The power of OUTvest’s intelligent funds

Back to Money advice
5 June 2018
At OUTvest we are here to help you achieve your investment goals and help you take steps in the direction of financial freedom. We have something new, something fresh, something different, something intelligent.

What will you find here?

OUTvest offers digital financial advice (complex algorithms, doing the number crunching for you) combined with the option to speak to a financial advisor (actual human beings that live and breathe) at any stage in your investment journey.

We make it easy for anyone to build and manage their professional investment plan. 

That’s the platform, what about our investment funds? Let's unpack them: 

  • What funds do we offer?
  • What makes the funds on our platform special?
  • How do we use them for your investment plan? 
What funds do we offer?

We have just five investment funds, that we use to replace the job of thousands of different funds, that we use to help you achieve your investment goal.

Each of these funds is designed to work directly with our advice systems. 

  • Granate SCI Money Market Fund 

Invests mostly in money market instruments (instruments typically issued by banks to service the banking needs of companies and governments). Examples of these include commercial paper, bills of exchange, short-term loans to governments (known as bills) and certificates of deposit.

The average maturity of the instruments in the portfolio won’t exceed 120 days.

  • Coreshares OUTcautious Index Fund

Mostly be invested in bonds (loans to governments) with some investment in shares (shares in companies traded on a stock exchange, both in South Africa and overseas) and property (listed companies that specifically invest in property both in South Africa and overseas).

The fund is managed according to a set of rules given by an index. This index provides an indication of what the investment manager should purchase; this index is the CoreShares OUTcautious Index.

  • Coreshare OUTstable Index Fund

Invests predominantly in bonds (loans to governments, both in South Africa and overseas) and invested in shares (shares in companies traded on a stock exchange, both in South Africa and overseas). The fund will also be invested in property (listed companies that specifically invest in property both in South Africa and overseas).

The fund is managed according to a set of rules given by an index. This index provides an indication of what the investment manager should purchase. This index is the CoreShares OUTstable Index.

  • Coreshares OUTmoderate Index Fund

Mostly be invested in shares (shares in companies traded on a stock exchange, both in South Africa and overseas). The fund will also be invested in property (listed companies that specifically invest in property both in South Africa and overseas) and a small proportion in bonds (loans to governments), both in South Africa and overseas.

The fund is managed according to a set of rules given by an index. This index provides an indication of what the investment manager will purchase and hold in the fund. This is the Coreshares OUTmoderate Index.

  • Coreshares OUTaggressive Index Fund

Invests almost entirely in shares (shares in companies traded on a stock exchange, both in South Africa and overseas). The fund will also have small investments in property (listed companies that specifically invest in property both in South Africa and overseas) and bonds (loans to governments), both in South Africa and overseas.

The fund is managed according to a set of rules given by an index. This index provides an indication of what the investment manager should purchase. This index is the Coreshares OUTaggressive Index.

What makes the OUTvest funds so special? 

The funds are extremely efficient, and this means they are very cheap. The typical Total Expense Ratio (TER), basically the cost of the unit trusts, is about 0.33%, similar investment funds can be up to 1% or more.

Why is cost so important? It's simple, the lower your cost, the more return you get back in your investment. 

The funds are also specifically designed to work with our advice algorithms, that means that when we provide a recommendation to you, that we have taken into account as closely as possible what each fund invests in.

Lastly, the CoreShares funds are a little bit special. We worked with CoreShares Asset Management S&P Dow Jones Indices, one of the largest index providers in the world (does the S&P 500 ring a bell?) to create a set of custom indices for the CoreShares unit trusts.

Having a custom index for these unit trusts is one of the secrets behind their low cost. 

How do we use them for your investment plan? 

The funds are designed to work together and that's super important. The reason is that if you have a powerful algorithm to create trusted recommendations then you need to make sure that the investment funds perform as close to expectations as possible.

In the world of investment there are no guarantees, but we use an evidence-based approach to try and manage your outcomes and expectations! 

Each of the funds has a defined investment strategy that is controlled very tightly. We do this through the asset allocation (i.e. what each fund invests in).

With this information we combine 115 years of historic investment information to get a good idea of the potential returns for each fund and this is what we use to help you build your personal investment plan. You could say, it is our secret sauce!

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