Tuesday, 09 June 2015 - 20:00
Charts
Seed Weekly - Hedge Fund Industry
The local hedge fund industry has been in the spotlight this year. Not for any nefarious reasons, like a fund going bust or being a ponzi scheme, but because there has been some new legislation. Earlier in the year the Financial Service Board ( FSB ) and National Treasury finally published new legislation that will bring the hedge fund industry under the Collective Investment Scheme Act (CISCA). Hedge funds will now be regulated under CISCA and provide the same safe guards that unit trusts provide investors. We are all familiar with the unit trust industry, but how does the hedge fund industry compare?
While local hedge funds have been around since the late 1990’s / early 2000’s, the public still isn’t very familiar with the industry, partially as a result of hedge funds falling outside the regulatory framework for most of this period. While hedge funds are only now getting regulated formally, the fund managers have been regulated by the FSB for a few years now. Hedge funds have the stigma of being high risk, high return and very expensive, but South African hedge funds are generally run much more conservatively and with much better transparency than their global counterparts.
Novare Investments publishes an annual survey on the local hedge fund industry and I would like to share some of the insights from the report. Compared to the unit trust industry the hedge fund industry is still very small. The graph below shows the growth in assets in hedge funds since 2002.
Source: Novare Investments SA Hedge Fund Survey 2014
At the June 2014 there was just over R53.6 billion invested in hedge funds compared to R1.6 trillion in unit trusts. The hedge fund industry manages just over 3% of the total assets in unit trusts. The largest unit trust in South Africa (R108 billion) is twice the size the whole hedge fund industry! The biggest hedge fund is South Africa is just over R5 billion.
There are around 60 active hedge fund managers with just over a 100 different funds. Mangers with experience exceeding 10 years manage a third of the assets. The graph below shows the size of the 10 largest funds compared with the industry.
Source: Novare Investments SA Hedge Fund Survey 2014
The 10 largest hedge funds make up 44% of the assets. These funds also received 38% of all flows between June 2013 and June 2014. These are the funds with experienced management teams and proven track records.
With hedge funds now falling under CISCA they will become more accessible to investors and the industry will continue to attract assets. You will be hearing more about these strategies in the future. As retail solutions get launched, hedge fund investing will/should form part of the average investor’s plan, and not just high net worth investment plans. Seed advises on a fund of hedge funds which has been able to consistently outperform its benchmark of CPI + 4% over the past 5 years.
Kind regards,
Gerbrandt Kruger
Tel 021-914-4966
Fax 021-914-4912
Email info@seedinvestments.co.za
Seed is hiring: Click through to our LinkedIn page to see vacancies available.
www.seedinvestments.co.za
Tue, 09 Jun 2015
Top News
Local markets
The All Share fell 1.05% on Tuesday, with losses led by industrial shares. However, gold mining shares soared 6.08%. Full story
South Africa's rand edged weaker early on Tuesday as public sector wage pressures threatened to scupper the unit's recovery from 13-1/2 year lows.
At 0645 GMT the rand had softened 0.2 percent to 12.5000 per dollar, having pulled away from the 12.6600 low in preceding sessions on w Full story |
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Hong Kong issued a "red alert" advisory on Tuesday against non-essential travel to South Korea, where eight new cases of Middle East Respiratory Syndrome (MERS) were reported, bringing the total to 95 with seven fatalities. Full storyA massive fire at a Ukrainian fuel depot killed five people on Tuesday, officials said, including three firemen who went missing after the flames triggered a powerful explosion. Full storyGreek Prime Minister Alexis Tsipras called on his fractious Syriza party to rally behind the government on Tuesday as time runs critically short to unlock funding from international lenders and avert a debt default. Full story |
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Markets | European shares fell on Tuesday
on weak economic data out of China and uncertainty about
Greece's debt negotiations while U.S. stocks were little. . . Full story | | Gold rose on Tuesday as stock
markets weakened and commodities picked up across the board, but
prices remained rangebound as investors awaited clearer. . . Full story | | Hong Kong's Hang Seng index fell
more than 1 percent on Tuesday to its lowest close in two
months, as investor risk appetite. . . Full story | | China shares closed lower on
Tuesday, hours ahead of MSCI's decision on including mainland
stocks in its global indexes, as some investors took. . . Full story |
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| Australian shares fell to their
lowest in four months on Tuesday, led by losses in the mining
and financial sectors on worries about. . . Full story | | Japan's Nikkei share average
posted its biggest loss in almost a month on Tuesday, hurt by
the prospect of an early U.S. rate. . . Full story | | U.S. and European stocks
declined on Monday as investors fretted about Greece and the
timing of a U.S. rate hike, while bond yields. . . Full story | | Gold rose slightly after
a three-day streak of declines on Monday as the dollar and stock
markets fell, though prices hovered near 11-week. . . Full story |
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SA Business | Newmont Mining Corp has agreed to buy the Cripple Creek & Victor gold mine in Colorado from AngloGold Ashanti Ltd for $820 million, giving the world's No. 2 gold producer an expanding asset in a mining-friendly jurisdiction.. . . Full story |
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Company News | Shareholders of Alaris (Shareholders) are referred to the SENS announcements released by the Company on 19 February 2015 and 1 April. . . Full story | | Shareholders are referred to the detailed cautionary announcement dated 15 May 2015 relating to the finalisation of the financial information for. . . Full story | | Morvest shareholders are referred to the announcement published by Morvest on 15 May 2015 (the Announcement), regarding the firm intention of. . . Full story | | Shareholders are referred to the previous cautionary announcements dated 6 March 2013, 22 April 2013, 5 July 2013, 8 July 2013,. . . Full story |
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| Business Report highlighted that Telkom, South Africa's biggest landline provider, will pay its first dividend since 2011, and revamp its operations to revive falling earnings. The stock gained the most in more than two months. Chief executive Sipho Maseko said Telkom. . . Full story | | Old Mutual announced that OM Asset Management plc (ôOMAMö) has filed a registration statement on Form S-1 with the US Securities and Exchange Commission (ôSECö) in preparation for a proposed public offering of OMAMÆs ordinary shares (ôOMAM Sharesö) by Old Mutual.. . . Full story |
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Company Results | Total revenue increased to R32.4 billion (R31.9 billion). An operating profit of R2.9 billion (R4.1 million) was recorded. Profit attributable to owners of the parent decreased to R3.2 billion (R3.8 billion).. . . Full story | | The following results are the company's maiden final results. Fee and commission income was R5.3 billion. Operating profit came in at R782 million. A profit attributable to equity holders of R253. . . Full story | | Group revenue increased to USD124.5 million (USD104.3 million). Operating profit rose to USD5.1 million (USD3.7 million). Profit attributable to owners grew to USD2.3 million (USD1.8 million). In addition, headline earnings per. . . Full story |
World Markets (Spot Prices)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 51080.26 | -543.04 | -1.05% | JSE Top 40 | 17:00 | 45395.91 | -546.76 | -1.19% | JSE Gold | 17:00 | 1077.82 | 61.76 | 6.08% | JSE Financial | 17:00 | 42860.00 | -377.09 | -0.87% | JSE Industrial | 17:00 | 72810.81 | -976.40 | -1.32% | JSE Indust 25 | 17:00 | 64766.79 | -973.49 | -1.48% | JSE Resource | 17:00 | 41103.10 | -74.47 | -0.18% | DJ Futures | 19:22 | 14565.26 | -3202.74 | -18.03% | DJ Ind | 19:58 | 17791.94 | 25.39 | 0.14% | SP 500 | 19:58 | 2082.91 | 3.63 | 0.17% | Nasdaq | 19:58 | 5018.91 | -3.09 | -0.06% | FTSE 100 | 16:51 | 6753.53 | -36.51 | -0.54% | DAX | 18:08 | 11001.29 | -63.63 | -0.58% | CAC40 | 18:08 | 4850.22 | -7.44 | -0.15% | Nikkei | 08:28 | 20096.30 | -360.89 | -1.76% | Shanghai | 09:28 | 5113.53 | -18.35 | -0.36% | Hang-Seng | 05/06 | 27577.34 | 287.37 | 1.05% | All Ords | 08:36 | 5479.70 | -26.80 | -0.49% | NZSE 50 | 07:48 | 5862.11 | -23.70 | -0.40% |
| | Name | Time | RP | Move | % Move | Gold $ | 18:59 | 1177.40 | 3.47 | 0.30% | Gold R | 19:58 | 14643.79 | -0.25 | -0.00% | Gold R/kg | 19:58 | 470798 | 437 | 0.09% | Silver $ | 18:59 | 15.9930 | .0380 | 0.24% | Platinum $ | 18:59 | 1106.80 | 6.80 | 0.62% | Palladium $ | 18:59 | 740.84 | -.16 | -0.02% | R186 | 17:30 | 8.34 | -.06 | -0.71% | R204 | 17:30 | 7.57 | -.03 | -0.39% | R207 | 17:08 | 7.83 | -.05 | -0.63% | Brent Crude | 19:48 | 64.82 | 1.51 | 2.39% | USD / ZAR | 18:59 | 12.4374 | -0.0371 | -0.30% | GBP / ZAR | 18:55 | 19.0743 | -0.0384 | -0.20% | EUR/ ZAR | 18:55 | 14.0121 | -0.0607 | -0.43% | NZD/ ZAR | 18:59 | 8.8762 | -0.0229 | -0.26% | AUD / ZAR | 18:55 | 9.5460 | -0.0568 | -0.59% | USD / JPY | 18:59 | 124.2840 | -0.2550 | -0.20% | EUR / USD | 18:59 | 1.1270 | -0.0011 | -0.10% | GBP / USD | 18:59 | 1.5369 | 0.0028 | 0.18% |
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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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09/06/2015 | 127 | 251 | 46 | 424 | 222,779,010 | R14,300,935,415 | 207321 | 1031988 | 08/06/2015 | 148 | 192 | 57 | 397 | 217,004,960 | R15,047,690,883 | 207961 | 165404 | 05/06/2015 | 202 | 157 | 72 | 431 | 231,327,818 | R17,442,862,728 | 237442 | 1960331 | 04/06/2015 | 109 | 252 | 60 | 421 | 239,211,530 | R20,884,535,951 | 282764 | 667812 | 03/06/2015 | 144 | 248 | 57 | 449 | 272,995,927 | R20,369,222,988 | 312334 | 2370230 |
* Includes all listed instruments on the JSE
Index Summary Index Name | RP | Move | % Move | Top 40 | 45,395.91 | -546.76 | -1.19% | Industrial | 72,810.81 | -976.40 | -1.32% | Mid Cap | 68,870.76 | -239.50 | -0.35% | Small Cap | 59,438.11 | -184.72 | -0.31% | Resource 20 | 41,103.10 | -74.47 | -0.18% | Industrial 25 | 64,766.79 | -973.49 | -1.48% | Financial 15 | 16,313.75 | -128.78 | -0.78% | Financial & Ind. 30 | 69,548.89 | -971.14 | -1.38% | All Share | 51,080.26 | -543.04 | -1.05% | Oil & Gas | 78,221.34 | 16423.09 | 26.58% | Mining | 24,811.06 | -44.95 | -0.18% | Gold Mining | 1,077.82 | 61.76 | 6.08% | Platinum Mining | 29.40 | .02 | 0.07% | GENERAL MINING | 7,384.48 | -74.41 | -1.00% | Oil & Gas Producers | 42,058.17 | 8830.39 | 26.58% | Basic Materials | 23,309.77 | -46.96 | -0.20% | Chemicals | 21,881.67 | -230.80 | -1.04% | Forestry & Paper | 43,912.40 | 494.49 | 1.14% | Industrial Metals | 9,087.80 | -29.97 | -0.33% | Industrials | 43,846.61 | -260.24 | -0.59% | General Industrials | 153.27 | -1.12 | -0.73% | Consumer Goods | 64,532.38 | -1192.74 | -1.81% | Automobiles & Parts | 7,982.22 | -54.34 | -0.68% | Household Goods | 492.13 | -8 | -1.59% | Health Care | 9,516.46 | -110.80 | -1.15% | Beverages | 217.06 | -3.39 | -1.54% |
| | Index Name | RP | Move | % Move | Food Producers | 8,235.93 | -111.28 | -1.33% | Personal Goods | 1,019.04 | -27.26 | -2.61% | Consumer Services | 15,941.58 | -231.59 | -1.43% | General Retailers | 80,425.09 | -69.40 | -0.09% | Travel & Leisure | 5,948.41 | -69.36 | -1.15% | Media | 391.82 | -9.32 | -2.32% | Support Services | 3,192.59 | -52.76 | -1.63% | Telecommunications | 10,315.21 | -114.37 | -1.10% | Financials | 42,860.00 | -377.09 | -0.87% | Banks | 76,964.54 | -62.42 | -0.08% | Non-life Insurance | 53,856.96 | -122.51 | -0.23% | Life Insurance | 40,097.40 | -678.32 | -1.66% | General Financial | 4,313.62 | -56.42 | -1.29% | Technology | 62,128.61 | 132.03 | 0.21% | SHARIAH TOP40 | 3,523.65 | -34 | -0.97% | FTSE/JSE SHARIAH ALL | 3,750.66 | -31 | -0.83% | COAL MINING | 10,833.99 | 343 | 3.27% | FTSE JSE Fledgling | 6,845.42 | -65 | -0.95% | FTSE/JSE Alt X | 1,321.06 | -14 | -1.05% | SA LISTED PROPERTY | 592.78 | | -1.18% | CAPPED PROPERTY | 520.71 | | -0.91% | RESOURCE | 22,530.58 | -37 | -0.16% | DIVIDEND PLUS | 220.33 | -2 | -0.74% | FTSE/JSE RAFI 40 | 9,566.09 | -78 | -0.80% | Capped Top 40 | 24,221.11 | -287 | -1.17% | Capped All Share | 25,908.84 | -275 | -1.05% | JSE TABACO | 8,336.91 | -98 | -1.16% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | TRU | TRUWORTHS INTERNATIONAL L... | BUY | 08/06/2015 | CLS | CLICKS GROUP LTD | HOLD | 08/06/2015 | SLM | SANLAM LIMITED | HOLD | 08/06/2015 | PFG | PIONEER FOODS GROUP LTD | SELL | 08/06/2015 | SHP | SHOPRITE HOLDINGS LIMITED | HOLD | 08/06/2015 |
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Results Expected** Expected | Company Name | Fin. Date | 10/06/2015 | ARCMITTAL | March 2015 (Q) | 10/06/2015 | CULINAN5.5 | March 2015 (Interim) | 10/06/2015 | CULINANPR | March 2015 (Interim) | 10/06/2015 | CULLINAN | March 2015 (Interim) | 10/06/2015 | CULPREF3 | March 2015 (Interim) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | AFORBES | 08/06/15 | 26/06/15 | 06/07/15 | ZAR 0.1200 | TELKOM | 08/06/15 | 10/07/15 | 20/07/15 | ZAR 0.3000 | TELKOM | 08/06/15 | 10/07/15 | 20/07/15 | ZAR 2.1500 | AME | 04/06/15 | 03/07/15 | 13/07/15 | ZAR 2.5000 | SAFARI | 03/06/15 | 19/06/15 | 29/06/15 | ZAR 0.3400 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | ASTRAL | 18/05/15 | 05/06/15 | 15/06/15 | ZAR 5.7500 | INVPREFR | 21/05/15 | 05/06/15 | 22/06/15 | ZAR 4.3817 | JSE | 05/03/15 | 05/06/15 | 15/06/15 | ZAR 4.0000 | INVESTEC-P | 21/05/15 | 05/06/15 | 22/06/15 | ZAR 3.8435 | INVLTDPREF | 21/05/15 | 05/06/15 | 22/06/15 | ZAR 3.5870 |
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Upcoming AGMs** Code | Company Name | Date | Status | TED2 | Trencor Ltd. | 09/06/2015 | Confirmed | TRE | Trencor Ltd. | 09/06/2015 | Confirmed | TBG | Tiso Blackstar Group SE | 09/06/2015 | Confirmed | GGM | Goliath Gold Mining Ltd. | 10/06/2015 | Confirmed | EPS | Eastern Platinum Ltd. | 12/06/2015 | Unconfirmed |
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