Exploring the merits of the Harbour Advisory Investment Solutions

Harbour Advisory (HA), trading as Harbour Wealth, is a fiercely Independent Financial Services Provider, determined to negotiate the most competitive prices, employing sound risk and investment principles, ultimately providing our clients with their desired objectives. Our experienced investment team pride themselves on their asset allocation skills and by doing these basics well, we have delivered remarkable returns!

In practice the performance speaks for itself when we look at our Investment Solutions against the market and compare our performance to that of some big Balanced Funds out there.

Looking at our most popular solution – Blended Balanced Portfolio – and comparing it with South African Multi Asset Medium Equity Funds we find that:

  • Over the 12-month rolling period ending September 2017, our solution returned 9.51% where the market average was only 6.10%.
  • The highest-ranking Fund in this class had a return of 9.85% while the lowest achieved 2.19%. Our solution would have ranked 2nd overall, out of 74 funds, if it had been registered as a Unit Trust in this asset class.

Having a quick look at our other Blended Models:

  • The Blended Conservative Portfolio returned 9.59% for the 12-month rolling period (rank 4th out of 123 Funds) against a market average of 6.59% where competitors’ returns ranged from 9.73% to 3.14%.
  • Our Blended Growth Model returned 9.85% in this period where the South African High Equity Multi Asset market average was 6.19%. Again, performance ranged widely between 14.17% and -1.60%. Our solution would have ranked 11th in this category, out of 155 Funds!

Our Regulation 28 compliant solutions – which are suitable for retirement funds – performance is shown in the graph below and as you can see, our Blended Regulation 28 Balanced Model has performed consistently and excels over the 12-month rolling period ending September 2017.

Looking at the more meaningful three-year returns, we see this trend continuing with our solution surpassing the performance of many well-known and widely used Funds!

You can also take comfort in the fact that not only did our models perform well but we achieved this performance charging much lower fees with our average TER (Total Expense Ratio) being 0.54% for our Blended Models and an even lower average TER of only 0.29% for our Index Investment Solutions!

Along with these low costs and solid returns, we have stuck to our promise of trying to never lose clients’ money, as over time, our solutions achieve their returns using less risk than many of the larger Balanced Funds, who attract the most retail flows in the South African market.

In the graph above, which is over a 3-year period, we can see that our solution offers the highest calculated return with a substantially lower risk than the majority of the large Balanced Funds who take more risk but deliver lower returns! Where some Funds take a lower risk than us, you can see that their returns are also low.

In summary, with solid performance over the last 1 and 3-year periods, substantially lower costs and a lower risk profile with higher returns, please thank your financial advisor for carefully selecting the Harbour Advisory team and process to manage your investment and help you achieve your goals!


Note: Comparative data used is from fundsdata.co.za with the 12-month rolling returns running from 01/10/2016 – 02/10/2017. Graphs curtesy of Profile Data. Propriety data curtesy of Harbour Advisory