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 The Sharenet Daily 
Monday, 13 August 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)

Yale Endowment: 2011

The annual Yale Endowment Report is a must read at Seed, and this year is no different. Each year we attempt to gain insights into why this is one of the best performing institutional portfolios in the world, and see if there are any nuggets of wisdom that we can use in the management of the funds and portfolios that we manage on our clients’ behalf.

In summary, the Yale Endowment is a $19.4bn endowment that currently provides over one third of Yale’s annual revenue, while preserving (and growing) the real purchasing power of the capital base for use by future generations. In many ways high net worth individual and family trust investment plans are similar to endowments, particularly where there is a desire to leave a legacy. In years gone by we have looked at how having a well defined drawdown methodology will not only help extend the capital’s life, but that there are also ways to ensure that the annual changes in the drawdown amount aren’t too volatile.

One aspect in this year’s report that struck me was the endowment’s large allocation to illiquid assets. As at the end of 2011 nearly two thirds of Yale’s endowment was invested into illiquid assets! I then took a look back at how this allocation differs to their endowment in 2001, and also compared to the average educational endowment.

The chart below shows how Yale has increased its allocation to illiquid assets over the past decade, and how the average educational endowment holds even less illiquid assets than Yale did 10 years ago. Illiquid assets are defined as private equity, real estate, and natural resources. Quasi-liquid assets are made up of absolute return strategies (typically hedge fund type investments), while liquid assets are those that trade on public exchanges, i.e. equity and fixed income.

The first key observation is that the Yale Endowment hasn’t done well because it invested into illiquid assets per se. Illiquidity in itself doesn’t generate returns, but good illiquid investments have the ability to generate exceptional performance. Illiquid assets by their very nature are often uncorrelated to more liquid assets (as there isn’t an active market that is overly influenced by the prevailing sentiment) and investors are often rewarded with an illiquidity premium, but these asset classes typically require more in depth due diligence and larger investment minimums.

Another observation is that while their allocation to illiquid assets is high, they still have enough invested in liquid strategies to be used to fund the university’s drawdown requirement. The defined drawdown process results in approximately 5% of the endowment being drawn on an annual basis. With this percentage being fairly static, the investment team is able to maximise their return profile. Too often we see individual investors that require a large percentage of their assets to be readily accessible as they are unsure of their income requirement, and by doing so require a large portion of their assets to be invested in low yielding highly liquid strategies.

With 36% of the endowment in liquid and quasi-liquid strategies, in a worst case scenario (i.e. when the illiquid assets can’t be sold) the endowment will be able to fund approximately 7 years of income requirement before having to start liquidating the illiquid assets. In the normal course of business they will ensure that the level of illiquid assets doesn’t rise above a specific pre-determined maximum weighting.

On a practical level many investors are large shareholders in the businesses that they run. For these clients their illiquid assets are locked up in their shareholding, and for them it is important to build up an asset base outside of the illiquid private equity in order to ensure that they will be able to generate sufficient liquidity should the need arise.

Within Seed’s Funds there are a few relatively illiquid strategies which are able to generate outsized returns for the levels of risk assumed. It is important to balance the enhanced expected returns with sufficient liquidity, because the surest way to destroy capital is being forced to liquidate an illiquid asset.

Take care,

Mike Browne

021 914 4966

Mon, 13 Aug 2012
Top News
Gold prices slipped back below $1,620 an ounce on Monday as weakness in stock markets reflected softer risk appetite among investors, but remained underpinned by expectations that the European Central Bank would step in to support the euro.  Full story

Revenue for the interim period jumped to R2.9 billion (2011: R2.1 billion). Gross profit grew to R638.5 million (2011: R496.8 million), while profit for the period attributable to owners of Bell surged to R135.8 million (2011: R103.3 million). Furthermore, headline earnings per share rose to  Full story
A Syrian warplane crashed in flames in eastern Syria in disputed circumstances on Monday as President Bashar al-Assad's forces pursued their drive to quell rebels in Aleppo and elsewhere.  Full story
World stock markets eased on Monday after weak Japanese economic data added to evidence that the global economy is slowing, while the euro. . .  Full story
European shares took their sharpest fall in more than a week on Monday in thin volumes, as worries over a global economic slowdown. . .  Full story
U.S. stocks fell on Monday after six days of gains for the S&P 500 and as data showed Japan's economy grew much less. . .  Full story
Britain's top shares fell in thin volume on Monday and braced for a bumpy ride as investors were unnerved by signs the global. . .  Full story

U.S. stocks dipped on Monday after six days of gains for the S&P 500 and as data showed Japan's economy grew much less. . .  Full story
European shares extended their losses just before the close of the European trading session on Monday, falling to new intra-day lows and mirroring. . .  Full story
U.S. stocks opened slightly lower on Monday after six straight sessions of gains by the S&P 500 as Japan showed signs of economic. . .  Full story
European stocks crept lower on Monday, in light choppy trade, as investors weighed up concerns over global economic growth with expectations of further. . .  Full story

Five people including a police officer have been killed in clashes between unions at a South African mine operated by world. . .  Full story
Bangladesh's exports, ending a four-month streak of declines, rose 4.3 percent in July from a year, official data showed on Monday, as garment. . .  Full story
South Africa's rand traded a touch softer against the dollar on Monday and remains vulnerable to dim global economic prospects while. . .  Full story
Two security guards were hacked to death at a South African mine operated by the world's number three platinum producer Lonmin. . .  Full story

South African financial services provider Sanlam Ltd is considering a stake of up to 49 percent in Malaysian insurer Pacific & Orient Bhd's (P&O), The Edge Weekly said over the weekend, quoting unidentified sources.. . .  Full story
Kenya's CfC Stanbic Bank, the main business of CfC Holdings, posted a 36.5 percent jump in pretax profit for the first half of the year, it said on Monday, without disclosing any reasons for the rise.. . .  Full story
Company News
Shareholders were referred to the announcement released by the company on 19 July 2012, relating to the results of the annual. . .  Full story
Imperial is pleased to provide guidance regarding the range of the expected change in earnings per share ("EPS"), headline earnings per. . .  Full story
Trustco Group Holdings Limited is pleased to announce that Global Credit Rating Co ("GCR") (http://globalratings.net) has awarded it an initial Namibian. . .  Full story
Further to the trading statement released on SENS on 26 June 2012, a review of the financial results for the year. . .  Full story

Omnia announced that the new nitric acid complex has been successfully registered as a Clean Development Mechanism ("CDM") project by the. . .  Full story
MICROmega's subsidiary company NOSA has concluded a five year co-branding agreement with North Safety Products (Africa), a division of the North. . .  Full story
Notice was given that a general meeting of shareholders of Coal will be held at 11.00 am (London time) on 11. . .  Full story
Further to the cautionary announcement published on 29 June 2012, shareholders were advised that the company has entered into negotiations which. . .  Full story
Company Results
Revenue grew marginally to R8.78 billion (2011: R8.77 billion) and operating profit plunged from R331 million (2011: R606 million). Net atttributable loss to equity shareholders increased to R278 million (2011: loss of R218 million). Additionally, headline earnings per share from continuing operations fell to 178cps (2011: 3.89cps) Dividend The group declared a final dividend of 14cps. Prospects The Investments and Concessions cluster is delivering annuity business growth, with. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0035417.94-156.00-0.44%
JSE Top 4017:0031194.25-135.00-0.43%
JSE Gold17:002456.9711.000.49%
JSE Financial17:0027065.40-67.00-0.25%
JSE Industrial17:0041185.84-242.00-0.58%
JSE Indust 2517:0035160.38-221.00-0.63%
JSE Resource17:0047776.72-186.00-0.39%
DJ Futures19:5813100.00-30.00-0.23%
DJ Ind19:5813147.21-17.98-0.14%
SP 50019:581401.06-1.74-0.12%
FTSE 10017:355831.88-15.23-0.26%
All Ords08:504309.506.700.16%
NZSE 5008:483594.9611.350.32%
NameTimeRPMove% Move
Gold $19:581610.46-10.58-0.65%
Gold R19:5613128.2947.940.37%
Gold R/kg19:5842175626170.62%
Silver $19:5827.8100-.3030-1.08%
Platinum $19:571382.75-15.25-1.09%
Palladium $19:57573.40-4.80-0.83%
Brent Crude19:58113.26-.03-0.03%
Rand / Dollar19:578.15310.08281.03%
Rand / Pound19:5512.75750.11830.94%
Rand / Euro19:5510.05480.12381.25%
Rand / NZD19:566.59310.03720.57%
Rand / AUD19:558.56980.02850.33%
Yen / Dollar19:5878.32000.03900.05%
Euro / Dollar19:550.8103-0.0033-0.41%
Dollar / Euro19:581.23350.00460.38%
Pound / Dollar19:550.6371-0.0006-0.09%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 EHSV  220030015.79.%1348
2 TASTE  2903011.54.%429161
3 AMECOR  195158.33.%1000
4 ITLTILE  650508.33.%1200
5 PALLINGHT  225104.65.%120045
6 PAN-AF  21694.35.%413491
7 AFRO-C  375154.17.%86352
8 COMAIR  12554.17.%10380
9 INVPROP  1550604.03.%18369
10 GRANPRADE  285103.64.%41600
11 TRNSHEX  320103.23.%18528
12 CBH  390112.90.%47893
13 PBT  14242.90.%5020
14 DIGICOR  24972.89.%533708
15 CAT  1605301.90.%3500
16 AMA  28551.79.%8600
17 RAINBOW  1425251.79.%8605
18 JUBILEE  12021.69.%74965
19 HARMONY  83991341.62.%751916
20 CIL  1300201.56.%6140

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Major Moves Down
SharenameSaleMove% MoveVolume
1 ATLATSA  135-35-20.59.%2100
2 GBGOLD  420-29-6.46.%11300
3 MAS  1061-69-6.11.%9000
4 MMG  396-24-5.71.%3638
5 KUMBAIO  51700-3050-5.57.%308154
6 VIVIDEND  501-29-5.47.%434087
7 HULAMIN  425-23-5.13.%128443
8 PETMIN  238-12-4.80.%384755
9 KELLY  201-9-4.29.%5200
10 COAL  350-15-4.11.%194182
11 ADCORP  2610-90-3.33.%66313
12 SYNERGY-B  620-20-3.13.%4750
13 INVICTA  7850-250-3.09.%13310
14 SAPPI  2300-70-2.95.%2130348
15 IQUAD  330-10-2.94.%40392
16 METAIR  2674-75-2.73.%61866
17 ELLIES   595-16-2.62.%256682
18 BELL  1900-50-2.56.%995
19 NASPERSN  45900-1083-2.31.%739534
20 ROLFES  360-8-2.17.%12640

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New Highs
SharenameSaleHighMove% MoveVolume
1 ITLTILE  650650508.33.%1200
2 GRANPRADE  285285103.64.%41600
3 CONDUIT  11011010.92.%384303
4 MMIHLDGS  19692035140.72.%2396079
5 MRPRICE  1292913159-71-0.55.%303535

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New Lows
SharenameSaleLowMove% MoveVolume
1 HULAMIN  425405-23-5.13.%128443
2 CAPEVINH  5755200.30310

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Index Summary
Index NameRPMove% Move
Top 4031,194.00-135.00-0.43%
Mid Cap51,461.00-273.00-0.53%
Small Cap37,197.00-53.00-0.14%
Resource 2047,776.00-186.00-0.39%
Industrial 2535,160.00-221.00-0.63%
Financial 1510,114.00-19.00-0.20%
Financial & Ind. 3038,647.00-197.00-0.51%
All Share35,417.00-156.00-0.44%
Oil & Gas 25,900.00-197.00-0.76%
Mining 30,969.00-82.00-0.27%
Gold Mining2,456.0011.000.49%
Platinum Mining49.00.000.10%
GENERAL MINING7,950.00-41.00-0.51%
Oil & Gas Producers 13,926.00-105.00-0.75%
Basic Materials 26,466.00-133.00-0.50%
Chemicals 15,457.0042.000.27%
Forestry & Paper 13,629.00-224.00-1.62%
Industrial Metals 27,522.00-1360.00-4.71%
Industrials 34,695.00-144.00-0.42%
General Industrials
Consumer Goods 35,693.0043.000.12%
Automobiles & Parts 6,055.00-169.00-2.73%
Household Goods163.000-0.09%
Health Care 49,149.00-673.00-1.35%
Index NameRPMove% Move
Food Producers 64,804.00144.000.22%
Personal Goods 503.00-1.00-0.32%
Consumer Services 72,487.00-940.00-1.28%
General Retailers 63,277.00-451.00-0.71%
Travel & Leisure 3,902.00-19.00-0.51%
Media 100.00-2.00-2.19%
Support Services 2,184.00-58.00-2.62%
Telecommunications 73,855.00-335.00-0.45%
Financials 27,065.00-67.00-0.25%
Banks 50,224.00-138.00-0.28%
Non-life Insurance 44,982.00-931.00-2.03%
Life Insurance 21,796.00-13.00-0.06%
General Financial 2,467.00-1.00-0.08%
Technology 30,820.0071.000.23%
SHARIAH TOP40 3,055.00-16-0.53%
FTSE/JSE SHARIAH ALL3,185.00-16-0.52%
COAL MINING23,746.002861.22%
FTSE JSE Fledgling 5,544.00-10-0.19%
FTSE/JSE Alt X 1,082.00-32-2.90%
CAPPED PROPERTY 385.00-0.46%
RESOURCE 26,387.00-88-0.34%
DIVIDEND PLUS196.000-0.27%
FTSE/JSE RAFI 407,236.00-30-0.42%
Capped Top 4016,463.00-73-0.45%
Capped All Share17,917.00-78-0.44%
JSE TABACO 5,572.00-35-0.64%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
14 Aug 2012EASTPLATSJune 2012 (Interim)
14 Aug 2012FORBESMay 2012 (Q)
14 Aug 2012NEPIJune 2012 (Interim)
14 Aug 2012SUPRGRPJune 2012 (Final)
14 Aug 2012SUPRGRPPJune 2012 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
ARROWA12-08-0812-08-2412-09-03R 0.1500
OLDMUTUAL12-08-0812-10-1912-11-30R 0.0175
ARROWB12-08-0812-08-2412-09-03R 0.1003
MTN GROUP12-08-0812-08-2412-09-03R 3.2100
SHOPRIT 5%12-08-0712-08-2412-09-03R 0.0500
Ex Div**
Share NameDec-DateLDTPay-DateAmount
KUMBA12-07-2012-08-1012-08-20R 19.2000
HUDACO12-06-2912-08-1012-08-20R 1.5500
ADCORP12-05-2212-08-1012-08-20R 0.8000
BATS12-07-2512-08-1012-09-26R 0.4220
ANGLO12-07-2712-08-1012-09-13R 0.3200

Upcoming AGMs**
CodeCompany NameDateStatus
VUNVunani Ltd.13/08/2012Confirmed
HSPHoldsport Ltd.14/08/2012Confirmed
IVTInvicta Holdings Ltd.14/08/2012Confirmed
FGLFinbond Group Ltd.17/08/2012Confirmed
LEWLewis Group Ltd.17/08/2012Confirmed

Stock Exchange News Service
13/08/201217:46Jasco Electronics Holdings Limited - Disposal Of Jascos Head Office Property To ...
13/08/201217:21ANGLO AMERICAN PLC - Publication of Supplementary Offering Circular
13/08/201217:20ANGLO AMERICAN PLC - Anglo American Share Incentive Plan
13/08/201217:19Exxaro Resources Limited - Trading Of Exxaro Ordinary Shares On Behalf Of The Ex...
13/08/201217:02Capital & Counties Properties Plc - Block Listing Application In Connection With...
13/08/201217:00Mr Price Group Limited - Dealings In Securities By A Director
13/08/201217:00Wesizwe Platinum Limited - Update To Shareholders
13/08/201216:50Capitec Bank Limited - Interest Rate Reset
13/08/201216:42Huge Group Limited - Associates Dealings In Securities
13/08/201216:35RECM AND CALIBRE LIMITED - No change statement and notice of annual general meet...
13/08/201216:30Imperial Holdings Limited - Trading Statement
13/08/201216:00TRUSTCO GROUP HOLDINGS LIMITED - Trustco awarded Namibian Dollar currency invest...
13/08/201215:22Vunani Limited - Results Of Annual General Meeting
13/08/201215:21KAYDAV GROUP LIMITED - Trading statement for the six months ended 30 June 2012
13/08/201214:41COAL OF AFRICA LIMITED - Holdings in Company
13/08/201214:30ALLIED TECHNOLOGIES LIMITED - Director Dealing in Securities
13/08/201214:20Rgt Smart Market Intelligence Ltd - Dealing By An Employee Of The Designated Adv...
13/08/201214:02ASTLE GLOBAL REAL EST CO LTD - Further issue of up to 100 000 000 shares of Rock...
13/08/201213:35Ah-vest Limited - Section 122 Notice And Cautionary Announcement
13/08/201213:35INVESTEC BANK LIMITED - Issue of Core Nova Stub Note
13/08/201213:20OSIRIS PROPERTIES COMPANY LIMITED - Abridged Pre-listing statement, inward listi...
13/08/201213:17INDWA INVESTMENTS LIMITED - Full Capital Redemption
13/08/201213:10TOYOTA FIN SERVICES (SA) PTY LTD - Interest Rate Reset
13/08/201212:05EQUIPMENT LIMITED - Reviewed interim report for the six months ended 30 June 201...
13/08/201212:04RESILIENT PROPERTY INCOME FUND LTD - Full Capital Redemption
13/08/201211:54Poynting Holdings Limited - Further Trading Statement
13/08/201211:50Omnia Holdings Limited - Omnia Successfully Obtains Registration Of New Nitric A...
13/08/201211:43Wescoal Holdings Limited - Director Dealing In Securities
13/08/201211:43MICROMEGA HOLDINGS LIMITED - Nosa concludes co-branding agreement with North Saf...
13/08/201211:15Capital Shopping Centres Group Plc - Block Listing Six Monthly Return
13/08/201210:59LIBERTY GROUP LIMITED - New Instrument Listing
13/08/201209:51Spanjaard Limited - Dealings In Securities By A Director
13/08/201208:49CHROMETCO LIMITED - Acquisition Cat 2
13/08/201208:44INVESTEC BANK LIMITED - Expiry of EDS
13/08/201208:43INVESTEC BANK LIMITED - Expiry of HotEDs
13/08/201208:34COAL OF AFRICA LIMITED - Directors interest in securities (Appendix 3X)
13/08/201208:32COAL OF AFRICA LIMITED - Appendix 3X Directors interest Notice
13/08/201208:31British American Tobacco Plc - Transaction In Own Shares
13/08/201208:30COAL OF AFRICA LIMITED - Appendix 3X Notice
13/08/201208:30SYNTHESIS FUNDING LIMITED - New Financial Instrument Listing
13/08/201208:00FERRUM CRESCENT LIMITED - Substantial shareholder notice
13/08/201208:00GROUP FIVE LIMITED - Audited group results for the year ended 30 June 2012 and w...
13/08/201207:30Coal Of Africa Limited - Notice Of General Meeting And Explanatory Memorandum To...
13/08/201207:30Huge Group Limited - Associates Dealings In Securities
13/08/201207:05AFRIMAT LIMITED - Renewal of cautionary announcement

Click here for more SENS news