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The Sharenet Daily 
Tuesday, 25 September 2012 - 20:00
 
Charts
News
Top News
Markets
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)


Charts
 
Smart Beta

After our article on the differences between active and passive investing, this week we will take a closer look at smart beta.

Most investors will not be familiar with a smart beta fund. A smart beta fund tracks a style/fundamental index (e.g. JSE Dividend + Index) or mechanical investing strategy (e.g. JSE Equally Weighted Top40 Index). By tracking a style index, or using a mechanical investment strategy, the fund aims to outperform the market with lower costs than an active investment. A smart beta fund sits between the traditional passive investment, a plain vanilla tracker fund, and active investment.

Smart beta aims to provide market outperformance at lower fees relative to active managers. It aims to capture certain portions of the market with the possibility of outperformance by changing how the shares are weighted in the portfolio.

Vanilla tracker fund use the company’s market capitalisation to determine its weighted allocation in the index. A Top 40 tracker fund is an example of this. These indices are biased toward large cap companies and locally to the resources sector. The graph below shows the cumulative performance of the Satrix 40, All Share Index. and Top 40 Index over the past 10 years.

An ETF or fund will normally underperform the index that it tracks due to costs and management fees. The Top 40 underperformed the ALSI due to its high exposure to resources that underperformed. Below I will be giving a quick explanation of some smart indices.

Equally Weighted Index

The Equally Weighted Index looks at the largest 40 companies on the ALSI and assigns a weight of 2.5% toward each. This tries to remove the large cap and sector bias of the current Top 40 companies.

Fundamentally Weighted Index

Fundamentally weighted indices use one or another fundamental number to get a weight allocation. The Rafi40 Index is an example of such an index. The company’s weight in the index is dependent on its Rafi score. The Rafi score takes the following metrics into account: Cash flow, sales, dividends, and book value.

Style Index

Style indices make use of a certain strategy. The Dividend + Index is an example of this. The Index only takes into account the 1 year forecasted dividend yield in the universe of the top 100 listed companies. The 30 companies with the highest forward dividend yield are included in the Index.

Smart beta encompasses a range of different ideas and processes with the aim to outperform the market. This is no longer a passive investment as an investor needs to make an active decision in which he or she wants to be invested.

Kind regards,

Gerbrandt Kruger

Tue, 25 Sep 2012
Top News
[IMAGE]
Gold edged lower in choppy trade on Tuesday, tracking equity and commodity markets, as selling related to an option expiration and technical weakness erased the metal's early gains. Traders said that some disappointed futures investors sold as current prices were around $40 or more than 2 percen  Full story
[IMAGE]
South African shares ticked lower on Tuesday on concerns over Europe's economic woes and as a spreading string of strikes in the country's mining sector weighed on firms such as Coal of Africa.  Full story
 
Markets
U.S. stocks were slightly lower on Tuesday, putting the S&P 500 on track to continue its recent pattern of modest declines as investors. . .  Full story
U.S. stocks gave up early gains and edged slightly lower on Tuesday after major U.S asset manager BlackRock said the strong equity rally. . .  Full story
European shares rose on Tuesday after upbeat U.S. data lifted sentiment as investors searched for signs of sustainable growth in the run-up to. . .  Full story
Britain's top share index rose on Tuesday, with energy stocks in the lead, improving on small gains earlier in the day after U.S.. . .  Full story
Stocks edged higher around the world on Tuesday, with U.S. markets in particular buoyed by end-of-quarter buying by funds and a higher-than-expected reading of. . .  Full story
European shares rose on Tuesday after upbeat data from the power house U.S. economy lifted sentiment on the outlook for global growth in. . .  Full story
U.S. stocks rose at the open after comments from a Federal Reserve official suggested the central bank was not done taking action to. . .  Full story
Lingering worries over the euro zone's sovereign debt crisis pegged back European equities on Tuesday following a recent sharp rally and pushed investors towards. . .  Full story
SA Business
Gold fell on Monday, retreating from the previous session's nearly seven-month high as broadly lower crude oil and grain prices prompted investors to take profits. Palladium dropped 4 percent for its biggest one-day decline since March on signs of platinum output returning to normal in top producer South Africa, triggering heavy speculative selling. Traders said volatility could increase ahead of Tuesday's U.S. COMEX gold option expiration, while open interest in U.S. gold futures rose t. . .  Full story
AXA Private Equity and Permira are considering a listing for Europe's largest online travel agency OdigeO, people familiar with the situation said, which could. . .  Full story
World No. 4 bullion producer Gold Fields said workers reneged on a deal to end a two-week strike at its KDC. . .  Full story
MTN Group plans to spend 7 billion rand on its South African network in 2013, a 40 percent increase from the. . .  Full story
Rio Tinto has agreed to sell two small coal assets in South Africa to Forbes & Manhattan Coal for 440 million. . .  Full story
World No. 4 bullion producer Gold Fields said on Tuesday workers remained on an illegal strike at its KDC West operation. . .  Full story
Nigeria announced on Tuesday the preferred bidders for five state power generation plants, part of plans to privatise the country's electricity. . .  Full story
South Africa's rand opened softer against the dollar on Tuesday after the currency of its main trading partner, Europe, fell due. . .  Full story
Los Angeles billionaire Patrick Soon-Shiong has joined forces with financial services firm Guggenheim Partners to make a bid for Anschutz Entertainment Group, the sports. . .  Full story
Company Results
Revenue for the year jumped up 16% to R1.1 billion (2011:959.1 million) whilst operating profit increased to R166.1 million (2011: R161.9 million). Net attributable profit to equity holders shot up 260% to R137.8 million (2011: R38.3 million). Outlook and prospects York's. . .  Full story
SilverBridge's results for the first time since the company changed its year-end to June each year for a twelve month period and are therefore incomparable to any prior results. Revenue amounted to R82.6 million. Results from operating activities showed a loss. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0036041.48-164.00-0.45%
JSE Top 4017:0031776.31-157.00-0.49%
JSE Gold17:002418.12-38.00-1.58%
JSE Financial17:0027141.05148.000.55%
JSE Industrial17:0042315.4419.000.05%
JSE Indust 2517:0036145.1721.000.06%
JSE Resource17:0048497.47-957.00-1.94%
DJ Futures19:3213473.00-50.00-0.37%
DJ Ind19:5813535.28-61.65-0.45%
SP 50019:581454.39-5.87-0.40%
Nasdaq19:583154.18-21.78-0.69%
FTSE 10017:355859.7120.870.36%
DAX18:087425.1135.620.48%
CAC4018:083513.81-16.91-0.48%
Nikkei08:289091.54-18.46-0.20%
Shanghai09:282029.292.600.13%
Hang-Seng10:2820698.68-36.26-0.17%
All Ords09:374395.50-13.70-0.31%
NZSE 5007:523825.3215.750.41%
NameTimeRPMove% Move
Gold $19:591765.20.480.03%
Gold R19:5814473.41-68.90-0.47%
Gold R/kg19:58465250-4212-0.90%
Silver $19:5933.9200-.0600-0.18%
Platinum $19:591631.7512.750.79%
Palladium $19:59639.80-2.50-0.39%
R15714/095.45-.030.00%
R20414/096.18-.060.00%
Brent Crude19:58110.96-.15-0.14%
Rand / Dollar19:598.2011-0.0391-0.47%
Rand / Pound19:5513.2663-0.0786-0.59%
Rand / Euro19:5510.6147-0.0478-0.45%
Rand / NZD19:586.7707-0.0086-0.13%
Rand / AUD19:558.5438-0.0577-0.67%
Yen / Dollar19:5977.8370-0.0080-0.01%
Euro / Dollar19:550.7720-0.0011-0.14%
Dollar / Euro19:591.29480.00170.13%
Pound / Dollar19:450.6161-0.0001-0.02%

Click here for the Sharenet Spot Price page
The JSE Today

 Trading Statistics
DateAdv.Decl.Unch.ActivesVolumeValueTradesOrders
25/09/201217021066446206,657,413R12,991,817,012137835889888
21/09/201215219477423247,983,683R14,408,434,3961216781824624
20/09/201216818573426331,905,230R23,343,922,2551138451868106
19/09/201220915569433271,140,128R16,564,405,3321159961859672
18/09/201220415264420229,465,287R14,576,528,9291107601626877
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 PHUMELELA  83510013.61.%61300
2 AFROC-P  100010011.11.%6646
3 FAIRVEST  120109.09.%1760
4 CALGRO  494347.39.%126367
5 TREMATON  185105.71.%2500
6 ALTECH  45002114.92.%226681
7 CMH  1100504.76.%2445
8 MIXTEL  230104.55.%36150
9 PREMIUM  1800754.35.%13390
10 FAMBRANDS  71502894.21.%30086
11 CROOKES  48001803.90.%2000
12 PRESCIENT  13553.85.%37345
13 NEPI  48001703.67.%34046
14 CONDUIT  11943.48.%63796
15 RAINBOW  1360453.42.%5726
16 ILLOVO  3050943.18.%47910
17 NORTHAM  2890893.18.%1169454
18 A-V-I  60201843.15.%587476
19 TRNSHEX  335103.08.%26430
20 ADCORP  2780802.96.%12817

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Major Moves Down
SharenameSaleMove% MoveVolume
1 COAL  192-33-14.67.%2442480
2 EASTPLATS  150-23-13.29.%120618
3 JUBILEE  138-12-8.00.%44262
4 LONFIN  230-20-8.00.%800
5 POYNTING  125-10-7.41.%16149
6 ATLATSA  140-10-6.67.%1523
7 VUKILE  1861-129-6.48.%245842
8 RAUBEX  1501-86-5.42.%52876
9 JSE  7151-299-4.01.%97182
10 LEWIS  7249-296-3.92.%260553
11 LONMIN  7721-292-3.64.%230546
12 MAS  1065-40-3.62.%503
13 PAN-AF  241-9-3.60.%359476
14 TRUSTCO  108-4-3.57.%221306
15 EXXARO  16250-592-3.52.%607216
16 HARMONY  7180-261-3.51.%2038091
17 AQUARIUS  582-21-3.48.%954200
18 BARWORLD  7438-262-3.40.%1842153
19 LONAFRIC  145-5-3.33.%1500
20 JDGROUP  4530-140-3.00.%82500

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New Highs
SharenameSaleHighMove% MoveVolume
1 NASPERSN  51000511321230.24.%1169908
2 BIDVEST  2100021495-73-0.35.%1336766

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New Lows
SharenameSaleLowMove% MoveVolume
1 COAL  192185-33-14.67.%2442480

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Index Summary
Index NameRPMove% Move
Top 4031,776.00-157.00-0.49%
Industrial42,315.0019.000.05%
Mid Cap51,926.00-181.00-0.35%
Small Cap38,391.00102.000.27%
Resource 2048,497.00-957.00-1.94%
Industrial 2536,145.0021.000.06%
Financial 1510,095.0084.000.85%
Financial & Ind. 3039,446.00126.000.32%
All Share36,041.00-164.00-0.45%
Oil & Gas 27,366.00-634.00-2.27%
Mining 31,122.00-587.00-1.85%
Gold Mining2,418.00-38.00-1.58%
Platinum Mining49.00.00-1.10%
GENERAL MINING8,050.00-151.00-1.85%
Oil & Gas Producers 14,714.00-340.00-2.26%
Basic Materials 26,685.00-453.00-1.67%
Chemicals 15,832.00120.000.76%
Forestry & Paper 15,285.00.00-0.00%
Industrial Metals 27,170.00-5.00-0.02%
Industrials 35,388.00-171.00-0.48%
General Industrials 101.00.00-0.63%
Consumer Goods 36,169.0051.000.14%
Automobiles & Parts 6,589.0023.000.36%
Household Goods171.000-0.34%
Health Care 49,321.00-596.00-1.20%
Beverages 124.002.001.81%
Index NameRPMove% Move
Food Producers 64,667.00781.001.22%
Personal Goods 520.00-7.00-1.50%
Consumer Services 75,720.0066.000.09%
General Retailers 61,888.00-90.00-0.15%
Travel & Leisure 4,370.0043.001.01%
Media 111.00.000.69%
Support Services 2,180.0045.002.11%
Telecommunications 77,343.00525.000.68%
Financials 27,141.00148.000.55%
Banks 48,230.00637.001.34%
Non-life Insurance 46,210.00526.001.15%
Life Insurance 23,014.00132.000.58%
General Financial 2,467.00-12.00-0.49%
Technology 33,404.00-143.00-0.43%
SHARIAH TOP40 3,126.00-43-1.36%
FTSE/JSE SHARIAH ALL3,244.00-39-1.19%
COAL MINING20,739.00-808-3.75%
FTSE JSE Fledgling 5,597.00260.47%
FTSE/JSE Alt X 1,126.00-10-0.91%
SA LISTED PROPERTY 490.00-0.29%
CAPPED PROPERTY 392.00-0.27%
RESOURCE 26,711.00-520-1.91%
DIVIDEND PLUS199.0000.28%
FTSE/JSE RAFI 407,361.00-30-0.42%
Capped Top 4016,765.00-81-0.48%
Capped All Share18,233.00-81-0.45%
JSE TABACO 5,441.00-49-0.90%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
NPKNAMPAKHOLD20/09/2012
REMREMGRO LIMITEDSELL20/09/2012
IPLIMPERIAL HOLDINGS LTDHOLD19/09/2012
RLOREUNERT LIMITEDSELL19/09/2012
ALTALLIED TECHNOLOGIES LIMIT...HOLD19/09/2012
Results Expected**
ExpectedCompany NameFin. Date
26/09/2012ALTECHAugust 2012 (Interim)
26/09/2012AMAPSJune 2012 (Final)
26/09/2012BIOSCIJune 2012 (Final)
26/09/2012FERRUMJune 2012 (Final)
26/09/2012FORBESAugust 2012 (Interim)
Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
PUTPROP20/09/201205/10/201215/10/2012R 0.1800
REMGRO20/09/201209/11/201219/11/2012R 1.8800
PETMIN19/09/201209/11/201219/11/2012R 0.0500
ELBGROUP619/09/201219/10/201229/10/2012R 0.0600
JASCO19/09/201212/10/201222/10/2012R 0.0300
Ex Div**
Share NameDec-DateLDTPay-DateAmount
ARM03/09/201220/09/201201/10/2012R 4.7500
IMPERIAL22/08/201220/09/201201/10/2012R 3.8000
IMPERIALP22/08/201220/09/201201/10/2012R 3.7227
ASSORE03/09/201220/09/201201/10/2012R 3.0000
SA CORP20/08/201220/09/201201/10/2012R 0.1517
Upcoming AGMs**
CodeCompany NameDateStatus
APKAstrapak Ltd.25/09/2012Unconfirmed
APKPAstrapak Ltd.25/09/2012Unconfirmed
MRIMine Restoration Investments Ltd.25/09/2012Confirmed
ADWAfrican Dawn Capital Ltd.26/09/2012Confirmed
OMNOmnia Holdings Ltd.27/09/2012Confirmed
Stock Exchange News Service
DateTimeHeadline
25/09/201217:35THE DON GROUP LIMITED - Posting of Circular and Notice of General Meeting
25/09/201217:30OLD MUTUAL PLC - Completion of redemption
25/09/201217:25A GROUP LIMITED - Terms announcement relating to the MineRP Business Disposal an...
25/09/201217:15THE SPAR GROUP LIMITED - Dealings in securities
25/09/201217:12ABSA BANK LIMITED - Interest Rate Reset ABCL1
25/09/201217:06SUN INTERNATIONAL LIMITED - Director Dealings
25/09/201217:00NASPERS LIMITED - Directors Dealings
25/09/201216:50INDWA INVESTMENTS LIMITED - New Instrument Listing - IND303
25/09/201216:45INGUZA INVESTMENTS (PTY) LIMITED - Interest Rate Reset - ING161
25/09/201216:41IMPERIAL HOLDINGS LIMITED - Exercise of share appreciation rights by director of...
25/09/201216:40INGUZA INVESTMENTS (PTY) LIMITED - Interest Rate Reset - ING132 & ING138
25/09/201216:40FIRSTRAND BANK LIMITED - New Instrument Listing - FRC151
25/09/201216:38NEW GOLD ISSUER LIMITED - Listing of additional NewGold debentures
25/09/201216:36FIRSTRAND BANK LIMITED - Interest Rate Reset - FRS63
25/09/201216:25EQSTRA HOLDINGS LIMITED - Interest Rate Reset - EQS04
25/09/201216:12MONEYWEB HOLDINGS LIMITED - No Change and Notice of Annual General Meeting Annou...
25/09/201216:02STANDARD BANK OF SOUTH AFRICA LD - SCIB: The Standard Bank Of South Africa Limit...
25/09/201216:00LLER PLC - Notification of a transaction by a Director
25/09/201215:43A HOLDINGS LIMITED - Dealings In Securities By A Director
25/09/201215:22A HOLDINGS LIMITED - No change statement and notice of annual general meeting
25/09/201215:20METAIR INVESTMENTS LIMITED - Dealing in securities by a director
25/09/201215:10GROWTHPOINT PROPERTIES LIMITED - Results of Distribution Re-Investment Alternati...
25/09/201215:00BARLOWORLD LIMITED - Barlworld Limited - Small related party acquisition
25/09/201214:33GOLD FIELDS LIMITED - Unlawful strike action at KDC WEST and BEATRIX
25/09/201214:31THE STANDARD BANK OF SA LTD - Interest Rate Announcement - CLN143
25/09/201214:29THE STANDARD BANK OF SA LTD - Interest Rate Announcement - CLN141
25/09/201214:27MEDICLINIC INTERNATIONAL LIMITED - Dealings In Securities By A Director And Comp...
25/09/201214:26THE STANDARD BANK OF SA LTD - Interest Rate Announcement
25/09/201214:23THE STANDARD BANK OF SA LTD - Interest Rate Announcemnet - CLN103
25/09/201214:19THE STANDARD BANK OF SA LTD - Interest Rate Announcement - CLN108
25/09/201214:17THE STANDARD BANK OF SA LTD - Interest Rate Announcement
25/09/201214:11THE STANDARD BANK OF SA LTD - Interest Rate Announcement
25/09/201214:08THE STANDARD BANK OF SA LTD - Interest Rate Announcement
25/09/201214:05THE STANDARD BANK OF SA LTD - Interest Rate Announcement
25/09/201213:52EMPOWERMENT LIMITED - Trading Statement
25/09/201213:30OANDO PLC - Oando PLC reports the investment of a N16 Billion Convertible Note
25/09/201213:23THE STANDARD BANK OF SA LTD - Interest Rate Announcement - CLN120
25/09/201213:20THE STANDARD BANK OF SA LTD - Interest Rate Announcement - CLN118
25/09/201213:16THE STANDARD BANK OF SA LTD - Interest Rate Announcement - CLN133
25/09/201212:50ANGLO AMERICAN SA FINANCE LTD - Interest Rate Reset Announcement
25/09/201212:45NEDBANK LIMITED - Nedbank Limited JSE Code: NCLN75 ISIN No: ZAG000100009 New Fin...
25/09/201212:25COAL OF AFRICA LIMITED - Strike action at Mooiplaats
25/09/201212:04BAYPORT SECURITISATION (PTY) LTD - Bayport Securitisation monthly investor repor...
25/09/201211:45RMB CIS MANCO (PTY) LIMITED - Partial delisting of RMB Inflation-X Securities
25/09/201211:20METAIR INVESTMENTS LIMITED - Dealings in securities by a director
25/09/201211:15IQUAD GROUP LIMITED - Posting of Circular and Notice of general meeting
25/09/201211:00ABSA BANK LIMITED - ABN39 - Interest Rate Reset
25/09/201210:37STANDARD BANK OF SOUTH AFRICA LD - The Standard Bank of Souh Africa Limited - Is...
25/09/201210:33Forbes & Manhattan Coal Corp - Forbes - Definitive Agreement With Rio Tinto To A...
25/09/201210:15Ferrum Crescent Limited - Retraction Of Announcement
25/09/201210:05DISTELL GROUP LIMITED - Dealings in securities by a director of a major subsidia...
25/09/201210:05OR LIMITED - Trencors Textainer completes US$600 million revolving credit facili...
25/09/201210:01FONEWORX HOLDINGS LIMITED - Media Release: Kirsh initiates strategy behind purch...
25/09/201210:00ADVTECH LIMITED - Company Secretary Dealings
25/09/201209:29Ferrum Crescent Limited - Definitive Agreement With Rio Tinto To Acquire Two Hig...
25/09/201209:00 LIMITED - Sappi Alfeld Mill to refocus production to meet strong growth in dema...
25/09/201208:49FONEWORX HOLDINGS LIMITED - NOTIFICATION IN TERMS OF SECTION 122(3) OF THE COMPA...
25/09/201208:20YORK TIMBER HOLDINGS LIMITED - Reviewed preliminary condensed consolidated finan...
25/09/201208:00MVELAPHANDA GROUP LIMITED - No change statement, posting of the annual report an...
25/09/201208:00LLER PLC - SABMiller - Senior Management Change
25/09/201208:00REDEFINE PROP INTERNATIONAL LTD - Opening of pro rata offer
25/09/201207:52Old Mutual Plc - Public Opening Position Disclosure/dealing Disclosure
25/09/201207:30TIGER BRANDS LIMITED - Acquistion by Tiger Brands of 63.35% of the total issued ...
25/09/201207:30SILVERBRIDGE HOLDINGS LIMITED - Abridged Group report for the year ended 30 June...
25/09/201207:25BRITISH AMERICAN TOBACCO PLC - Transaction in own shares - 24 Sep 2012
25/09/201207:15ANGLO AMERICAN PLC - Notice of publication of Offering Memorandum
25/09/201207:10ANGLO AMERICAN PLC - Transfer of treasury shares
25/09/201207:05CAPITAL SHOPPING CENTRES GROUP PLC - Notification of Transactions of Directors/P...
25/09/201207:05AFRIMAT LIMITED - Renewal of cautionary announcement
25/09/201207:05BRITISH AMERICAN TOBACCO PLC - Transaction in own shares - 21 Sep 2012

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