Funds on Friday

A topical discussion on developments in the industry, often incorporating comments from leading fund managers or asset management houses.

The compass that will guide central banks forward

In this article, Melanie Stockigt, head of Fixed Interest at Laurium Capital, reflects on how we got to where we are in terms of high inflation and the difficulty created by “unprecedented” events in forecasting inflation. She further examines market data that influences the Federal Reserve Bank’s moves.

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The property slump that will "end" China?

In this article, Tian Pan, Head of Product at Prescient China explores the investment thesis of the Chinese property market relative to other markets such as Japan's property market. He further provides insights into the Chinese government's plans to revive the sector.

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South African listed property in an inflationary and rising interest rate environment

In this article, Liliane Barnard, CEO & Portfolio Manager and Aimee Glisson, Head of Operations and Performance at Metope Investment Managers, discuss the SA listed property market in an inflationary and rising interest rate environment and whether this is an opportune time to invest in property as a long-term investment.

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Chinese Property - A slow moving trainwreck

In this article, Gary Quinn, Portfolio Manager at BlueAlpha Investment Management, looks at China’s growth while making reference to the Chinese property market.

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The importance of Variant Perception and Investment Edge

In this article, André Steyn CA(SA), CFA, Chief Executive Officer and Chief Investment Officer at Steyn Capital Management, delves into the importance of variant perception and having an investment edge, while making reference to their investment into the casino operators, Tsogo Sun Gaming and Sun International during the hard COVID lockdown.

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Economic forecasts are not likely to dictate market returns

In this article, Vicky Kan & Christopher Brownlee, Research Analysts at High Street Asset Management, evaluates the current macro environment and its impact on global capital markets.

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The outlook for oil prices - is there still opportunity in the sector for investors

In this article, Leandro Gastaldi, Portfolio Manager at Blue Quadrant Capital Management, evaluates the outlook for oil prices and by association, the equity valuations attached to companies producing this key commodity, if oil prices are likely to be sustainable above USD100 per barrel for the foreseeable future and whether there are still opportunities for investors to profit from the sector, despite the large gains the sector has delivered over the past 18 months.

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Redefining and Refining Portfolio Risk

In this article, Dumisani Ngwenza, Junior Portfolio Manager and Quantitative Analyst at Terebinth Capital, highlights the issues concerning risk measurement and assessment in a hedge fund, focusing on the fixed income asset class. A follow-up article will dissect Information Circular No. 25, particularly addressing misconceptions regarding hedge funds and highlighting the benefits of hedge funds as an investment opportunity.

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ESG in Emerging Markets: Social risks and challenges

In this article, Oyena Mtuzula, Credit and ESG Analyst at Terebinth Capital, explores social factors that are important in investing and the associated risks for emerging markets.

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Value vs Growth: What really matters?

In this article, Ann Sebastian, Head of Equities and Senior Portfolio Manager at Terebinth Capital, provides investors with an understanding of the mechanism by which style factors earn their returns by borrowing and applying a tool from the world of fundamental investing, a return decomposition, to classify the source of Value and Growth style returns.

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The Art and Science of Solving the Investment Management Problem

In this article, Nomathibana Matshoba, MD/Snr Portfolio Manager at Terebinth Capital, delves into the art and science of the investment management process, highlighting knowledge sharing as “the art” side of investment management that is defined as a problem to be solved. To ensure that businesses can continue to repeat their overall investment process, there is a need to be systematic in the skills transfer for the “art” element of investment management to ensure a repeatable, sustainable, and consistent client experience.

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Seeking opportunities in the SA equity market

In this Week’s article, Jonathan du Toit, portfolio manager of the Amplify SCI* Managed Equity Retail Hedge Fund, shares some insights on how local managers can gain competitive edge by having an in-depth understanding of the local landscape and how local differs from offshore equity markets.

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No such thing as a free lunch

In this week’s article, Emma Pretorius, business development manager at Amplify Investment Partners, shares some insights about hedge funds and the benefits they may provide within a portfolio, while also cautioning investors against making the mistake of dressing all hedge fund with the same risk-return profile.

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Intelligent decisions which impact investment returns

In this week’s publication, Brian Thomas and Omri Thomas, portfolio managers of the Amplify SCI* Balanced and Amplify SCI* Flexible Equity Funds, respectively, examine the challenge facing South African managers regarding increased offshore allowances. What impact could this have on our economy, once valuation changes in favour of offshore markets?

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FoF-06052022-GLC - Experience in delivering a best investment view as all times

In this article, Erik Nel, CIO and co-portfolio manager at Terebinth Capital, shares insights on how a strategic income fund should be managed to achieve long-term outperformance with the combination of active management and best view.

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Heads up on Regulation 28 changes

In this article, Kyle Wales, Global Portfolio Manager at Flagship Asset Management, expands on the changes in Regulation 28 that allows the offshore limit for pension funds would be raised from an effective 40% (30% Rest of World + 10% Africa) to 45%.

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Are REITs the best place to hide in a 1970s inflation scenario?

In this article, Kyle Wales, Global Portfolio Manager at Flagship Asset Management, draws upon the historical precedent of the 1970s to show how the experience during that decade might suggest that the risk of an outlier scenario of persistent high inflation may be greater than what many think.

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Why is inflation bad for the economy

In this article, Kyle Wales, Global Portfolio Manager at Flagship Asset Management, provides insight to the question, “what level of inflation is bad for the economy and asset prices?”

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Bottom fishing in emerging markets doesn’t always work

In this article, Pieter Hundersmarck, Portfolio Manager at Flagship Asset Management, shares some insightful views on why buying shares on the way down, specifically in emerging markets, don’t always work out. He makes reference to specific stocks as well as touching on Russia and China.

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How sustainable are fast fashion businesses?

In this week’s issue, Charles Somers, portfolio manager and global sector specialist at Schroders, explores the sustainability of some major fashion companies using their inhouse analysis. How do they assess sustainability of businesses in this sector? He shares their metrics and findings.

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Dr Seuss and three types of stocks that could benefit from inflation

In this article, Andrew Lyddon, fund manager at Schroders comforts value investors for being contrarian using the famous quote from Dr Suess “You have to be the odd to be number one”, as value stocks struggle in recent years relative to growth stocks. He also entertains the famous question of inflation despite their inflation-agnostic stance at Schroders.

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What might the future hold for equity markets in 2022 and beyond?

In this article, Katherine Davison, Portfolio Manger at Schroders, expresses some of the issues faced by the equity markets and expectations in the coming months and beyond.

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What's behind values recent renaissance

In this article, value investor Nick Kirrage, Co-head of the Global Value Team at Schroders, explains why investors should be wary of easy narratives to explain market moves.

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The outlook for oil – and Sasol

“Since the oil price crash in April 2020, the recovery of the commodity has been nothing short of remarkable. While we expected oil prices to trend towards more sustainable levels – due to both demand recovery as COVID-19 restrictions eased and a lower level of investment by oil firms in general – the speed and magnitude of the recovery has certainly been surprising. What does this mean for the outlook for oil over the next few years, and how does it impact our investment case for Sasol?.” In this article, Christiaan Bothma, Investment Analyst, Sanlam Private Wealth, delves into the outlook for oil and Sasol.

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When to include gold in your portfolio

“Whether to own gold in an investment portfolio is always a hotly debated subject among investment professionals and laypersons alike. Gold tends to do well in an environment in which other risky assets struggle, but paying too much for the ‘insurance’ it offers in a diversified portfolio will produce a drag on overall performance. We set out our objective assessment of the investment merits of the precious yellow metal.” In this article, Renier de Bruyn, Senior Investment Analyst, Sanlam Private Wealth, talks about when to include gold in one’s portfolio.

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How we value shares: a useful framework

In this article, David Lerche, Head of Equities at Sanlam Private Wealth, talks about their approach to determining fair value of a company as well as the effectiveness of incorporating Porter’s Five Forces in an analysis.

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Investments: is it time to recalibrate return expectations

"If you’d invested in growth assets, equity and property in 2021, you’d have been richly rewarded with surprisingly good returns. The investment landscape has changed fundamentally since late last year, however, and as we’ve seen over the past few weeks, asset class prices have started to reflect these changes. What can investors expect for the remainder of 2022? Do we need to materially reduce our return expectations? Importantly, how do we structure client portfolios in an environment of increased risk and uncertainty?" In this article Alwyn van der Merwe, Director of Investments at Sanlam Private Wealth delves into the above questions.

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Inflation: The great debate

In this article, Madalet Sessions, Portfolio Manager at Denker Capital, explains that the future of inflation is uncertain. Experts on the subject are divided. To help investors and advisers understand and mitigate the risks that portfolios face if inflation is higher and more persistent than what markets currently believe; she explains what history has taught us, and how any surprises may affect asset prices. Historic evidence supports a wider range of outcomes than is currently being priced into markets, which is why it is prudent to have specific strategies in place to hedge against this risk

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ESG: Forks in the road

In this article, Paul LaCoursiere, Global Head of ESG Investments at Janus Henderson Investors, explores four themes for 2022 that he considers pivotal to the direction of travel for ESG investing

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The South African office conundrum

In this article, Imdaad Nana, senior analyst and portfolio manager at Catalyst Fund Managers, highlights challenges faced by the South African office market, before and during COVID-19. He further provides insights on the sub-sector going forward.

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Things you do not see at the bottom

In this article, Bradley Preston, CIO at Mergence Investment Managers, asks what most investors have been asking themselves: When will the rally subside? What will it take for the bubbles to burst? Have we reached the top of the market?

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Rethinking the approach to investing in fixed income

In this article, Mohamed Ismail, Head of Fixed Income at Mergence Investment Managers discusses why fixed income process should approach portfolio construction from a systematic perspective. To get his point across, he highlights how disruptions have constantly reshaped the investment landscape for investors; recently in the fixed income space systematic approaches are getting attention as a thematic shift in investment process is emerging.

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Data science and machine learning application in investments

In this article, co-authors Vincent Anthonyrajah and Miguel Lacerda from Differential Capital discuss the use of data sciences and machine learning in investments. They start off the discussion with a brief example relating back to 1965, how data subscription provided an investor with a material advantage relative to those who were trying to compile the data themselves.

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Ready for take-off

In this article, Ryann Dean, Global Equity Analyst at Aylett & Co. Fund Managers, reflects on COVID-19’s impact on economies, stock markets and lifestyle shifts while making reference to the travel industry.

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Quants – a difficult pill to swallow

“Quantitative analysis can be used to do a more in-depth analysis of a fund and allows managers to understand what styles the portfolio is exposed to and whether this is in line with the views of the portfolio manager.” In this article, Shaun Van den Berg, Research Analyst at Aeon Investment Management, talks about the benefits of quantitative analysis.

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Acknowledging passive, embracing active

“We believe that truly active funds offer blending benefits to client portfolios and have a role to play in the diversification of risk, and the generation of superior returns.” In this article, Andrew Vintcent, Portfolio Manager at ClucasGray, talks about the exponential growth of the passive investment industry and the benefits of active management.

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SA REITs: Repositioning for the future

Listed property remains below pre-COVID levels and over 50% (in price terms) off the previous peak reached in 2017. In this article, Kelly Ward, Portfolio Manager & Head of Research at Metope Investment Managers, delves into the outlook on the local listed property sector over the long term.

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A good time to consider emerging markets?

In this article, Cornelius Zeeman and Edna Sibanda of Fairtree Asset Management, make a compelling case for investing into emerging markets and the opportunities therein.

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When should you give up on a share

In this article, Pieter Hundersmarck, Global Portfolio Manager at Flagship Asset Management, highlights the importance of a having an investment process as a guide when to buy and sell shares.

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Six typical profit-making strategies for the fundamental investor

In this piece, the author takes us through investment cases that fundamental investors use, with examples.

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A case for indexation in MA portfolio

In this piece, the author discusses the benefits of diversification in a multi-asset (MA) framework achieved through low-cost index products.

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Life after cash

For most South Africans, the success of their financial plan depends on striking a delicate balance between risk and return. In many cases, the precipitous decline in cash yields has disrupted that equilibrium. Gone are the days of comfortable inflation-beating returns for very little risk. Investors now face two choices:

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Active considerations in passive investing

In this article, the author takes us through the construction of the four main SA equity benchmarks and focuses on what drivers their various returns. In the main, index benchmarks are used by the end investor or their financial adviser to keep portfolio managers honest. If actively managed fund returns trail their chosen yardstick for a reasonable length of time, investors have the right to know why.

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Sustainable investing, the asset manager and the client, The South African experience

In this article, the authors take us through navigating this new world of change where we try to create positive outcomes and mitigate or eliminate negative ones. Stating that an asset management lens needs to be more proactive and practical as we mobilise capital toward a greater purpose. In addition, a more proactive approach in the asset management process is required – the implementation of robust responsible, sustainable, and impact investing practices

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Takeout targets - Mind the value trap

Nhlakanipho Mncwabe, Investment Analyst at 36ONE highlights different takeout considerations that may be incorporating into an investment process to identify undervalued stocks and avoid value traps.

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Global property as a portfolio constituent

In this article, Garreth Elston, Chief Investment Officer at Reitway Global demonstrates risk and return benefits of global property as a portfolio constituent. demonstrates risk and return benefits of global property as a portfolio constituent.

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Investment focus: The demise of EV/EBITDA – How accounting standards are messing with valuation metrics

Gary Quinn demonstrates the impact of accounting standards to valuation metrics, using the new lease accounting standard to EV/EBITDA. He ends off with a though provoking question for equity investors.

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Reading the cyclical and structural tea leaves for SA’s fixed income markets

In this article, Melanie Stockigt, head of Fixed Interest at Laurium Capital, critically assess which primary forces that influence the South African fixed income markets are cyclical alterations and which are structural.

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Could reflation lead to a full ‘taper tantrum’ – implications for markets

In this article, Sanveer Hariparsad, Head of Fixed Income at Sentio Capital Management, provides us with his view on reflation and its market implications.

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A scenario-based approach to preparing for all outcomes in an uncertain world

In this article, Madalet Sessions, Portfolio manager at Denker Capital, focuses on a scenario-based approach, which has a long illustrious and proven career in corporate boardrooms all over the world. It enables executives to think about uncertainty and plan for outcomes they cannot control. The manager believes that this approach to risk management belongs at the core of clients’ investment portfolios, to add some form of stability in an uncertain world.

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The economic context for cyclical expansion

In this article, Ryan de Kock, Senior Equity Analyst at Stonehage Fleming Equity Management, talks about business cycles using examples of how cyclical businesses perform during economic expansion and contraction periods. He further emphasises that a more sustainable approach to long-term investing focuses on businesses that possess an ability to compound shareholder value through the cycle.

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Has income disappeared?

In this article, Bronwyn Blood, Investment Analyst and Portfolio Manager at Granate Asset Management, focuses on the difficulty to finding yield in a post COVID world. Particularly, the conditions in fixed income markets which are very different to what they were before the COVID pandemic.

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Is your fund manager taking enough risk?

In this article, Rory Spangenberg, CIO and Director Global Equities at Northstar Asset Management poses the question, “Is your fund manager taking enough risk?” whilst making reference to global flexible funds.

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Drawdown risk rising

In this article, Marthinus van der Nest, Head of Amplify Investment Partners, talks about why drawdown risk, across asset classes, might be on the rise. He then discusses how such a paradigm impacts the retail investor, and what they can do about it.

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Inside an absolute return strategy

In this article, Iain Power, Chief Investment Officer at Truffle Asset Management, takes you inside the workings of an absolute return strategy.

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There is still value in value shares

In this article, Brian Thomas, Co-Portfolio Manager at Laurium Capital, talks about the growth versus value as investment styles and whether there is still upside in value investing.

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Bond funds: who should use them?

In this article, Richard Bray, Head of Strategy at Amplify Investment Partners, talks about the complexity involved in choosing between an income and bond fund from an asset allocator’s point of view.

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Investment opportunities in China best not be ignored

In this article, Pieter Hundersmarck, Fund Manager at Flagship Asset Management, talks about the growing Chinese economy and the boundless equity market opportunities therein.

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S&P valuation - a year on from COVID-19

The author takes us through different measures of valuing the S&P 500 a year from COVID-19 and provides insight on each measures’ predictive power for the index.

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Closure of the Absa Fund – where to next?

In this article, Saleh Jamodien, Junior Research & Investment Analyst at Glacier by Sanlam, talks about money market funds and the benefits of investing in them.

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Beautiful, but boring

In this article, the authors focus on the effectiveness of indexation. Particularly, with all the upheaval and change that the Corona-coaster has brought. Index trackers continue to deliver transparent returns, tracking market performance, and, as it turns out, outperforming many of their active peers.

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How factor-based awareness can improve returns in Shari’ah portfolios

In this article, the author explains how the use of factor-based investing in Shari’ah portfolios could allow a manager to build robust diversified portfolios and deliver better risk-adjusted returns over time.

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How ESG is transforming investing outcomes

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Mind the gap, steep yield curve ahead

In this article the author, attempts to answer the question, "Do long bonds present a buying opportunity?". Given that local inflation is stabilising and sitting at the lower end of the SARB's target band, coupled with the treasury's struggles to maintain fiscal discipline, we've arrived at a point where the yield curve is at the steepest level in recent history.

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Investing in a future that matters

In this article, we explore how the average person on the street can be an “Investor Activist” when it comes to how and where they invest their savings.

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Value and growth – two sides of the same coin

In this article, the author talks about value and growth as investment styles and how they are interlinked.

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The Big Short...Squeeze

In this article, Saleh Jamodien, Junior Research & Investment Analyst at Glacier by Sanlam, demystifies the Reddit vs Wallstreet saga with reference to GameStop.

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USD High Yield in Covid

Corporate bonds are a good reflection of economic stress because people demand a higher yield in these times of heightened risk. In this article, the author delves into the effect of the pandemic on asset classes.

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What moved the markets – a round-up of 2020

In this article, Patrick Mathabeni, Research & Investment Analyst at Glacier by Sanlam, gives a recap of the events that drove the market in 2020 with a particular focus on the local and global macro environment.

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Hedge funds – an alternative strategy in building resilient portfolios

In this article, the author delves into the benefits of using a long/short equity hedge strategy.

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Behaviour Change Creates Opportunity

The gaming and digital payments industries have both benefited from the inexorable digitisation of the economy, and COVID-19 has accelerated the already rapid consumer adoption of these technologies. In this article, the author delves into the importance of adopting new technologies and how digitisation is creating opportunities for businesses.

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Inward listed ETFs

In this opinion piece, the author, Kingsley Williams, discusses the National Treasury’s decision to reclassify all inward-listed debt and derivative instruments as well as exchange-traded funds (ETFs) referencing foreign assets as domestic and what it could mean for investors and their retirement savings.

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A comparative study of passively and actively managed investment approaches in South Africa

Investors should utilise every available investment approach that could positively contribute towards meeting their desired investment goals. In this article, the author conducts a comparative study of passively and actively managed investment approaches in South Africa.

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FoF-27032020-GLC-Are you investing enough offshore

Are you investing enough offshore? The answer to this question has many experts divided. In this article, the author delves into the process of identifying the level of global exposure that is appropriate for you in order to have a well-diversified portfolio.

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FoF-06112020-Why invest in South Africa and why invest now

In this article, the authors delve into why South Africa is cyclically well-positioned for a global recovery with a cheap currency, attractively priced bonds, undervalued equity market and the possibility for continued USD weakness.

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FoF-30102020-Valuing property in a COVID-19 world

In this article, the author provides insight on property valuations within the COVID-19 world and how primary drivers of property valuations have changed. They further provide insight into how the valuer assumptions have been affected by the COVID-19 pandemic.

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FoF-23102020-COVID as a disruptor and enabler of global listed real estate

In this article, the author discusses the disruption and opportunities created by the pandemic within the global listed real estate sector. He also provides insight into how the crisis has reinforced and accelerated pre-existing structural trends in the sector.

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What if there are fewer COVID-19 deaths than predicted

In this article, the author looks at the impact of mortality rate predictions during a pandemic, particularly on insurance companies. He further examines how these predictions may benefit insurance companies if there are fewer deaths than predicted.

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South Africans need safety nets

In this article, the author explores the general lack of ‘safety nets’ and/or ‘shock absorbers’ at both an individual and national level, which has long been an issue in SA.

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Prescribed Assets – No Need To Panic

In this article, the author explores the prospect of a change to Regulation 28 to make prescribed assets a reality, which has left trustees and management committees as well as members of retirement funds with a sense of discomfort and uncertainty about what the future holds.

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Covering every angle

In this article the author, considers an investment approach covering all angles for investing in the JSE, given the fact that many SA investors are busy or thinking about investing offshore.

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Investor strategies need to evolve as the fixed income market does

In this article, the author illustrates that since the start of the COVID-19 pandemic, there have been substantial changes in the fixed income investment landscape, both in terms of the yield on offer in securities available for income funds, as well as the risks that need to be taken to earn these income yields. Specifically, yields closely linked to the repo rate have fallen by close to 3%, whereas sovereign bond yields remain elevated and above pre-crisis levels. As a result, he believes that investors need to be critical of the exposure they take in the fixed income space when seeking appropriate income returns (above cash and inflation).

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Achieving balance is not as easy as 60-40

It has been said that a traditional 60/40 portfolio is the ideal multi-asset allocation to achieve optimal returns. While such an allocation has provided investors with relatively decent returns over the last two decades, alpha sources have become wider and uncorrelated assets paramount. In this article, the author briefly examines some of the dynamics of a traditional 60/40 allocation while also making the case for alternative investments such as commodities and hedge funds.

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Have South Africans missed the US recovery

Global equity markets have seen one of the fastest post-shock recoveries in history with US tech stocks becoming market darlings. As a result, South African investors have been making notable moves in increasing their offshore exposure. In this article, the author demonstrates how and why the South African equity market (indexed by the JSE All Share) performed similarly to the much-coveted S&P 500 after the March lows.

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The market is not absurdly valued

The COVID-19 pandemic led to one of the sharpest sell-offs in decades, however, US tech stocks did not only weather the storm quite comfortably but have been notable drivers of US equity markets. In this article, the author takes a look at some dynamics of US tech stocks and why this pocket of the market is priced at such lofty levels.

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The decline of global banks

Banks have been some of the worst-affected businesses this year, given moves by Central Banks to cut interest rates in the hope of supporting economies hard-hit by COVID-19 lockdowns. In this article, the author looks at the headwinds that banks have faced during this period.

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Is more modified duration risk the answer to attaining a higher fund yield in a low interest rate environment

In this article, the author looks at the current low interest rate environment whilst dissecting possible avenues of attaining higher yields in funds.

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How to mitigate downside risk and benefit from upside performance - making smart investment choices

A deep dive into the three-year performance numbers of four popular ASISA categories shows how wide the range of returns available to investors can be. To limit the risk of significant capital losses and benefit from the return, potential investors must consider the range of outcomes available and the factors that determine them: asset allocation; the fund manager’s investment philosophy and process; the manager’s approach to risk management; and the investment time horizon.

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The changing nature of balance sheets

In this article, the author looks at how balance sheet reporting has changed and how this has affected the price-to-book (P/B) valuation by comparing four companies (Sasol, Datatec, Pick ‘n Pay and Microsoft).

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Beyond COVID-19

Even though questions arise about the duration of the pandemic-induced lockdown and the most likely glide path towards resumption of economic activity to normality, human and economic costs continue to accumulate to unimaginable levels. Concerns remain on whether the relief measures and programmes announced by authorities and civil society are sufficient to carry us through to some normality beyond COVID-19 given the unfolding and projected scourge.

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Why business confidence may be the only economic indicator that matters

The government needs to show that it can implement the right policies in order to revive business confidence and improve the outlook for local asset prices. In this article, the author talks about the importance of improving business confidence while looking at the poor performance of the local stock and property market over the recent years.

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Three global investing challenges facing SA managers

The author briefly mentions the benefits of global investing thereafter highlights three key challenges faced by South African managers when investing globally and concludes each challenge by describing how at Sentio they overcome these challenges.

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Listed property are the foundations solid enough to endure the COVID storm

The listed property sector has been the hardest hit in the market sell-off brought about by the COVID-19 pandemic. This article examines the short-term steps taken by the sector to see through the storm, as well as some of the current fundamentals and post-COVID outlook for the sector.

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How safe are your deposits at a bank

In the article the author, discuss how secure the SA banking system is and highlight the current positioning of SA banks in light of the COVID-19 pandemic. He also covers the pillars of a bank’s financial credit strength guide, which depositors can use to assess the safety of their deposits in a bank.

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The steepest curve in the world

Yield curves primarily steepen for one of two reasons. Either economic growth prospects look so good that investors switch from long duration bonds (pushing their yields up) into other assets that perform better in periods of growth. Or the short end falls as policymakers lower the base interest rate in the face of growth concerns. In this article, the author unpacks on the reasons for the steepness of South Africa’s yield curve and makes reference of the SA government’s alarming budget deficit.

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There’s more to the global stock indices than meets the eye

In the article the author, unpacks how significantly the S&P 500 benchmark has changed over the last few decades, as well as how it differs from the MSCI Emerging Market index. Through the article he also makes a case for the value in allocating to an investment manager that has the freedom to discriminate between stocks, sectors and countries, instead of just buying the S&P 500 index.

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The impact of earnings recessions – where to now

In the article the author, explores the impact of earnings “recessions” as a way of understanding market downside risk, historic time to recovery and the rating from which the market was able to recover.

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It’s time to get serious about diversifying your assets

In this article the author, makes a case for investing offshore, given the weak returns experienced, as well as the continuing weakening of the rand relative to other currencies for SA investors. While acknowledging that these are factors as a result of corruption, de-industrialisation, the inability to attract capital, emigration and balance of payments and fiscal challenges. In addition, he illustrates that the performance of SA equities vs MSCI ALL World Country Index fails in comparison and that it underperforms inflation.

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GEM - Doom gloom then bloom

Global developed equity markets have gained more traction during this Coronavirus pandemic as developed market central banks stepped in with unprecedented stimuli. In the article, Feroz Basa makes a case for global emerging markets - highlighting some of the key economic and valuation considerations for investors.

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Credit - more risk than is obvious to the naked eye

In 2009, I became the lead manager on a fixed income mandate and have continued to pursue my passion of managing client capital in what I have always perceived as the less-than-captivating area of investments – fixed income. These days, my window to the market is the income fund which I’m responsible for.

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Hedge Funds - an old enemy or new ally

Within the investments industry, it is a tale as old as time: hedge funds are dangerous. Nervousness around the asset class stems all the way from iconic hedge fund blow-ups in the distant past to misconceptions on the relative riskiness and concerns around regulatory oversight.

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The importance of growing wealth

Countries, much like listed companies, aim to grow through time. However, instead of assessing their margin expansion or sales growth, a country’s growth is often measured in gross domestic product (GDP). GDP represents the total value of all goods and services produced in a country over a one-year period. China has been one of the fastest-growing countries in the world, with their latest annual GDP print at 6.1% for 2019. What we don’t know, given that GDP is effectively a revenue number, is whether it has translated into creating wealth.

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Responsible investing during the COVID-19 crisis: seeking opportunity through an ESG lens

At the time of writing, the COVID-19 crisis is wreaking havoc across global markets, interrupting global supply chains, drying up demand and of course taking a massive personal toll on affected families. Given the scale of the devastation, some investors might ask, why worry about responsible investing or environmental, social and governance (ESG) issues at this stage? Surely it makes sense to just focus on the “important” investment numbers and rather leave the soft ESG stuff until after the crisis?

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Fixed income: investing in the new age

Investing in fixed income markets has been extremely challenging ever since the GFC which has unveiled profound structural changes to the fixed income investment landscape. In this article, the authors delve into these structural changes to the macro-economic landscape in the areas of valuation of fixed income markets, credit, volatility management and liquidity management and how it has permanently altered the environment for fixed income investing.

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Is SA corporate credit too expensive?

There is currently a debate over whether SA floating-rate corporate credit (in the form of floating-rate notes or FRNs) has become too expensive, particularly for higher-quality issuers. This would mean that the yield these assets now offer is insufficient for the risk involved. In this article, the author sheds light on the topic

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Who has borrowed my money?

The evolution of credit analysis through the years is linked to the increasing complexity of the underlying debt instruments and the more stringent banking regulation introduced after the global financial crisis. In this article, the author delves into the issuance of Bank Additional Tier 1 (AT1) instruments while looking at the merits and risks of being included in the asset allocation of multi-asset funds.

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Blackstone – Capitalising on a changing industry landscape

A rapidly changing industry landscape has led to growing demand for passive and alternative investment products, at the expense of traditional actively-managed funds and resulting in a fund-raising “super cycle” for large, diversified firms such as Blackstone.

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The Samaritan in your exhaust

Sometimes we know nothing about everyday things. Particularly when they are hidden from view. But when their mechanics are decoded for us, it imparts a new appreciation for them and arms you with information that’ll make you more interesting in conversation.

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Can we (really) time the market? (Part 3 of 3)

The first two parts of this article outlined the additional risks investors face as they approach retirement. In this finale of the three-part article, Darren Burns, Head: Investment Solutions at Glacier by Sanlam, gives insight into longevity risk, life cycle risk, sequence risk, hedge funds and smooth bonus funds.

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Can we (really) time the market? (Part 2 of 3)

Part 1 of this article outlined how significant timing can be to the overall value of your nest egg. It also illustrated how important market performance is the closer you are to retirement. But do these risks still exist after you’ve retired?

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Can we (really) time the market? (Part 1 of 3)

“Can we (really) time the market?” In this three-part series of articles, Darren Burns, Head: Investment Solutions at Glacier by Sanlam, gives insight into the notion of ‘timing the market’ and the impacts thereof.

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A turbulent year with handsome gains - a recap of 2019

“2019 was a turbulent yet rewarding year for equity and local bond investors alike.” In this article, Patrick Mathabeni, Research & Investment Analyst at Glacier by Sanlam, gives a recap of the events that drove the market in 2019 with a particular focus on the local and global macro environment.

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Central banks are equal, but some are more equal than others

In this article, the author explores the role of the central banks- what they do and why they do what they do. The article also touches briefly on what determines the influence of these Banks.

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Tortoises and Hares are investors too

“Rule No. 1, Never lose money. Rule No. 2, Never forget rule No. 1.” – Warren Buffet. In this article, the author delves into the concept of authentic asset allocation with the notion that portfolio managers should actively protect investors from the risk (equities) and move into a holding pattern (cash) until such time as value returns to the market.

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