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 The Sharenet Daily 
Wednesday, 01 February 2012 - 20:00
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)

Core and Satellite Investing

Most investors know not to put all their eggs into one basket, but how about one medium-sized basket and a number of smaller, flashier baskets? The Core and Satellite approach is a clever combination of the two primary approaches to investment management: active and passive investing.

Passive management is a strategy followed by investors who believe that in principle markets are efficient and that it is not possible to outperform the market consistently after allowing for the risks taken on. In practice this approach involves investing in an appropriate index fund or a suitable, low-risk unit trust that closely follows its benchmark. These investors will never outperform the market or the stated benchmark, but management fees are very low and the portfolio will at least keep up with market returns.

In contrast, active investors believe that market inefficiencies can be exploited to achieve returns in excess of their benchmark or market indices. Active managers invest into assets that are undervalued in an attempt to make a profit as the market eventually corrects for the mispricing. Investors are able to outperform market indices or other benchmarks over time, but only if competent managers making the right investment decisions are selected. The negative to active management is the higher cost when compared to the passive management.

The Core and Satellite then is a blending of these two methods in order to achieve the best of both worlds – the possibility of outperformance at a lower overall cost.

Using this methodology, the Core portfolio forms the foundation of the total fund, and should be positioned to achieve stable returns at relatively low risk. It will usually comprise 40% - 60% of the total portfolio and in order for the overall strategy to be successful, the Core portfolio should have as low an overall cost as possible. Investment into a selection of index tracker funds or enhanced tracker funds should typically achieve this objective.

The Satellite portfolios are smaller amounts allocated to specific active investments, added purposely to enable the total portfolio to outperform its benchmark. These portfolios should be managed by skilled active managers who are able to outperform their benchmarks by investing very differently to the benchmark. Managers with different styles, e.g. value or growth, can be selected, as well as different themes such as commodities, emerging markets or small caps. It is important that these managers are aggressive enough in their approach to justify their higher management fees.

The resulting combination of the Core and Satellite portfolios offers the following advantages:

• Increased stability of returns:

The portfolio should deliver more stable returns more closely matching those of the benchmark, with the
added possibility of some outperformance if the active managers perform well.

• Reduced Management Cost:

The Core portfolio, with its lower management costs by design, will bring down the overall costs of the
portfolio. As the Core portfolio is often based on indexes that do no change often, there should be lower
transaction and rebalancing costs.

Overall, the Core and Satellite approach offers a flexible, cost-effective way to manage an investment portfolio.

Source: www.hottingerzurich.com

All the best,

Cor van Deventer
021 9144 966

Wed, 01 Feb 2012
Top News
South Africa's rand surged more than two percent against the dollar on Wednesday, touching a near-five month high in line with a stronger euro as hopes of a resolution to Greece's debt crisis helped to lift risk appetite globally.  Full story

South African stocks closed at a new lifetime high on Wednesday, gaining more the 1 percent as positive earnings statements and upbeat economic data from China helped lift resources firms such as Assore.  Full story
Mitt Romney regained the lead in the Republican presidential nomination race with a big win in Florida, but drew criticism on Wednesday in what should have been his victory lap with remarks suggesting he was indifferent to America's poor.  Full story
The U.S. military said in a secret report that the Taliban, backed by Pakistan, are set to retake control of Afghanistan after NATO-led forces withdraw, raising the prospect of a major failure of Western policy after a costly war.  Full story
Russia said on Wednesday it would veto any U.N. resolution on Syria that it finds unacceptable, after demanding any measure rule out military intervention to halt the bloodshed touched off by protests against President Bashar al-Assad's rule.  Full story
U.S. stocks extended January's rally, climbing more than 1 percent, on Wednesday after upbeat global manufacturing data and as Greece neared a long-delayed. . .  Full story
The euro rose on speculation a Greek debt deal was close at hand on Wednesday, and global equity markets surged on investor enthusiasm. . .  Full story
Bullish company earnings reports and the prospect of Greece nearing a debt deal helped lift Britain's FTSE 100 higher on Wednesday, while robust manufacturing. . .  Full story
European shares hit six-month highs on Wednesday as encouraging economic numbers boosted sentiment, while Italian banks gained after the Italian Central Bank made it. . .  Full story

Shares in European steelmakers are in the cross-hairs of option traders and short sellers following a brisk two-month rally, as doubts about corporate earnings. . .  Full story
U.S. stocks rallied on Wednesday, with all major indexes up more than 1 percent, as upbeat economic data from China and Germany. . .  Full story
Gold rallied for a second day on Wednesday, supported by upbeat economic data from Germany and the United States, with the precious metal. . .  Full story
European shares hit fresh six-month highs on Wednesday after data showed the pace of growth in the U.S. manufacturing sector picked up in. . .  Full story
SA Business
Mozambique capital Maputo is hotting up as a magnet for companies aspiring to be significant South African coal exporters, following a. . .  Full story
Impala Platinum, the world's second largest producer of the precious metal, said on Wednesday that 18,000 workers were now staying away. . .  Full story
South Africa's rand firmed more than 1.5 percent against the dollar on Wednesday, touching a fresh three-month high in line with. . .  Full story
. . .  Full story

South African labour arbitrators have ordered state power utility Eskom to boost a 7 percent wage offer to workers from the. . .  Full story
Shares of Absa Group turned negative in afternoon trade on Wednesday after it said its veteran deputy chief executive would step. . .  Full story
Zambia expects to have a power surplus of about 600 megawatts (MW) by 2016, which should help ease the electricity deficit. . .  Full story
The European Commission blocked the merger of Deutsche Boerse and NYSE Euronext on Wednesday, saying the combined group would have a stranglehold on the. . .  Full story

. . .  Full story
South Africa's Purchasing Managers' Index rose to 53.2 in January, its highest level since June, rebounding from 49.4 in December, sponsors Kagiso Asset Management said on Wednesday.. . .  Full story
Company News
Notification is hereby given that Mr. Uys Meyer ("Mr. Meyer") has resigned as non-executive director of GPI with effect from Tuesday,. . .  Full story
Sanyati shareholders are advised of the resignation of Mr R M Crowie as non-executive director from the board of directors of. . .  Full story
Implats advised that the majority of the mining workforce at its Impala Rustenburg operation failed to report for duty this morning,. . .  Full story
MICROmega Holdings Ltd has acquired a controlling interest in MIS Consulting (Pty) Ltd ("MIS"). MIS provides a unique customer to business,. . .  Full story

Absa advised that Louis von Zeuner, deputy group chief executive, will move to a non-executive role effective 1 January 2013. As a non-executive director, he will serve on the boards of. . .  Full story
Coal confirmed it has issued 200 000 ordinary shares ("shares") to employees of the company following an award by the remuneration committee. Application has been made for the 200 000 shares. . .  Full story
Shareholders were advised that Absa's headline earnings per share and diluted headline earnings per share for the year ended 31 December 2011 are expected to increase between 18% and 22% from. . .  Full story
Company Results
The loss from operations narrowed by 63% to R12.5 million (loss of R33.9 million). A net attributable profit of R88.2 million (loss of R245.9 million) was recorded. In addition, headline earnings from continuing operations soared by 314% to 16.7c (loss of. . .  Full story
Rental revenue rose significantly to R1.9 billion (R720.8 million) and profit attributable to ordinary shareholders increased to R1.6 billion (R976.4 million). However, headline earnings per unit dropped to 72.74cpu (75.6cpu). Dividend A cash distribution of 34.27cpu, being number 57, has been declared. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0034139.52347.041.03%
JSE Top 4017:0030518.66342.471.13%
JSE Gold17:002929.35-21.51-0.73%
JSE Financial17:0023803.05222.570.94%
JSE Industrial17:0035967.58448.561.26%
JSE Indust 2517:0030183.10424.311.43%
JSE Resource17:0055984.73447.180.81%
DJ Futures19:5612725.00148.001.18%
DJ Ind19:4512768.99136.081.08%
SP 50020:001328.4816.071.22%
FTSE 10018:355790.72109.111.92%
All Ords07:474291.00-34.70-0.80%
NZSE 5006:463301.795.590.17%
NameTimeRPMove% Move
Gold/R kg20:00430573-7812-1.78%
Brent Crude19:56111.29.810.73%
Rand / Dollar19:597.6728-0.1218-1.56%
Rand / Pound19:5512.1268-0.1361-1.11%
Rand / Euro19:5510.1172-0.1010-0.99%
Rand / NZD19:586.3982-0.0431-0.67%
Rand / AUD19:558.2303-0.0677-0.82%
Yen / Dollar19:5976.2500-0.0530-0.07%
Euro / Dollar19:550.7581-0.0056-0.73%
Dollar / Euro19:591.31830.00970.74%
Pound / Dollar19:550.6308-0.0033-0.52%

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

Major Moves Up
SharenameSaleMove% MoveVolume
1 ASSORE  2451917197.54.%96649
2 HOWDEN  17501006.06.%8059
3 AFRO-C  290155.45.%32058
4 LITHA  295155.36.%75296
5 ANOORAQ  405205.19.%8010
6 EXXARO  201508514.41.%1963814
7 A-V-I  43281784.29.%5257440
8 PINNACLE  1349513.93.%232429
9 METROFILE  283103.66.%81000
10 SHOPRIT  134474453.42.%1295587
11 O-LINE  12443.33.%82906
12 PNR-FOODS  63002003.28.%31261
13 CLOVER  1275403.24.%4537
14 AFROX  1836573.20.%346026
15 LEWIS  76702333.13.%422987
16 TRUSTCO  13243.13.%649008
17 CBH  505153.06.%142842
18 PBT  17053.03.%425663
19 S-OCEAN  17053.03.%10500
20 ARM   189805482.97.%451468

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Major Moves Down
SharenameSaleMove% MoveVolume
1 OCEANA  4340-277-6.00.%235814
2 URONE  2035-115-5.35.%33320
3 BAUBA  198-10-4.81.%1000
4 OANDO  124-6-4.62.%998
5 HULAMIN  810-39-4.59.%10280
6 HOSP-B  480-20-4.00.%348750
7 HUDACO  10500-385-3.54.%77060
8 JUBILEE  194-7-3.48.%23830
9 LONAFRIC  145-5-3.33.%20000
10 CMH  960-30-3.03.%75969
11 GBGOLD  990-30-2.94.%1850
12 AVUSA  1952-53-2.64.%614
13 AFGRI  593-16-2.63.%1630
14 NICTUS  346-9-2.54.%200
15 PERGRIN  975-25-2.50.%3548
16 EASTPLATS  432-10-2.26.%74012
17 BLACKSTAR  980-20-2.00.%33099
18 STEFSTOCK  1030-20-1.90.%64982
19 DIGICOR  290-5-1.69.%57703
20 CAT  1500-25-1.64.%671767

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New Highs
SharenameSaleHighMove% MoveVolume
1 ASSORE  245192480017197.54.%96649
2 HOWDEN  175017501006.06.%8059
3 AFRO-C  290290155.45.%32058
4 EXXARO  20150201508514.41.%1963814
5 A-V-I  432843281784.29.%5257440
6 PINNACLE  13491349513.93.%232429
7 O-LINE  12412443.33.%82906
8 CLOVER  12751275403.24.%4537
9 CBH  505510153.06.%142842
10 STEINHOFF  25632582632.52.%4488777
11 RMIH  15241537241.60.%1152951
12 KUMBAIO  54400546137751.45.%1221443
13 ADCOCK  63336333681.09.%171918
14 REMGRO  12853129951331.05.%1163735
15 SABMILLER  30000300192000.67.%2378330
16 ONELOGIX  17317310.58.%48178
17 HYPROP  56205996150.27.%601494
18 STANBANK  107201080040.04.%3669914
19 AFRIMAT  523535-2-0.38.%50777

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New Lows
SharenameSaleLowMove% MoveVolume

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Index Summary
Index NameRPMove% Move
Top 4030,518.66342.471.13%
Mid Cap45,894.35264.970.58%
Small Cap34,210.50-33.92-0.10%
Resource 2055,984.73447.180.81%
Industrial 2530,183.10424.311.43%
Financial 159,004.6294.601.06%
Financial & Ind. 3033,692.18454.291.37%
All Share34,139.52347.041.03%
Oil & Gas 30,459.01264.860.88%
Mining 36,163.47278.240.78%
Gold Mining2,929.35-21.51-0.73%
Platinum Mining64.561.111.75%
GENERAL MINING9,050.7384.370.94%
Oil & Gas Producers 16,377.25142.410.88%
Basic Materials 30,591.60240.750.79%
Chemicals 14,222.25170.601.21%
Forestry & Paper 12,807.95118.110.93%
Industrial Metals 31,844.62306.830.97%
Industrials 30,747.99192.000.63%
General Industrials 86,979.36849.810.99%
Consumer Goods 30,892.18372.171.22%
Automobiles & Parts 4,585.53-31.70-0.69%
Household Goods168.4542.52%
Health Care 36,980.74262.300.71%
Beverages 102.52.690.68%
Index NameRPMove% Move
Food Producers 57,006.07544.890.97%
Personal Goods 451.949.092.05%
Consumer Services 61,352.351088.681.81%
General Retailers 51,075.99667.661.32%
Travel & Leisure 3,835.22-4.87-0.13%
Media 87.801.701.97%
Support Services 2,305.56-6.52-0.28%
Telecommunications 67,057.85987.371.49%
Financials 23,803.05222.570.94%
Banks 44,696.49314.810.71%
Non-life Insurance 35,493.40-116.39-0.33%
Life Insurance 18,860.69228.261.23%
General Financial 2,281.2739.991.78%
Technology 26,661.0025.390.10%
SHARIAH TOP40 3,263.82351.09%
FTSE/JSE SHARIAH ALL3,338.39341.03%
COAL MINING27,037.639663.70%
FTSE JSE Fledgling 5,021.72260.51%
FTSE/JSE Alt X 1,225.63151.23%
RESOURCE 30,840.412420.79%
DIVIDEND PLUS190.6621.22%
FTSE/JSE RAFI 407,131.53731.04%
Capped Top 4016,036.461851.16%
Capped All Share17,245.741771.04%
JSE TABACO 4,670.45450.97%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
03 Feb 2012CAPITALDecember 2011 (Final)
03 Feb 2012OPTIMUMDecember 2011 (Interim)
03 Feb 2012RESGENDecember 2011 (Interim)
06 Feb 2012HARMONYDecember 2011 (Interim)
06 Feb 2012HARMONY-PDecember 2011 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
HUDACO12-01-2612-03-0212-03-12R 3.1000
FOORDCMPS12-01-1912-02-0312-02-13R 0.4961
WINHOLD11-11-2812-02-1012-02-20R 0.0700
TREMATON11-11-1512-02-0312-02-13R 0.0200
TFG PREF11-11-0312-03-1512-03-26R 0.0650
Ex Div**
Share NameDec-DateLDTPay-DateAmount
SBR00311-11-0812-01-2712-02-06R 1.4700
PNR FOODS11-11-2812-01-2712-02-06R 0.4000

Upcoming AGMs**
CodeCompany NameDateStatus
NPP1Nampak Ltd01/02/2012Confirmed
NPKPNampak Ltd01/02/2012Confirmed
NPP2Nampak Ltd01/02/2012Confirmed
NPKONampak Ltd01/02/2012Confirmed
NPKNampak Ltd01/02/2012Confirmed

Stock Exchange News Service
01/02/201217:36 Redefine Properties International Limited - Notification of Transactions
01/02/201217:35 Redefine Properties International Limited - Notification of major
01/02/201217:15MWNT - Mine Waste Solutions (Proprietary) Limited - News Release
01/02/201217:15 First Uranium Corporation - News release - 1 February 2012
01/02/201217:06 William Tell Holdings Limited - Changes to the board of directors
01/02/201217:05 Capital Property Fund - Condensed audited consolidated financial
01/02/201216:30 British American Tobacco p.l.c. - British American Tobacco p.l.c. (the
01/02/201216:26 Grand Parade Investments Limited - Change to the board of directors
01/02/201216:22 Labat - Change to the Board of Directors
01/02/201216:20 Sanyati Holdings Limited - Resignation of director
01/02/201216:03 Nampak - Results of the 44th Annual General Meeting
01/02/201216:00 Anooraq Resources Corporation - Anooraq, Anglo American Platinum
01/02/201215:43ACL149 - Absa Bank Limited - New Financial Instrument Listing
01/02/201214:35 Capital Shopping Centres Group Plc - Notification of major interests
01/02/201214:12 Ellies Holdings Limited - Dealing in securities
01/02/201213:43 Vunani Property Investment Fund Limited - Results of General Meeting
01/02/201213:30 Impala Platinum Holdings Limited - Update on work stoppage at Impala
01/02/201213:18 MICROmega Holdings Limited - MICROmega acquires controlling interest
01/02/201213:11 Pan African Resources plc - Approval granted for Phase One of the
01/02/201212:23ASA/ABSP - ABSA Group/ABSA Bank - New role for ABSA`s Deputy Group Chief
01/02/201212:00 Comair Limited - Change to the board of directors
01/02/201211:57 Trustco Group Holdings Limited - Dealing in Securities of Trustco Group
01/02/201211:00 Anglo American plc - Total voting rights
01/02/201210:30SCIB/KIOSTE - The Standard Bank of South Africa Limited - Notice of expiry of
01/02/201210:02 Winhold Limited - Results of Annual General Meeting
01/02/201209:35 Metrofile Holdings Limited - Trading Statement
01/02/201209:15IV017 - Investec Bank Limited - New Financial Instrument Listing
01/02/201209:02BIIVU - iVuzi Investments Limited - Full Capital Redemption
01/02/201209:00 Petmin Limited - Petmin appoints Macquarie as Nominated Adviser (NOMAD)
01/02/201209:00 Redefine Properties International Limited - Placing and admission of
01/02/201209:00 ZCI Limited - Additional Loan Facility Between ZCI And African Copper Plc
01/02/201208:48 BHP Billiton Plc - Divestment of interest in Richards Bay Minerals
01/02/201208:00 Mvelaphanda Group Limited - Unaudited results of Mvela Group and its
01/02/201207:30 Italtile Limited - Trading Statement for the six months ended 31
01/02/201207:10 Anglo American plc - Treasury Shares - Transfers
01/02/201207:06 Coal of Africa Limited - Issue of shares and secondary trading notice
01/02/201207:06 ABSA Group Limited - ABSA Group Trading statement in respect of the year
01/02/201207:05 Sacoil Holdings Limited - Issue of Equity (AIM)
01/02/201207:05 Coal of Africa Limited - 3B Appendix new issue announcement, application

Click here for more SENS news