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 The Sharenet Daily 
Tuesday, 04 February 2014 - 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)

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Seed Weekly - Multi Asset Class Flexible: A Forgotten Category?

Unit trusts in the South African Multi Asset Class Flexible category are often overlooked for possible investment. The average retail investor typically invests into balanced or equity funds. Flexible funds are generally positioned between balanced and equity funds. Due to the wide investment mandates of these funds, a like for like comparison is fairly difficult.

The biggest advantage of the wider investment limits is that managers are able to better express their investment views. Where equity managers need to always be relatively fully invested (+80% in equity) flexible managers are able to reduce exposure should market conditions warrant the move.

Flexible funds usually represent a manager’s best view. They are able to allocate to asset classes where they see value and take away from asset classes that are facing headwinds. In theory a flexible fund should fare better in a bear market, but lag in a bull market.

This category is typically where hedge fund managers list their unit trust funds as they have the flexibility that is a hallmark of hedge fund managers.

Naturally the major risk of a wider mandate is that a manager has a greater scope to make poor calls, it is therefore more important in this category to have a solid understanding of what kind of return profile the manager is attempting to achieve than in other more restrictive fund categories.

How have flexible funds fared against other categories?

The Multi Asset Class Flexible category is a catch all category containing a wide range of funds, with different risk and return targets. For example there are equity, allocation, income, and property funds. The analysis below was done on 5 equity centric flexible funds where the managers actively manage the asset allocation and have similar risk and return targets.

From the chart above you can see the big dispersion of returns in the category. 2013 returns ranged between -2.5% and 35%, but almost half of all of the funds were able to outperform the average equity (green outlined square) and balanced (pink outlined circle) fund manager. Over the past 5 years only the top quartile were able to beat the average equity manager mainly as a result of the lower equity exposure during a period of strong equity returns.

The chart below show the draw downs of these funds compared to the ALSI and the average equity manager. As would be expected, most of the managers were better able to protect capital than the average equity manager.

From the end of 2007 – i.e. before the last market crash – until now, these managers were able to outperform the ALSI with lower levels of risk (below represented as volatility, but the same holds true using other risk measures). On a risk adjusted basis these funds therefore delivered handsomely to their investors.

The major drawback of this category – and hence why it doesn’t attract perhaps as much assets as it otherwise would – is that flexible funds generally aren’t Reg 28 compliant and they thus can’t be used for compulsory investments (life annuity, pensions, or retirement annuities). With markets currently in expensive territory, this is perhaps a category to look at for investors that have a long time horizon.

Seed clients are currently invested with a few of the highlighted managers across our various fund solutions – they have been rewarded for giving the managers broad mandates. As the multi managers we keep a close eye on both the managers’ positions as well as their outlook on the markets.

Kind regards,

Gerbrandt Kruger

021 914 4966

Tue, 04 Feb 2014
Top News
Gold dropped on Tuesday after posting a one-percent rally in the previous session, as steadier U.S. equities and a stronger dollar prompted investors to unwind some of their safety bets in bullion.  Full story

South African stocks extended their losing streak to a fifth straight day on Tuesday, with the blue-chip index falling below the psychologically important 40,000 level in a continuing retreat from emerging markets around the globe.  Full story
Pressure on Thailand's embattled government mounted on Tuesday, when a flagship rice-buying scheme vital to its support stumbled closer to collapse and the opposition filed legal challenges that could void a disrupted weekend election.  Full story
Russia said its ally Syria would soon ship more chemical weapons abroad for destruction after being accused of dragging its feet, while activists said civilians in Aleppo were fleeing deadly barrel bomb raids by President Bashar al-Assad's air force.  Full story
Ukraine's President Viktor Yanukovich, battling mass unrest against his rule, faced demands from the opposition on Tuesday for a constitutional change that would seriously curtail his powers.  Full story
U.S. stocks bounced back on Tuesday, underpinned by sturdy corporate results, as the market fought to regain its footing following its largest selloff. . .  Full story
European shares inched lower on Tuesday, extending recent steep falls and pegged back by disappointing earnings reports from the likes of chip designer ARM. . .  Full story
Britain's top equity index fell for the 10th time in 11 sessions on Tuesday, as a drop in the share price of chip. . .  Full story
World shares steadied after falling to a near four-month low on Tuesday as a bounce in battered emerging market currencies and a positive. . .  Full story

U.S. stocks opened higher on Tuesday, underpinned by a slew of sturdy corporate results, as the market regained its footing following its largest. . .  Full story
Britain's top equity index fell for the 10th time in 11 sessions on Tuesday, as weaker energy shares and a fall in chip. . .  Full story
Shares in London-listed energy companies fell further and touched their lowest in more than three months on Tuesday following some poor company results. . .  Full story
European shares sank in early trade on Tuesday, retreating for the seventh time in nine sessions and tracking a sell-off on Wall Street. . .  Full story
SA Business
South Africa's Exxaro Resources has won a permit to start production at the Republic of Congo's Mayoko iron ore mine, an. . .  Full story
Wage talks between South Africa's AMCU union and the world's top three platinum producers resumed on Tuesday to try to end. . .  Full story
Shares in Adcock Ingram fell to their weakest level in seven months on Tuesday, extending their decline into a third day. . .  Full story
South African clothing retailer Foschini Group is expanding its West African presence and has plans to enter Ghana with four stores. . .  Full story

Central banks in emerging markets are under growing pressure to raise interest rates, to support their currencies and head off inflation caused by. . .  Full story
The chief executive of Kumba Iron Ore, a unit of Anglo American, said he expected South Africa to grant a key. . .  Full story
The South African unit of Japan's NTT Corp said on Tuesday it had bought French IT company NextiraOne for an undisclosed. . .  Full story
Bank of China International (BOCI) has recruited former Goldman Sachs metals trading chief as an adviser to help it expand its commodities business.. . .  Full story

Business confidence in South Africa started the year off on a weaker tone, falling to 90.5 in January from 91.9 in December, as lacklustre economic growth prospects created uncertainty for businesses,. . .  Full story
Strikes in South Africa's platinum mines are costing the country around 400 million rand a day, an official at the Chamber of Mines said on Tuesday.. . .  Full story
South Africa's rand firmed slightly against the dollar on Monday as it gradually recovers from a five-year low hit last week, but local and international data due in the next few. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0044451.57-505.34-1.12%
JSE Top 4017:0039945.44-486.11-1.20%
JSE Gold17:001273.75-34.85-2.66%
JSE Financial17:0030959.30-106.35-0.34%
JSE Industrial17:0057951.42-745.90-1.27%
JSE Indust 2517:0050890.80-687.86-1.33%
JSE Resource17:0053027.76-729.48-1.36%
DJ Futures19:4815397.0098.000.64%
DJ Ind19:5815463.1390.330.59%
SP 50019:581756.9615.070.87%
FTSE 10016:456445.80-19.86-0.31%
All Ords07:385114.10-87.80-1.69%
NZSE 5006:484802.62-46.88-0.97%
NameTimeRPMove% Move
Gold $19:591251.16-5.98-0.48%
Gold R19:5913856.79-300.90-2.13%
Gold R/kg19:58445648-11807-2.58%
Silver $19:5919.4310.10900.56%
Platinum $19:591370.20-7.05-0.51%
Palladium $19:59699.10-.65-0.09%
Brent Crude19:58105.91-.49-0.46%
Rand / Dollar19:5911.0771-0.1849-1.64%
Rand / Pound19:5518.0451-0.2908-1.59%
Rand / Euro19:5514.9726-0.2597-1.70%
Rand / NZD19:599.0975-0.0024-0.03%
Rand / AUD19:559.90320.04640.47%
Yen / Dollar19:59101.59000.53500.53%
Euro / Dollar19:590.73970.00040.05%
Dollar / Euro19:591.3521-0.0005-0.04%
Pound / Dollar19:550.6125-0.0004-0.07%

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 RANGOLD  2302411.65.%1283
2 KELLY  1801710.30.%4146
3 POYNTING  299259.09.%132733
4 METMAR  150107.14.%42353
5 SANTOVA  13553.85.%607484
6 VALUE  540203.85.%3200
7 BRIMSTON  1350503.85.%4100
8 CONTROL  13553.85.%5000
9 TRADEH  1360493.74.%13570
10 CENRAND  279103.72.%4462
11 CULLINAN  280103.70.%25957
12 METROFILE  489173.60.%83821
13 ANNUITY  518183.60.%39180
14 CONDUIT  14553.57.%234285
15 NORTHAM  42381443.52.%1124597
16 VODACOM  119754003.46.%4426831
17 CONVERGE  12043.45.%17000
18 ABIL  1112373.44.%5124271
19 MRHLD  2569823.30.%666045
20 WCC  17053.03.%40226

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Major Moves Down
SharenameSaleMove% MoveVolume
1 ALERT  105-35-25.00.%2320
2 CADIZ  105-10-8.70.%61658
3 JDG CONV  899999-55001-5.76.%10
4 ROCKWELL  340-20-5.56.%1444
5 FORTRESSB  1035-60-5.48.%8600
6 PHUMELELA  1805-91-4.80.%19751
7 IMPERIAL  16661-820-4.69.%3180243
8 SYCOM  2250-109-4.62.%150067
9 WESCOAL  209-9-4.13.%1100
10 BUILDMX  235-10-4.08.%33701
11 ANGLOPLAT  42336-1753-3.98.%387675
12 MPACT  2400-98-3.92.%767578
13 TORRE  250-10-3.85.%141912
14 LITHA  230-9-3.77.%53600
15 SUPRGRP  2620-100-3.68.%599700
16 COAL  105-4-3.67.%302777
17 HARMONY  3021-115-3.67.%490299
18 SIBANYE  1631-61-3.61.%1806486
19 FONEWORX  217-8-3.56.%4522
20 EQSTRA  675-24-3.43.%148156

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New Highs
SharenameSaleHighMove% MoveVolume
1 POYNTING  299300259.09.%132733
2 SANTOVA  13514553.85.%607484
3 SAPPI  35073532-3-0.09.%1997563

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New Lows
SharenameSaleLowMove% MoveVolume
1 JDG CONV  899999899999-55001-5.76.%10
2 IMPERIAL  1666116569-820-4.69.%3180243
3 SHPCB  10800001080000-30000-2.70.%1010
4 REUNERT  60055567-147-2.39.%286492
5 TRUWTHS  70456939-141-1.96.%1432714
6 HOLDSPORT  40504024-73-1.77.%45299
7 REBOSIS  10551022-19-1.77.%911485
8 MASSMART  1160711435-193-1.64.%227912
9 TFG  90508805-100-1.09.%969024
10 ELLIES   4984840.1498680
11 ARROW-B  63062040.63.%2107225
12 ASCENDIS  1009975141.41.%122900

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Index Summary
Index NameRPMove% Move
Top 4039,945.44-486.11-1.20%
Mid Cap56,891.67-335.13-0.59%
Small Cap48,529.99-606.90-1.24%
Resource 2053,027.76-729.48-1.36%
Industrial 2550,890.80-687.86-1.33%
Financial 1511,686.03-52.34-0.45%
Financial & Ind. 3053,531.75-602.60-1.11%
All Share44,451.57-505.34-1.12%
Oil & Gas 39,775.31-419.23-1.04%
Mining 31,929.92-457.95-1.41%
Gold Mining1,273.75-34.85-2.66%
Platinum Mining48.93-.26-0.53%
GENERAL MINING9,297.25-129.94-1.38%
Oil & Gas Producers 21,386.45-225.41-1.04%
Basic Materials 28,277.62-380.61-1.33%
Chemicals 24,028.85-198.45-0.82%
Forestry & Paper 28,563.72-113.65-0.40%
Industrial Metals 23,836.87-274.11-1.14%
Industrials 40,473.52-468.67-1.14%
General Industrials 123.31-1.33-1.07%
Consumer Goods 53,394.21-1156.01-2.12%
Automobiles & Parts 9,646.59-206.07-2.09%
Household Goods304.51-9-2.88%
Health Care 69,117.93-627.56-0.90%
Beverages 166.20-3.48-2.05%
Index NameRPMove% Move
Food Producers 64,665.28-993.79-1.51%
Personal Goods 999.86-24.37-2.38%
Consumer Services 10,620.34-124.64-1.16%
General Retailers 53,320.22-726.28-1.34%
Travel & Leisure 5,417.81-79.63-1.45%
Media 245.95-2.77-1.11%
Support Services 2,487.6417.390.70%
Telecommunications 9,437.5181.500.87%
Financials 30,959.30-106.35-0.34%
Banks 51,103.34-273.20-0.53%
Non-life Insurance 46,223.271048.962.32%
Life Insurance 29,991.201.290.00%
General Financial 3,036.40-18.41-0.60%
Technology 40,583.18-539.18-1.31%
SHARIAH TOP40 3,876.42-37-0.95%
FTSE/JSE SHARIAH ALL3,976.04-37-0.93%
COAL MINING18,717.39-212-1.12%
FTSE JSE Fledgling 6,399.56-38-0.58%
FTSE/JSE Alt X 1,227.04-3-0.20%
CAPPED PROPERTY 412.37-0.38%
RESOURCE 28,975.58-396-1.35%
DIVIDEND PLUS201.36-1-0.46%
FTSE/JSE RAFI 408,852.16-79-0.89%
Capped Top 4021,104.61-242-1.13%
Capped All Share22,497.19-252-1.11%
JSE TABACO 6,760.84-101-1.47%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
05/02/2014NEPIDecember 2013 (Final)
05/02/2014RESILIENTDecember 2013 (Interim)
06/02/2014ADAPTITDecember 2013 (Interim)
06/02/2014ARCMITTALDecember 2013 (Final)
06/02/2014MITTALSAPDecember 2013 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
ASCEN A03/02/1421/02/1403/03/14ZAR 0.1995
ASCEN B03/02/1421/02/1403/03/14ZAR 0.1036
CULINAN5.531/01/1414/02/1424/02/14ZAR 0.0550
HUDACO31/01/1428/02/1410/03/14ZAR 3.1000
CAPITAL29/01/1414/02/1424/02/14ZAR 0.4004
Ex Div**
Share NameDec-DateLDTPay-DateAmount
MARSHALL17/01/1431/01/1414/02/14USD 0.0180

Upcoming AGMs**
CodeCompany NameDateStatus
SAPSappi Ltd.05/02/2014Confirmed
ABLAfrican Bank Investments Ltd.06/02/2014Confirmed
ABLPAfrican Bank Investments Ltd.06/02/2014Confirmed
NPKNampak Ltd.06/02/2014Confirmed
NPKPNampak Ltd.06/02/2014Confirmed

Stock Exchange News Service
04/02/201417:44ADCOCK INGRAM HOLDINGS LIMITED - Retirement of directors
04/02/201417:30ADCOCK INGRAM HOLDINGS LIMITED - Notice of acquisition of Adcock Ingram securiti...
04/02/201417:18PREMIUM PROPERTIES LIMITED - Dealing in securities by an associate of a director
04/02/201417:15INVICTA HOLDINGS LIMITED - Directors dealing in securities
04/02/201417:00EOH HOLDINGS LIMITED - Dealings in securities by a director
04/02/201416:00BAUBA PLATINUM LIMITED - Renewal Of Cautionary Announcement
04/02/201415:12ARCELORMITTAL SOUTH AFRICA LIMITED - Appointment of interim Chief Executive Offi...
04/02/201415:00SABMILLER PLC - Notification of transactions of directors, persons discharging m...
04/02/201415:00Letshego Holdings Limited - Letshego Holdings Limited Trading Announcement year ...
04/02/201414:40THE SPAR GROUP LIMITED - Notice of a disposal of a beneficial interest in SPAR s...
04/02/201413:16THE BIDVEST GROUP LIMITED - Voluntary Trading Statement
04/02/201412:32FAMOUS BRANDS LIMITED - Dealings in securities
04/02/201412:02CITY LODGE HOTELS LIMITED - Voluntary Announcement: City Lodge Hotels To Take F...
04/02/201411:45LEWIS GROUP LIMITED - Interest Rate Resets-LEW01 and LWCP01
04/02/201411:27FIRSTRAND BANK LIMITED - Interest Rate Reset - FRS62
04/02/201411:26ASTRAL FOODS LIMITED - Dealing in shares by a director
04/02/201411:23DELTA PROPERTY FUND LIMITED - Conclusion of the Manco Share Sale Agreement
04/02/201410:25KAGISO SIZANANI CAPITAL LTD (RF) - Interest rate reset KSB008
04/02/201410:20METROFILE HOLDINGS LIMITED - Trading statement
04/02/201410:16TRENCOR LIMITED - Trencors Textainer announces date for the fourth quarter 2013 ...
04/02/201410:05INDWA INVESTMENTS LIMITED - New Instrument Listing - INA419
04/02/201410:00COAL OF AFRICA LIMITED - David Brown appointed CEO of Coal of Africa
04/02/201409:55NEW GOLD ISSUER LIMITED - Partial De-listing-NGPLT
04/02/201409:54SOUTH AFRICAN COAL MINING HLDGS LTD - Further cautionary announcement re BEE tra...
04/02/201409:37ASTRAL FOODS LIMITED - General Trading Statement
04/02/201409:08PURPLE CAPITAL LIMITED - Directors' dealing in securities
04/02/201409:06INVESTEC BANK LIMITED - Breached Barrier - IPLIHE
04/02/201409:00INGUZA INVESTMENTS (RF) LIMITED - New Instrument Listing - ING241
04/02/201408:45ESOR LIMITED - Dealing in securities by an associate of a director
04/02/201408:27INGUZA INVESTMENTS (RF) LIMITED - Full Capital Redemption - ING195
04/02/201408:00MAS REAL ESTATE INC - Updated planning at former Caltongate and new appointment ...
04/02/201407:30PICK N PAY HOLDINGS LIMITED - Dealing in Securities by Director

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