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 The Sharenet Daily 
Wednesday, 08 June 2016 - 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 - Different Investment Manager Styles

Seed Investments constructs and manages investment portfolios as a multi-manager. This means that in building a portfolio, we may look to combine various underlying asset classes and various types of funds into one portfolio. The rationale is simple - there are numerous types of investment styles and strategies that managers employ and the reality is that there is no one single style or strategy that has the corner on the market. Each one has merits and drawbacks.

Tawanda discussed passive versus active three weeks back (click to view article) and our conclusion is that there is a place for both of these major investment styles into a portfolio. At the same time we recognise the merits of including underlying managers with various investment styles into a portfolio.

Beside the active versus passive debate, other investment styles that active investment managers employ can be described as:

• Top down
• Bottom up
• Value investing
• contrarian
• quality
• Growth investing
• Momentum

A top down investment strategy means that the investment manager places a high emphasis on macro-economic factors and forecasts. The manager may spend up to 50% or sometime even 70% of their time trying to understand aspects such the direction of interest rates, debt levels in an economy, commodity supply and demand, foreign investment flows, investor sentiment etc. and how these impact on the consumer on various types of company earnings.

A bottom up investment strategy pays more attention to valuations of individual businesses and very little to no emphasis on macro-economic factors. The most famous bottom up investment manager is Warren Buffett, who says “The key attitude of managers that adopt this investment strategy is their view that no one can accurately and consistently predict macro events and so time is best spent analysing companies at a more micro level".

A value investment management style is one that leans to searching for an investment that on some analysis trade at a price below their assessment of intrinsic value. The key premise is that for a variety of reasons, but typically when there is a preponderance of negative news, the price of an investment trades below what the investment is truly worth. It is these type of opportunities that value investors will seek out, looking to profit as prices revert closer to intrinsic value.

A contrarian investment style is often a more extreme version of a value style. These managers are attracted to companies that are deeply out of favour with the investment community, or where investment holding companies trade at large discounts.

Often in contrast to a value investor, a growth biased investment style is one that places a higher emphasis on company earnings and specifically on those companies that are able to grow their earnings at levels at a higher rate than competitors. The key premise with this strategy is that discounted future earnings determine the current value and that those businesses that are able to grow ahead of their competitors or the overall market will reward shareholders with higher company value over time.

A more extreme version of a growth strategy is a momentum investment strategy. This is a strategy that focuses on recent price movement of shares, investing into shares that have moved up ahead of competitors. History shows that price momentum has a high degree of repeatability.

Each one of these investment strategies and styles has both merits and drawbacks. Often investment managers blend investment styles, but at the same time there is typically a dominant style that the investment manager fashions their philosophy and process around.

Investment styles themselves can move in and out of “fashion”. For example over the last few years, momentum and growth strategies have outperformed against value strategies. This can be seen in the chart below, where the momentum style of global markets is reflected against the value style. This has not always been the case and so investment managers with a strong value or contrarian bias have typically struggled versus their peers. Being in a position to blend various styles and strategies is therefore advantageous to investors.

Chart 1: MSCI Growth versus Value Indices

Kind regards,

Ian de Lange

View Disclaimer

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


Wed, 08 Jun 2016
Top News
South Africa's rand rose its firmest in five weeks on Wednesday and government bonds also gained after ratings agency Fitch affirmed the country's investment grade credit status.  Full story

Local markets The JSE All Share closed 0.64% lower on Wednesday, with losses across the board led by a 1.64% drop in financial shares, offsetting a 3.36% gain in gold mining stocks.  Full story
U.S. presidential candidates Hillary Clinton and Donald Trump kicked off a fierce general election battle, with Democrats accusing Trump of erratic behaviour and the Republican threatening to bring up old Clinton scandals.  Full story
Dozens of people were wounded in Papua New Guinea on Wednesday after police opened fire on a student demonstration in the capital and riots erupted across the country, but officials said earlier reports of up to four dead were incorrect.  Full story
Kurdish militants appear to have been behind a car bombing that killed 11 people in central Istanbul on Tuesday, a Turkish presidential spokesman said, while a second bomb on Wednesday killed four people in the largely Kurdish southeast.  Full story
SA Business
South Africa's economy contracted more than expected in the first quarter of the year, data showed on Wednesday, putting it on. . .  Full story
Ratings agency Fitch affirmed South Africa's investment grade credit rating and maintained its stable outlook, strengthening the rand on Wednesday, but. . .  Full story
South Africa's Transnet Freight Rail moved a record number of manganese shipments in May due to new trains and improved market. . .  Full story
Ratings agency Fitch affirmed South Africa's investment grade credit rating on Wednesday and maintained its stable outlook, but said the low. . .  Full story

Workers belonging to the major union at South Africa's Northam Platinum said on Wednesday they would not resume work at its Zondereinde mine until. . .  Full story
South Africa's National Union of Mineworkers (NUM) said on Wednesday its members would only resume work at Northam Platinum's Zondereinde mine after arrests have. . .  Full story
South Africa's department of environmental affairs said on Wednesday an on-again-off-again moratorium on domestic trade in rhino horn had been reinstated after it appealed. . .  Full story
South Africa's real gross domestic expenditure contracted by 0.7 percent in the first quarter of this year after rising 1.4 percent. . .  Full story

Members of South Africa's National Union of Mineworkers (NUM) will decide on Wednesday if they will return to work at Northam Platinum's Zondereinde mine, which was shut on Monday after violent clashes between NUM and a rival union.. . .  Full story
Company News
Aspen announced the successful closing of arrangements in respect of funding facilities equivalent to EUR3 000 000 000 (the ˘Facilities÷) for. . .  Full story
Further to the announcement released earlier, Resilient has been advised by EagleĂs Eye Investments (Pty) Ltd. that it has successfully placed. . .  Full story
Operating conditions remained challenging during the first four months of the 2016 financial year across most of the markets where the. . .  Full story
Resilient has been advised that EagleĂs Eye Investments (Pty) Ltd. (˘EagleĂs Eye÷), a participant in ResilientĂs BBBEE initiative, has resolved to. . .  Full story

The board of directors announced the untimely passing of Mr Anthony Old.. . .  Full story
The board of directors (˘Board÷) of the company hereby announces the resignation of both Mr Barend Petersen from his position as chairman and non-executive director with effect from 22 May 2016. . .  Full story
A review of the financial results for the year ended 31 March 2016 by management has indicated that: - the earnings per share is expected to be between 1 020 cents. . .  Full story
Company Results
Revenue for the year lowered to R4.175 billion (2015: R4.261 billion). Gross profit increased to R1.260 billion (2015: R1.169 billion), operating profit rose to R648.8 million (2015: R561.5 million), profit attributable to equity holders of the group jumped to R445.8 million (2015: R334.9 million), while headline earnings per share grew by 9.6% to 139.9 cents per share (2015: 127.6 cents per share). Dividends The board approved a gross dividend number 2 of 70 cents per share (2015: 6. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0053960.18-345.55-0.64%
JSE Top 4017:0047716.20-337.00-0.70%
JSE Gold17:002219.4772.143.36%
JSE Financial17:0042015.47-699.05-1.64%
JSE Industrial17:0080822.20-840.46-1.03%
JSE Indust 2517:0073047.13-793.35-1.07%
JSE Resource17:0032006.26563.171.79%
DJ Futures19:4617977.0044.000.25%
DJ Ind19:5817974.0835.800.20%
SP 50019:582116.444.310.20%
FTSE 10017:066290.455.920.09%
All Ords08:385441.10.100.00%
NZSE 5009:026991.51-45.80-0.65%
NameTimeRPMove% Move
Gold $19:591261.6018.321.47%
Gold R19:5918566.8640.320.22%
Gold R/kg19:576025494360.07%
Silver $19:5917.02600.64703.95%
Platinum $19:591007.1212.471.25%
Palladium $19:58557.795.400.98%
Brent Crude19:4652.171.623.20%
USD / ZAR19:5914.7345-0.1648-1.11%
GBP / ZAR19:5521.2860-0.3653-1.69%
EUR/ ZAR19:5516.7479-0.1844-1.09%
NZD/ ZAR19:5910.3360-0.0543-0.52%
AUD / ZAR19:5510.9751-0.1452-1.31%
USD / JPY19:59106.8310-0.4980-0.46%
EUR / USD19:591.14040.00490.43%
GBP / USD19:591.4512-0.0024-0.17%

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 THARISA  90510513.12.%27476
2 CSG  153139.29.%58700
3 VALUE  317258.56.%7001
4 EFFICIENT  589397.09.%11659
5 AEEI  315206.78.%22172
6 ARCMITTAL  917526.01.%176709
7 ARM   89005005.95.%593331
8 IMPLATS  49402695.76.%5279035
9 MMG  1044545.45.%48892
10 DIAMONDCP  16085.26.%40000
11 ISA  10555.00.%63056
12 SIBANYE  49302304.89.%5687952
13 HARMONY  55142494.73.%2522996
14 EQSTRA  231104.52.%726025
15 CONDUIT  258114.45.%6522
16 EXXARO  69002674.03.%392489
17 DAWN  395153.95.%35353
18 PAN-AF  330123.77.%1257655
19 ANGLO  150435373.70.%2611092
20 AFROX  1670583.60.%20977

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Major Moves Down
SharenameSaleMove% MoveVolume
1 RARE  200-250-55.56.%669
2 SILVERB  296-34-10.30.%69901
3 NVEST  300-30-9.09.%2800
4 FINBOND  285-25-8.06.%76620
5 VUNANI  150-10-6.25.%140010
6 CALGRO  2002-133-6.23.%30534
7 COAL  107-7-6.14.%767769
8 KIBO  111-7-5.93.%81210
9 DCENTRIX  501-28-5.29.%99394
10 SANLAM  6370-340-5.07.%11707519
11 SABVEST  3325-175-5.00.%2795
12 AFOVR-N  1104-56-4.83.%1
13 ADRENNA  110-5-4.35.%190
14 CARGO  1200-50-4.00.%50
15 ADVHLTH  168-7-4.00.%171752
16 SPAR  20500-811-3.81.%452177
17 REMGRO  24750-956-3.72.%1733886
18 BIDCORP  26190-1010-3.71.%4280510
19 NEPI  18243-666-3.52.%349976
20 STANBANK  12610-423-3.25.%4013079

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New Highs
SharenameSaleHighMove% MoveVolume
1 EFFICIENT  589589397.09.%11659
2 ANGGOLD  24826250987293.03.%2361205
3 CLICKS  11707118181451.25.%811134
4 VODACOM  1711017234600.35.%1825605
5 JSE  1740218000-120-0.68.%246561
6 CASHBIL  3579036900-368-1.02.%14582

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New Lows
SharenameSaleLowMove% MoveVolume
1 FINBOND  285285-25-8.06.%76620
2 VUNANI  15070-10-6.25.%140010
3 BIDCORP  2619025500-1010-3.71.%4280510
4 ASTORIA  13021300-38-2.84.%113008
5 Cognition  129129-2-1.53.%20301

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Index Summary
Index NameRPMove% Move
Top 4047,716.20-337.00-0.70%
Mid Cap75,617.28-242.35-0.32%
Small Cap59,944.68-149.80-0.25%
Resource 2032,006.26563.171.79%
Industrial 2573,047.13-793.35-1.07%
Financial 1515,331.85-283.41-1.81%
Financial & Ind. 3075,470.74-921.32-1.21%
All Share53,960.18-345.55-0.64%
Oil & Gas 7,
Mining 23,047.80521.452.31%
Gold Mining2,219.4772.143.36%
Platinum Mining25.47.773.12%
GENERAL MINING5,818.75104.921.84%
Oil & Gas Producers 38,689.88.000.00%
Basic Materials 22,601.31417.581.88%
Chemicals 22,351.24499.362.29%
Forestry & Paper 51,507.16-441.21-0.85%
Industrial Metals 6,564.96126.991.97%
Industrials 45,124.62-964.80-2.09%
General Industrials 172.14-4.43-2.51%
Consumer Goods 79,751.12-728.87-0.91%
Automobiles & Parts 4,590.06-54.34-1.17%
Household Goods635.56-15-2.30%
Health Care 9,452.74-71.39-0.75%
Beverages 311.88-5.53-1.74%
Index NameRPMove% Move
Food Producers 9,350.95-1.43-0.02%
Personal Goods 947.2314.291.53%
Consumer Services 18,766.07-246.09-1.29%
General Retailers 7,857.24-120.47-1.51%
Travel & Leisure 5,913.86-31.27-0.53%
Media 497.15-5.00-1.00%
Support Services 2,002.39-32.75-1.61%
Telecommunications 7,334.4115.180.21%
Financials 42,015.47-699.05-1.64%
Banks 6,512.12-179.35-2.68%
Non-life Insurance 58,047.71390.490.68%
Life Insurance 39,134.97-676.96-1.70%
General Financial 4,587.29-33.97-0.74%
Technology 48,919.76-188.91-0.38%
SHARIAH TOP40 3,147.91130.41%
FTSE/JSE SHARIAH ALL3,458.97170.50%
COAL MINING8,722.813384.03%
FTSE JSE Fledgling 7,158.46630.89%
FTSE/JSE Alt X 1,511.10-4-0.24%
SA LISTED PROPERTY 653.34-10.40-1.57%
CAPPED PROPERTY 573.50-1.18%
RESOURCE 18,033.543331.88%
DIVIDEND PLUS204.60-2-1.01%
FTSE/JSE RAFI 409,670.65140.14%
Capped Top 4025,361.21-155-0.61%
Capped All Share27,494.42-163-0.59%
JSE TABACO 11,688.39-172-1.45%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
09/06/2016BSI STEELMarch 2016 (Final)
09/06/2016MARSHALLMarch 2016 (Interim)
09/06/2016MARSHALL-March 2016 (Interim)
09/06/2016PERGRINMarch 2016 (Final)
09/06/2016PERGRINPMarch 2016 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
LIBHOLD1106/06/1624/06/1604/07/16ZAR 0.0550
CULLINAN06/06/1624/06/1604/07/16ZAR 0.0100
TELKOM06/06/1624/06/1604/07/16ZAR 2.7000
CSG01/06/1624/06/1604/07/16ZAR 0.0500
CAR31/05/1617/06/1627/06/16ZAR 0.2000
Ex Div**
Share NameDec-DateLDTPay-DateAmount
INVPREFR19/05/1603/06/1620/06/16ZAR 4.7025
INVESTEC-P19/05/1603/06/1620/06/16ZAR 4.1248
ASTRAL16/05/1603/06/1613/06/16ZAR 3.9000
INVLTDPREF19/05/1603/06/1620/06/16ZAR 3.8496
SPAR18/05/1603/06/1613/06/16ZAR 2.5500

Upcoming AGMs**
CodeCompany NameDateStatus
SLMSanlam Ltd.08/06/2016Confirmed
SLMASanlam Ltd.08/06/2016Confirmed
SLMP1Sanlam Ltd.08/06/2016Confirmed
SLMBSanlam Ltd.08/06/2016Confirmed
ACGAnchor Group Ltd.09/06/2016Confirmed

Stock Exchange News Service
08/06/201617:45MIX TELEMATICS LIMITED - Dealing in securities by a director of major subsidiari...
08/06/201617:45MIX TELEMATICS LIMITED - Dealings in securities by a director of MiX Telematics
08/06/201617:20INTERWASTE HOLDINGS LIMITED - Compliance Notice - Interwastes FG Landfill Site
08/06/201617:00TORRE INDUSTRIES LIMITED - Trading statement for the year ending 30 June 2016
08/06/201617:00INVESTEC PLC - Transactions in Investec Limited ordinary shares of ZAR0.0002 eac...
08/06/201616:53THE SPAR GROUP LIMITED - Dealings in securities by a director
08/06/201616:28UBS AG - Change in rating
08/06/201616:20MONDI PLC - Employee Share Plans
08/06/201616:10DEUTSCHE BANK AG LONDON - New Stub Listing - DBRMIE
08/06/201616:00ADVANCED HEALTH LIMITED - Dealings by an Associate of a Director
08/06/201616:00INVESTEC PLC - TR-1: Notification of major interest in shares
08/06/201616:00MR PRICE GROUP LIMITED - Dealings in securities by directors
08/06/201615:55OLD MUTUAL PLC - Form 8.3 - Public Opening Position Disclosure - Deutsche Boerse...
08/06/201615:10IVUZI INVESTMENTS LIMITED - Availability of Investor Report
08/06/201615:09BNP PARIBAS ARBITRAGE ISSUANCE B.V. - Issue of ZAR500,000,000 Index Linked Redem...
08/06/201615:08BNP PARIBAS ARBITRAGE ISSUANCE B.V. - CANCELLATION OF S372515 Issue of ZAR50,000...
08/06/201614:20IVUZI INVESTMENTS LIMITED - IVA637-New Instrument Listing
08/06/201614:15ASPEN PHARMACARE HOLDINGS LIMITED - Aspen closes EUR 3,000,000,000 equivalent fa...
08/06/201614:10TONGAAT HULETT LIMITED - Share Scheme Transactions: Executive Directors
08/06/201614:00CAPITAL & REGIONAL PLC - Director shareholding
08/06/201614:00SATRIX COLLECTIVE INVESTMENT SCHEME - Partial Delisting of STXRAF Securities
08/06/201614:00INVESTEC PLC - Additional listings - Investec plc and Investec Limited
08/06/201614:00SATRIX COLLECTIVE INVESTMENT SCHEME - STX40 - Listing of Additional Satrix 40 Se...
08/06/201613:58RESILIENT REIT LIMITED - Placement of shares - update
08/06/201613:55SANLAM LIMITED - Operational Update June 2016
08/06/201613:45FIRSTRAND BANK LIMITED - FRB08 - Full Capital Redemption
08/06/201613:34NOVUS HOLDINGS LIMITED - Summarised audited results for the year ended 31 March ...
08/06/201613:00PEREGRINE HOLDINGS LIMITED - Reviewed Condensed Consolidated Provisional Results...
08/06/201612:36TRELLIDOR HOLDINGS LIMITED - Disclosure of Acquisition of Securities
08/06/201612:16RESILIENT REIT LIMITED - Placement of shares
08/06/201612:10PIONEER FOOD GROUP LIMITED - Dealing In The Companys Shares
08/06/201611:12ORION REAL ESTATE LIMITED - Passing of Director: Anthony Old
08/06/201610:20THE SPAR GROUP LIMITED - Dealings in securities by a director
08/06/201610:00NETCARE LIMITED - NETCARE /CLICKS - Netcare to outsource Medicross retail pharma...
08/06/201609:50LETSHEGO HOLDINGS LIMITED - Notice Of Request for Written Consent Of The SA Secu...
08/06/201609:41BUFFALO COAL CORP - Annual and special meeting and management information circul...
08/06/201609:01INSIMBI REFRACTORY & ALLOY SUP LIMITED - Appointment to the Board
08/06/201609:00EVRAZ HIGHVELD STEEL & VANADIUM LTD - Change in directorate
08/06/201609:00NEWFUNDS COLLECTIVE INVEST SCHEME - GIVFIN - Listing of additional NewFunds S&P ...
08/06/201609:00INSIMBI REFRACTORY & ALLOY SUP LIMITED - Directors dealings, introduction of str...
08/06/201609:00SABMILLER PLC - Rule 2.10 announcement
08/06/201609:00NEWGOLD ISSUER (RF) LIMITED - GLD/NGNGLD - Partial de-listing of NewGold Debentu...
08/06/201608:45GOLD BRANDS INVESTMENTS LIMITED - Withdrawal of cautionary announcement relating...
08/06/201608:30THARISA PLC - Admission to trading on the London Stock Exchange
08/06/201608:05SYNTHESIS FUNDING LIMITED - Investor Report as at 31 May 2016 - SY1286 - SY1305
08/06/201607:30DELTA PROPERTY FUND LIMITED - Appointment of Chief Operating Officer
08/06/201607:05MARSHALL MONTEAGLE PLC - trading statement
08/06/201607:05OMNIA HOLDINGS LIMITED - Trading Statement

Click here for more SENS news