Tuesday, 23 July 2013 - 20:00
Charts
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
www.seedinvestments.co.za
info@seedinvestments.co.za
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 |
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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 storyBesotted 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 storyAt 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 |
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Markets | 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 |
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| 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 |
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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 |
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| 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 |
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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 |
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| 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 |
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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)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 41176.57 | 282.52 | 0.69% | JSE Top 40 | 17:00 | 36652.71 | 258.43 | 0.71% | JSE Gold | 17:00 | 1305.87 | 13.38 | 1.04% | JSE Financial | 17:00 | 30805.02 | 387.66 | 1.27% | JSE Industrial | 17:00 | 53584.53 | -47.97 | -0.09% | JSE Indust 25 | 17:00 | 46750.59 | -103.94 | -0.22% | JSE Resource | 17:00 | 46833.62 | 851.30 | 1.85% | DJ Futures | 19:54 | 15530.00 | 39.00 | 0.25% | DJ Ind | 19:58 | 15589.98 | 44.43 | 0.29% | SP 500 | 19:58 | 1695.23 | -0.30 | -0.02% | Nasdaq | 19:58 | 3591.97 | -8.42 | -0.23% | FTSE 100 | 17:35 | 6597.44 | -25.73 | -0.39% | DAX | 18:08 | 8314.23 | -16.83 | -0.20% | CAC40 | 18:08 | 3923.09 | -16.83 | -0.43% | Nikkei | 08:58 | 14778.51 | 120.47 | 0.82% | Shanghai | 09:30 | 2043.88 | 39.11 | 1.95% | Hang-Seng | 10:28 | 21915.42 | 498.92 | 2.33% | All Ords | 08:41 | 5004.60 | 15.70 | 0.31% | NZSE 50 | 07:48 | 4580.59 | 26.55 | 0.58% |
| | Name | Time | RP | Move | % Move | Gold $ | 19:59 | 1335.30 | .02 | 0.00% | Gold R | 19:59 | 12953.27 | -142.75 | -1.09% | Gold R/kg | 19:58 | 416529 | -2042 | -0.49% | Silver $ | 19:59 | 20.2900 | -.2330 | -1.14% | Platinum $ | 19:58 | 1440.00 | -2.50 | -0.17% | Palladium $ | 19:59 | 735.90 | -8.10 | -1.09% | R157 | 17:44 | 6.05 | .08 | 1.34% | R186 | 16:47 | 8.03 | .15 | 1.97% | R204 | 17:44 | 6.96 | .05 | 0.72% | R207 | 17:44 | 7.24 | .08 | 1.05% | Brent Crude | 19:58 | 108.46 | .39 | 0.36% | Rand / Dollar | 19:59 | 9.7029 | -0.1048 | -1.07% | Rand / Pound | 19:55 | 14.8833 | -0.1459 | -0.97% | Rand / Euro | 19:55 | 12.8214 | -0.1103 | -0.85% | Rand / NZD | 19:59 | 7.7586 | -0.0607 | -0.78% | Rand / AUD | 19:55 | 9.0103 | -0.0597 | -0.66% | Yen / Dollar | 19:59 | 99.5400 | -0.0640 | -0.06% | Euro / Dollar | 19:59 | 0.7565 | -0.0020 | -0.26% | Dollar / Euro | 19:59 | 1.3220 | 0.0035 | 0.27% | Pound / Dollar | 19:55 | 0.6501 | -0.0009 | -0.14% |
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Click here for the Sharenet Spot Price page
The JSE Today
Trading Statistics
Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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23/07/2013 | 228 | 130 | 73 | 431 | 177,361,780 | R12,068,141,982 | 155677 | 1451940 | 22/07/2013 | 182 | 149 | 67 | 398 | 168,006,388 | R10,818,389,476 | 138759 | 1664526 | 19/07/2013 | 122 | 204 | 70 | 396 | 162,692,896 | R10,172,874,264 | 128403 | 537953 | 18/07/2013 | 197 | 145 | 68 | 410 | 190,770,343 | R12,794,079,282 | 170536 | 845908 | 17/07/2013 | 215 | 139 | 60 | 414 | 248,669,272 | R16,612,335,564 | 182621 | 1848603 |
* Includes all listed instruments on the JSE
Index Summary Index Name | RP | Move | % Move | Top 40 | 36,652.00 | 258.00 | 0.71% | Industrial | 53,584.00 | -47.00 | -0.09% | Mid Cap | 55,784.00 | 313.00 | 0.57% | Small Cap | 45,178.00 | 341.00 | 0.76% | Resource 20 | 46,833.00 | 851.00 | 1.85% | Industrial 25 | 46,750.00 | -103.00 | -0.22% | Financial 15 | 11,542.00 | 178.00 | 1.57% | Financial & Ind. 30 | 49,839.00 | 100.00 | 0.20% | All Share | 41,176.00 | 282.00 | 0.69% | Oil & Gas | 34,249.00 | 461.00 | 1.37% | Mining | 28,336.00 | 530.00 | 1.91% | Gold Mining | 1,305.00 | 13.00 | 1.07% | Platinum Mining | 39.00 | 1.00 | 3.95% | GENERAL MINING | 8,164.00 | 156.00 | 1.95% | Oil & Gas Producers | 18,415.00 | 248.00 | 1.37% | Basic Materials | 25,044.00 | 441.00 | 1.79% | Chemicals | 21,755.00 | -62.00 | -0.29% | Forestry & Paper | 23,168.00 | 218.00 | 0.95% | Industrial Metals | 24,470.00 | 374.00 | 1.55% | Industrials | 41,394.00 | 470.00 | 1.15% | General Industrials | 123.00 | 1.00 | 1.14% | Consumer Goods | 51,027.00 | -138.00 | -0.27% | Automobiles & Parts | 8,061.00 | .00 | 0.01% | Household Goods | 181.00 | 0 | -0.47% | Health Care | 67,072.00 | -164.00 | -0.25% | Beverages | 167.00 | .00 | 0.20% |
| | Index Name | RP | Move | % Move | Food Producers | 72,432.00 | 1177.00 | 1.65% | Personal Goods | 920.00 | -3.00 | -0.42% | Consumer Services | 89,647.00 | 567.00 | 0.64% | General Retailers | 57,762.00 | 298.00 | 0.52% | Travel & Leisure | 5,383.00 | 66.00 | 1.25% | Media | 171.00 | 1.00 | 1.00% | Support Services | 2,407.00 | -1.00 | -0.04% | Telecommunications | 83,585.00 | -1978.00 | -2.31% | Financials | 30,805.00 | 388.00 | 1.28% | Banks | 50,105.00 | 1253.00 | 2.57% | Non-life Insurance | 50,707.00 | 1230.00 | 2.49% | Life Insurance | 29,758.00 | 363.00 | 1.24% | General Financial | 2,859.00 | 29.00 | 1.06% | Technology | 40,910.00 | 260.00 | 0.64% | SHARIAH TOP40 | 3,417.00 | 32 | 0.96% | FTSE/JSE SHARIAH ALL | 3,551.00 | 29 | 0.83% | COAL MINING | 20,223.00 | 604 | 3.08% | FTSE JSE Fledgling | 5,534.00 | 3 | 0.06% | FTSE/JSE Alt X | 999.00 | 7 | 0.72% | SA LISTED PROPERTY | 521.00 | | -0.43% | CAPPED PROPERTY | 432.00 | | -0.19% | RESOURCE | 25,577.00 | 455 | 1.81% | DIVIDEND PLUS | 205.00 | 2 | 1.42% | FTSE/JSE RAFI 40 | 8,111.00 | 73 | 0.91% | Capped Top 40 | 19,341.00 | 129 | 0.67% | Capped All Share | 20,840.00 | 138 | 0.67% | JSE TABACO | 6,670.00 | -65 | -0.98% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | AGL | ANGLO AMERICAN PLC | BUY | 19/07/2013 | VOD | VODACOM GROUP LIMITED | HOLD | 19/07/2013 | AIP | ADCOCK INGRAM HLGS LD | HOLD | 19/07/2013 | ASA | ABSA GROUP LIMITED | HOLD | 19/07/2013 | NED | NEDBANK GROUP LTD | BUY | 18/07/2013 |
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Results Expected** Expected | Company Name | Fin. Date | 24/07/2013 | AECI | June 2013 (Interim) | 24/07/2013 | AECI 5.5%P | June 2013 (Interim) | 24/07/2013 | AQUARIUS | June 2013 (Q) | 24/07/2013 | AQUARIUSCVT | June 2013 (Q) | 25/07/2013 | ARCMITTAL | June 2013 (Interim) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | FOORDCMPS | 09/07/2013 | 26/07/2013 | 05/08/2013 | R 0.3000 | HUDACO | 28/06/2013 | 08/08/2013 | 19/08/2013 | R 1.5500 | ARGENT | 26/06/2013 | 27/09/2013 | 07/10/2013 | R 0.0700 | PRESCIENT | 25/06/2013 | 26/07/2013 | 05/08/2013 | R 0.0250 | NASPERS-N | 25/06/2013 | 13/09/2013 | 23/09/2013 | R 3.8500 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | AME | 14/06/2013 | 19/07/2013 | 29/07/2013 | R 2.0000 | PERGRIN | 06/06/2013 | 19/07/2013 | 29/07/2013 | R 0.7200 | PERGRIN | 06/06/2013 | 19/07/2013 | 29/07/2013 | R 0.2800 | NETCARE | 20/05/2013 | 19/07/2013 | 29/07/2013 | R 0.2700 | INVPLC | 23/05/2013 | 19/07/2013 | 12/08/2013 | R 0.1000 |
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Upcoming AGMs** Code | Company Name | Date | Status | WKF | Workforce Holdings Ltd. | 24/07/2013 | Confirmed | MDC | Mediclinic International Ltd. | 25/07/2013 | Confirmed | FBR | Famous Brands Ltd. | 25/07/2013 | Confirmed | ADAP | Adrenna Property Group Ltd. | 25/07/2013 | Confirmed | ANA | Adrenna Property Group Ltd. | 25/07/2013 | Confirmed |
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