flexible income funds. At times, these can resemble money market or bond funds as they can invest in these instruments freely. But they can also invest in property (though no more than 10%), pref shares (10%) and some offshore bonds and cash.Perhaps no trio in financial services will ever compare with the three musketeers that built up Rand Merchant Bank: GT Ferre...
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