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 The Sharenet Daily 
Tuesday, 23 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)

Different Investment Companies

As multi managers at Seed, we spend a considerable portion of our time meeting with investment managers and performing due diligences in order to separate the good the bad and the ugly. Over the past year we have spent in excess of 200 hours meeting with investment managers specialising across a wide range of asset classes (equity, property, commodities, fixed income, derivatives, etc, across local and global jurisdictions) and investment types (unit trusts, hedge funds, structured products, segregated mandates, etc). On top of this we have spent significantly more time researching managers on a quantitative basis and assessing them, in the office, on a qualitative basis.

Before we decide on which funds / managers to invest with there are certain attributes at an investment company level that we need to determine. There aren’t many ‘deal breakers’, but some company structures are naturally better than others. Firstly we need to categorise how the company’s various funds are managed between these three broad types:

• Boutique
• Houseview portfolios
• Central research

We have discussed the pro’s and con’s of boutiques in previous Weekly’s, but there are also some large asset management companies that operate a ‘multiple boutique model’ across their fund range. Here, managers are given complete autonomy in how they manage their funds – which is great – but there is the risk that when a manager underperforms, the company puts undue pressure on him/her to change their process to improve performance or risk losing their job. Where each manager essentially runs a boutique within a large firm we need to ensure that there is a proper alignment of interests to gain the full benefits of a boutique operation. In a ‘multiple boutique model’ environment, we research each and every manager’s investment style and not just the investment company’s philosophy and process.

At the other end of the scale there are companies where all clients essentially get the same portfolio, up or down risked based on their needs, as the investment process and fund managers are common across all/most portfolios. Here the individual skill of each of the managers is less important than the ‘whole’ of the investment company’s approach.

In between, we have companies where there is one central research process and investment philosophy, but each manager is given a level of autonomy in order to express the company’s view how he/she sees fit. In this environment the manager is able to express some flair, but their portfolios will be more or less in line with their peers. Here, the risk is that there will be slightly different outcomes between clients with different managers.

There is no ‘right’ or ‘wrong’ way, but we need to ensure that we know how the investments are (and have been) managed in order to provide accurate analysis. Our research process gets more complicated when an investment company’s structure has migrated between a houseview and a central research and a boutique (and sometimes back again to houseview). In this case we need to distinctly identify performance under each of the various regimes (just as performance needs to be separated for each manager in a boutique environment).

For the average retail investor this depth of research just isn’t possible, and this is where multi managers should play an important role in your portfolio.

Take care,

Mike Browne

021 914 4966

Tue, 23 Jul 2013
Top News
South Africa's rand advanced against the dollar to reach a seven-week high on Tuesday, breaking through the key support level of 9.80.  Full story

South African mobile operator MTN Group said on Tuesday allegations against its former chief financial officer had to do with governance and would have no impact on its financial results.  Full story
Nine people were killed in Cairo on Tuesday in clashes between opponents and Islamist supporters of Egypt's deposed President Mohamed Mursi, state-run media reported, keeping the most populous Arab nation in turmoil.  Full story
Besotted royal-watchers across the world waited for their first glimpse of Britain's new prince on Tuesday, with Prince William and his wife Kate expected to leave a London hospital soon with their baby son.  Full story
At Bobole, a bustling refreshment stop on Mozambique's north-south highway, brightly-painted kiosks lined with bottles offer drinks to thirsty travellers while hawkers sell bananas, paw-paws and carrots in a typical African roadside scene.  Full story
The S&P 500 hit an intraday record high on Tuesday before slipping in a tight-range session, while the Dow industrials got a lift. . .  Full story
European shares fell on Tuesday as a late sell-off knocked markets off seven-week highs, with semiconductor group STMicroelectronics leading the way after weak results.. . .  Full story
World stock markets rose to near five-year highs on Tuesday, boosted by news that China was moving to support its cooling economy, while. . .  Full story
Gold slipped to $1,330 an ounce on Tuesday, a day after the metal had its strongest one-day rally in more than a year,. . .  Full story

Britain's FTSE finished off seven-week highs on Tuesday, with China's reassurance on growth lifting miners but failing to provide enough momentum for the broad. . .  Full story
European shares pared their earlier gains to turn flat on Tuesday, in a gradual, late session sell-off which some traders attributed to worries. . .  Full story
U.S. stocks opened slightly higher on Tuesday, helped by solid earnings from blue-chips DuPont and Travelers and by China's efforts to avoid a. . .  Full story
European shares rose to seven-week highs on Tuesday as China's plan to support growth boosted mining shares and a flurry of deal activity. . .  Full story
SA Business
A weaker rand and above-inflation wage increases could add to price pressures in the South African economy, the Reserve Bank said in its annual economic report on Tuesday.. . .  Full story
South Africa's rand steadied against the dollar early on Tuesday, keeping a firmer bias on a greenback pressured by soft economic data that suggested the U.S. Federal Reserve may delay its withdrawal of stimulus.. . .  Full story

Hundreds of unionised workers at Parmalat's plants in South Africa have gone on strike, demanding a 9 percent wage increase, their. . .  Full story
South Africa's Treasury sold a total 2.35 billion rand of its 2023, 2031 and 2037 government bonds on Tuesday.. . .  Full story
South African miner Kumba Iron Ore reported a dip in operating profit in the first half, held back by weaker iron. . .  Full story
The South African Reserve Bank's monthly leading business cycle indicator decreased by 0.5 percent in May from April, mainly because of. . .  Full story
Company News
South Ocean's headline earnings per share and earnings per share for the six months ended 30 June 2013 is expected to. . .  Full story
Shareholders are advised that the Integrated Report for the year ended 28 February 2013 was dispatched to shareholders on 23 July. . .  Full story
Miranda announcedthat Miranda Minerals (Pty) Ltd., a wholly owned subsidiary, has been granted a Prospecting Right over the farm Rozynenbosch 104,. . .  Full story
Unitholders were advised that the requisite majority of unitholders approved all of the special and ordinary resolutions tabled at the annual. . .  Full story

RBPlat is in the process of finalising its financial results for the six months ended 30 June 2013. The company advises. . .  Full story
Shareholders are advised that results from a routine inspection of the primary mill at the Bafokeng Rasimone Platinum Mine (BRPM) Concentrator. . .  Full story
Shareholders of Kagiso are referred to the cautionary announcement dated 10 June 2013 regarding the receipt of an indicative proposal which. . .  Full story
Anglo drew attention to Kumba Iron Ore Ltd.'s ("Kumba's") announcement of its results for the six months ended 30 June 2013.. . .  Full story
Company Results
Net sales revenue grew by 24% to R24.1 billion (R19.4 billion). Operating profit shot up to R2.7 billion (R399 million). Profit attributable to owner of the company turned around to R1.2. . .  Full story
Revenue was up 16.6% to R2 billion (R1.7 billion). EBITDA rose by 27.4% to R348.3 million (R273.4 million). Net attributable profit increased to R225.9 million (R165.5 million). In addition, headline earnings. . .  Full story
Revenue increased to R26.3 billion (R25.2 billion) whilst operating profit lowered to R14.3 billion (R14.9 billion). Profit attributable to owners rose to R7.8 billion (R7.7 billion). Furthermore, headline earnings per share. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0041176.57282.520.69%
JSE Top 4017:0036652.71258.430.71%
JSE Gold17:001305.8713.381.04%
JSE Financial17:0030805.02387.661.27%
JSE Industrial17:0053584.53-47.97-0.09%
JSE Indust 2517:0046750.59-103.94-0.22%
JSE Resource17:0046833.62851.301.85%
DJ Futures19:5415530.0039.000.25%
DJ Ind19:5815589.9844.430.29%
SP 50019:581695.23-0.30-0.02%
FTSE 10017:356597.44-25.73-0.39%
All Ords08:415004.6015.700.31%
NZSE 5007:484580.5926.550.58%
NameTimeRPMove% Move
Gold $19:591335.30.020.00%
Gold R19:5912953.27-142.75-1.09%
Gold R/kg19:58416529-2042-0.49%
Silver $19:5920.2900-.2330-1.14%
Platinum $19:581440.00-2.50-0.17%
Palladium $19:59735.90-8.10-1.09%
Brent Crude19:58108.46.390.36%
Rand / Dollar19:599.7029-0.1048-1.07%
Rand / Pound19:5514.8833-0.1459-0.97%
Rand / Euro19:5512.8214-0.1103-0.85%
Rand / NZD19:597.7586-0.0607-0.78%
Rand / AUD19:559.0103-0.0597-0.66%
Yen / Dollar19:5999.5400-0.0640-0.06%
Euro / Dollar19:590.7565-0.0020-0.26%
Dollar / Euro19:591.32200.00350.27%
Pound / Dollar19:550.6501-0.0009-0.14%

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 GOLDONE  1693425.19.%248742
2 MIXTEL  4258023.19.%656761
3 GOLIATH  230156.98.%38426
4 SUPRGRP  23851516.76.%964350
5 HULAMIN  452276.35.%57165
6 ABSA  148998496.04.%2687043
7 S-OCEAN  12975.74.%61000
8 SEARDELN  290155.45.%60000
9 CONDUIT  14075.26.%157177
10 CIL  21001005.00.%50341
11 FAMBRANDS  98443934.16.%79585
12 MMIHLDGS  2320924.13.%2075276
13 PICKNPAY  36651353.82.%732320
14 IMPLATS  94633473.81.%2069838
15 DELTA  550203.77.%86323
16 WESCOAL  14753.52.%94615
17 RMBH  40231363.50.%1263035
18 BASREAD  750253.45.%82463
19 RMIH  2688893.42.%894435
20 LIB-HOLD  123014063.41.%164648

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Major Moves Down
SharenameSaleMove% MoveVolume
1 GIJIMA  110-9-7.56.%44678
2 BELL  2100-140-6.25.%2370
3 AFROX  1930-100-4.93.%27176
4 DIGICOR  162-7-4.14.%83530
5 MVELASERV  810-29-3.46.%21375
6 FINBOND  142-5-3.40.%40748
7 TRADEH  921-29-3.05.%3947
8 ALTRON  1935-60-3.01.%4432
9 KAP  325-10-2.99.%80578
10 TRANSCAP  670-20-2.90.%1772
11 MTN  17500-500-2.78.%8171566
12 ARGENT  560-16-2.78.%360
13 TASTE  365-10-2.67.%86131
14 PETMIN  200-5-2.44.%29600
15 EQSTRA  630-15-2.33.%596490
16 KELLY  173-4-2.26.%11633
17 BARWORLD  8504-195-2.24.%1456172
18 DRDGOLD  575-13-2.21.%1066129
19 ARB  450-10-2.17.%12400
20 TELKOM  1779-39-2.15.%559243

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New Highs
SharenameSaleHighMove% MoveVolume
1 MIXTEL  4254508023.19.%656761
2 SEARDELN  290290155.45.%60000
3 RMIH  26882700893.42.%894435
4 EOH  570057001843.34.%110979
5 MONDILTDP  13962140201621.17.%224129
6 MONDIPLCP  1385514010550.40.%260926
7 FORTRESSB  9009010.48369

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New Lows
SharenameSaleLowMove% MoveVolume
1 DIGICOR  162162-7-4.14.%83530
2 ANNUITY  520485-10-1.89.%42020

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Index Summary
Index NameRPMove% Move
Top 4036,652.00258.000.71%
Mid Cap55,784.00313.000.57%
Small Cap45,178.00341.000.76%
Resource 2046,833.00851.001.85%
Industrial 2546,750.00-103.00-0.22%
Financial 1511,542.00178.001.57%
Financial & Ind. 3049,839.00100.000.20%
All Share41,176.00282.000.69%
Oil & Gas 34,249.00461.001.37%
Mining 28,336.00530.001.91%
Gold Mining1,305.0013.001.07%
Platinum Mining39.001.003.95%
GENERAL MINING8,164.00156.001.95%
Oil & Gas Producers 18,415.00248.001.37%
Basic Materials 25,044.00441.001.79%
Chemicals 21,755.00-62.00-0.29%
Forestry & Paper 23,168.00218.000.95%
Industrial Metals 24,470.00374.001.55%
Industrials 41,394.00470.001.15%
General Industrials
Consumer Goods 51,027.00-138.00-0.27%
Automobiles & Parts 8,
Household Goods181.000-0.47%
Health Care 67,072.00-164.00-0.25%
Index NameRPMove% Move
Food Producers 72,432.001177.001.65%
Personal Goods 920.00-3.00-0.42%
Consumer Services 89,647.00567.000.64%
General Retailers 57,762.00298.000.52%
Travel & Leisure 5,383.0066.001.25%
Support Services 2,407.00-1.00-0.04%
Telecommunications 83,585.00-1978.00-2.31%
Financials 30,805.00388.001.28%
Banks 50,105.001253.002.57%
Non-life Insurance 50,707.001230.002.49%
Life Insurance 29,758.00363.001.24%
General Financial 2,859.0029.001.06%
Technology 40,910.00260.000.64%
SHARIAH TOP40 3,417.00320.96%
FTSE/JSE SHARIAH ALL3,551.00290.83%
COAL MINING20,223.006043.08%
FTSE JSE Fledgling 5,534.0030.06%
FTSE/JSE Alt X 999.0070.72%
CAPPED PROPERTY 432.00-0.19%
RESOURCE 25,577.004551.81%
DIVIDEND PLUS205.0021.42%
FTSE/JSE RAFI 408,111.00730.91%
Capped Top 4019,341.001290.67%
Capped All Share20,840.001380.67%
JSE TABACO 6,670.00-65-0.98%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
24/07/2013AECIJune 2013 (Interim)
24/07/2013AECI 5.5%PJune 2013 (Interim)
24/07/2013AQUARIUSJune 2013 (Q)
24/07/2013AQUARIUSCVTJune 2013 (Q)
25/07/2013ARCMITTALJune 2013 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
FOORDCMPS09/07/201326/07/201305/08/2013R 0.3000
HUDACO28/06/201308/08/201319/08/2013R 1.5500
ARGENT26/06/201327/09/201307/10/2013R 0.0700
PRESCIENT25/06/201326/07/201305/08/2013R 0.0250
NASPERS-N25/06/201313/09/201323/09/2013R 3.8500
Ex Div**
Share NameDec-DateLDTPay-DateAmount
AME14/06/201319/07/201329/07/2013R 2.0000
PERGRIN06/06/201319/07/201329/07/2013R 0.7200
PERGRIN06/06/201319/07/201329/07/2013R 0.2800
NETCARE20/05/201319/07/201329/07/2013R 0.2700
INVPLC23/05/201319/07/201312/08/2013R 0.1000

Upcoming AGMs**
CodeCompany NameDateStatus
WKFWorkforce Holdings Ltd.24/07/2013Confirmed
MDCMediclinic International Ltd.25/07/2013Confirmed
FBRFamous Brands Ltd.25/07/2013Confirmed
ADAPAdrenna Property Group Ltd.25/07/2013Confirmed
ANAAdrenna Property Group Ltd.25/07/2013Confirmed

Stock Exchange News Service
23/07/201317:15PHUMELELA GAMING & LEISURE LIMITED - Dealings in Securities
23/07/201317:05JSE LIMITED - Index Change Advice - Blue Financial Services Deletion
23/07/201316:35AVENG LIMITED - Competition Tribunal Confirmation of Consent Agreement
23/07/201316:30SOUTH OCEAN HOLDINGS LIMITED - Trading Statement
23/07/201316:29TASTE HOLDINGS LIMITED - Posting of annual report and notice of annual general m...
23/07/201316:11CONSOLIDATED INFRASTRUCTURE GRP LTD - Dealings in securities by an associate of ...
23/07/201316:02AFRICAN EAGLE RESOURCES PLC - TR-1: Notification of major interest in shares
23/07/201315:49DELTA EMD LIMITED - Disclosure of significant holding of Delta EMD Limited ordin...
23/07/201315:33TOWER PROPERTY FUND LIMITED - Dealings in securities by directors and by an asso...
23/07/201315:20LONRHO PLC - TR-1: Notification of Major Interest in Shares
23/07/201315:07SUPER GROUP LIMITED - Trading Statement
23/07/201315:05LEWIS GROUP LIMITED - Directors Dealings in Securities
23/07/201314:47PLATFIELDS LIMITED - Renewal of cautionary announcement
23/07/201314:44VUNANI PROPERTY INVESTMENT FUND LTD - Results of General Meeting
23/07/201314:30SABMILLER PLC - Altria Financial Data Disclosure
23/07/201314:14ADCORP HOLDINGS LIMITED - No change statement and notice of AGM
23/07/201313:00SABMILLER PLC - Notification of transactions of directors, persons discharging m...
23/07/201313:00ABSA BANK LIMITED - ABN58 - Interest Rate Reset
23/07/201312:41INTERWASTE HOLDINGS LIMITED - Posting of circular and notice of general meeting
23/07/201312:32FAMOUS BRANDS LIMITED - Disclosure of beneficial interest in securities
23/07/201312:30SYNTHESIS FUNDING LIMITED - SY1010 New Financial Instrument Listing
23/07/201312:29MINE RESTORATION INVESTMENTS LTD - Change to the board
23/07/201312:00CAPITAL PROPERTY FUND - New Financial Instrument Listing: CPL017
23/07/201311:32PHUMELELA GAMING & LEISURE LIMITED - Director's Dealings
23/07/201311:25IVUZI INVESTMENTS LIMITED - Full Capital Redemption - IVA330 and IVF073
23/07/201311:20INDWA INVESTMENTS LIMITED - New Instrument Listing - IN01Q
23/07/201311:20INDWA INVESTMENTS LIMITED - New Instrument Listing - INA342 and INA343
23/07/201311:15ANNUITY PROPERTIES LTD - Dealing in securities by an associate of a director
23/07/201311:00MIRANDA MINERAL HOLDINGS LIMITED - Update on Rozynenbosch 104 prospecting right
23/07/201310:51OASIS CRESCENT PROPERTY FUND - Results of the annual general meeting
23/07/201310:35NEW GOLD ISSUER LIMITED - NewGold Issuer Limited -Additional listing of Platinum...
23/07/201310:30SABMILLER PLC - Notification of transactions of directors, persons discharging m...
23/07/201310:30WILSON BAYLY HOLMES-OVCON LIMITED - Competition Commission
23/07/201310:01ROYAL BAFOKENG PLATINUM LIMITED - Trading statement for the six months ended 30 ...
23/07/201310:00ROYAL BAFOKENG PLATINUM LIMITED - Replacement of primary mill discharge end at B...
23/07/201309:45IMBALIE BEAUTY LIMITED - Notice of annual general meeting
23/07/201309:32VILLAGE MAIN REEF LIMITED - Production Resumes at Cons Murch
23/07/201309:31GOODERSON LEISURE CORPORATION LTD - Directors dealings in securities
23/07/201309:00KAGISO MEDIA LIMITED - Renewal of Cautionary Announcement
23/07/201308:50AFRICAN EAGLE RESOURCES PLC - Result of GM and Approval of Disposal and Investin...
23/07/201308:05BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
23/07/201308:00KUMBA IRON ORE LIMITED - Interim financial results for the six months ended 30 J...
23/07/201308:00ANGLO AMERICAN PLC - Kumba Iron Ore Limited interim results and earnings reconci...
23/07/201307:30REINET INVESTMENTS S.C.A - Management statement for the first quarter ended 30 J...
23/07/201307:11MIX TELEMATICS LIMITED - Update - Specific Issue of Shares for Cash
23/07/201307:05ELLIES HOLDINGS LIMITED - Audited group results for the year ended 30 April 2013
23/07/201307:05BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
23/07/201307:05BRAIT SE - Net Asset Value (NAV) update for the first quarter ended 30 June 2013

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