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 The Sharenet Daily 
Tuesday, 01 April 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 Management Unveiled

I was recently asked to explain what a multi manager is and how they differ and/or compare to single managers. Afterwards, while thinking about my explanation, I decided to do a little research on the topic.

The below table compares single manager against multi managers and also serves as a broad definition:

As can be seen above, a multi manager provides an investment solution by utilising or combining the skill of more than one investment (single) manager. The idea of multi management is based on the premise that single managers are unlikely to perform well in all market conditions and in all circumstances.

To illustrate, I selected four uncorrelated single managed equity funds and then blended them together (similar to a multi manager). The results of the Risk/Return scatter plot are below:

The result shows that although all the Funds comfortably outperformed the ALSI, the Equity Blend does not quite perform as well as Funds C and D, but comfortably outperformed Funds A and B with a lower standard deviation than Funds B, C and D.

The key here is that a multi manager needs to ensure that the chosen managers are sufficiently different and uncorrelated. They need to look for a blend of managers who are able to outperform over the long term, but have complimentary styles to reduce volatility or minimise risk over shorter time periods. This ensures that proper diversification is possible and that they do not generate similar patterns of relative performance. Your end result will be a portfolio that benefits throughout the investment cycle with consistent returns and lower drawdowns (protecting capital).

The biggest argument against multi management, of course, is costs. Each underlying manager charges a fee which is added on to the multi manager’s fee. One therefore needs to control costs to avoid limiting outperformance. The extra costs are mitigated, to a certain extent, by the ability of a multi manager to negotiate down the fees with the underlying managers as they are able to invest larger amounts than retail investors.

At Seed Investments we pride ourselves as multi managers that are able to largely overcome the cost problem by structuring our portfolios on a core and satellite basis. The core is generally provided through smart beta products (see “Smart Beta” here http://www.seedinvestments.co.za/news) - hence significantly lowering cost. On the satellite side we utilise segregated mandates with a carefully selected group of active managers. These have been designed exclusively for us, to fit our Funds’ specific needs, and aren’t available to retail investors.

From the above findings it is evident that a multi manager, able to combine superior performing, uncorrelated fund managers, at a competitive cost, will have a place in most investors’ portfolios as it enables investors to achieve their investment objects more efficiently and at a lower risk. There are other advantages to multi management, such as tracking manager movements and keeping an eye on Manco AUM, which will be addressed in a future newsletter.

Kind regards,

Renier Hugo

021 914 4966

Tue, 01 Apr 2014
Top News
Local markets By close of day on Tuesday, the JSE All Share had climbed 0.82% with gains almost across the board, barring gold mining shares. This can be attributed to positive remarks on future US fed tapering.  Full story

Anglo American Platinum has sent force majeure notices to some of the suppliers to its South African mines, the world's top platinum producer said on Tuesday, underscoring the widening economic impact of an almost 10-week-old strike. "Suppliers of goods and services whose contractu  Full story
The last words from the cockpit of a missing Malaysian jet were a standard "Good night Malaysian three seven zero", Malaysian authorities said, changing their account of the critical last communication from a more casual "All right, good night".  Full story
NATO suspended all practical cooperation with Russia on Tuesday in protest at its annexation of Crimea and ordered military planners to draft measures to strengthen its defences and reassure nervous eastern European countries.  Full story
Survivors of a mudslide that left dozens dead or missing in Washington state said they would like to turn the disaster site into a shrine for the victims once bulldozers clear away the mud and debris.  Full story
World equity markets added to recent gains on Tuesday as Wall Street hit a record high after strong factory data, while soft manufacturing. . .  Full story
U.S. stocks rose on Tuesday, with the S&P 500 advancing to an intraday record after the latest economic data indicated that economic growth. . .  Full story
European stocks climbed on Tuesday, extending their two-week rally, helped by M&A fever as well as robust French and U.S. factory data.. . .  Full story
Britain's top share index touched a three-week high on Tuesday, with cyclical stocks rallying on the back of an improving U.S. economic outlook. . .  Full story

Gold fell on Tuesday after firm U.S. economic data lifted Wall Street stocks, easing back towards the seven-week low it hit in early. . .  Full story
U.S. stocks edged up on Tuesday, putting S&P 500 on track for a third straight advance, after the benchmark index closed out its. . .  Full story
Investors took reassurance from remarks by the head of the Federal Reserve and stronger-looking emerging markets helped keep a world stocks rally alive. . .  Full story
UK shares kicked off the quarter on a high note, fueled by gains from miners on optimism over ongoing stimulus from China, with. . .  Full story
SA Business
South African stocks scaled record peaks on Tuesday, with Anglo American Platinum blazing the uphill trail after sending force majeure notices. . .  Full story
South Africa's Adcock Ingram said on Tuesday its chief executive officer has resigned in a widely expected move after the drugmaker's. . .  Full story
South Africa's new vehicle sales fell 0.2 percent year-on-year in March to 55,363 units, data from the trade and industry department. . .  Full story
South Africa Finance Minister Pravin Gordhan on Tuesday estimated a budget deficit of 4 percent of gross domestic product for the. . .  Full story

Anglo American Platinum has sent force majeure notices to some of the suppliers to its South African mines, the world's top. . .  Full story
Naspers named Jim Volkwyn head of its pay-television business on Tuesday as South Africa's largest company by market value pushes the. . .  Full story
South African transport group Barloworld Ltd said on Tuesday it has sold its Australian auto retail unit for 1.3 billion rand. . .  Full story
South Africa's rand hovered around a three month high against the dollar on Tuesday as emerging markets were supported by comments. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0048104.98334.060.70%
JSE Top 4017:0043320.65324.020.75%
JSE Gold17:001436.92-10.21-0.71%
JSE Financial17:0035502.56211.080.60%
JSE Industrial17:0062329.17519.760.84%
JSE Indust 2517:0055066.98495.640.91%
JSE Resource17:0055842.24274.060.49%
DJ Futures19:2216425.0052.000.32%
DJ Ind19:5816513.9856.320.34%
SP 50019:581880.317.970.43%
FTSE 10015:436645.6347.260.72%
All Ords07:385394.90-8.10-0.15%
NZSE 5006:505122.52-17.46-0.34%
NameTimeRPMove% Move
Gold $19:591279.13-5.14-0.40%
Gold R19:5913536.7518.080.13%
Gold R/kg19:58435288-1796-0.41%
Silver $19:5919.7000-.0390-0.20%
Platinum $19:591424.4011.540.82%
Palladium $19:59779.507.600.98%
Brent Crude19:58106.05-2.02-1.87%
Rand / Dollar19:5910.58220.05610.53%
Rand / Pound19:5517.57170.05060.29%
Rand / Euro19:5514.59640.08590.59%
Rand / NZD19:599.15730.02640.29%
Rand / AUD19:559.78160.01880.19%
Yen / Dollar19:59103.63000.45400.44%
Euro / Dollar19:590.7251-0.0010-0.14%
Dollar / Euro19:591.37920.00190.14%
Pound / Dollar19:550.60080.00090.15%

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 KAYDAV  1902011.76.%35000
2 S-OCEAN  1101010.00.%25000
3 CENRAND  375329.33.%2100
4 SHPCB  1100000799907.84.%40
5 PINNACLE  1515855.94.%1649228
6 MUSTEK  680355.43.%162288
7 FAMBRANDS  104295035.07.%48484
8 RANGOLD  20094.71.%187000
9 AFRO-C  459204.56.%140995
10 MASTDRILL  1200504.35.%25273
11 ROLFES  458194.33.%1936
12 HOWDEN  45751743.95.%4136
13 HUGE  13553.85.%30000
14 NAMPAK  37311363.78.%1934830
15 SHOPRIT  164915713.59.%2273808
16 OANDO  14653.55.%4420
17 ANGLOPLAT  4900016353.45.%349857
18 STEINHOFF  52621623.18.%15423788
19 CONTROL  13443.08.%16750
20 MAS  1950492.58.%500

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Major Moves Down
SharenameSaleMove% MoveVolume
1 WCC  150-40-21.05.%69797
2 CAMAC  781-129-14.18.%3146
3 RBPLAT-N  911-118-11.47.%106343
4 MARSHALL  806-101-11.14.%860
5 SEARDEL  169-19-10.11.%28000
6 MMG  1100-80-6.78.%10520
7 TREMATON  350-19-5.15.%9000
8 VPIF  901-39-4.15.%141
9 AFROX  1900-80-4.04.%43776
10 COMAIR  390-15-3.70.%84515
11 HOSP-B  520-20-3.70.%36395
12 PALLINGHT  345-13-3.63.%27476
13 BCX  561-19-3.28.%6773
14 CURRO  2611-85-3.17.%236372
15 HARMONY  3170-100-3.06.%953405
16 AUSTRO  159-5-3.05.%29790
17 METMAR  141-4-2.76.%5000
18 FINBOND  321-9-2.73.%131589
19 ALTRON  2379-66-2.70.%7792
20 PREMIUM  1800-49-2.65.%34220

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New Highs
SharenameSaleHighMove% MoveVolume
1 MUSTEK  680680355.43.%162288
2 MASTDRILL  12001200504.35.%25273
3 HUGE  13513553.85.%30000
4 CML  10128103262282.30.%844799
5 SANLAM  588058801262.19.%3224829
6 CIL  25152535361.45.%32304
7 BIDVEST  28238284473971.43.%825047
8 INVPLC  859886501181.39.%1783268
9 INVLTD  860286541181.39.%307202
10 BEE-SASOL  46500465005001.09.%200
11 OLDMUTUAL  35753595340.96.%2849705
12 ILIAD  72072050.70.%242391
13 CLICKS  65856689300.46.%503277
14 SUPRGRP  2880288050.17.%193624
15 JSE  93009566-229-2.40.%106129

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New Lows
SharenameSaleLowMove% MoveVolume
1 CITYLDG  117001073310.01.%32132

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Index Summary
Index NameRPMove% Move
Top 4043,320.65324.020.75%
Mid Cap60,877.93282.460.47%
Small Cap51,807.0771.280.14%
Resource 2055,842.24274.060.49%
Industrial 2555,066.98495.640.91%
Financial 1513,620.3891.890.68%
Financial & Ind. 3058,855.86504.860.87%
All Share48,104.98334.060.70%
Oil & Gas 44,215.89-399.56-0.90%
Mining 33,194.02268.310.81%
Gold Mining1,436.92-10.21-0.71%
Platinum Mining50.49.701.41%
GENERAL MINING9,591.8287.410.92%
Oil & Gas Producers 23,774.07-214.83-0.90%
Basic Materials 29,363.41200.360.69%
Chemicals 24,056.30-66.02-0.27%
Forestry & Paper 31,087.81-232.37-0.74%
Industrial Metals 20,655.99221.731.09%
Industrials 43,778.81145.000.33%
General Industrials 138.41.750.54%
Consumer Goods 56,774.68317.530.56%
Automobiles & Parts 9,725.8533.970.35%
Household Goods357.66113.18%
Health Care 76,410.72383.310.50%
Beverages 179.08-.44-0.25%
Index NameRPMove% Move
Food Producers 67,973.62687.131.02%
Personal Goods 1,020.5411.991.19%
Consumer Services 11,550.28221.181.95%
General Retailers 61,783.54255.670.42%
Travel & Leisure 5,368.8747.870.90%
Media 259.826.242.46%
Support Services 2,581.24-18.73-0.72%
Telecommunications 10,364.1787.440.85%
Financials 35,502.56211.080.60%
Banks 60,771.89211.280.35%
Non-life Insurance 49,768.30176.100.36%
Life Insurance 34,715.97384.931.12%
General Financial 3,590.1936.211.02%
Technology 40,782.31175.190.43%
SHARIAH TOP40 4,151.17270.65%
FTSE/JSE SHARIAH ALL4,241.90250.60%
COAL MINING18,028.413301.86%
FTSE JSE Fledgling 6,600.83-37-0.55%
FTSE/JSE Alt X 1,214.10181.53%
RESOURCE 30,495.491480.49%
DIVIDEND PLUS218.5710.40%
FTSE/JSE RAFI 409,635.68490.51%
Capped Top 4022,941.871630.72%
Capped All Share24,359.231660.69%
JSE TABACO 7,463.64-46-0.61%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
03/04/2014DIAMONDCPDecember 2013 (Final)
03/04/2014MICROMEGASeptember 2013 (Interim)
04/04/2014OANDODecember 2013 (Final)
04/04/2014VIVIDENDFebruary 2014 (Interim)
08/04/2014ZEDERFebruary 2014 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
ILRPREF131/03/1416/04/1429/04/14ZAR 12.2033
FINBOND28/03/1416/04/1429/04/14ZAR 0.0210
CAPITEC26/03/1410/04/1422/04/14ZAR 4.6000
KAYDAV26/03/1430/04/1412/05/14ZAR 0.0750
METAIR25/03/1416/05/1426/05/14ZAR 0.7000
Ex Div**
Share NameDec-DateLDTPay-DateAmount
ABSABANK-P11/02/1428/03/1407/04/14ZAR 29.7932
NEDBANK24/02/1428/03/1407/04/14ZAR 5.0500
B-AFRICA11/02/1428/03/1407/04/14ZAR 4.7000
SASFIN-P11/03/1428/03/1407/04/14ZAR 3.5351
STANBANK-P06/03/1428/03/1407/04/14ZAR 3.2994

Upcoming AGMs**
CodeCompany NameDateStatus
MMPMarshall Monteagle PLC01/04/2014Confirmed
MTEMarshall Monteagle PLC01/04/2014Confirmed
AMSPAnglo American Platinum Ltd.02/04/2014Confirmed
AMSAnglo American Platinum Ltd.02/04/2014Confirmed
CILConsolidated Infrastructure Group Ltd.02/04/2014Confirmed

Stock Exchange News Service
01/04/201417:40ARGENT INDUSTRIAL LIMITED - Dealing in securities by a director
01/04/201417:36SEPHAKU HOLDINGS LIMITED - Notification of share dealings by a director of Sepha...
01/04/201417:21JD GROUP LIMITED - Acquisition of shares by Steinhoff International Holdings Lim...
01/04/201417:15ADCOCK INGRAM HOLDINGS LIMITED - Resignation of Chief Executive Officer
01/04/201417:13ARROWHEAD PROPERTIES LIMITED - Proposed acquisition of all Vividend Income Fund...
01/04/201417:00BELL EQUIPMENT LIMITED - No change statement and notice of Annual General Meetin...
01/04/201417:00BK ONE LIMITED - Resignation of BK One CEO
01/04/201417:00MARSHALL MONTEAGLE PLC - Results of annual general meeting
01/04/201417:00CAPEVIN HOLDINGS LIMITED - Change In Sponsor
01/04/201416:25LIFE HEALTHCARE GROUP HOLDINGS LTD - Election to purchase shares by a director i...
01/04/201416:22ANGLO AMERICAN PLC - Publication of Final Terms
01/04/201416:15CAMAC ENERGY INCORPORATED - Dealing by a director
01/04/201416:15CAPITAL & COUNTIES PROPERTIES PLC - Director and Connected Persons Share Dealing...
01/04/201416:10BNP PARIBAS ARBITRAGE ISSUANCE B.V. - Issue of ZAR200,000,000 Index Linked Redem...
01/04/201416:01NEWFUNDS COLLECTIVE INVEST SCHEME - NFGOVI; NFILBI and NFTRCI - Interest distrib...
01/04/201415:45GROWTHPOINT PROPERTIES LIMITED - Director's Dealings
01/04/201415:30Fintech Receivables 2 (rf) Limited - Fintech Receivables 2 (rf) Limited - Financ...
01/04/201414:54INVESTEC BANK LIMITED - Investec Dividend Announcement- IPLIHF
01/04/201414:46BETTABETA CIS - Abridged Audited Results for The Year Ended 31 December 2013
01/04/201414:45BETTABETA CIS - Abridged Audited Results for The Year Ended 31 December 2013
01/04/201414:33FORTRESS INCOME FUND LIMITED - Placement of Fortress A and B linked nits
01/04/201414:31MIRANDA MINERAL HOLDINGS LIMITED - Notification in terms of section 122 of the C...
01/04/201414:15OLD MUTUAL PLC - Amendment Form 8.3 Disclosure
01/04/201414:14OLD MUTUAL PLC - CANCELLATION OF S343235 Form 8.3 Disclosure
01/04/201414:06THE SA NATIONAL ROADS AGENCY SOC LTD - SANRAL - Notice of amendment to the Progr...
01/04/201414:00OLD MUTUAL PLC - Annual Financial Report 2013 and Annual General Meeting 2014
01/04/201413:45ANGLO AMERICAN PLC - Total voting rights
01/04/201413:00COAL OF AFRICA LIMITED - Director's Dealings
01/04/201413:00BRITISH AMERICAN TOBACCO PLC - British American Tobacco p.l.c. Voting Rights an...
01/04/201413:00ASTRAL FOODS LIMITED - Withdrawal of Cautionary Announcement
01/04/201412:30SABMILLER PLC - Notification of transactions of a PDMR
01/04/201412:00NETCARE LIMITED - Declaration of Preference Dividend Number 16
01/04/201412:00INVESTEC PROPERTY FUND LIMITED - Finalisation of Nicol Main Acquisition and RPP ...
01/04/201411:30LIBERTY HOLDINGS LIMITED - Posting of Liberty Holdings Integrated Annual Report,...
01/04/201411:30MASONITE (AFRICA) LIMITED - No Change Statement and Notice of Annual General Mee...
01/04/201411:25ARB HOLDINGS LIMITED - Dealing in securities by a director of a major subsidiary
01/04/201411:15COMPU-CLEARING OUTSOURCING LIMITED - Dealings by a director
01/04/201411:12BARLOWORLD LIMITED - BAWP/BWL - Directors dealings in securities
01/04/201411:02GRINDROD INDEX TRACKER MAN RF PTY LTD - Initial offer for Grindrod LowVolTrax pa...
01/04/201411:00GRINDROD INDEX TRACKER MAN RF PTY LTD - Initial offer for Grindrod Divtrax parti...
01/04/201411:00OLD MUTUAL PLC - Old Mutual Plc Announces the Completion of Faulu Transaction
01/04/201410:40TAWANA RESOURCES NL - Form 603 Notice of Intial substantial holder
01/04/201410:35FORTRESS INCOME FUND LIMITED - Placement of Fortress A and B linked units
01/04/201410:30INSIMBI REFRACTORY & ALLOY SUP LTD - Voluntary Update to Shareholders
01/04/201410:30ATLANTIC LEAF PROPERTIES LIMITED - Results of SA private placement of Atlantic L...
01/04/201410:26Macquarie Securities South Africa Ltd - Dividend declaration announcement - MAQP...
01/04/201410:24BARLOWORLD LIMITED - Barloworld finalises disposal of its Australian motor retai...
01/04/201410:12LITHA HEALTHCARE GROUP LIMITED - Amendment to frequency of reporting periods
01/04/201410:05BLUE FINANCIAL SERVICES LIMITED - Further update to shareholders
01/04/201410:00HOMECHOICE HOLDINGS LIMITED - Release of Annual Financial Statements
01/04/201410:00IVUZI INVESTMENTS LIMITED - Full Capital Redemption - IVA414
01/04/201409:50NEWFUNDS COLLECTIVE INVEST SCHEME - NFTRCI - Audited Results for the year ended ...
01/04/201409:33ARROWHEAD PROPERTIES LIMITED - Firm intention by Arrowhead to make offer for al...
01/04/201409:27NEWFUNDS COLLECTIVE INVEST SCHEME - Audited Results for the year ended 31 Decemb...
01/04/201409:21NEWFUNDS COLLECTIVE INVEST SCHEME - Audited Results for the year ended 31 Decemb...
01/04/201409:14SABLE METALS & MINERAL LTD - Update to shareholders
01/04/201409:13NEWFUNDS COLLECTIVE INVEST SCHEME - NFSH40 - Audited Results for the year ended ...
01/04/201409:12SABLE METALS & MINERAL LTD - Further cautionary announcement
01/04/201409:10NEWFUNDS COLLECTIVE INVEST SCHEME - RAFRES - Audited Results for the year ended ...
01/04/201409:09NEWFUNDS COLLECTIVE INVEST SCHEME - RAFISA - Audited Results for the year ended ...
01/04/201409:06NEWFUNDS COLLECTIVE INVEST SCHEME - RAFIND - Audited Results for the year ended ...
01/04/201409:05NEWFUNDS COLLECTIVE INVEST SCHEME - NFEMOM - Audited Results for the year ended ...
01/04/201408:57NEWFUNDS COLLECTIVE INVEST SCHEME - NEWFSA - Audited Results for the year ended ...
01/04/201408:54NEWFUNDS COLLECTIVE INVEST SCHEME - MAPPSP - Audited Results for the year ended ...
01/04/201408:51NEWFUNDS COLLECTIVE INVEST SCHEME - MAPPSG - Audited Results for the year ended ...
01/04/201408:30NEWFUNDS COLLECTIVE INVEST SCHEME - NFILBI - Audited Results for the year ended ...
01/04/201408:30NASPERS LIMITED - Change in management of PAY- TV SEGMENT
01/04/201408:25NEWFUNDS COLLECTIVE INVEST SCHEME - NFGOVI - Audited Results for the year ended ...
01/04/201408:01SATRIX COLLECTIVE INVESTMENT SCHEME - Partial delisting of Satrix Fini securitie...
01/04/201408:00ACCELERATE PROPERTY FUND LTD - Appointment of independent non-executive director
01/04/201408:00SATRIX COLLECTIVE INVESTMENT SCHEME - Partial delisting of Satrix 40 securities ...
01/04/201408:00INVESTEC BANK LIMITED - New Listing - ESPIBE
01/04/201408:00CENTRAL RAND GOLD LIMITED - Resignation of a director
01/04/201408:00BRITISH AMERICAN TOBACCO PLC - Closed period share repurchase programme
01/04/201407:39THE WATERBERG COAL COMPANY LTD - Appendix 3B - New issue announcement
01/04/201407:17THE WATERBERG COAL COMPANY LTD - Expiry of unlisted options 31 March 2014
01/04/201407:05BHP BILLITON PLC - Market Speculation

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