THE INVESTMENT SUCCESS FACTORS

DIVERSIFICATION

Diversification isn’t a cornerstone of most solid investment plans by chance. It offers a host of potential benefits such as reducing the risk of loss, preserving capital and generating returns since holding more securities increases the chance of holding winners and compensating for the losers.

ASSET ALLOCATION

What is asset allocation? Asset allocation is the way we divide your investment into different asset classes like equities, bonds, property and cash. It is the first thing to consider when building your investment portfolio. Your tolerance for risk will determine what your asset allocation should be and how it will change over the long-term.

LOW FEES

High fees are the silent (sometimes not so silent) killer of investment performance. To be honest, the world has moved on. We believe that a low cost, passive investment strategy is the only long-term solution to wealth creation. Stop paying high fees to investment managers that statistically underperform the market. We believe in putting our clients first, and that means consistently giving you the best value for your investment buck.

OUR SOLUTION

SIMPLE.

At EGIS, our low-cost passive portfolios are managed by our team of experts, which means you don’t have to worry. We do it all for you. All you have to do is decide which passive portfolio matches the risk you are willing to take. We have 5 portfolios you can choose from ranging from Global Cautious through to Global Aggressive.

The harsh reality for active asset managers (those highly paid chaps managing your unit trust or retirement fund) is that statistically they will not beat the market over the long-term (i.e. they underperform). Long-term wealth creation requires long-term investment commitment coupled with our three success factors: diversification, asset allocation and low fees. We believe a passive investment portfolio is the most effective way to achieve this.

Our job is to select the best in class ETFs and combine these in the most optimal way to achieve market-beating returns. You need to choose what portfolio is right for you. This depends on how you feel about risk. You may need to consult your financial advisor to help you decide.

OUR PORTFOLIOS

What is an Exchange-Traded Fund (ETF)?

An exchange-traded fund or ETF is a type of security that owns underlying assets such as shares, bonds and listed property.

Unlike unit trusts, an ETF is bought and sold like ordinary shares during the day when Stock Exchanges are open.

Just like a share, an ETF has a share code (symbol), an intraday price and data can easily be obtained during the course of the trading day.

Because it holds lots of underlying securities, buying just one ETF is an easy and cheap way to invest in a diversified pool of securities.

How we do it

The key to building a passive portfolio is understanding the intricate details of each exchange-traded fund (ETF) that we hold. Not all ETF’s are the same, so careful research and analysis are done by our research team to find the optimal selection in order to deliver lower market volatility and superior risk-adjusted performance.

We DO NOT pick individual shares, NOR do we try and time the market. Ongoing commitment to investing coupled with diversification, good asset allocation and low fees are the only wealth-creating solution.

EGIS is pleased to present our global passive portfolios.

In making our passive portfolios available to you, we are not giving you personal advice. Before you invest you need to make sure that you understand all the risks and are comfortable that this investment is right for you. Make sure that you read the portfolio information sheet and FAIS disclosure before investing.

FAQ

It is well documented and supported by studies conducted by leading market index
providers, that passive investment strategies outperform active investment strategies over the medium to long-term.

Firstly, what is active and what is passive investing? Passive investing methods seek to avoid the fees and performance risks that may occur with frequent trading. Passive managers generally believe it is difficult to out-think the market, so they try to match market or sector performance. The emergence of exchange-traded funds or ETFs that track major indices made it easier for investors to invest on a passive basis.

An ETF is a listed security traded on a stock exchange that tracks an index, thereby offering exposure to a pool of securities. An ETF can hold shares, bonds, commodities or a blend of assets. ETF’s can follow various strategies including pure index tracking (e.g. tracking the S&P 500 Index), thematic (i.e. tracking a theme such as a technology index) and smart beta (e.g. tracking an index composed of high dividend yield shares).

An ETF combines two of the three success factors that we have identified for long-term investment success: diversification and low investment costs (or fees). If structured correctly, an ETF portfolio will offer a client benefits including lower costs, diversification and better matching of a client’s risk and return requirements.

We re-balance the portfolio bi-annually. Your portfolio generates an income through dividends and interest. We will use this income to rebalance your portfolio so that it remains within your risk profile. If there is significant movement within an asset class, this may require us to sell some of the ETFs in order to re-balance. Please note, we will not do anything without your consent beforehand.

Yes it does. The ETFs (exchange traded funds) that you hold will pay interest and dividend income into your investment account. You can choose whether to re-invest this income or have it paid out.

You are responsible for submitting your tax information to your revenue service and settling any tax applicable for the tax period. We will provide you with a statement of Income and Expenditure on an annual basis which you can include in your annual tax return.

Yes. You will receive a detailed portfolio statement each month.

They are low. Please contact us regarding fees as they are negotiable depending on the investment amount.

ABOUT EGIS

With over 40 years of combined experience, we can proudly say we have seen it all. From the .com boom and bust to the Global Financial Crisis, to corporate scandals both locally and internationally.

We have continually been in search of an investment solution that works for you the client. The ugly truth is that most investment products make money for the company offering those products, and not for the clients, they are meant for. Returns are so often eroded by high fees while the risks often outweigh the returns.

We have spent the last few years developing investment products that put the client first. These products needed to be low cost, globally-diversified and, importantly, they needed to generate good risk-adjusted returns. In the end, we BOTH need to sleep at night.

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