GinsGlobal Index Funds is the first dedicated unit trust firm offering a comprehensive range of offshore index funds to the Southern African market.

However, indexing is not new. As early as the 1960s, pioneering studies of the actual performance of pension funds and mutual funds showed many portfolio managers trailing market benchmarks such as the S&P 500 index.

Celebrated stock picker Warren Buffet approves: "Most investors, both individual and institutional will find that the best way to own common stocks is through an index fund." He continues: "Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals. By investing in an index fund ... the know-nothing investor can actually outperform most investment professionals."

Perhaps the world's most famous active portfolio manager, Peter Lynch of Fidelity Investments recently stated: "The deterioration of performance by professionals is getting worse. The (general public) would be better off in an index fund."

The respected US newspaper, The Wall Street Journal reinforces this sentiment: "Sorry, mutual funds
managers, it still pays to be an index investor."

More than $1.5 trillion is currently invested in index funds throughout the US. There currently exist 249 index funds in the US for individual investors. More than 80 unit trust firms in the US, now offer an S&P 500 index fund. In Europe, indexing's growth has recently mirrored the US.

Currently 14% of the money invested in US mutual funds resides in index funds. Index investing was once available only to institutional investors, such as pension fund managers. In 1976, the first indexed unit trust became available to individual investors. Since then, index investing has become an increasingly popular investment strategy, with more than $347 billion invested in index mutual funds in the US, according to Lipper Inc.

Among pension fund investors portfolios, indexing accounts for 30% of assets. In the US, many large Fortune 500 and Government pension funds have at least half their assets indexed. The Colorado State fund is 66% indexed, while Kimberly Clark's $2bn pension fund is now 90% indexed.

See what investment guru Warren Buffet says about indexing CLICK HERE