Posted on: 20th Feb 2016
You may be aware from the recent coverage in the press, that National Treasury has passed legislation to permit investment in Tax Free Savings Accounts (TFSA) as of 1 March 2015. For those of you familiar with the tax free “ISA” in the UK, the TFSA is based on the same approach and the UK system is one of the systems that National Treasury researched, when building the framework for South Africa’s TFSAs.
Posted on: 20th Jan 2016
South African Market:If returning from a relaxing summer break and heading straight into a global stock market correction wasn’t sufficient to jolt us back into reality, South African’s also had to cope with the indignity of England’s Barmy Army singing about the Rand’s demise at the New Year’s Newlands Cricket Test!
Posted on: 20th Dec 2015
Our role as advisors is to provide advice that excludes emotional biases and is founded on the facts. The following paper, researched and published by boutique asset manager, Northstar Asset Management, cuts through the noise. It is a concise, well-articulated view, that provides a sufficiently detailed, yet easily accessible analysis of the topic.
South African Market:What a month for South African investors! We had three finance ministers in four days, Fitch downgraded SA to a BBB credit rating (the lowest investment-grade rating) and Moody’s changed the outlook on SA’s credit rating to “negative” from “stable”, citing persistent low growth and a growing risk of spending targets being exceeded due to political pressure, as the main reasons behind the move.
Posted on: 20th Nov 2015
South African Market:Notable themes impacting the South African market in July were the continued weakness of the Rand, as well as the ongoing rout in the resources sector which has lost 40% in the last year. Resources shares are testing the resolve of the value investors who see long term value in the sector, but are suffering underperformance whilst waiting for the sector to turn. Whilst this may well turn out to be a generational investment opportunity, it is another reminder of how difficult it can be to be a contrarian investor. The property sector and bonds returned to winning ways in June, after a few months of negative returns, although we note that bonds have still underperformed cash over the last 12 months.
Posted on: 15th Nov 2015
By most measures, a number of equity markets, including South Africa are looking stretched in value. As Investors, we have had a relatively smooth ride, with very generous returns since 2009. These above average returns are unlikely to continue for another 6 years, but we cannot know precisely what will happen to change them nor how. One common expectation the asset managers that we engage with regularly, have, is the expectation of volatility over the next 12 months. There are a number of sources of risk in these strange times, the obvious ones being the Greek debacle, Chinese asset bubbles, slow Chinese growth, the expected upward moves in interest rates this year (or will it be next year), to name a few
Posted on: 19th Oct 2015
Clyde Rossouw, an Actuary, and CFA Charter holder, is the portfolio manager responsible for leading the “quality” boutique at Investec Asset Management. Clyde was appointed to run the Investec Opportunity Fund in 2003 after which he was appointed as portfolio manager to the Investec Cautious Managed Fund. In our view, Clyde is best described as asset management’s “safe pair of hands”, and here he provides us with his view on how he invests in today’s low growth environment. In December 2008, as the world was gripped by the onset of the great recession, US 10 year bond yields fell to 2.12%, a low not seen for more than 70 years.
Posted on: 19th Sep 2015
Bateleur Capital, is a boutique investment house that was founded in 2004, and started out as a manager of two successful hedge fund strategies. In 2010, following the success of their hedge fund strategies, the firm launched a long only flexible fund, followed by the launch of an equity fund in 2012. Bateleur is a shining example of a boutique investment house. The team have solid track records, they guard their independence fiercely and are acutely focussed on the investment management aspect of their business. The Bateleur Flexible Prescient Fund, managed by founder and portfolio manager Kevin Williams holds a material exposure to JSE listed companies with offshore property portfolios that have a predominant exposure to Europe. The following extract from their 2015 Q3 report provides a fascinating insight into their views on this investment theme.