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CAPE TOWN, January 10 – To celebrate the 10th anniversary of its High Equity Fund, 10X Investments is offering existing and new customers 10 fee-free months on a variety of new investments started in January.
The asset manager is celebrating a lot more than just passing the 10-year milestone, said Steven Nathan, 10X Investments chief executive officer. “We have registered excellent performance along the way for all our investors.”
Nathan, who is 10X’s founder, said: “We are celebrating the 10th anniversary of the 10X High Equity Fund, as well as the fact that our annualised return over that period came in at 11.3%, before fees.”
He added: “We have regularly beaten the country’s large manager average. When you throw in the 1-2% in fees that we save most of our clients, those returns look even better.”
Nathan noted that most people would be surprised at how few individual funds make it to their 10th anniversary.
Even surviving five years seems to be something of a challenge. According to the SPIVA South Africa 2017 Mid-year Scorecard, which is published by S&P Dow Jones Indices, 23 of the 134 equity unit trusts listed at the beginning of the five-year period did not survive. At that rate, more than half would disappear over 20 years.
Nathan said: “We are proud of our 10-year record of excellent performance. Our competitors are always banging on about having been around for generations, as if ‘being there’ was the best way to judge success. Great, consistent performance by one fund is rare.”
Even more important for investors, added Nathan, is that 10X has only one investment strategy, which is tailored to the investor’s time horizon. More than 90% of 10X’s clients have a time horizon of more than five years and are thus invested in the 10X High Equity Fund.
“Unlike other companies that have many competing investment strategies and portfolios, 10X is proud that all of our clients were invested using just one strategy,” said Nathan.
“Very few investment companies can claim that they said 10 years ago that this is the best way to invest, this is the best portfolio, and 10 years later we are still saying the same thing,” Nathan said.
Nathan – a leading proponent of index-tracking in South Africa – added that many investors were not aware that very few individual funds actually beat their benchmarks. The 2017 Mid-year SPIVA South Africa scorecard reported that 84% of local equity funds trailed their benchmark over the five-year horizon.
Customers who sign up for a new Retirement Annuity, Living Annuity or a Preservation Fund with 10X Investments during the month of January will start paying 10X’s fees on the product only in December. Individuals who are interested should speak to 10X’s retirement experts on (021) 412 1010, email [email protected], or apply online.