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 The Sharenet Daily 
Tuesday, 18 August 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 - Is your portfolio diversified or diworsified?

In previous articles we have discussed the benefits of diversification. Like with all things, too much of a good thing can sometimes be a bad thing. Diversification has been described as probably the only free lunch an investor can get in portfolio construction. A well-diversified portfolio will have lower volatility and if done correctly, better risk/reward benefits.

Below is an example of a blended portfolio and the individual underlying funds that make up the portfolio. The blended portfolio is represented by the large red dot - a balanced portfolio that targets CPI + 6%. The large black dot is the average balanced fund.

The blended portfolio was able to outperform the average manager over the period with a lower downside deviation (the risk of losing capital). You will also notice that the portfolio’s downside deviation is lower than the underlying funds. Investors have therefore received the benefit of diversification by blending funds with low correlations to each other.

Unfortunately the diversification benefit does have its limits. With each additional fund added to the portfolio the diversification benefit decreases. Eventually you will reach a point where the portfolio’s risk is equal to that of the market and any extra inclusion will not provide any real benefit.

The graph below indicates this principle using a portfolio of shares. The benefits of lower volatility are marginal from owning 20 shares to 200 compared to the benefits from 1 to 20.

The ability of additional shares or funds to add meaningful outperformance to a portfolio decrease as more and more positions are added. If you have an over-diversified portfolio you are reducing the likelihood that your portfolio will outperform the market, the second reason for diversifying. Eventually, it will become easier and cheaper to buy an index tracker fund or ETF.

When constructing a portfolio there is no exact number of funds or shares that you should own in your portfolio. However, the principles discussed and the risk and return objectives of the portfolio must all be taken into account.

We typically aim to construct a portfolio with between 5 and 7 funds. By limiting the number of funds we are forced to have a high conviction in the fund and or managers that we select. Each fund manager is included for a specific purpose and is monitored against its benchmark objective and our expectations.

Kind regards,

Gerbrandt Kruger

Tel +27 21 914 4966
Fax +27 21 914 4912
Email info@seedinvestments.co.za

Seed is hiring: Click through to our LinkedIn profiles to see vacancies at Seed Investment Consultants and Seed Analytics


Tue, 18 Aug 2015
Top News
Miner and commodity trader Glencore is considering closing its Eland platinum mine in South Africa due to falling prices, it said on Tuesday.  Full story

Local markets Gains in gold mining shares led the JSE upwards and offset 0.48% losses in resources, with the All Share index closing 0.45% higher on Tuesday.  Full story
Thai authorities said on Tuesday they were looking for a suspect seen on closed-circuit television (CCTV) footage near a popular shrine where a bomb blast killed 22 people, nearly half of them foreigners.  Full story
Myanmar's Nobel laureate Aung San Suu Kyi said on Tuesday her opposition would ally with powerful ousted ruling party leader Shwe Mann, as the country's political forces re-align in the biggest shake-up since the end of military rule.  Full story
Former president Mahinda Rajapaksa's attempt to stage a comeback in Sri Lanka's general election has ended in defeat as results on Tuesday showed the alliance that toppled him making decisive gains.  Full story
A 6 percent tumble in Chinese shares on Tuesday and disappointing earnings from Wal-Mart dented U.S. equities while copper and oil prices touched multi-year. . .  Full story
Gold fell on Tuesday, as the dollar rebounded following upbeat U.S. housing data that supported views of a looming interest rate increase by. . .  Full story
Chinese stocks plunged more than 6 percent on Tuesday, their biggest fall in three weeks, on speculation the central bank may be in. . .  Full story
Stocks fell on Tuesday, with European markets buckling under heavy selling pressure carried over from Asia after Chinese shares slumped 6 percent and emerging. . .  Full story

Hong Kong's key share index fell to its lowest level in six weeks on Tuesday, dragged down by a sharp plunge in China. . .  Full story
Australian shares gave up early gains and tumbled on Tuesday, as banks and resources stocks fell after the yuan resumed its decline against. . .  Full story
Japan's Nikkei fell 0.3 percent on Tuesday, hurt by weakness in futures markets and other Asian stock markets as investors worried about. . .  Full story
World equity indexes advanced modestly on Monday as upbeat U.S. housing data helped Wall Street shrug off a weak manufacturing report, while the. . .  Full story
SA Business
South Africa's Shoprite Holdings, Africa's biggest retailer by sales, will open nearly twice as many stores on the rest of the. . .  Full story
A mechanical fault at Chevron's 110,000 barrel a day South African refinery has forced a reduction in output by almost a. . .  Full story
The chief executive of South African bullion producer Harmony Gold Mining Co said on Tuesday he could entertain a moratorium on. . .  Full story
South Africa's rand extended losses against the dollar to a fresh 14-year low on Tuesday as expectations of hawkish minutes from. . .  Full story

Britain's index of leading shares slipped on Tuesday, hit by a pick-up in inflation and a decline in energy and mining stocks as oil and metals prices fell.. . .  Full story
Company News
In the trading statement published on SENS on 5 June 2015, shareholders were advised that the Company expected to report an. . .  Full story
Shareholders are advised that Mr Yusuf Mahomed has been appointed as an independent non executive director to the Blue Label Board. . .  Full story
Shareholders are advised that: * Mr JG Rademeyer will resign as Lead Independent Director and Chairman of the Audit and Risk. . .  Full story
In compliance with paragraph 3.59 of the JSE Limited Listings Requirements, shareholders of diversified resources group Exxaro are advised of the. . .  Full story

According to Business Day Sasfin has entered the transactional banking market and hopes the new division will break even within four years. With the roll-out of a transactional banking offering, Sasfin hopes to diversify its sources of income and help grow. . .  Full story
Further to the SENS announcement that was released on 17 August 2015 regarding the DirectorĘs Dealings, it must be noted that clearance was given in terms of paragraph 3.66 of the Listings Requirements of the JSE Ltd.. . .  Full story
Company Results
Revenue for the year shot up to R578.0 million (R408.5 million). Gross profit jumped to R276.2 million (R178.5 million). Profit from. . .  Full story
Revenue for the year ended 30 June 2015 decreased to R13.9 billion (2014: R15.4 billion). Operating profit came in at R366.5. . .  Full story
Net insurance premiums increased by 17% to R1.527 billion (2014: R1.306 billion), net profit attributable to equity holders of the group. . .  Full story
Revenue decreased to R43.9 billion (R53 billion). Gross earnings lowered to R2.4 billion (R3.6 billion). Net operating loss rose came in. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0050977.03225.930.45%
JSE Top 4017:0045467.35179.830.40%
JSE Gold17:00842.5325.793.16%
JSE Financial17:0045017.66258.870.58%
JSE Industrial17:0073857.81427.080.58%
JSE Indust 2517:0065855.13383.190.59%
JSE Resource17:0035157.04-169.35-0.48%
DJ Futures19:2817467.00-37.00-0.21%
DJ Ind19:5817492.33-52.85-0.30%
SP 50019:582094.17-8.27-0.39%
FTSE 10017:356526.29-24.01-0.37%
All Ords08:375309.40-59.20-1.10%
NZSE 5008:285710.77-16.65-0.29%
NameTimeRPMove% Move
Gold $19:591117.14-.51-0.05%
Gold R19:5814423.534.230.03%
Gold R/kg19:58463948-154-0.03%
Silver $19:5914.8470-.4700-3.07%
Platinum $19:59991.30-.20-0.02%
Palladium $19:59595.75-17.55-2.86%
Brent Crude19:1848.60-.43-0.88%
USD / ZAR19:5912.91420.01640.13%
GBP / ZAR19:5520.19220.11070.55%
EUR/ ZAR19:5514.2399-0.0576-0.40%
NZD/ ZAR19:588.49650.01730.20%
AUD / ZAR19:559.4748-0.0405-0.43%
USD / JPY19:59124.3780-0.0330-0.03%
EUR / USD19:591.1026-0.0051-0.46%
GBP / USD19:591.56570.00740.48%

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  310029010.32.%390
2 MARSHALL  15101097.78.%2500
3 ETFPLD  76775447.63.%276888
4 RAUBEX  19711216.54.%263567
5 Lodestone  739395.57.%5000
6 ADAPTIT  1050555.53.%680062
7 HOSP-B  315144.65.%238980
8 ROLFES  340154.62.%92836
9 GRINDROD  1506664.58.%1786562
10 CURRO  37501644.57.%296745
11 GFIELDS  36181554.48.%2651049
12 TRNSHEX  280124.48.%35625
13 SILVERB  17474.19.%11800
14 ERIN  52052054.10.%925
15 MRHLD  1257483.97.%1298089
16 SEARDEL  10943.81.%53377
17 TELKOM  62162223.70.%1871022
18 SABVEST-N  2800973.59.%8
19 ATLEAF  2325803.56.%8067
20 HOSP-A  1190403.48.%934704

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Major Moves Down
SharenameSaleMove% MoveVolume
1 BRIMSTON  1450-260-15.20.%2010
2 ARCMITTAL  1293-107-7.64.%220993
3 STEFSTOCK  463-27-5.51.%162574
4 LONMIN  680-32-4.49.%19190346
5 BEE-SASOL  32500-1100-3.27.%158
6 EFFICIENT  450-15-3.23.%9263
7 BLACKSTAR  1184-39-3.19.%119499
8 CAPEVINH  925-30-3.14.%386867
9 NVEST  260-8-2.99.%43850
10 VALUE  330-10-2.94.%85694
11 SASFIN  5600-169-2.93.%27286
12 AFROX  1330-40-2.92.%28366
13 AFRO-C  485-14-2.81.%83744
14 AVENG  498-14-2.73.%1773403
15 TRUSTCO  365-10-2.67.%438389
16 PIKWIK  2790-74-2.58.%72705
17 WESCOAL  152-4-2.56.%16397
18 EXXARO  6433-167-2.53.%944786
19 SEPHAKU  750-19-2.47.%150077
20 NET1UEPS  25010-593-2.32.%773

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New Highs
SharenameSaleHighMove% MoveVolume
1 ATLEAF  23252325803.56.%8067
2 CLIENTELE  18601950603.33.%65378
3 INTUPROP  69116948540.79.%1066710
4 CAPCO  95749615680.72.%393207
5 MONDIPLCP  31258325911780.57.%1811525

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New Lows
SharenameSaleLowMove% MoveVolume
1 LONMIN  680650-32-4.49.%19190346
2 AVENG  498462-14-2.73.%1773403
3 EXXARO  64336349-167-2.53.%944786
4 SOUTH32  14891482-30-1.97.%838546
5 ARM   64696410-111-1.69.%327443
6 RBPLAT  32503030-50-1.52.%633959
7 ANGLO  1502014806-191-1.26.%3091442
8 IMPERIAL  1586415729-196-1.22.%727165
9 SUNINT  1020010050-100-0.97.%752338
10 KUMBAIO  92158947-85-0.91.%1245269
11 CML  74007230200.27.%905765
12 GLENCORE  353034061022.98.%5220530

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Index Summary
Index NameRPMove% Move
Top 4045,467.35179.830.40%
Mid Cap67,243.61565.030.85%
Small Cap59,039.5816.060.03%
Resource 2035,157.04-169.35-0.48%
Industrial 2565,855.13383.190.59%
Financial 1516,950.3797.260.58%
Financial & Ind. 3071,092.21370.290.52%
All Share50,977.03225.930.45%
Oil & Gas 9,312.068.460.09%
Mining 20,940.45-107.77-0.51%
Gold Mining842.5325.793.16%
Platinum Mining21.48-.10-0.46%
GENERAL MINING6,387.36-58.05-0.90%
Oil & Gas Producers 50,069.2545.520.09%
Basic Materials 20,791.36-64.93-0.31%
Chemicals 20,689.95-49.08-0.24%
Forestry & Paper 49,634.09331.650.67%
Industrial Metals 5,894.03-156.31-2.58%
Industrials 44,097.42555.741.28%
General Industrials 158.872.721.74%
Consumer Goods 67,965.91480.970.71%
Automobiles & Parts 8,324.15-22.64-0.27%
Household Goods538.73142.75%
Health Care 9,847.2792.010.94%
Beverages 228.241.570.69%
Index NameRPMove% Move
Food Producers 8,730.28142.671.66%
Personal Goods 1,026.53-.60-0.06%
Consumer Services 15,612.9158.060.37%
General Retailers 8,258.77164.002.03%
Travel & Leisure 5,984.6923.030.39%
Media 370.66-1.45-0.39%
Support Services 3,241.55-33.41-1.02%
Telecommunications 9,836.4617.440.18%
Financials 45,017.66258.870.58%
Banks 7,666.8637.210.49%
Non-life Insurance 55,602.68638.051.16%
Life Insurance 41,741.96139.110.33%
General Financial 4,709.8569.741.50%
Technology 69,173.23571.390.83%
SHARIAH TOP40 3,353.4850.16%
FTSE/JSE SHARIAH ALL3,561.88120.34%
COAL MINING8,132.44-211-2.53%
FTSE JSE Fledgling 6,710.35-14-0.21%
FTSE/JSE Alt X 1,458.0140.28%
RESOURCE 19,017.24-98-0.51%
DIVIDEND PLUS206.8210.30%
FTSE/JSE RAFI 409,201.67270.29%
Capped Top 4024,276.01990.41%
Capped All Share25,856.481150.45%
JSE TABACO 9,486.95380.40%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
19/08/2015BLUETELMay 2015 (Final)
19/08/2015DEFCAPJune 2015 (Final)
19/08/2015EASTPLATSMarch 2015 (Q)
19/08/2015GLENCOREJune 2015 (Interim)
19/08/2015SHOPCONVJune 2015 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
CLIENTELE17/08/1511/09/1521/09/15ZAR 0.9000
GROUP 517/08/1517/09/1528/09/15ZAR 0.2500
ADAPTIT17/08/1504/09/1514/09/15ZAR 0.1090
STANBANK6.514/08/1528/08/1507/09/15ZAR 0.0325
STANBANK-P14/08/1528/08/1507/09/15ZAR 3.5320
Ex Div**
Share NameDec-DateLDTPay-DateAmount
FIRSTRANDB-P28/07/1514/08/1524/08/15ZAR 3.6393
BATS29/07/1514/08/1530/09/15GBP 0.4940
SABVEST29/07/1514/08/1524/08/15ZAR 0.2100
SABVEST-N29/07/1514/08/1524/08/15ZAR 0.2100
MONDILTD06/08/1514/08/1515/09/15EUR 0.1438

Upcoming AGMs**
CodeCompany NameDateStatus
DLTDelta Property Fund Ltd.19/08/2015Confirmed
ARTArgent Industrial Ltd.20/08/2015Confirmed
RACPRECM - Calibre Ltd.20/08/2015Confirmed
RACCRECM - Calibre Ltd.20/08/2015Confirmed
SPASpanjaard Ltd.21/08/2015Confirmed

Stock Exchange News Service
18/08/201517:45NEW EUROPE PROPERTY INVESTMENTS PLC - Dealing in securities - Notification of ma...
18/08/201517:25LEWIS GROUP LIMITED - Notification Of An Acquisition Of A Beneficial Interest In...
18/08/201517:25SOUTHERN VIEW FINANCE LTD - Transaction Announcement
18/08/201517:22ADCOCK INGRAM HOLDINGS LIMITED - Trading statement
18/08/201517:00INVESTEC PROPERTY FUND LIMITED - Changes to the Board of Directors
18/08/201516:55Airports Company South Africa SOC Ltd - Releases Annual Financial Results for th...
18/08/201516:41STELLAR CAPITAL PARTNERS LIMITED - Posting of circular and salient dates
18/08/201516:25ASCENSION PROPERTIES LIMITED - Dealings in securities by directors of the compan...
18/08/201516:20ASCENSION PROPERTIES LIMITED - Reviewed condensed consolidated results for year ...
18/08/201516:15BLUE LABEL TELECOMS LIMITED - Appointment of Independent Non-Executive Director
18/08/201516:05OLD MUTUAL PLC - Form 8.3 - Public Opening Position Disclosure
18/08/201515:55OLD MUTUAL PLC - Form 8.3 - Public Opening Position Disclosure
18/08/201514:00KAP INDUSTRIAL HOLDINGS LIMITED - Audited Results for the year ended 30 June 201...
18/08/201514:00DIPULA INCOME FUND LIMITED - Acquisition of an interest in a portfolio of proper...
18/08/201513:58STELLAR CAPITAL PARTNERS LIMITED - Dealing in securities by a director
18/08/201513:20JUBILEE PLATINUM PLC - Exercise of warrants
18/08/201513:05SIRIUS REAL ESTATE LIMITED - Directors Dealings
18/08/201513:05Basil Read Limited - Basil Read Limited Audited Results For Year Ended 31 Decemb...
18/08/201512:35OLD MUTUAL PLC - Form 8.3 - Public Opening Position Disclosure
18/08/201512:35STELLAR CAPITAL PARTNERS LIMITED - Disclosure of disposal of securities in terms...
18/08/201512:10SHOPRITE HOLDINGS LIMITED - Changes to the board of directors and appointment to...
18/08/201511:30EXXARO RESOURCES LIMITED - Changes to the board of directors of Exxaro Resources...
18/08/201511:23INVESTEC BANK LIMITED - IPLIHG - Notice of breached barrier
18/08/201511:13CURRO HOLDINGS LIMITED - Publication of the unaudited Interim Results for the si...
18/08/201511:00SABMILLER PLC - Directors Dealings in Shares
18/08/201510:27ANCHOR GROUP LIMITED - Update announcement regarding the general issue of shares...
18/08/201510:25SA SECURITISATION PROGR (RF) LTD - South African Securitisation Programme (RF) L...
18/08/201510:00VUNANI LIMITED - Unaudited Condensed Consolidated Interim Results for the 6 mont...
18/08/201510:00RENERGEN LIMITED - Acquisition of a Viable Asset and Withdrawal of Cautionary An...
18/08/201509:45RESILIENT PROPERTY INCOME FUND LTD - RES12 - Full Capital Redemption
18/08/201509:34AFRIMAT LIMITED - Director's dealing clarification announcement
18/08/201509:00SHOPRITE HOLDINGS LIMITED - Results for the 12 months to June 2015
18/08/201508:45TAWANA RESOURCES NL - Mofe Creek Esia Progress
18/08/201508:03BLUE TITANIUM CONDUIT (RF) LIMITED - Publication of Annual Financial Statements
18/08/201508:02BLUE DIAMOND INVEST NO 3 (PTY) LTD - Publication of Annual Financial Statements
18/08/201507:59BLUE DIAMOND INVEST NO 2 (PTY) LTD - Publication of Annual Financial Statements
18/08/201507:51BLUE GRANITE INVEST NO 4 (PTY) LTD - Publication of Annual Financial Statements
18/08/201507:50FORTRESS INCOME FUND LIMITED - FIFB01 - Full Capital Redemption
18/08/201507:44BLUE GRANITE NO 3 (RF) LTD - Publication of Annual Financial Statements
18/08/201507:42BLUE GRANITE INVEST NO 2 (PTY) LTD - Publication of Annual Financial Results
18/08/201507:40BLUE GRANITE INVEST NO 1 (RF) LTD - Publication of Annual Financial Statements
18/08/201507:25EMIRA PROPERTY FUND LIMITED - EPF006 and EPF007 - Listing of New Instrument
18/08/201507:10BRIMSTONE INVESTMENT CORPORATION LD - Unaudited interim results for the six mont...
18/08/201507:06HARMONY GOLD MINING COMPANY LIMITED - Harmonys strategy to grow margins and incr...
18/08/201507:05AVENG LIMITED - Summarised audited consolidated annual financial statements for...
18/08/201507:05HARMONY GOLD MINING COMPANY LIMITED - Q4 FY15 results for the fourth quarter and...

Click here for more SENS news