FAQ

 

1: What is meant by advisory service?

The advisory service provides the ability for investors to maintain control of their investments by retaining the ultimate responsibility for all of their investment decisions.

Clients can consult with a professional investment manager to assist them with the development of an appropriate investment plan or strategy and then implement and manage that plan on an ongoing basis themselves.

At White Investments we offer a professional advisory service for which we charge a fee calculated at an hourly rate.

We aim to work together with our clients to provide a quality service with a level of input and involvement that ensures the best plan is implemented without adding unnecessary costs.

2: Is there a minimum amount I need to invest?

There are ways of accessing quality investment products regardless of how small your starting savings are. You should never be discouraged by thinking that a financial plan or investment plan is the preserve of the wealthy.

You may however be restricted as to which products are available to you and you always need to make sure that your choice of investment product does not include fees that wipe out any chance of you achieving your investment goals.

All unit trusts and exchange traded funds typically have minimum amounts that they accept as either lump sum and or monthly contributions but keep in mind that you can always accumulate money in a savings account for a few months and make your debit orders quarterly to meet these minimums if required.

3: How much can I invest offshore and what is the process of doing so?

Despite the significant relaxation of Exchange Controls for South African citizens in recent years there are still limitations on the amount of money that can be taken out of the country.

Currently an annual investment allowance of R10,000,000.00 is allowed for individuals but you do require a Tax Clearance Certificate from SARS to use this allocation.

In addition to this investment allowance individuals can take out R1,000,000.00 a year for travel and subsistence which does not require the same tax clearance procedures.

4: What is active and what is passive management?

Active management is an investment philosophy based on the belief that markets are inefficient and as a result can be outperformed. Through superior research and or market timing investment managers believe that they can produce returns in excess of the respective index against which they are measured.

Passive management on the other hand assumes for the most part that markets are efficient. In theory it is better to passively track the benchmark index or to settle for investment returns that mimic the respective asset class or market returns.

The debate rages on between the two camps but in reality the choice depends on each individuals opinion, investment objectives, risk appetite and investment time horizon.

5: Why use the sector or peer group as a benchmark?
The sector or peer groups are a useful gauge of relative portfolio performance as they represent the universe of funds that are available from competitor investment management houses within the broad industry. The sectors are distinguished by asset allocation parameters meaning that funds within the respective sectors have the same or at least similar mandates. It is particularly useful for multi-asset class portfolios where assuming a fixed benchmark of bonds, equities, property can become very prescriptive and restrictive. With a focus on total return we believe that a peer group comparison is a better tool than actual benchmarks.
6: Why time weighted rather than money weighted returns?

The time-weighted rate (TWR) of return measures the compound rate of return over a given period for one unit of money.

The money-weighted rate (MWR) of return, by contrast, represents the average growth rate of all money invested. Unlike TWR, MWR is sensitive to the timing of external cash flows.(Client deposits and withdrawals)

It is generally accepted that time-weighted return is the superior measure for evaluating managers with no control over the size or timing of cash flows. For example, a mutual fund manager would have no control over whether investors deposit or withdraw funds on any given day.

In order to comply with Global Investment Performance Standards (GIPS) returns must be presented on a time-weighted basis.

10: I am in need of financial education can you help?

Investing in your own financial literacy will pay you greater dividends than you could ever imagine.

You can significantly boost your returns by understanding your own financial plan better and ensuring it is relevant to your own personal circumstance.

You can reduce the costs of your investment plan by having the confidence to undertake more of your own work rather than paying someone else to do it for you.

You can better identify the salesmen disguised as financial experts pushing the product he earns the greatest commission on.

We provide what we hope are some useful educational and informative write-ups under our education subtitle in the About Us page and our article archive called IN BLACK & WHITE.

If you follow us on either Google + or Facebook you will receive regular posts or links to things we find useful and informative from a broader source across the web.

Be prepared to spend some time reading and learning. Good knowledge is not acquired cheaply.

If you are a company seeking to provide a beneficial service to your staff, we do conduct basic personal finance group presentations, covering some of the more common practical aspects of personal finance that could greatly enhance their understanding of everyday financial matters.

Group teach-ins are far more cost effective than one-on-one presentations and you can always include additional individual sessions for addressing confidential planning matters.

11: What is meant by discretionary service?

This is a service for those clients that want to hand over the day-to-day management of their investments to an investment specialist.

You may not have the ability to dedicate the required time to managing your own financial affairs effectively or you may simply rather pay someone else to do it for you.

Because the service is ongoing you will pay a management fee which will be based upon a percentage of the assets of yours that we have under management.

You will receive regular statements and updates on the progress of your portfolio and receive a full analysis and report at least once a year. Of course you can call on us with questions and request information as required.

12: Why White Investments for my investment needs?
  • White Investments is entirely independent. This ensures that you get a service that focuses on delivering investment results and not on selling you a product.
  •  For advisory & intermediary services we charge a flat fee agreed upon in advance. You can choose to avoid unnecessary ongoing management fees and hidden costs.   
  •  We provide an alternative to the mainstream investment management houses and advisory firms. We invest intelligently and not fashionably – we aim to achieve real investment results and not boasting rights based on who your funds are with.
  • We believe in transparency and in the vision of an ethical investment industry that exists to serve their clients first and foremost. You'd expect that to be standard practice but sadly it's not always the case. 
  • We like to keep things simple and we aim to structure an investment strategy that you can understand and control with confidence. 
  • We want you to make informed decisions and understand what you are invested in and why - we will provide you with the tools and service that will enable this. 
  • We want to help you minimise the costs associated with your investments while still achieving the investment results that will bring you long-term success. 
  • White Investments specialises in offshore investment management , providing an ideal opportunity for diversification away from domestic investments and income sources.
  • White Investments is managed by Dominic White who has more than 15 years experience in the investment management industry. You have access to a professional who understands how to extract the best out of the industry on your behalf. 
13: Do you offer free advice?

There is a load of useful free advice available on the internet and in the personal finance press. Check out some of the links to sites that we have under our Web Resources tab on this website and spend some time reading the personal finance publications in weekend newspapers and other periodicals.

You can also find what we hope are some useful educational and informative write-ups under our education subtitle in the About Us page and our article archive called IN BLACK & WHITE .

If you follow us on either Google + or Facebook you will find regular posts or links to things we have found useful and informative from a broader source across the web.

14: How do I know my funds are safe with White Investments?

White Investments will never hold funds or accept to receive funds on behalf of any client.

All accounts are opened in the name of the respective client and are managed on a segregated basis which means client funds are never pooled or mixed with other client monies or White Investments own assets.

Clients will be able to monitor and access their own funds at all times.

15: Who will administer my assets?

Your assets will be held in your name at the nominee company of the platform provider we use to gain access to the assets that make up your investment strategy.

The platform provider could be a fund management firm, a LISP (Linked Investment Services Provider) or a stock broking firm, depending on how and what you are investing in. Each of the platform providers are by law required to keep your assets in a ring-fenced nominee account to ensure they are protected from the platform providers own assets should anything go wrong.

16: What is the foreign currency exposure of the offshore portfolios?

The White Investments offshore portfolios will have a default exposure to UK Sterling but assets can be held in US Dollars as well as Euros.

The preferred currency exposure can be determined at the start of the investment and of course will vary depending on the assets we choose to invest in. We are NOT in the business of FX trading.

Alternatively if you do not want to utilise your offshore allowance you can access exposure to international markets through domestic ETFs (Exchange traded funds). These funds are listed on the local stock exchange and are rand denominated. This means that you will automatically buy or sell the foreign currency (ETF base currency) when you purchase or sell units or shares in the ETFs.