Tax Free Savings Account

Home / Tax Free Savings Account

Galileo Balanced Income ZAR Direct Portfolio

This is a portfolio designed for investors wishing to have no more than 60% allocation to pure equities and balanced allocation to bonds and property in a suitable risk adjusted mixture of passive and active investments within a balanced income mandate. The portfolio is designed for those investors for whom cashflow is not required from the portfolio in the medium term. The risk of this portfolio is set well below a pure equity market index (such as the Alsi Index).

This portfolio aims to generate annual growth in ZAR of CPI plus 1% after fees over the long term, however in a severe market drop it could lose 30%, this loss would only be realised if you were to sell the portfolio in the middle of the market drop. We would anticipate that the losses would be recovered if you were to remain invested. The portfolio is designed to minimize the need for frequent rebalancing, keeping the asset allocations within the design ranges and at the same time minimising any tax events of capital nature in the portfolio.

Investment Philosophy

We believe that stock markets offer the best inflation-beating returns over the long term. We consider equity markets to be fairly efficient, but not always rational. It is our view that only the purchase of attractively priced and well-managed quality businesses will provide sustained capital growth with increasing dividend income. We construct portfolios that have low costs at an efficient risk-return profile through the economic cycle.

We believe in using rand cost averaging strategies (phase-ins) to take advantage of the lumpiness usually observed in global markets. Any phase-ins will be executed depending on market conditions. Rebalancing is conducted using cash inflows from dividends.


For details of Fees, please click through to the Easy Equities website.
Back Tested Portfolio Performance and Statistics.

Past Performance is not a guarantee of future results.