February 27, 2017

Another week of record highs in the US, with most major equity markets being up yet again. Many of our holdings have also performed well and we have added very marginally to our equity exposure on the back of strong technicals. This week’s update focusses on fees and technical indicators. In looking through a proposal earlier today, I was reminded of the high fees typically charged by private banks for making fund investments. One bank we deal with was wanting to charge a client 2% to enter a fund. So before one is even invested, one is down 2%! As an external asset manager, we are well positioned to reduce these fees dramatically. Minimising cost is imperative in todays market of low returns.

In terms of technicals, given we are potentially nearing a market top, ensuring one has trading rules in place to provide a guide as to when to reduce exposure is becoming increasingly important. We have spent some time this week further developing our ‘technical tool box’ so feel relatively well prepared for any major market moves. If we can help, don’t hesitate to reach out. Have a great weekend ahead.