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 The Sharenet Daily 
Tuesday, 01 July 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 - Cash Alternatives

Today’s article is a follow on from last week’s where we looked at the advantages of investing across a range of asset classes. This week we look at the options available for companies and investors that hold large amounts of ‘strategic’ cash (typically long term holders of cash) for one reason or the other.

There is no free lunch in the investment world and this statement also holds true when looking to increase your yield/interest earned on cash type investments. In order to achieve higher yields we need to give up liquidity (longer notice periods), take on more credit risk, take on more capital risk, or accept a combination of the three. It is important to remember that whilst money market funds are generally seen as safe investments, they are not risk free. There have been money market funds in the past and there will be money market funds in the future which have capital draw downs.

When I speak to clients with large cash holdings, I try to ascertain what portion of their cash will be held for periods in excess of 6 months (strategic cash holdings) and it is this portion of the cash holdings that is pertinent to this article.

I have put together a mix of three income funds which have very different strategies when trying to extract that extra yield above money market. These funds are fairly uncorrelated and have given, and should continue to give, clients a good chance of outperforming money market funds without adding too much risk. Costs are hugely important when dealing in a low yield environment, so the moment you add on layers of cost like platform fees and financial advice fees, your probabilities of outperforming money market funds reduce.

A brief summary of the funds follows:
• The MET income Plus Fund is a credit fund with almost no duration risk. Whilst credit risk (i.e. the risk of a client defaulting) is easy to understand it is quite difficult to implement. The manager of this fund has a long track record in managing credit risk successfully. This fund is still new, but the Momentum Income Plus fund was previously managed by the same manager with the same mandate.
• The Prudential Enhanced Income Fund is a valuation based, tactical asset allocation fund that invests across a range of income producing assets including property, inflation linked bonds, and offshore exposure to increase the yield given to clients.
• The Cadiz Absolute Yield Fund is a combination of the above two funds and often mixes duration into the offering.

Each of these funds has had, and will continue to have, periods of relative out and underperformance, but the average return of the three is relatively smooth. The benefit of multi management, through manager diversification, is evident in the thought behind the blend chosen. The charts below show the performance of the 3 funds, as well as their equally weighted blend, versus a traditional money market fund, both on a cumulative basis and on a risk/return basis (where risk is defined as downside deviation).

For clients that have strategic cash requirements this mix of funds has been able to outperform money market on a consistent basis with very low volatility. In addition to this, the entire capital amount is available with three days’ notice. It is important to note that while this is mix that is currently recommended, things do change (e.g. fund manager movements) and investors therefore need to remain on top of any changes.

Kind regards,
Barry Hugo

021 914 4966

Tue, 01 Jul 2014
Top News
South Africa's Labour Court issued an order on Tuesday barring the NUMSA union from striking at power utility Eskom's plants, a spokesman for the electricity firm said.  Full story

South African stocks booked a record close on Tuesday, rising 1 percent as higher metal prices lifted resource companies such as AngloGold Ashanti and Anglo American Platinum.  Full story
A U.S. car manufacturer was putting pressure on its South African unit to close due to labour troubles, an employers' body said on Tuesday as more than 220,000 engineering and metal workers launched a wage strike.  Full story
Sunnis and Kurds walked out of the first session of Iraq's new parliament on Tuesday after Shi'ites failed to name a prime minister to replace Nuri al-Maliki, dimming any prospect of an early national unity government to save Iraq from collapse.  Full story
Former French President Nicolas Sarkozy was held for questioning on Tuesday over suspicions he used his influence to secure leaked details of an inquiry into alleged irregularities in his 2007 election campaign.  Full story
European shares began the month with a gain, as BNP Paribas rose on relief it had settled a U.S. sanctions case and mining. . .  Full story
Britain's top share index made a strong start to the second half of the year, recording its biggest daily gain in two months. . .  Full story
Stock markets around the world rose at the start of the second half of 2014 on Tuesday, propelled by solid U.S. and Chinese. . .  Full story
The S&P 500 hit a record high on Tuesday after data showing U.S. manufacturing accelerated even if at a slightly slower rate, and. . .  Full story

Gold hit its highest since late March on Tuesday as bets that record-low interest rates will persist buoyed stocks and on fresh signs. . .  Full story
U.S. stocks kicked off the third quarter with a higher open on Tuesday, after a report showed China's factory sector expanded in June. . .  Full story
European shares advanced on Tuesday, led by BNP Paribas on relief that it settled a U.S. sanctions case, while mining stocks rallied on. . .  Full story
Australian shares fell 0.4 percent to end at a two-and-a-half month closing low on Tuesday with major banks weaker after the central bank. . .  Full story
SA Business
A wage strike by 220,000 South African steel and engineering workers which began on Tuesday will cost the economy more than. . .  Full story
South Africa construction firm Murray & Roberts said on Tuesday a strike by more than 220,000 engineering and steel workers has. . .  Full story
South Africa's economy is expected to grow at a moderate pace but is still performing below potential, Finance Minister Nhlanhla Nene. . .  Full story
South Africa's rand was little changed and seen in a fairly tight range on Tuesday as a nationwide strike by the. . .  Full story

A wage strike by 220,000 South African steel and engineering workers which began on Tuesday will cost the economy more than 300 million. . .  Full story
South Africa's striking engineering and metal workers union NUMSA said on Tuesday it was reverting to a demand for a 15. . .  Full story
South Africa's new vehicle sales fell 2.3 percent year-on-year to 52,837 units in June, data from the trade and industry. . .  Full story
South Africa's Treasury sold 2.35 billion rand ($221 million)worth of its 2030, 2032 and 2048 bonds on Tuesday.. . .  Full story

South Africa's fiscal position has come under increasing pressure from a weakening economic outlook, and the prospect of further tapering in U.S. monetary stimulus has added to the uncertainty, Finance Minister Nhlanhla Nene said on Tuesday.. . .  Full story
South Africa's fiscus is likely to see an increase in spending, but is looking to focus the expenditure on investment, Finance Minister Nhlanhla Nene said on Tuesday.. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0051480.19534.931.05%
JSE Top 4017:0046481.44511.631.11%
JSE Gold17:001506.1556.493.90%
JSE Financial17:0037769.50244.210.65%
JSE Industrial17:0067581.58357.100.53%
JSE Indust 2517:0059925.68313.120.53%
JSE Resource17:0058371.081403.132.46%
DJ Futures19:5816915.00175.001.05%
DJ Ind19:5816989.37162.770.97%
SP 50019:581977.3917.160.88%
FTSE 10017:356802.9258.980.87%
All Ords08:385366.50-15.50-0.29%
NZSE 5007:485146.264.780.09%
NameTimeRPMove% Move
Gold $19:591326.85.460.03%
Gold R19:5814155.4814155.480.00%
Gold R/kg19:5845494956811.26%
Silver $19:5921.0510.07400.35%
Platinum $19:591509.8026.101.76%
Palladium $19:59851.6011.251.34%
Brent Crude19:58112.06-1.24-1.09%
Rand / Dollar19:5910.67130.03920.37%
Rand / Pound19:5518.27000.10730.59%
Rand / Euro19:5514.59650.03490.24%
Rand / NZD19:589.37150.05410.58%
Rand / AUD19:5510.13390.10151.01%
Yen / Dollar19:59101.53400.22300.22%
Euro / Dollar19:550.73040.00040.05%
Dollar / Euro19:591.3683-0.0010-0.07%
Pound / Dollar19:550.5825-0.0017-0.29%

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 CONDUIT  1691811.92.%365
2 BUILDMX  241167.11.%69
3 METMAR  14496.67.%28521
4 PNR-FOODS  111376376.07.%69983
5 JASCO  10155.21.%337627
6 HARMONY  32661514.85.%1200582
7 PSG  96864364.71.%91288
8 INTEWASTE  16074.58.%106157
9 MASTDRILL  1380604.55.%379
10 RBPLAT  74073074.32.%68500
11 GFIELDS  40041644.27.%1152958
12 ANGLO  2712911044.24.%1875408
13 ANGGOLD  185007154.02.%875609
14 ANGLOPLAT  4792118143.93.%164729
15 AUSTRO  18973.93.%325070
16 MUSTEK  747273.75.%26950
17 VALUE  544193.62.%7058
18 AMECOR  290103.57.%34575
19 SIBANYE  2945913.19.%1467996
20 NET1UEPS  122003703.13.%5350

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Major Moves Down
SharenameSaleMove% MoveVolume
1 POYNTING  285-49-14.67.%841315
2 DELTA  400-45-10.11.%33500
3 TRUSTCO  180-19-9.55.%257549
4 LITHA  180-15-7.69.%88469
5 AFRO-C  450-22-4.68.%69308
6 CADIZ  105-5-4.55.%74000
7 ROLFES  375-17-4.34.%12673
8 FORTRESSB  958-43-4.30.%165330
9 MMG  1000-40-3.85.%12278
10 TIMES  2100-80-3.67.%550
11 DIAMONDCP  132-5-3.65.%200
12 ABIL  655-24-3.53.%2522765
13 BRIMST-N  1480-45-2.95.%5980
14 TRNSHEX  360-10-2.70.%708064
15 ASPEN  29090-799-2.67.%1550138
16 CURRO  2727-72-2.57.%86117
17 ACCELERAT  569-15-2.57.%1026546
18 HUDACO  9286-240-2.52.%39397
19 DISTELL  13650-350-2.50.%28751
20 OCEANA  8500-200-2.30.%12154

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New Highs
SharenameSaleHighMove% MoveVolume
1 PNR-FOODS  11137112386376.07.%69983
2 INTEWASTE  16016074.58.%106157
3 AUSTRO  18918573.93.%325070
4 SIBANYE  29452950913.19.%1467996
5 SOVFOOD  770770202.67.%23599
6 PALLINGHT  410415102.50.%125288
7 NEW_CAP  10951095252.34.%1230060
8 RANGOLD  460475102.22.%52810
9 SANLAM  630063051252.02.%2917607
10 ASTRAL  12445127802452.01.%42784
11 OLDMUTUAL  36613669631.75.%5908655
12 MRPRICE  18340184992591.43.%392346
13 WOOLIES  79107980951.22.%1252271
14 VIVIDEND  56556561.07.%1370639
15 STEINHOFF  59736030480.81.%5556718
16 EOH  90819150560.62.%133898
17 REMGRO  2306123266610.27.%632696
18 SUNINT  1102011096200.18.%42431
19 SUPRGRP  30293093-16-0.53.%240634
20 INVPLC  96229800-157-1.61.%639906

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New Lows
SharenameSaleLowMove% MoveVolume
1 WBHO  1257012525-130-1.02.%79546
2 ARCMITTAL  3113305870.23.%425207

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Index Summary
Index NameRPMove% Move
Top 4046,481.44511.631.11%
Mid Cap64,273.42499.200.78%
Small Cap54,472.67185.940.34%
Resource 2058,371.081403.132.46%
Industrial 2559,925.68313.120.53%
Financial 1514,609.48108.180.75%
Financial & Ind. 3063,836.23369.150.58%
All Share51,480.19534.931.05%
Oil & Gas 47,751.40-102.16-0.21%
Mining 34,476.671044.953.13%
Gold Mining1,506.1556.493.90%
Platinum Mining47.911.072.28%
GENERAL MINING10,066.11309.363.17%
Oil & Gas Producers 25,675.05-54.93-0.21%
Basic Materials 30,480.97850.172.87%
Chemicals 25,131.7737.340.15%
Forestry & Paper 33,082.42326.891.00%
Industrial Metals 18,553.51106.010.57%
Industrials 45,977.4276.470.17%
General Industrials 145.36-.06-0.04%
Consumer Goods 64,512.19511.890.80%
Automobiles & Parts 8,604.94110.961.31%
Household Goods405.9930.81%
Health Care 82,330.70-742.62-0.89%
Beverages 212.552.191.04%
Index NameRPMove% Move
Food Producers 78,560.711487.871.93%
Personal Goods 1,118.611.290.12%
Consumer Services 12,084.3384.300.70%
General Retailers 65,199.41548.760.85%
Travel & Leisure 5,807.0428.940.50%
Media 275.682.360.86%
Support Services 2,821.7916.920.60%
Telecommunications 10,745.3420.640.19%
Financials 37,769.50244.210.65%
Banks 65,518.05401.050.62%
Non-life Insurance 49,257.86-510.44-1.03%
Life Insurance 36,578.49541.611.50%
General Financial 3,778.44-22.44-0.59%
Technology 43,987.27135.230.31%
SHARIAH TOP40 4,352.56781.83%
FTSE/JSE SHARIAH ALL4,466.63761.73%
COAL MINING17,537.91290.17%
FTSE JSE Fledgling 6,832.0170.10%
FTSE/JSE Alt X 1,251.21-4-0.28%
RESOURCE 31,909.127652.46%
DIVIDEND PLUS225.1610.29%
FTSE/JSE RAFI 4010,189.521361.36%
Capped Top 4024,616.522581.06%
Capped All Share26,070.522681.04%
JSE TABACO 8,212.701081.33%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
11/07/2014ROCKWELLMay 2014 (Q)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
LIBHOLD1130/06/1404/07/1414/07/14ZAR 0.0550
TRUSTCO30/06/1425/07/1422/08/14NAD 0.0275
PRESCIENT30/06/1425/07/1404/08/14ZAR 0.0260
ILRPREF130/06/1418/07/1428/07/14ZAR 12.5638
VIVIDEND27/06/1411/07/1421/07/14ZAR 0.0404
Ex Div**
Share NameDec-DateLDTPay-DateAmount
TFG29/05/1427/06/1407/07/14ZAR 2.9300
ALTRON14/05/1427/06/1407/07/14ZAR 0.8000
ALTRON PP14/05/1427/06/1407/07/14ZAR 0.8000
PNR FOODS19/05/1427/06/1407/07/14ZAR 0.6500
ILLOVO26/05/1427/06/1407/07/14ZAR 0.6000

Upcoming AGMs**
CodeCompany NameDateStatus
WEZWesizwe Platinum Ltd.01/07/2014Confirmed
CRDCentral Rand Gold Ltd.01/07/2014Confirmed
GAMGlobal Asset Management Ltd.01/07/2014Confirmed
CGRCalgro M3 Holdings Ltd.02/07/2014Confirmed
CRGCargo Carriers Ltd.03/07/2014Confirmed

Stock Exchange News Service
01/07/201417:41BEIGE HOLDINGS LIMITED - Changes to the Board of Directors
01/07/201417:20ATTACQ LIMITED - Dealing in securities by an associate of directors, a director ...
01/07/201417:15THE WATERBERG COAL COMPANY LTD - Appendix 3X - Initial Directors Interest Notice
01/07/201417:10EOH HOLDINGS LIMITED - Dealings in Securities by a Director
01/07/201416:30MINE RESTORATION INVESTMENTS LTD - Diaclosure of an aquisition and disposals of ...
01/07/201416:15OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
01/07/201416:11OCTODEC INVESTMENTS LIMITED - Posting of circulars and firm intention of Octodec...
01/07/201416:00REDEFINE INTERNATIONAL PLC - Notification of transactions of directors/persons d...
01/07/201416:00BRITISH AMERICAN TOBACCO PLC - Schedule 5 Blocklisting six monthly return
01/07/201415:46CSG HOLDINGS LIMITED - Additional information regarding CSGs reviewed condenced...
01/07/201415:34BHP BILLITON PLC - Notification of Major Interest in Shares
01/07/201415:07JASCO ELECTRONICS HOLDINGS LIMITED - Change to the board of directors
01/07/201415:00OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
01/07/201415:00CLIENTELE LIMITED - Appointment to the Board of Directors
01/07/201415:00BRITISH AMERICAN TOBACCO PLC - Voting Rights and Capital
01/07/201415:00ARROWHEAD PROPERTIES LIMITED - Dealings in securities by an associate of direct...
01/07/201414:49BAYPORT SECURITISATION (RF) LTD - Interest Reset Announcement
01/07/201414:47CITY LODGE HOTELS LIMITED - Directors dealings in securities
01/07/201414:46CITY LODGE HOTELS LIMITED - CANCELLATION OF S346193 Directors dealings in securi...
01/07/201414:02LONMIN PLC - Total Voting Rights and Capital as at 30 June 2014
01/07/201414:00Central Rand Gold Limited - Results Of Annual General Meeting
01/07/201413:32MERCEDES-BENZ SOUTH AFRICA LIMITED - Appointment of Debt Sponsor
01/07/201413:30OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
01/07/201413:10IMPERIAL HOLDINGS LIMITED - Dealings in Securities by a Director of Imperial
01/07/201413:04INVESTEC PROPERTY FUND LIMITED - Investec Property Fund Limited New Financial In...
01/07/201413:04PSG GROUP LIMITED - Dealing in PSG Group Limited shares by an associate of a Dir...
01/07/201413:03INVESTEC PROPERTY FUND LIMITED - New Financial Instrument Listing - IPF08
01/07/201413:02INVESTEC PROPERTY FUND LIMITED - Investec Property Fund Limited New Financial In...
01/07/201412:20LONMIN PLC - Notification of Major Interest in Shares
01/07/201412:00SABMILLER PLC - Notification of transactions of directors, persons discharging m...
01/07/201411:45DELTA EMD LIMITED - Trading statement for the half year ended 27 June 2014
01/07/201411:40ANGLOGOLD ASHANTI LIMITED - AngloGold Ashanti completes sale of Navachab mine
01/07/201411:30ASCENSION PROPERTIES LIMITED - Change to the board of directors
01/07/201411:30TOTAL CLIENT SERVICES LIMITED - Renewal of cautionary announcement
01/07/201411:25OLD MUTUAL PLC - Acquisition of Intrinsic
01/07/201411:15SENTULA MINING LIMITED - Withdrawal of Cautionary Announcement
01/07/201411:15ACCENTUATE LIMITED - Changes to the Board of Directors
01/07/201411:05LEWIS GROUP LIMITED - Changes to the board of directors
01/07/201410:55ANGLO AMERICAN PLC - Total voting rights
01/07/201410:46FORBES & MANHATTAN COAL CORP - Report of voting results at annual general meetin...
01/07/201410:30INFRASORS HOLDINGS LIMITED - Infrasors specific issue of shares for cash
01/07/201410:15HULAMIN LIMITED - CEO Richard Jacob to take medical leave of absence
01/07/201410:08BSI STEEL LIMITED - Dealing in securities by an associate of a director
01/07/201410:05WESIZWE PLATINUM LIMITED - Results of the Annual General Meeting and Change to t...
01/07/201410:00DEVELOPMENT BANK OF SOUTHERN AFRICA - New Financial Instruments Listing Announce...
01/07/201410:00JUBILEE PLATINUM PLC - Jubilee makes significant progress in Q2 of 2014 and an i...
01/07/201410:00ROCKCASTLE GLOBAL REAL EST CO LTD - Dealings in securities by associates of a di...
01/07/201409:45Transnet SOC Limited - Transnet announcement of 2014 audited financial results
01/07/201409:26PROTECH KHUTHELE HOLDINGS LIMITED - Update announcement
01/07/201409:10City of Johannesburg Metropolitan Municipality - City of Johannesburg Metropolit...
01/07/201409:00MONDI PLC - Mondi Ltd \Mondi Plc - Mondi Group completes the acquisition
01/07/201409:00COAL OF AFRICA LIMITED - Interest in Shares
01/07/201409:00JSE LIMITED - Gen - South African Coal Mining Holdings Limited - Late Submission...
01/07/201409:00COAL OF AFRICA LIMITED - Expiry of Options
01/07/201408:50INTERWASTE HOLDINGS LIMITED - Results of annual general meeting
01/07/201408:01OLD MUTUAL PLC - Appointment of Old Mutual Group Customer Director
01/07/201408:00ITALTILE LIMITED - Appointment to the Board and Change in Function
01/07/201408:00BRITISH AMERICAN TOBACCO PLC - Close Period Share Repurchase Programme
01/07/201408:00OLD MUTUAL PLC - Appointment of new Executive Directors now effective
01/07/201408:00BLACKSTAR GROUP SE - Result of Annual General Meeting
01/07/201408:00GLENCORE PLC - Convertible bond repurchase
01/07/201408:00TAWANA RESOURCES NL - Lonsec Institutional Equities Initiates Research Coverage
01/07/201408:00CENTRAL RAND GOLD LIMITED - Re-rating of mineral resources between 450 metres an...
01/07/201407:30ALERT STEEL HOLDINGS LIMITED - Resignation of Director
01/07/201407:27TIMES MEDIA GROUP LIMITED - Dealing In Securities To Settle The Obligations Of T...
01/07/201407:05ECSPONENT LIMITED - No Change Statement and Notice of Annual General Meeting
01/07/201407:05INVICTA HOLDINGS LIMITED - Directors dealing in securities
01/07/201407:05AMALGAMATED ELECTRONIC CORP LTD - Condenced conslidated reviewed results for yea...
01/07/201407:05BRITISH AMERICAN TOBACCO PLC - Transaction in own shares

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