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 The Sharenet Daily 
Thursday, 21 July 2011 - 20:00
Sharenet is pleased to announce the launch of our new publication, The Sharenet Daily. We have built on the success of our Daily Equity Report, while adding more content and helpful information. The result is a publication that gives readers a quick, easy to read and informative synopsis of market activity, company results and news on the JSE for the day, as well as an overview of what transpired on important overseas markets.

The Sharenet Daily includes helpful charts that give a graphical impression of events, and our news content is sourced from a number of contributors, including Reuters. In addition, Sharenet's popular price information is available in our Spot Price format which provides a snapshot of the JSE and world indices, currencies and commodities.

All the JSE trading statistics; major movers; latest dividends; upcoming AGM dates and more are provided to insure that you keep abreast of market developments. The Sharenet Daily is published at 8pm each day on the website and also distributed via email for your convenience. As always, we welcome your comments, feedback and suggestions at support@sharenet.co.za
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

Lessons from the Yale Endowment

Every year Yale produces an excellent report on their endowment fund (found here). This Endowment has arguably been one of the best performing investment pools over a sustained period, so we therefore take stock of their views and processes on an annual basis, and see if there is any relevance for Seed or our clients.

The definition of a typical endowment is a pool of investments bequeathed to an institution to provide an income stream (for a stated cause) into perpetuity. An endowment typically needs to provide a level of income to the institution while retaining real purchasing power.

Time Horizon

The first striking quality that is evident is the Endowment’s extremely long term investment horizon (they discuss an investment horizon measured in decades or even centuries). Clearly the nature of an Endowment fund requires the long term horizon, but it is pleasing to see that the managers are matching this long term horizon with long term decisions. Yale’s long term horizon has enabled them to generate superior returns.

Investors that take a longer term horizon can invest a greater portion of their assets into more volatile growth assets than those with a short term horizon. Over short periods long term investors could have worse performance than short term investors, but as your investment horizon increases the likelihood of the short term investor outperforming the long term investor decreases.


Through gifts, Yale has been able to grow the size of the Endowment far quicker than through natural market growth. The difference in amounts in the chart below is a result not only of the additional gifts to the endowment, but also growth on the gifts.

It is important for investors to consistently add to their investments (while they are still generating income). While the above example is an extreme illustration, the difference between an investor who purely reinvests an early pension payout and one who continues to save for retirement (in addition to reinvesting the payout) will be significant over a 30 year period.


The annual withdrawal (drawdown) percentage from one’s pool of investments will give a good indication of the longevity that can be expected from that pool. The lower the drawdown rate, the longer one can expect the portfolio to last and vice versa. Since the Endowment should retain its purchasing power into perpetuity it will typically have a lower drawdown than most investors – who can eat into their principle.

Yale has recently set their drawdown limits at 4.5% and 6% of Endowment assets. Any drawdown below this should result in real growth of the investment portfolio, and higher than 6%, on a sustained basis, will most likely result in the portfolio losing purchasing power. Investors should attempt, where possible, to limit the rate of the drawdown from their portfolios.

Income Stability

Setting a targeted drawdown rate is important, but investors need a large degree of certainty in their income levels. Large fluctuations in portfolio value (notably decreases) coupled with a fixed drawdown rate can result in an unpleasant experience for investors dependant on income from their portfolio. The Endowment therefore applies a smoothing method to its distributions which gives Yale relative certainty in the amount of income they will receive from year to year.

While the drawdown percentage is an important metric, income stability is arguably more important. Investors need to balance getting a dependable income from their investments while not eroding their capital aggressively. By blending the prior year’s income with a percentage of current investment size, investors will be able to blend these two (often competing) needs. The Yale Endowment pays out 80% of last year’s income (adjusted for inflation) plus 5.25% of the Endowment’s current market value. This gives the university a smooth income profile without putting undue pressure on the real value of the Endowment.

Asset Diversification

An important part of any portfolio is to have some sort of diversification. In this way one is able to reduce the idiosyncratic risks inherent in specific asset classes/securities. Yale’s Endowment targets asset class weightings of between 4% and 33% across 6 asset classes. Of these 6 asset classes, 5 can be considered as growth assets (i.e. produce significant real growth over time) and the lone ‘diversifier’ is US Bonds – with a target of only 4%. Interestingly they only target a weighting of 11% to traditional US marketable securities (i.e. US Equity and Bonds)

At Seed we invest the majority of medium to high risk clients across a broad range of assets that we expect to generate positive real returns. Ideally there is a low correlation between the performances of the asset classes which will mitigate, to a certain extent, the risk of large capital losses. Asset classes like cash and bonds have a tactical place to preserve capital in the event that expected returns from the growth assets is low – there will also be isolated times where these assets will offer good prospective returns, which the manager needs to take advantage of. When looking at valuations we believe that an investment’s domicile isn’t important. We seek to find undervalued assets irrespective of their domicile – regulations clearly limit our ability to implement these ideas across some of our portfolios.

There are many other lessons that we have taken from this report, and we will most likely review some of them in the future. Chief among the lessons is that nothing in investments is static, from alterations in optimal asset allocation to changes in drawdown level and methods.

At Seed we realise that this is the case and while our investment principles and processes are unlikely to change we will look to continually improve them on an incremental basis. Equally it is important for investors to regularly assess their portfolio versus their goals and aspirations – ensuring there is a decent fit is important to avoid disappointment.

For those Facebook users interested in getting regular investment and economic updates click this link and 'Like' Seed's Fan Page.

Take care,

Mike Browne
021 9144 966

Thu, 21 Jul 2011
Top News
South Africa's government is appealing a decision by its own regulators to allow Wal-Mart to buy control of local retailer Massmart, a move that could tarnish the nation's credentials as an investor-friendly emerging market.  Full story

South Africa's government bonds gained on Thursday after a dovish Reserve Bank statement that suggested interest rates could stay at 30-year lows throughout 2011.  Full story
A Japanese man was sentenced to life imprisonment on Thursday for raping and killing Briton Lindsay Hawker and burying her naked body in a sand-filled bathtub, in a case that horrified Japan and sparked a media frenzy.  Full story
At least 18 people have been killed in clashes between police and demonstrators during violent nationwide protests against President Bingu wa Mutharika, the Malawian health ministry said on Thursday.  Full story
The space shuttle Atlantis returned from NASA's final shuttle mission on Thursday, ending a 30-year era that opened the space frontier, exposed its dangers and established a toehold for future endeavours beyond Earth.  Full story
European shares closed at their highest in nearly two weeks on Thursday on investor optimism about a plan for a wide-ranging response to. . .  Full story
U.S. stocks advanced on Thursday led by banks after Morgan Stanley reported better-than-expected results and as details of a new Greece rescue plan emerged.. . .  Full story
World stocks and the euro rose on Thursday after news of a plan to use the European bailout fund to make cheap loans. . .  Full story
Financials drove gains on Britain's top share index on Thursday, as hopes a solution could be found to Europe's sovereign debt crisis boosted. . .  Full story

Gold held near $1,600 an ounce on Thursday as caution over the outlook for the European debt crisis lingered after draft proposals from. . .  Full story
Australian shares firmed 0.1 percent on Thursday but were knocked back from session highs after data showed China's factory sector contracted for the first. . .  Full story
The Nikkei stock average on Thursday held on to most of its strong gains made the day before, bolstered by hopes that a. . .  Full story
Hong Kong and Shanghai shares edged lower on Thursday as data showing the factory sector shrank in July in China added to slowdown. . .  Full story
SA Business
South Africa's Reserve Bank left its repo rate unchanged as expected on Thursday, saying a forecast that inflation would now breach. . .  Full story
Brewer SABMiller reported a rise in first-quarter beer volumes, led on continued growth in emerging markets, but kept the market guessing. . .  Full story
South African miner Kumba Iron Ore is scouting west Africa for new projects and acquisitions as it seeks to expand and. . .  Full story
Miner Lonmin, the world's third-largest platinum producer, raised its outlook for production costs after a strike in May hit output at. . .  Full story

Sudan's parliament passed a revised 2011 budget on Thursday that included a new deficit outlook and incorporated expected income from oil transit fees to. . .  Full story
Employers in South Africa's coal sector have been served with a strike notice on Thursday after talks with unions the previous. . .  Full story
South Africa's maize futures closed lower on Thursday, in line with global markets and hit by a stronger rand, while wheat. . .  Full story
South Africa's main fuel sector union and employees at state power utility Eskom said on Thursday they had rejected the latest. . .  Full story

South Africa would not be able to escape an escalated European crisis unscathed, Finance Minister Pravin Gordhan said on Thursday, adding its direct economic exposure to the countries affected was reasonably low.. . .  Full story
Company News
Grindrod shareholders are advised that at the Special General Meeting of shareholders held on 20 July 2011, the special resolution pertaining. . .  Full story
BCX shareholders are referred to the pre-listing statement relating to the listing of BCX "A" shares (""A" shares") on the exchange. . .  Full story
Shareholders were advised that after 17 years of serving on the board of Altron, Mr Peter Curle has retired as an. . .  Full story
Unitholders are hereby advised that the requisite majority of unitholders approved all ordinary resolutions tabled at the annual general meeting of. . .  Full story

Great Basin announced that Mr. Gerry Robbertze has resigned as a non- executive director of Great Basin with effect from 15. . .  Full story
Shareholders of Mvela Group were advised that the company has disposed of a further 1 500 000 Life Healthcare ordinary shares. . .  Full story
Pretoria Portland Cement Company Ltd ("PPC") is pleased to acknowledge that it achieved the highest overall ranking in the Nkonki/Financial Mail. . .  Full story
Rockwell announced the results of an independent valuation of the company and the support of a key strategic shareholder in the. . .  Full story
Company Results
Investment income dropped to R42.8 million (R46.7 million) but profit attributable to ordinary shareholders more than doubled to R5.5 million (R1.5 million). Earnings per share soared to 62.5cps (17cps). Interest payment A debenture. . .  Full story
Revenue for the year ended 31 April 2011 increased by 13.8% to R1.316 billion (2010: R1.156 billion). Profit before depreciation, amortisation, interest and taxation ("EBITDA") rose by 20.7% to R159.8 million. . .  Full story
Revenue for the interim period ended 30 June increased to R24.1 billion (2010: R17.8 billion). Operating profit grew to R16.9 billion (2010: R11.2 billion), while profit attributable to owners of Kumba. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0032125.7969.730.22%
JSE Top 4017:0028767.5858.620.20%
JSE Gold17:002534.88-29.66-1.16%
JSE Financial17:0021778.23220.361.02%
JSE Industrial17:0033552.5237.510.11%
JSE Indust 2517:0028178.9421.550.08%
JSE Resource17:0053826.90-18.86-0.04%
DJ Futures18:4012630.00157.001.26%
DJ Ind18:3712742.50170.591.36%
SP 50018:361339.6413.801.04%
FTSE 10017:355899.8946.070.79%
All Ords08:364626.207.800.17%
NZSE 5007:323421.3429.320.86%
NameTimeRPMove% Move
Gold/R kg18:56347164-2845-0.81%
Brent Crude18:56118.791.741.49%
Rand / Dollar19:596.7786-0.0804-1.17%
Rand / Pound19:5911.0215-0.0319-0.29%
Rand / Euro19:599.7494-0.0101-0.10%
Rand / NZD18:485.8431-0.0329-0.56%
Rand / AUD19:597.3523-0.0237-0.32%
Yen / Dollar19:5978.5400-0.3300-0.42%
Euro / Dollar19:590.6951-0.0078-1.11%
Dollar / Euro19:591.43790.01591.12%
Pound / Dollar19:590.6131-0.0057-0.92%

Click here for the Sharenet Spot Price page
The JSE Today
Trading Statistics

Major Moves Up
SharenameSaleMove% MoveVolume
1 ELLIES   215136.44.%731676
2 TASTE  11054.76.%70016
3 OANDO  240104.35.%4030
4 VALUE  395153.95.%2975
5 SILVERB  14053.70.%25000
6 TRENCOR  36251052.98.%39632
7 ABSA  135693842.91.%1283909
8 CLICKS  40511092.77.%2158495
9 OLDMUTUAL  1458382.68.%19737193
10 REINET  1285332.64.%1885178
11 DIGICOR  33082.48.%25000
12 SPANJRD  425102.41.%4670
13 AFROX  2099492.39.%172470
14 CBH  480102.13.%411958
15 STEINHOFF  2340451.96.%10986433
16 FAMBRANDS  4590851.89.%59008
17 INVPLC  5627991.79.%730457
18 ILLOVO  2650451.73.%23885
19 KEATON   30051.69.%46900
20 IMPERIAL  119621941.65.%174364

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Major Moves Down
SharenameSaleMove% MoveVolume
1 DELRAND  240-50-17.24.%52
2 RANGOLD  240-35-12.73.%395
3 MMG  150-10-6.25.%449
4 AFGRI  650-39-5.66.%1054530
5 IQUAD  275-15-5.17.%4000
6 ROLFES  215-10-4.44.%22000
7 EASTPLATS  709-31-4.19.%33089
8 AMA  172-6-3.37.%23382
9 MIXTEL  150-5-3.23.%35700
10 VILLAGE  120-4-3.23.%286192
11 VIVIDEND  436-14-3.11.%812555
12 JUBILEE  220-7-3.08.%151568
13 PAN-AF  144-4-2.70.%847716
14 RBPLAT  5900-150-2.48.%143277
15 KUMBAIO  51256-1244-2.37.%837602
16 GRANPRADE  291-7-2.35.%14000
17 EQSTRA  705-15-2.08.%16186
18 OPTIMUM  2550-50-1.92.%1020
19 STEFSTOCK  1194-22-1.81.%18922
20 NUWORLD  1870-30-1.58.%1003

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New Highs
SharenameSaleHighMove% MoveVolume
1 FAMBRANDS  45904600851.89.%59008
2 MRPRICE  73217350861.19.%3731919
3 HOLDSPORT  31103199-10-0.32.%5825
4 GOLDONE  370380-5-1.33.%122847

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New Lows
SharenameSaleLowMove% MoveVolume
1 RBPLAT  59005830-150-2.48.%143277
2 NORTHAM  39003808-50-1.27.%1031560
3 LONMIN  1457514255-125-0.85.%1017934

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Index Summary
Index NameRPMove% Move
Top 4028,767.5858.620.20%
Mid Cap42,709.25164.870.39%
Small Cap32,292.83-107.41-0.33%
Resource 2053,826.90-18.86-0.04%
Industrial 2528,178.9421.550.08%
Financial 158,184.8495.851.18%
Financial & Ind. 3031,248.73130.410.42%
All Share32,125.7969.730.22%
Oil & Gas 27,022.82142.160.53%
Mining 35,329.37-55.68-0.16%
Gold Mining2,534.88-29.66-1.16%
Platinum Mining66.93-.53-0.79%
Oil & Gas Producers 14,529.6776.440.53%
Basic Materials 29,999.80-66.78-0.22%
Chemicals 14,074.9193.220.67%
Forestry & Paper 14,399.61-45.61-0.32%
Industrial Metals 30,914.69-506.75-1.61%
Industrials 28,325.27-10.14-0.04%
General Industrials 78,329.37-88.74-0.11%
Consumer Goods 28,136.66-30.09-0.11%
Automobiles & Parts 3,835.9924.910.65%
Household Goods148.7131.96%
Health Care 33,537.3087.190.26%
Beverages 87.30-.35-0.40%
Food Producers 49,863.35-45.77-0.09%
Index NameRPMove% Move
Personal Goods 444.05-.10-0.02%
Consumer Services 53,591.43297.520.56%
General Retailers 42,958.16205.450.48%
Travel & Leisure 3,801.5949.221.31%
Support Services 2,360.85-17.03-0.72%
Telecommunications 70,538.54357.080.51%
Financials 21,778.23220.361.02%
Banks 40,283.55443.821.11%
Non-life Insurance 31,766.31.000.00%
Life Insurance 16,105.89189.681.19%
General Financial 2,335.8729.651.29%
Technology 23,264.43133.050.58%
SHARIAH TOP40 3,170.9410.03%
FTSE/JSE SHARIAH ALL3,233.4610.03%
COAL MINING24,502.381130.47%
FTSE JSE Fledgling 4,598.81-13-0.28%
FTSE/JSE Alt X 1,142.56-8-0.68%
RESOURCE 29,727.29-20-0.07%
DIVIDEND PLUS172.4710.41%
FTSE/JSE RAFI 406,685.37310.47%
Capped Top 4015,030.96330.22%
Capped All Share16,195.70370.23%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
25 Jul 2011AMPLATSJune 2011 (Interim)
25 Jul 2011ANGLOPLATCCPJune 2011 (Interim)
25 Jul 2011HULAMINJune 2011 (Interim)
25 Jul 2011HULAMINAJune 2011 (Interim)
25 Jul 2011HULAMINBJune 2011 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
FOORDCMPS11-07-2011-08-0411-08-15R 0.3000
AFROX11-07-1911-10-1411-10-24R 0.2200
MAS11-07-1511-07-2911-08-12R 0.0214
REUNERT5.511-07-1111-07-2211-08-01R 0.0550
HUDACO11-06-2911-08-1211-08-22R 1.3000
Ex Div**
Share NameDec-DateLDTPay-DateAmount
LEWIS11-05-2311-07-1511-07-25R 2.0700
PERGRIN11-06-0111-07-1511-07-25R 0.3500
NETCARE11-05-1611-07-1511-07-25R 0.2200
NICTUS11-06-3011-07-1511-07-25R 0.0950
AMECOR11-06-2911-07-1511-07-25R 0.0800

Upcoming AGMs**
CodeCompany NameDateStatus
OASOasis Crescent Property Fund21/07/2011Confirmed
IFCIFCA Technologies Ltd21/07/2011Confirmed
HULBHulamin Ltd21/07/2011Confirmed
HULAHulamin Ltd21/07/2011Confirmed
HLMHulamin Ltd21/07/2011Confirmed

Stock Exchange News Service
21/07/201117:42 SABMiller plc - SABMiller plc replacement notice Final Currency
21/07/201117:40ABL/ABLP - African Bank Investments Limited - Results of private
21/07/201117:11GND/GNDP - Grindrod - Results of Special General Meeting
21/07/201117:09 IQuad Group Limited - Results of The Annual General Meeting
21/07/201117:00 SABMiller Plc - Confirmation of directorate change
21/07/201117:00 Palabora Mining Company Limited - Trading Statement
21/07/201116:57 SABMiller plc - AGM Poll Results
21/07/201116:33 Famous Brands Limited - Dealings in securities
21/07/201115:49 PSG Group Limited - Notice of General Meeting of PSG Group
21/07/201115:38BCX/BCA - Business Connexion Group Limited - Announcement relating to
21/07/201115:35 Pioneer Food Group Limited - Change of company secretary
21/07/201114:33BIFR1 - FirstRand Bank Limited - Listing of Tap Issue
21/07/201114:32BIFR1 - FirstRand Bank Limited - Listing of New Financial Instrument
21/07/201114:31BIFR1 - FirstRand Bank Limited - Interest Rate Reset Announcement
21/07/201114:30BIFR1 - FirstRand Bank Limited - Listing of New Financial Instrument
21/07/201113:49SBACOP - The Standard Bank of South Africa Limited - Issue of COPPER Exchange
21/07/201113:24ATN/ATNP - Allied Electronics Corporation Limited - Retirement of Mr PMO Curle
21/07/201113:21SBAWHT - The Standard Bank of South Africa Limited - Issue of Wheat
21/07/201113:19SBAOIL - The Standard Bank Of South Africa Limited - Issue of oil exchange
21/07/201113:18SBACRN - The Standard Bank of South Africa Limited - Issue of corn exchange
21/07/201113:11CCO - Capital & Counties Properties PLC - Press Release
21/07/201112:59 Oasis Crescent Property Fund - Results of the Annual General
21/07/201112:40 Country Bird Holdings Limited - Trading statement
21/07/201112:00 SABMiller plc - Trading Update
21/07/201111:24 Great Basin Gold Limited - Resignation of director
21/07/201111:23NEWFSA - NEWFUNDS NEWSA - De-listing of 1,000,000 participatory interests
21/07/201110:45 Spanjaard Limited - Dealings in securities by a director
21/07/201110:35BIIVU - iVuzi Investments Limited - Listing of Financial Instruments
21/07/201110:07 Omnia Holdings Limited - Dealing in securities
21/07/201110:00 Allied Technologies Limited - Results of Annual General Meeting and
21/07/201110:00 SABMILLER Plc - Final Dividend Currency Conversion - Sterling and Rand
21/07/201109:27MVG/MVGP - Mvela Group - Disposal of Further Life Healthcare Group
21/07/201108:59 Firestone Energy Limited - IDC commences funding of the Sekoko
21/07/201108:56 IPSA Group Plc - Appointment of Broker
21/07/201108:55 African Oxygen Limited - Afrox Analyst Presentation
21/07/201108:30 Pretoria Portland Cement Company Limited - PPC wins top award for
21/07/201108:15 Rockwell Diamonds Incorporated - Independent Valuation and Update on
21/07/201108:00 Anglo American plc - Anglo American plc notification
21/07/201108:00 Lonmin Plc - Third quarter 2011 production report & interim management
21/07/201108:00 Kumba Iron Ore Limited - Reviewed condensed consolidated interim financial
21/07/201107:15 Anglo American plc - Treasury Shares - Transfers
21/07/201107:12SYN848 - Synthesis Funding Limited - New Financial Instrument Listing
21/07/201107:11SYN847 - Synthesis Funding Limited - New Financial Instrument Listing
21/07/201107:10 British American Tobacco p.l.c.- Transaction in own shares
21/07/201107:10SYN846 - Synthesis Funding Limited - New Financial Instrument Listing
21/07/201107:09 BHP Billiton Plc - Notice of Dividend and AGM Dates
21/07/201107:05 Vodacom Group Limited - Vodacom Group Limited trading statement for

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