Having trouble reading this email? View in your web browser
 The Sharenet Daily 
Tuesday, 02 July 2013 - 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)

Are Boutique Managers the Way to Go?

There is always debate about whether boutique managers are better at managing funds than medium and large managers. The lobbyers for boutique managers will always use the argument that large managers aren’t as nimble as boutique managers and can’t really participate in medium and small cap equity markets. As a way of example, one of South Africa’s largest fund managers has a 10% stake in Spar and the share amounts to less than 0.5% of their AUM.

The table below shows what stake a large fund manager (R100bn) needs to take in a company to have a 4% exposure. The ff (free float) market cap was used for the calculations.

From the above table you can see that it becomes very difficult for a large fund manager to take a significant (with respect to their AUM) stake in a company that isn’t in the top 40 largest companies. Liquidity constraints also come into play when they want to transact in the shares.

Having a bigger universe to invest from doesn’t automatically mean that boutiques will outperform large and medium managers. The performance is reliant on the skills of the fund manager and his or her investment philosophy and process.

This is where the argument for large managers comes in. They have access to more resources than the average boutique fund manager. They normally have a bigger research team that can monitor more companies and different asset classes.

Even with the liquidity limitations in large funds, some of the large fund managers have been top performers over the past few years.

So which are better, or is there an alternative option? This is where multi managers and fund of funds come into play.

Over the past year, of the top 10 managers in the multi asset class high equity unit trust sector (i.e. balanced funds), more than half of them were FoF (fund of funds) or MM (multi manager) funds. Those 6 FoF and MM funds had 37% exposure to large managers, 31% exposure to medium managers, and 26% exposure to boutique managers by way of example.

The advantage of FoF and MM funds is that they are able to select the best managers for each of the different asset classes, whether it’s a boutique, medium, or large manager. The fund manager is able to provide you access to some boutique managers that aren’t always available to investors. The blend of the overall investment portfolio can be targeted in such a way as to enhance the value of the managers' abilities and it also allows management companies to remove under performing fund managers.

At Seed we take a multi-manager approach to managing our client’s money. We are always actively searching and looking to find managers that excel in their chosen field and will be beneficial to the Funds. In our Funds we currently have boutique managers like Visio, Fairtree, Salient, Reitway, and Atlantic.

We are available for any questions regarding investment or retirement matters.

Kind regards,

Gerbrandt Kruger

021 914 4966

Tue, 02 Jul 2013
Top News
South Africa's Richards Bay Coal Terminal (RBCT) exported 5.3 million tonnes of coal in June compared with 4.35 million tonnes the previous month, RBCT data showed on Tuesday.  Full story

South Africa's rand edged up against the dollar on Tuesday but trading is expected to be cautious ahead of U.S. labour data due later this week and interest rate decisions by major central banks.  Full story
Egypt's army has plans to push President Mohamed Mursi aside and suspend the constitution if he fails to strike a power-sharing deal with his opponents within 24 hours, military sources told Reuters on Tuesday.  Full story
A Russian rocket carrying three navigation satellites worth around $200 million crashed shortly after lift-off from the Russian-leased Baikonur launch facility in Kazakhstan on Tuesday after its engines suddenly switched off.  Full story
Weary crews on Tuesday looked for a break in the weather to gain ground against a fierce Arizona wildfire that has already killed 19 of their fellow firefighters in the worst wildland fire tragedy in 80 years. Fire managers say the so-called Yarnell Hills fire, which has already charred nearly 8,400 acres (3,400 hectares) of tinder-dry chaparral and grasslands northwest of Phoenix, was zero percent contained as darkness fell on Monday evening. The lightning-sparked blaze, which broke  Full story
U.S. stocks declined on Tuesday after rising earlier as industrial and technology stocks declined.. . .  Full story
Gold was lower on Tuesday as the dollar strengthened and investors looked for further indications that the Federal Reserve may soon end its U.S.. . .  Full story
European equities drifted lower in thin volumes on Tuesday, led by Fresenius Medical Care , and failure to hold above an important technical level. . .  Full story
Britain's top share index fell on Tuesday due to weaker financials, but bounced off lows as growing optimism over the U.S. economy largely. . .  Full story

U.S. stocks rose for a second day on Tuesday, helped by strong June car sales, while concerns receded about the Federal Reserve's plans. . .  Full story
The U.S. dollar hit a four-week high against the yen on Tuesday and a gauge of global equities rose, supported by gains in. . .  Full story
U.S. stocks were little changed at the open on Tuesday ahead of data on factory orders and a speech from a top Federal. . .  Full story
Britain's top share index was led lower by weak financial stocks on Tuesday, as renewed concerns over the euro zone prompted profit-taking on. . .  Full story

U.S. President Barack Obama's $7 billion plan to shine "light where currently there's darkness" in Africa by doubling access to power on the world's poorest continent was billed as a highlight of his African. . .  Full story
South Africa's Treasury sold a total 2.35 billion rand of its 2031, 2041 and 2048 government bonds on Tuesday.. . .  Full story
South Africa's AMCU mining union is demanding that Anglo American Platinum more than double the monthly pay of underground workers to 12,500 rand, according to a document seen by Reuters on. . .  Full story
Company News
Notification was given of Mr Mangisi Gule's retirement as ARM's Executive Director: Corporate Affairs with effect from 30 June 2013. Mr Gule will remain on the ARM board as a. . .  Full story
The board of directors of Amplats announced the appointment of Ms Dhanasagree ("Daisy") Naidoo, Ms Nombulelo ("Pinky") Moholi and Mr Nkateku Peter Mageza as independent non-executive directors, effective 1 July 2013.. . .  Full story
Further to the announcement dated 22 May 2013 regarding the acquisition of Tedaka Technologies (Pty) Ltd, shareholders are advised to continue exercising caution when dealing in the company's securities until such. . .  Full story
Company Results
Due to Kibo's change in year-end from September to December each year, the company's latest final results are incomparable to any prior financial results. An operating loss of GBP4.5 million of was recorded. A net attributable loss of GBP4.5 million was. . .  Full story
Revenue declined to R70.7 million (R99.6 million). Gross profit increased to R14.4 million (R12.2 million). Operating profit improved to R0.1 million (loss of R3.7 million). The company swung back into profit, recording a net attributable profit of approximately R0.1 million (loss. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0039844.70-88.13-0.22%
JSE Top 4017:0035252.13-113.14-0.32%
JSE Gold17:001275.369.390.74%
JSE Financial17:0030137.34-102.99-0.34%
JSE Industrial17:0053038.44-112.58-0.21%
JSE Indust 2517:0046226.92-168.28-0.36%
JSE Resource17:0042907.28-76.96-0.18%
DJ Futures19:5814925.00-42.81-0.29%
DJ Ind19:5814954.11-20.85-0.14%
SP 50019:581614.90-0.06-0.00%
FTSE 10017:356303.94-3.84-0.06%
All Ords08:504810.30120.602.57%
NZSE 5007:504458.2540.200.91%
NameTimeRPMove% Move
Gold $19:591246.05-6.60-0.53%
Gold R19:5812344.42442.703.72%
Gold R/kg19:583968735210.13%
Silver $19:5919.4010-.1950-1.00%
Platinum $19:591365.00-7.00-0.51%
Palladium $19:59681.60.200.03%
Brent Crude19:58103.471.371.34%
Rand / Dollar19:599.94400.03160.32%
Rand / Pound19:5515.0278-0.0331-0.22%
Rand / Euro19:5512.9209-0.0349-0.27%
Rand / NZD04:587.7411-0.0133-0.17%
Rand / AUD19:559.0914-0.0684-0.75%
Yen / Dollar19:59100.68001.06401.07%
Euro / Dollar19:550.76930.00400.52%
Dollar / Euro19:591.3003-0.0057-0.44%
Pound / Dollar19:550.66000.00310.47%

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 ATLATSA  2303015.00.%44355
2 PREMIUM  199519510.83.%30355
3 CONTROL  10999.00.%8000
4 PRESCIENT  10388.42.%168500
5 CULLINAN  10976.86.%500
6 EQSTRA  648396.40.%31674
7 EHSV  17951005.90.%6265
8 FORTRESSB  900505.88.%360
9 OCTODEC  2150904.37.%5681
10 GROUP-5  38211494.06.%272573
11 GRINDROD  2250874.02.%566508
12 BCX  520204.00.%282508
13 REDEFINTL  670253.88.%353706
14 SPURCORP  28501003.64.%155816
15 JDGROUP  33251093.39.%360006
16 WOOLIES  68272223.36.%3371061
17 SAPPI  2540783.17.%1273053
18 ASSORE  3450010393.11.%74315
19 ARROW-A  744223.05.%248516
20 TELKOM  1711503.01.%873210

Click here for more Major Moves...
Major Moves Down
SharenameSaleMove% MoveVolume
1 REXTRU-N  1100-400-26.67.%5498
2 VUNANI  170-15-8.11.%1460
3 METMAR  120-9-6.98.%29280
4 SABLE  3000-194-6.07.%1001
5 ADAPTIT  231-12-4.94.%204000
6 ALTRON  1902-75-3.79.%3251
7 GOLDONE  130-5-3.70.%36166
8 AFGRI  415-15-3.49.%35479
9 BASREAD  737-25-3.28.%120501
10 AMECOR  220-7-3.08.%13200
11 PAN-AF  191-6-3.05.%1105280
12 ROCKCASTL  1341-39-2.83.%1964
13 ONELOGIX  277-8-2.81.%323816
14 INVPLC  6330-179-2.75.%601857
15 DIGICOR  185-5-2.63.%45100
16 INVLTD  6417-173-2.63.%534092
17 PALLINGHT  190-5-2.56.%26021
18 ITLTILE  590-15-2.48.%800
19 REBOSIS  1160-29-2.44.%453439
20 FPT  762-18-2.31.%2062596

Click here for more Major Moves...

New Highs
SharenameSaleHighMove% MoveVolume
1 FORTRESSB  900900505.88.%360
2 GROUP-5  382139201494.06.%272573
3 GRINDROD  22502250874.02.%566508
4 BRAIT  425142511212.93.%257334
5 CML  663066601802.79.%630101
6 OCEANA  920097002052.28.%223774
7 HOWDEN  36803680601.66.%910
8 MRHLD  25992606331.29.%1312096
9 TORRE  1701750.163800
10 AECI  1168911776-9-0.08.%15546

Click here for more Major Moves...
New Lows
SharenameSaleLowMove% MoveVolume
1 REXTRU-N  11001100-400-26.67.%5498
2 METMAR  120115-9-6.98.%29280
3 BASREAD  737679-25-3.28.%120501

Click here for more Major Moves...

Index Summary
Index NameRPMove% Move
Top 4035,252.00-112.00-0.32%
Mid Cap55,756.00116.000.21%
Small Cap44,298.00202.000.46%
Resource 2042,907.00-76.00-0.18%
Industrial 2546,226.00-168.00-0.36%
Financial 1511,257.00-47.00-0.42%
Financial & Ind. 3048,965.00-186.00-0.38%
All Share39,844.00-87.00-0.22%
Oil & Gas 32,708.00-307.00-0.93%
Mining 25,737.008.000.03%
Gold Mining1,275.0010.000.82%
Platinum Mining38.001.003.08%
GENERAL MINING7,287.00-16.00-0.22%
Oil & Gas Producers 17,586.00-165.00-0.93%
Basic Materials 22,861.0020.000.09%
Chemicals 21,881.00-126.00-0.58%
Forestry & Paper 21,479.00179.000.84%
Industrial Metals 23,580.00166.000.71%
Industrials 41,171.0056.000.14%
General Industrials
Consumer Goods 49,392.00-406.00-0.82%
Automobiles & Parts 7,982.00-96.00-1.20%
Household Goods172.00-2-1.19%
Health Care 68,167.00-126.00-0.18%
Beverages 162.00-1.00-0.89%
Index NameRPMove% Move
Food Producers 71,913.00484.000.68%
Personal Goods 872.00-6.00-0.77%
Consumer Services 90,405.00514.000.57%
General Retailers 62,435.00562.000.91%
Travel & Leisure 5,315.0041.000.78%
Support Services 2,386.00-20.00-0.86%
Telecommunications 86,184.00-350.00-0.41%
Financials 30,137.00-102.00-0.34%
Banks 50,350.00129.000.26%
Non-life Insurance 49,357.00-24.00-0.05%
Life Insurance 28,393.00-193.00-0.68%
General Financial 2,761.00-16.00-0.61%
Technology 38,921.00818.002.15%
SHARIAH TOP40 3,223.00-7-0.23%
FTSE/JSE SHARIAH ALL3,385.00-2-0.08%
COAL MINING18,841.00540.29%
FTSE JSE Fledgling 5,545.00-9-0.18%
FTSE/JSE Alt X 986.00-10-1.08%
CAPPED PROPERTY 420.00-0.40%
RESOURCE 23,439.00-33-0.14%
DIVIDEND PLUS206.0010.61%
FTSE/JSE RAFI 407,792.00-18-0.24%
Capped Top 4018,671.00-55-0.30%
Capped All Share20,198.00-44-0.22%
JSE TABACO 6,614.00-9-0.15%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
05/07/2013GLOBALMay 2013 (Interim)
11/07/2013JOHNDANJune 2013 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
HUDACO28/06/201308/08/201319/08/2013R 1.5500
ARGENT26/06/201327/09/201307/10/2013R 0.0700
NAMPAK 6.525/06/201319/07/201329/07/2013R 0.0650
NIVEUS25/06/201301/08/201312/08/2013R 0.1800
PRESCIENT25/06/201326/07/201305/08/2013R 0.0250
Ex Div**
Share NameDec-DateLDTPay-DateAmount
IVT PREF12/06/201328/06/201308/07/2013R 4.6319
INVICTA11/06/201328/06/201308/07/2013R 1.7900
ACUCAP13/06/201328/06/201308/07/2013R 1.5622
SYCOM13/06/201328/06/201308/07/2013R 0.9060
ADCOCK04/06/201328/06/201308/07/2013R 0.8600

Upcoming AGMs**
CodeCompany NameDateStatus
NUTNutritional Holdings Ltd.05/07/2013Confirmed
IMUPNutritional Holdings Ltd.05/07/2013Confirmed
BK1PBK One Ltd.05/07/2013Unconfirmed
BK1OBK One Ltd.05/07/2013Unconfirmed
ADRAdcorp Holdings Ltd.09/07/2013Unconfirmed

Stock Exchange News Service
02/07/201317:28MAZOR GROUP LIMITED - Dealings in Securities by Director
02/07/201317:10SANTAM LIMITED - Dealings in Securities by a Director
02/07/201317:04HUGE GROUP LIMITED - Directors Dealings in Securities
02/07/201317:00NETCARE LIMITED - Dealing in securities by director
02/07/201317:00ANGLO AMERICAN PLAT LTD - Appointment of independent non-executive directors
02/07/201317:00AFRICAN RAINBOW MINERALS LIMITED - African Rainbow Minerals Limited (ARM) announ...
02/07/201316:57INVESTEC PROPERTY FUND LIMITED - Director's Dealings
02/07/201316:44COMMISSIONER STREET NO 4 LIMITED - MEFSA1; MEFSA2 and MEFSA3 - Interest Rate Res...
02/07/201316:28DIAMONDCORP PLC - Results of Annual General Meeting
02/07/201316:02DIPULA INCOME FUND LIMITED - Results of the written consent process in relation ...
02/07/201316:00INVESTEC PLC - Director's dealings
02/07/201316:00ATLATSA RESOURCES CORPORATION - Atlatsa shareholders approve Restructure Plan
02/07/201315:53VUKILE PROPERTY FUND LIMITED - Dealing in securities by a director of Vukile
02/07/201315:43PPC LIMITED - PPC001 - Interest Rate Reset
02/07/201315:15FAMOUS BRANDS LIMITED - Dealings in securities
02/07/201314:55HOSKEN CONSOLIDATED INVESTMENTS LTD - Director's dealings
02/07/201314:47METROFILE HOLDINGS LIMITED - Circular to Metrofile Shareholders
02/07/201314:35ARROWHEAD PROPERTIES LIMITED - TRP121: Notification of a disposal of beneficial...
02/07/201314:00BRIKOR LIMITED - Renewal of cautionary announcement
02/07/201313:01BARLOWORLD LIMITED - BAW3 and BAW6 - Interest Rate Reset
02/07/201311:45INDWA INVESTMENTS LIMITED - Listing of Tap Issue - IND340
02/07/201311:27ALERT STEEL HOLDINGS LIMITED - Notifications in terms of section 122(3) of the C...
02/07/201311:24DISCOVERY LIMITED - Dealings in securities by directors
02/07/201311:17LONMIN PLC - Total Voting Rights and Capital as at 30 June 2013
02/07/201311:15ANSYS LIMITED - Further cautionary announcement
02/07/201311:00NEW EUROPE PROPERTY INVESTMENTS PLC - Trading Statement
02/07/201310:40INGUZA INVESTMENTS (PTY) LIMITED - Interest Rate Reset - ING114 ING89
02/07/201309:45NASPERS LIMITED - Bond offering by Myriad International Holdings B.V.
02/07/201309:30BRANDCORP (PROPRIETARY) LIMITED - BCP1 and BCP2 - Interest Rate Resets
02/07/201309:30NEW GOLD ISSUER LIMITED - Listing of additional NewGold debentures
02/07/201309:10TAWANA RESOURCES NL - Tawana aims to be a low cost producer preliminary assessme...
02/07/201308:30AFRICAN EAGLE RESOURCES PLC - Proposed Disposal and Proposed Adoption of Investi...
02/07/201307:55BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
02/07/201307:30TELEMASTERS HOLDINGS LIMITED - Unaudited Condensed Consolidated Interim Results ...

Click here for more SENS news