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 The Sharenet Daily 
Tuesday, 19 May 2015 - 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 - The Seed Equity Fund

This week I will be focusing on our youngest fund in our range namely the Seed Equity fund. This is a low cost equity fund managed by Seed, under advice from Prof Paul van Rensburg of Salient Quants. The fund aims to provide investors with returns in excess of the JSE ALSI Total Return (J203T)

Our current fund range is depicted below:

Investment Styles

The major equity investment styles can be broken down into Active versus Passive Management, Value versus Growth, and Large Cap versus Small Cap.

Active versus Passive: Actively managed funds typically have portfolio managers constantly seeking superior returns with for example expert research analysts and big support teams. Trading in the funds can happen on an ongoing basis and investors usually pay more for these funds compared to passively managed funds. On the other hand empirical research shows that over the long run, many passively managed funds generate better returns for their investors compared to similar actively managed funds – with the added bonus of the much lower cost.

Value versus Growth (Momentum): The value investment style is focused on buying the best quality companies for the lowest price possible. Companies in favour would be companies with low price to earnings ratios, high dividend yields and low price to sales ratios. A momentum style would be investing in companies which are growing quickly and typically reinvesting most or all of their earnings to fuel continued growth. These companies typically have lower dividend yields with high earnings growth and high profit margins.

Large Cap versus Small Cap: This is purely a measurement of the size of the company as calculated by its market capitalization. Small Caps generally have greater earnings potential but typically also more risk.

Where does Seed Equity fit in?

According to international research by BCA (The Bank Credit Analyst) if one is looking for solid consistent returns then style diversification is important. The Seed Equity fund makes use of “Smart Alpha” techniques and remains style neutral between value and momentum.

Because the fund has a systematic investment process, we have accurate data since January 2003 and actual portfolio data since 2009. The results below reflect the comparison of the fund’s maximum underperformance and the number of months it spent in drawdown versus a range of well-known funds with a similar history.

All of the funds in this study have outperformed the ALSI since this inception date, but many investors have had to sustain a significant period of underperformance – in some cases up to 10 years.

Ideally a fund also aims to outperform the market on a consistent basis. This is especially important for unit trusts because investors are investing at various stages and therefore each has their own return experience.

From the table above it is evident that the Value and Momentum building blocks individually go through periods of underperformance that are just as long as some of the other active managers. However when blended together the Seed Equity fund has a materially shorter period of ‘longest period of underperformance’ because of the fund’s style diversification.


In a similar way, the graphs below reflect the separate building blocks and then a composite of a 50/50 blend.

When combined at equal weights it is clear to see on the graph below, that the return profile is smoothed out and in fact the combined styles have achieved a higher cumulative outperformance.

Compared to its peers the fund is relatively young but the two separate strategies do have an actual 5 year track record. The fund has a two year track record and the end of April 2015 the fund returned 19.5% for the 1 year and was ranked 34 out of 132 funds in its category.

In the coming weeks when we will introduce you to our other two funds namely the Seed Absolute and Seed Flexible Funds.

Kind regards,

Renier Hugo

021 914 4966

Tue, 19 May 2015
Top News
South Africa's rand weakened on Tuesday as the dollar was buoyed by strong U.S. housing data that revived bets of a rate hike in the world's strongest economy by year-end.  Full story

South Africa is investigating several global banks for allegedly fixing foreign exchange trades, joining a worldwide push to probe allegations of price-rigging in currency markets.  Full story
A car bomb exploded in the parking lot of Afghanistan's Ministry of Justice on Tuesday, killing at least five people and wounding dozens as civil servants in Kabul were leaving work for the day, officials said.  Full story
Thailand's junta delayed a general election by at least six months on Tuesday, hours after former Thai Prime Minister Yingluck Shinawatra was banned from travelling overseas, raising questions about a promised return to democracy.  Full story
Iraqi security forces on Tuesday deployed tanks and artillery around Ramadi to confront Islamic State fighters who have captured the city in a major defeat for the Baghdad government and its Western backers.  Full story
Equities around the world jumped on Tuesday and the euro tumbled on signals the European Central Bank may accelerate its 1 trillion euro. . .  Full story
Gold's five-day rally ran out of steam on Tuesday as the dollar extended gains after positive U.S. data while global shares gained ground. . .  Full story
Hong Kong stocks rose on Tuesday, led by Chinese companies, as excitement in mainland markets over accelerated economic reform and financial deregulation rippled across. . .  Full story
China stocks jumped over 3 percent on Tuesday, their biggest one-day gain in four months, with financial shares leading the charge after Beijing published. . .  Full story

Australian shares dropped for a second consecutive session on Tuesday as renewed weakness in iron ore weighed on sentiment, while New Zealand stocks. . .  Full story
Japanese stocks rose to a three-week high on Tuesday thanks to Wall Street's record close and a surge in companies announcing higher shareholder. . .  Full story
Wall Street stocks rose on Monday to record highs on hopes the Federal Reserve will hold off raising interest rates, while the dollar. . .  Full story
Gold reached a three-month high on Monday, rising for a fifth session as a run of soft U.S. data supported expectations that the. . .  Full story
SA Business
South Africa's biggest cement maker PPC Ltd on Tuesday launched a price and cost-cutting strategy to boost earnings by as much. . .  Full story
South Africa will start the process to procure a nuclear fleet to generate 9,600 megawatts of power this year, the energy. . .  Full story
South Africa is stronger than its peers with a stable outlook despite various challenges and a ratings change is therefore unlikely. . .  Full story
South African firm Bidvest Group's offer to buy all the shares it does not already own in pharmaceutical company Adcock Ingram. . .  Full story

Administrators of the furniture arm of failed lender African Bank Investments said on Tuesday creditors were paid 14 percent of what. . .  Full story
Shares in Exxaro Resources fell on Tuesday after South Africa's second-biggest coal miner said lower export iron ore prices hit its. . .  Full story
The risks for another credit downgrade on South Africa's rating are evenly balanced with those for an upgrade, a senior Moody's. . .  Full story
South African electronics and electrical group Reunert posted an 11 percent rise in first-half headline earnings per share on growth in. . .  Full story

South African fishing firm Oceana Group said on Tuesday it will acquire the entire share capital of U.S. based Daybrook Fisheries for $382.3 million, sending its stock higher.. . .  Full story
Company News
Shareholders are advised that at the AGM of the Company held on Tuesday, 19 May 2015, all the resolutions set out. . .  Full story
Shareholders are advised that Exxaro will release its reviewed annual financial results for the six-month period ending 30 June 2015 on. . .  Full story
Subsequent to Mr JHM SchurinkĂs resignation from the Gunvor Group, he has notified the Keaton board of his intention to resign. . .  Full story
Shareholders of Tiger Brands are referred to the announcement released by Oceana Group Ltd. (˘Oceana÷) on SENS relating to the acquisition. . .  Full story

Growthpoint's leading market position, strong balance sheet and its property portfolioĂs increased resilience and defensive nature have contributed to Moody's Investors. . .  Full story
Ellies shareholders are referred to the announcement released on SENS on 4 May 2015 wherein shareholders were advised of, inter alia,. . .  Full story
According to Business Day Barloworld had its automotive business to thank for much of its 16% increase in headline earnings per. . .  Full story
PPC informed stakeholders that there will be a webcast of its 2015 interim results presentation at 10h00 on 19 May 2015.. . .  Full story
Company Results
Revenue for the interim period grew by 22% to R5.8 billion (R4.7 billion). Operating profit shot up 158% to R550.2 million. . .  Full story
Revenue for the interim period increased to R30.7 billion (2014: R29.9 billion). EBITDA rose to R3.0 billion (2014: R2.8 billion), operating. . .  Full story
Revenue increased to R77.3 billion (R75.7 billion). Operating profit lowered to R19.2 billion (R20.4 billion). Profit attributable to equity holders rose. . .  Full story
Revenue for the interim period rose to R9.4 billion (2014: R8.8 billion). Gross profit increased to R3 billion (2014: R2.7 billion),. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0054327.13-82.30-0.15%
JSE Top 4017:0048143.09-118.91-0.25%
JSE Gold17:001158.66-46.47-3.86%
JSE Financial17:0046250.29474.091.04%
JSE Industrial17:0077365.65166.400.22%
JSE Indust 2517:0068875.54130.830.19%
JSE Resource17:0042902.86-1537.26-3.46%
DJ Futures19:5818309.0050.000.27%
DJ Ind19:5818349.2350.350.28%
SP 50019:582132.853.650.17%
FTSE 10017:356995.1026.230.38%
All Ords08:435619.40-40.60-0.72%
NZSE 5007:485757.16-15.55-0.27%
NameTimeRPMove% Move
Gold $19:591207.87-17.61-1.44%
Gold R19:5914381.84-163.59-1.12%
Gold R/kg19:58462493-4250-0.91%
Silver $19:5917.1260-.5530-3.13%
Platinum $19:591150.90-22.10-1.88%
Palladium $19:59776.20-9.80-1.25%
Brent Crude19:5863.99-2.58-3.88%
Rand / Dollar19:5911.90320.03710.31%
Rand / Pound19:5518.4300-0.1299-0.70%
Rand / Euro19:5513.2686-0.1708-1.27%
Rand / NZD19:598.7440-0.0361-0.41%
Rand / AUD19:559.4302-0.0648-0.68%
Yen / Dollar19:59120.69000.69000.58%
Euro / Dollar19:590.89740.01361.54%
Dollar / Euro19:591.1142-0.0173-1.53%
Pound / Dollar19:550.64500.00620.97%

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 SYCOM  350050016.67.%100
2 ERIN  720070010.77.%24195
3 CENRAND  240209.09.%4007
4 THARISA  650508.33.%2082
5 ADRENNA  150117.91.%942000
6 MONTAUK  410307.89.%283
7 PPC  18951287.24.%17053279
8 SOUTH32  21701467.21.%46774401
9 COAL  13086.56.%3921305
10 NET1UEPS  1750010536.40.%2401
11 PETMIN  15085.63.%880238
12 ANCHOR  1150605.50.%446304
13 AEEI  288134.73.%86166
14 METROFILE  484214.54.%37927
15 DIAMONDCP  21094.48.%2000
16 NEPI  151506504.48.%254270
17 BRAIT  106154434.36.%1395877
18 ZEDER  925353.93.%1992013
19 MARSHALL  1640603.80.%600
20 PNR-FOODS  197297193.78.%171067

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Major Moves Down
SharenameSaleMove% MoveVolume
1 DRDGOLD  230-19-7.63.%126443
2 HARMONY  1800-110-5.76.%2375036
3 KEATON   157-8-4.85.%26269
4 KUMBAIO  15400-771-4.77.%637034
5 BILLITON  26002-1299-4.76.%3214645
6 GFIELDS  4340-217-4.76.%2694153
7 AVENG  1015-49-4.61.%740736
8 ARCMITTAL  1754-84-4.57.%773369
9 ARM   10249-482-4.49.%389079
10 ANGLOPLAT  29740-1360-4.37.%436025
11 EXXARO  8960-390-4.17.%504379
12 CONDUIT  240-10-4.00.%269479
13 ASCEN_A  624-25-3.85.%18662
14 ANGGOLD  12533-493-3.78.%953530
15 HUGE  310-12-3.73.%191577
16 ASSORE  10680-396-3.58.%189024
17 RBPLAT  4966-179-3.48.%70681
18 QUANTUMF  380-13-3.31.%72786
19 LONMIN  2545-85-3.23.%524291
20 ETFPLD  9100-297-3.16.%383805

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New Highs
SharenameSaleHighMove% MoveVolume
1 ERIN  7200749970010.77.%24195
2 ADRENNA  150150117.91.%942000
3 SOUTH32  217022331467.21.%46774401
4 NEPI  15150153956504.48.%254270
5 BRAIT  10615106974434.36.%1395877
6 PNR-FOODS  19729197297193.78.%171067
7 CALGRO  18001849452.56.%47677
8 MONDILTDP  27543275435432.01.%431423
9 MONDIPLCP  27546275564991.84.%436549
10 INVPLC  11522115771401.23.%502782
11 CITYLDG  15500159001651.08.%101254
12 CAPCO  79678012510.64.%549398
13 CASHBIL  29300306991380.47.%137614
14 WOOLIES  95569679390.41.%2603900
15 LEWIS  96259786250.26.%366894
16 CAT  19921999-5-0.25.%155312

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New Lows
SharenameSaleLowMove% MoveVolume
1 AVENG  10151005-49-4.61.%740736
2 EXXARO  89608556-390-4.17.%504379
3 ROCKWELL  179179-1-0.56.%10000

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Index Summary
Index NameRPMove% Move
Top 4048,143.09-118.91-0.25%
Mid Cap74,881.81266.280.36%
Small Cap62,254.86148.930.24%
Resource 2042,902.86-1537.26-3.46%
Industrial 2568,875.54130.830.19%
Financial 1517,535.53175.241.01%
Financial & Ind. 3073,951.84250.440.34%
All Share54,327.13-82.30-0.15%
Oil & Gas 34,708.602539.657.89%
Mining 25,899.86-911.01-3.40%
Gold Mining1,158.66-46.47-3.86%
Platinum Mining31.12-.72-2.26%
GENERAL MINING7,668.22-272.95-3.44%
Oil & Gas Producers 18,662.181365.537.89%
Basic Materials 24,316.09-662.76-2.65%
Chemicals 22,901.67-482.60-2.06%
Forestry & Paper 45,519.84790.141.77%
Industrial Metals 9,073.13-415.20-4.38%
Industrials 45,939.89384.890.84%
General Industrials 161.781.470.92%
Consumer Goods 68,676.42323.000.47%
Automobiles & Parts 8,401.1422.640.27%
Household Goods532.4230.62%
Health Care 10,504.34138.601.34%
Beverages 229.47-.96-0.42%
Index NameRPMove% Move
Food Producers 9,090.90171.421.92%
Personal Goods 1,090.7510.991.02%
Consumer Services 16,646.22-21.67-0.13%
General Retailers 86,794.99224.680.26%
Travel & Leisure 6,581.59-27.41-0.41%
Media 403.00-.34-0.08%
Support Services 2,971.4983.622.90%
Telecommunications 11,484.69-18.58-0.16%
Financials 46,250.29474.091.04%
Banks 82,297.87251.820.31%
Non-life Insurance 57,583.20541.070.95%
Life Insurance 44,257.93815.791.88%
General Financial 4,585.4676.721.70%
Technology 63,912.23411.020.65%
SHARIAH TOP40 3,759.55-57-1.50%
FTSE/JSE SHARIAH ALL3,997.55-50-1.23%
COAL MINING11,327.01-493-4.17%
FTSE JSE Fledgling 7,009.8720.03%
FTSE/JSE Alt X 1,336.68130.97%
RESOURCE 23,508.22-826-3.39%
DIVIDEND PLUS235.48-1-0.54%
FTSE/JSE RAFI 4010,173.78-73-0.72%
Capped Top 4025,697.61-63-0.25%
Capped All Share27,555.71-42-0.15%
JSE TABACO 8,598.10750.88%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
20/05/2015INFRASORSFebruary 2015 (Final)
20/05/2015SPARMarch 2015 (Interim)
20/05/2015TIGBRANDSMarch 2015 (Interim)
21/05/2015AFRIMATFebruary 2015 (Final)
21/05/2015DENEBMarch 2015 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
VODACOM18/05/1519/06/1529/06/15ZAR 4.0000
NETCARE18/05/1511/06/1522/06/15ZAR 0.3800
BARWORLD18/05/1505/06/1515/06/15ZAR 1.1500
ASTRAL18/05/1505/06/1515/06/15ZAR 5.7500
PNR FOODS18/05/1526/06/1506/07/15ZAR 0.9500
Ex Div**
Share NameDec-DateLDTPay-DateAmount
PHUMELELA10/04/1515/05/1525/05/15ZAR 0.2800
SPANJAARD27/02/1515/05/1525/05/15ZAR 0.1800
DCENTRIX20/04/1515/05/1525/05/15ZAR 0.0946
RIPLC29/04/1515/05/1505/06/15GBP 0.0160

Upcoming AGMs**
CodeCompany NameDateStatus
BGABarclays Africa Group Ltd.19/05/2015Confirmed
ILAIliad Africa Ltd.21/05/2015Confirmed
ILAAIliad Africa Ltd.21/05/2015Confirmed
JSEJSE Ltd.21/05/2015Confirmed
PETPetmin Ltd.22/05/2015Confirmed

Stock Exchange News Service
19/05/201517:40MAS REAL ESTATE INC - Results of shareholders meeting and proposed amendment to ...
19/05/201517:33ADVANCED HEALTH LIMITED - Notice in terms of Section 45(5) of the Companies Act
19/05/201517:28CONDUIT CAPITAL LIMITED - Results of General Meeting and Appointments to the Boa...
19/05/201517:19BARCLAYS AFRICA GROUP LIMITED - Results of AGM
19/05/201517:10CARGO CARRIERS LIMITED - Summarised audited annual financial statements for the ...
19/05/201517:00EXXARO RESOURCES LIMITED - EXX01 and EXX02 - Interest Rate Reset
19/05/201517:00NEW EUROPE PROPERTY INVESTMENTS PLC - Results of annual general meeting
19/05/201516:15AFRICAN OXYGEN LIMITED - Granting of awards to a director
19/05/201516:14AFRICAN OXYGEN LIMITED - Dealing in securities by the Share Plan
19/05/201516:00TEXTON PROPERTY FUND LIMITED - Further Acquisition of a Property in the UK, Join...
19/05/201515:40OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
19/05/201515:35SANTOVA LIMITED - Presentation to analysts
19/05/201515:30MR PRICE GROUP LIMITED - Purchase of shares by the Share Trust
19/05/201515:26LABAT AFRICA LIMITED - Further det caut announcement re the potential acquisitio...
19/05/201515:20OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
19/05/201515:15TRANSPACO LIMITED - Directors Dealing in Securities
19/05/201515:14AFRICAN MEDIA ENTERTAINMENT LIMITED - Resignation and appointment of company sec...
19/05/201515:00EXXARO RESOURCES LIMITED - Trading statement for the six-month period ending 30 ...
19/05/201515:00CAPITAL PROPERTY FUND LIMITED - Cautionary announcement
19/05/201514:00AFRICAN EQUITY EMPOWERMENT INVESTMENTS LIMITED - Acquisition of 25% plus one sha...
19/05/201513:45INSIMBI REFRACTORY & ALLOY SUP LTD - Cautionary Announcement
19/05/201513:25OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
19/05/201513:15KEATON ENERGY HOLDINGS LIMITED - Changes to the Board
19/05/201513:10STANDARD BANK OF SOUTH AFRICA LD - SCIB: Announcement correction- RDFSTE - Retra...
19/05/201513:09STANDARD BANK OF SOUTH AFRICA LD - CANCELLATION OF S357469 SCIB: The Standard Ba...
19/05/201513:03OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
19/05/201513:00GOODERSON LEISURE CORPORATION LTD - Lease agreement entered into with The Beach ...
19/05/201512:57ANGLO AMERICAN PLC - Transactions in shares by Persons Discharging Managerial Re...
19/05/201512:52SYNTHESIS FUNDING LIMITED - New Financial Instrument Listing - SY1245
19/05/201512:15SOVEREIGN FOOD INVESTMENTS LIMITED - Notice of a disposal of a beneficial intere...
19/05/201512:04FOX STREET 2 (RF) LTD - Fox Street 2 (RF) Limited - FS2A3
19/05/201512:00FOX STREET 2 (RF) LTD - Final Redemption - FS2A2
19/05/201511:10LODESTONE REIT LIMITED - Dealings in securities by an associate of a director of...
19/05/201511:00STANDARD BANK OF SOUTH AFRICA LD - SCIB: Adjustments to the T's & C's of the Bil...
19/05/201511:00BANK WINDHOEK LIMITED - Interest Rate Reset Announcement - BWZJ18
19/05/201510:50CONSOLIDATED INFRASTRUCTURE GRP LTD - Dealing in securities by a director of Con...
19/05/201510:46BRIMSTONE INVESTMENT CORPORATION LD - Announcement relating to the proposed acqu...
19/05/201510:46TIGER BRANDS LIMITED - Announcement relating to the proposed acquisition by Ocea...
19/05/201510:45STANDARD BANK OF SOUTH AFRICA LD - SCIB: Adjustments to the T's & C's of the BHP...
19/05/201510:45OCEANA GROUP LIMITED - Announcement regarding the proposed acquisition by Oceana...
19/05/201510:43SOUTH AFRICAN COAL MINING HLDGS LTD - Changes to the board of directors
19/05/201510:37GLENCORE PLC - Notification of transactions by connected persons of Person Disch...
19/05/201510:24GROWTHPOINT PROPERTIES LIMITED - Moody's Rating Upgrade
19/05/201510:20STANDARD BANK OF SOUTH AFRICA LD - SCIB: The Standard Bank Of South Africa Limit...
19/05/201510:10STANDARD BANK OF SOUTH AFRICA LD - SCIB: The Standard Bank of South Africa Limit...
19/05/201510:00TORRE INDUSTRIES LIMITED - Share dealings by an associate of a director of a sub...
19/05/201510:00COMBINED MOTOR HOLDINGS LIMITED - Dealings in securities by Directors
19/05/201510:00SABMILLER PLC - Notification of transactions of directors
19/05/201509:57ELLIES HOLDINGS LIMITED - Posting of notice of general meeting
19/05/201509:46ADCOCK INGRAM HOLDINGS LIMITED - Notification in terms of S 122(3) of the Compan...
19/05/201509:30PPC LIMITED - Presentation of 2015 Interim Financial Results
19/05/201508:35NEDBANK LIMITED - Adjustment to the terms and conditions of Nedbank's BHP Billit...
19/05/201508:32NEDBANK LIMITED - Adjustment to the terms and conditions of Nedbank's BHP Billit...
19/05/201508:30MMI HOLDINGS LIMITED - Dealings in Securities By A Director
19/05/201508:00TIMES MEDIA GROUP LIMITED - Finalisation announcement and timetable for scheme o...
19/05/201508:00BLACKSTAR GROUP SE - Result of EGM and confirmation that Times Media Group Limit...
19/05/201507:30METROFILE HOLDINGS LIMITED - Change to the Board of Directors - Chief Executive ...
19/05/201507:19REUNERT LIMITED - Unaudited group results and cash dividend declaration for the ...
19/05/201507:11PPC LIMITED - Unaudited interim report for the half-year ended 31 March 2015
19/05/201507:05CORONATION FUND MANAGERS LIMITED - Reviewed interim results for the six months e...

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