Saving With Negative Real Interest RatesInvestingTips
As historically low interest rates persist and inflation accelerates, saving with negative real interest rates becomes increasingly futile.
https://youtu.be/d9qhofw8ZVc
Robert Kinnun • Madison Avenue Securities, Inc. (“MAS”)
- Growth of passive index investing increases the need for active management by Linda Ferentchak
- Technology sector tops Q3 earnings season
- Brokerage options: an "instrument-rated" approach to 401(k) plans (Mike Jones, ProEquities, Inc.)
Saving With Negative Real Interest RatesInvestingTips
As historically low interest rates persist and inflation accelerates, saving with negative real interest rates becomes increasingly futile.
https://youtu.be/d9qhofw8ZVc
Robert Kinnun • Madison Avenue Securities, Inc. (“MAS”)
- Growth of passive index investing increases the need for active management by Linda Ferentchak
- Technology sector tops Q3 earnings season
- Brokerage options: an "instrument-rated" approach to 401(k) plans (Mike Jones, ProEquities, Inc.)
Netwealth portfolio construction series: Economic Update with Roger MontgomerynetwealthInvest
Part of Netwealth's portfolio construction webinar series - Roger Montgomery, founder and Chief Investment Officer at Montgomery Investment Management presented to an audience on 22nd February 2017 and shared his views on major economic trends currently affecting local and global markets, stocks and sectors best placed for growth and what investors should look for in 2017.
This is a very appropriate article if you are getting ready to retire and looking for an investment strategy that will preserve your hard earned savings and provide you with an income to last throughout retirement.
Netwealth portfolio construction series: Investment Moneyball - Taking advant...netwealthInvest
Discover how you can apply the Moneyball theory to potentially discover good investment opportunities at good prices by finding market anomalies to take advantage of. Paul Moore, founder and Chief Investment Officer of PM Capital, discusses.
Asset Allocation and Factor Investing: An Integrated SolutionWindham Labs
This presentation is based on an article coauthored by Alain Bergeron, Mark Kritzman, and Gleb Sivitsky entitled “Asset Allocation and Factor Investing: An Integrated Approach” published in The Journal of Portfolio Management in 2018.
Netwealth portfolio construction series - Building investment portfolios for ...netwealthInvest
Discover what markets could look like in the future and some of the strategies investors use in order to continue meeting their retirement goals with Josh Hall from Aberdeen Asset Management.
By www.ProfitableInvestingTips.com
What is Intrinsic Stock Value?
In the aftermath of the stock market crash of 1929 in the early days of the Great Depression Benjamin Graham introduced the concept of value investing. No longer would those buying and selling stocks need to act like they were at the casino. With the concepts of intrinsic value and margin of safety Graham taught investors a rational means of investing in stocks. With this in mind just what is intrinsic stock value? And how does this concept help with profitable stock investing?
What Is Intrinsic Stock Value?
The dictionary definition of intrinsic stock value is its fundamental value. It is obtained by adding up predicted future income of a stock and subtracting current price. It can also be seen as actual value of an equity versus its book value or market value. The concept of fundamental analysis of equities evolved from this concept. Using fundamental analysis the intrinsic value of a stock is the expected company cash flow discounted to current dollars. It is a discounted cash flow valuation. An inherent weakness in this concept is that too often the medium and long term prospects of a company and its stock price are not clear. So, what is intrinsic stock value of a company if the future is uncertain? The ability to see into the future to see how well a company will manage its assets, products, costs, R&D, and marketing is of utmost importance in calculating intrinsic stock value as a means of deciding whether or not to purchase a stock.
What is Intrinsic Stock Value as a Formula?
Mr. Graham presented investors with a formula for calculating intrinsic stock value in 1962 and modified it in 1974. The 1974 version considers the following:
• Earnings per share, EPS, for the preceding twelve months
• A constant of 8.5 representing an expected price to earnings ratio, P/E ratio, for a company that is not growing
• An estimate of long term growth, five years = g
• A constant of 4.4 which was the average yield of high grade corporate bonds in the early 1960 decade
• The current yield of AAA corporate bonds = Y
• Where V = intrinsic value
The formula is as follows:
V = (EPS x (8.5 + 2g) x 4.4)/Y
The way the investors were encouraged to use intrinsic value was to derive what is referred to as a Relative Graham Value, RGV. This is to divide the calculated intrinsic value of the stock by its current price. If the result, the RGV, is less than one the stock is overvalued and a bad investment and if the ratio is above one it is undervalued and may be a good investment.
What is Intrinsic Stock Value as an Investing Tool?
There are a couple of difficulties in using the simple calculation above to determine the forward looking earnings of a stock and therefore its intrinsic value. First of all the formula does not account for inflation. Thus one could use the formula and end up with a stock valued higher in dollars but in dollars that are inflated.
During the last 15 years more than $800 billion dollars has been contributed to index funds. At Selective we believe there are many limitations to these products and don't truly capture the heart of investing - business ownership. To learn more go through the presentation. If you would like more content like this visit us at www.selectivewm.com or contact us at info@selectivewm.com
On Wednesday, November 14th we were joined by Cel Kulasekaran, Research Director at Windham Capital Management. Cel discussed factor analysis and how factor models can provide for a more complete understanding of portfolio risk.
WEBINAR HIGHLIGHTS:
-What is factor analysis?
-Common factors used in practice
-Single vs. multi factor models
-Factor models in practice
-Practical implementation issues
-Factor analysis case study on a diversified portfolio
The market for sustainable investments has grown to over $12 trillion in the U.S. and the movement of investable assets into sustainable strategies is expected to accelerate. The update reviews the growth of sustainable investing over the last decade and considers the valuation implications for your RIA.
Netwealth portfolio construction series: Economic Update with Roger MontgomerynetwealthInvest
Part of Netwealth's portfolio construction webinar series - Roger Montgomery, founder and Chief Investment Officer at Montgomery Investment Management presented to an audience on 22nd February 2017 and shared his views on major economic trends currently affecting local and global markets, stocks and sectors best placed for growth and what investors should look for in 2017.
This is a very appropriate article if you are getting ready to retire and looking for an investment strategy that will preserve your hard earned savings and provide you with an income to last throughout retirement.
Netwealth portfolio construction series: Investment Moneyball - Taking advant...netwealthInvest
Discover how you can apply the Moneyball theory to potentially discover good investment opportunities at good prices by finding market anomalies to take advantage of. Paul Moore, founder and Chief Investment Officer of PM Capital, discusses.
Asset Allocation and Factor Investing: An Integrated SolutionWindham Labs
This presentation is based on an article coauthored by Alain Bergeron, Mark Kritzman, and Gleb Sivitsky entitled “Asset Allocation and Factor Investing: An Integrated Approach” published in The Journal of Portfolio Management in 2018.
Netwealth portfolio construction series - Building investment portfolios for ...netwealthInvest
Discover what markets could look like in the future and some of the strategies investors use in order to continue meeting their retirement goals with Josh Hall from Aberdeen Asset Management.
By www.ProfitableInvestingTips.com
What is Intrinsic Stock Value?
In the aftermath of the stock market crash of 1929 in the early days of the Great Depression Benjamin Graham introduced the concept of value investing. No longer would those buying and selling stocks need to act like they were at the casino. With the concepts of intrinsic value and margin of safety Graham taught investors a rational means of investing in stocks. With this in mind just what is intrinsic stock value? And how does this concept help with profitable stock investing?
What Is Intrinsic Stock Value?
The dictionary definition of intrinsic stock value is its fundamental value. It is obtained by adding up predicted future income of a stock and subtracting current price. It can also be seen as actual value of an equity versus its book value or market value. The concept of fundamental analysis of equities evolved from this concept. Using fundamental analysis the intrinsic value of a stock is the expected company cash flow discounted to current dollars. It is a discounted cash flow valuation. An inherent weakness in this concept is that too often the medium and long term prospects of a company and its stock price are not clear. So, what is intrinsic stock value of a company if the future is uncertain? The ability to see into the future to see how well a company will manage its assets, products, costs, R&D, and marketing is of utmost importance in calculating intrinsic stock value as a means of deciding whether or not to purchase a stock.
What is Intrinsic Stock Value as a Formula?
Mr. Graham presented investors with a formula for calculating intrinsic stock value in 1962 and modified it in 1974. The 1974 version considers the following:
• Earnings per share, EPS, for the preceding twelve months
• A constant of 8.5 representing an expected price to earnings ratio, P/E ratio, for a company that is not growing
• An estimate of long term growth, five years = g
• A constant of 4.4 which was the average yield of high grade corporate bonds in the early 1960 decade
• The current yield of AAA corporate bonds = Y
• Where V = intrinsic value
The formula is as follows:
V = (EPS x (8.5 + 2g) x 4.4)/Y
The way the investors were encouraged to use intrinsic value was to derive what is referred to as a Relative Graham Value, RGV. This is to divide the calculated intrinsic value of the stock by its current price. If the result, the RGV, is less than one the stock is overvalued and a bad investment and if the ratio is above one it is undervalued and may be a good investment.
What is Intrinsic Stock Value as an Investing Tool?
There are a couple of difficulties in using the simple calculation above to determine the forward looking earnings of a stock and therefore its intrinsic value. First of all the formula does not account for inflation. Thus one could use the formula and end up with a stock valued higher in dollars but in dollars that are inflated.
During the last 15 years more than $800 billion dollars has been contributed to index funds. At Selective we believe there are many limitations to these products and don't truly capture the heart of investing - business ownership. To learn more go through the presentation. If you would like more content like this visit us at www.selectivewm.com or contact us at info@selectivewm.com
On Wednesday, November 14th we were joined by Cel Kulasekaran, Research Director at Windham Capital Management. Cel discussed factor analysis and how factor models can provide for a more complete understanding of portfolio risk.
WEBINAR HIGHLIGHTS:
-What is factor analysis?
-Common factors used in practice
-Single vs. multi factor models
-Factor models in practice
-Practical implementation issues
-Factor analysis case study on a diversified portfolio
The market for sustainable investments has grown to over $12 trillion in the U.S. and the movement of investable assets into sustainable strategies is expected to accelerate. The update reviews the growth of sustainable investing over the last decade and considers the valuation implications for your RIA.
Block, Inc., together with its subsidiaries, creates tools that enables sellers to accept card payments and provides reporting and analytics, and next-day settlement. It provides hardware products, including Magstripe reader.
Based on the Block Inc stock forecasts from 32 analysts, the average analyst target price for Block Inc is USD 177.21 over the next 12 months. Block Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Block Inc is Slightly Bullish , which is based on 6 positive signals and 5 negative signals. At the last closing, Block Inc’s stock price was USD 76.58. Block Inc’s stock price has changed by -12.42% over the past week, -8.68% over the past month and -63.57% over the last year.
Smart Beta Investing - Trends and OpportunitiesAmit Sinha
Additional content available at www.focus262.com/blog
Presentation by Amit Sinha at the Copal Amba Breakfast Series that walks through the what, why and where of Smart Beta investing.
Beginning with what is smart beta, then moving to why investors can benefit from smart beta and concluding with where the industry is headed - highlighting the potential market opportunity, challenges, and business models followed by asset managers such as Dimensional, AQR, GSAM, etc.
Fidelity Personal Investing’s market and investment view, January 2014. Assessing main investment themes; equities, bonds, property, and commodities.
https://www.fidelity.co.uk/static/pdf/personal/markets-insights/investment-outlook-january-2014.pdf
More at: https://www.fidelity.co.uk
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
3. Agenda
The contradictory market context
Our equity approach
Investment opportunities:
Global technology companies
Platinum over gold
Pick n Pay over Shoprite
14. Current market contradictions
Bad economic news is good news for markets
Low risk assets are now higher risk
Printing money causes no inflation
SA equities vastly more expensive than developed market champions
Despite low economic growth, SA assets most foreign-owned ever
Despite interest rates at record lows, SA consumer spend is weak
…excessive global monetary stimulus is to blame
16. End result is a different form of inflation…
Foreigners
17. In summary
Central bank policy is masking bleak economic fundamentals
Asset price valuations are unsustainably high in certain sectors
Risk of capital loss is higher than average
Equity risk is elevated!
21. Value/price
Why are equity prices so volatile?
Intrinsic value
Market price
Sometimes:
The environment seems terrible
Company results may be poor
People are overly pessimistic
Time
22. Value/price
Why are equity prices so volatile?
Or it’s the flows!
Intrinsic value
Market price
Other times:
The environment seems fantastic
Company results are great
People are overly optimistic
Sometimes: it’s just that alternatives seem worse!
Time
23. Value/price
The main equity risks
Buying when shares are above fair value
– ie not having an idea of valuation
Intrinsic value
Market price
Having to sell, when prices are below fair value
– ie short-term cash need
Time
24. Value/price
The main equity risks
Investing without a clear focus on valuations
- Either as an investor yourself or from the
manager who manages your money
Investing in equities when you
have a short-term time horizon
Time
27. we have done with this approach over the
last 9.5 years (to 31 October 2013)
8000
6000
4000
2000
Kagiso Equity Alpha Fund
Upper quartile fund to date
Median fund to date
Lower quartile fund to date
FTSE/JSE SWIX Index
0
May 04
May 05
May 06
Source: Morningstar & Kagiso Asset Management
*Inception: 26 April 2004
May 07
May 08
May 09
May 10
May 11
May 12
May 13
28. Top unit trust fund performance
Top 15 funds since inception*
South African EQ General
1 year to
31/10/2013
A.G.R.
3 years to
31/10/2013
Rank
A.G.R.
5 years to
31/10/2013
Rank
A.G.R.
Since inception to
31/10/2013
Rank
A.G.R.
Rank
Coronation Top 20 A
31.6
6
20.9
9
23.6
2
24.2
1
Prudential Equity A
30.7
8
19.9
12
20.8
11
23.1
2
Kagiso Equity Alpha
28.2
26
16.3
40
19.7
18
22.9
3
Foord Equity R
33.2
5
23.5
2
24.1
1
22.8
4
Prudential Dividend Maximiser A
28.5
24
18.3
20
19.7
20
22.6
5
Coronation Equity R
35.2
3
20.8
10
22.9
4
22.4
6
ABSA Select Equity
19.6
91
15.4
53
20.0
17
22.0
7
SIM Value R
24.7
50
16.2
42
20.5
13
21.8
8
SIM General Equity R
28.6
21
19.3
15
21.7
7
20.9
9
PSG Equity A
36.8
2
21.3
7
23.2
3
20.6
10
Nedgroup Inv Value R
18.5
97
15.0
56
20.8
10
20.6
11
Allan Gray Equity A
24.5
53
17.7
27
18.4
35
20.6
12
Nedgroup Inv Growth R
27.3
30
14.7
58
18.7
33
19.9
13
ABSA General R
25.3
44
17.2
37
19.1
26
19.6
14
Marriott Dividend Growth R
20.2
87
18.1
21
21.0
8
19.6
15
Mean/Count
23.4
114
15.8
91
17.8
84
19.0
48
Source: Morningstar
Based on lump sum, income re-invested, NAV-NAV
*Inception: 26 April 2004
29. Consistent top performance equity unit trust to 31 October 2013
Relative ranking over rolling 5-year periods since inception*
100
Top
quartile
75
Above
average
50
Below
average
25
Bottom
quartile
0
May 04
May 05
Source: Morningstar
*Inception: 26 April 2004
May 06
May 07
May 08
May 09
May 10
May 11
May 12
May 13
33. Enabled by the rise of mobile broadband
Source: Ericsson Mobility Report, June 2013
34. Phones are no longer about voice
Global total data traffic in mobile networks, 2007-2013
Traffic does not include DVB-H, WiFi, or Mobile WiMax. Voice does not include VoIP, M2M traffic is not included.
Source: Ericsson Mobility Report, June 2013
1
37. Global smartphone profit pool
Profit leadership perpetuates
investment in
scale, innovation and brand
Source: Company data, Barclays Research estimates, value as of 2012 year-end
39. Microsoft is more than just Windows (and less
exposed to declining PC sales than many think)
Profit contribution by division
Entertainment
and Devices
Division
3%
Windows Division
28%
Microsoft Business
Division
46%
Server and Tools
23%
40. Who are the winners from these trends?
PE = 6.4x*
PE = 9.2x*
PE = 9.5x*
Apple
PE = 10.8x*
PE = 12.5x
versus
*adjusted for net cash and after accounting for tax
PE = 19.8x
45. Autocat demand is depressed…
China
Europe
USA
5 years of contraction
- lowest level in 17 years
Running well below natural
replacement demand level
Does not need economic recovery
for vehicle sales to return to
replacement demand
47. Pick n Pay vs Shoprite: a clear winner, so far
Source: I-Net
48. Valuation differentials are stark
2.7x
2.1x
Premium on Shoprite non-SA is excessive
* Kagiso Asset Management estimates
49. Pick n Pay sales base is significant and stable
Pick n Pay’s robust sales indicative of brand strength^
^ Sunday Times Top Brands category winner
50. Pick n Pay: multiple initiatives to reduce costs
New OUTSIDE leadership
Centralising
distribution
SAP/IT
implementation
Centralised
buying
Reviewing
employee cost
Consolidating
regions
Loyalty
program
51. Pick n Pay vs Shoprite: divergent outlooks
Pick n Pay
Shoprite
SA’s leading retail brand
Significant sales base
Operational recovery within its control
Recent decisions a sign of change
Priced to perfection
Peak margins in SA
Excessive premium on Africa
53. In summary
Market contradictions abound
On-going monetary stimulus is distorting asset prices
Our investment philosophy aims to outperform while managing risk
- by focusing on valuations
54. Disclaimer
Kagiso Asset Management (Pty) Limited (‘Kagiso’) is a licensed financial services provider under the Financial Advisory
and Intermediary Services Act No. 37 of 2002 (‘FAIS’) (FSP No. 784) and is approved by the Registrar of Financial
Services Providers (www.fsb.co.za), Reg No. 1998/015218/07. Kagiso is a member of the Association of Savings and
Investments SA (ASISA). ‘The Firm’ refers to Kagiso Asset Management, which is a subsidiary of Kagiso Tiso Holdings.
This comprises all discretionary portfolios managed by Kagiso. For the periods from 2002 through 2004, as well as for
the calendar year ended 2008, Kagiso Asset Management has been GIPS verified by KPMG. A copy of the verification
report is available upon request. The availability of a complete list and description of all of the firm’s composites is
available upon request. Internal dispersion is calculated using the equal –weighted standard deviation of all portfolios
that were included in the composite for the entire year. Additional information regarding policies for calculating and
reporting returns is available upon request. Kagiso has prepared and presented this report in compliance with the
Global Investment Performance Standards (GIPS).
Kagiso takes no responsibility for any information contained herein or attached hereto unless such information is issued
under the signature of a FSB-approved representative or key individual (as these terms are defined in FAIS) and is
strictly related to the business of Kagiso. Such information is not intended to nor does it constitute
financial, tax, legal, investment or other advice, including but not limited to ‘advice’ as that term is defined in FAIS.
Kagiso does not guarantee the suitability or potential value of any information found in this communication. The user
of this communication should consult with a qualified financial advisor before relying on any information found herein
and before making any decision or taking any action in reliance thereon. The user of any of this information should be
aware that market fluctuations and changes in rates of exchange may have an effect on the value, price or income of
investments. As the performance of financial markets fluctuates, an investor may not retain the full amount invested.
Past performance is not necessarily a guide to future investment performance. Investments into a collective investment
scheme are generally a medium- to long-term investment. This communication contains proprietary and confidential
information, some or all of which may be legally privileged. It is for the intended recipient only. If an error of any kind
has misdirected this communication, please notify the author by replying to this communication and then deleting the
same. If you are not the intended recipient you must not use, disclose, distribute, copy, print or rely on this
communication. Kagiso is not liable for any variation effected to this communication or any attachment hereto unless
such variation has been approved in writing by a FSB-approved representative or key individual of Kagiso.
Kagiso Asset Management (Pty) Ltd, Fifth Floor, MontClare Place, Cnr Campground and Main Roads, Claremont
7708, PO Box 1016 Cape Town 8000, Tel +27 21 673 6300, Fax +27 86 675 8501, E-mail:
info@kagisoam.com, www.kagisoam.com.
56. Performance record
Kagiso Equity Alpha Fund – peer mean benchmark
Year
Gross of
fees return1
Benchmark
return1, 2
Standard deviation3
Fund
Benchmark
Number of Internal
portfolios dispersion
Total
composite
assets (ZAR)
Total firm assets
(ZAR)
2003
R601,315,574
2004
R1,910,903,589
2005
37.3%
36.3%
1
-
R21,174,365
R4,607,698,321
2006
39.9%
34.5%
1
-
R26,858,449
R5,055,977,879
2007
26.1%
15.5%
1
-
R52,397,394
R11,044,952,842
2008
-22.4%
-21.8%
1
-
R6,860,772
R8,880,253,313
2009
36.2%
26.0%
1
-
R17,280,450
R17,724,883,532
2010
22.4%
18.3%
1
-
R271,868,341
R28,182,015,250
2011
4.9%
3.2%
14.1%
13.5%
1
-
R520,973,605
R34,476,214,389
2012
16.1%
21.2%
9.2%
10.3%
1
-
R737,508,679
R46,579,313,698
1
Annualised; Inception date: 26 April 2004;
3
Standard deviation annualised over previous 3 years; Performance is expressed in South African rand
2
Average performance in South African Equity General unit trust universe;
Figures to 31 December 2012 net of management fees, net of all applicable withholding taxes, trading expenses and custodial fees and gross of SA capital gains taxes
The retail management fee is: flat fee of 1.25% pa
Prepared and presented in compliance with the Global Investment Performance Standards (GIPS), independently verified
Source: Kagiso Asset Management
57. Our fund range
Pure equity
Unconstrained
Low equity
High income
High capital
protection
Medium equity
CPI + 5%
Capital protection
Lower volatility
High equity
Prudential
constraints
Equity
Alpha
Balanced
Protector
Stable
Low risk
Low - medium
Medium
Medium - high
58. Fund descriptions
Fund
Description
Kagiso Equity Alpha Fund
This is an unconstrained equity fund that aims to provide strong capital growth over the
long term and a total portfolio return that is in the top quartile for general equity funds.
Kagiso Balanced Fund
This fund is a Regulation 28 balanced fund and aims to provide investors with high,
long-term capital growth. The fund invests in equities, bonds and cash, both locally and
internationally.
Kagiso Stable Fund
A low equity fund that aims to provide total returns that are above inflation over the
medium term. It seeks to provide a high level of capital stability and to minimise loss
over any one-year period, within the constraints of Regulation 28.
Kagiso Protector Fund
This fund aims to provide steady capital growth and returns that are better than equity
market returns on a risk-adjusted basis over the medium to longer term. The fund is
Regulation 28 compliant.
Editor's Notes
Obvious points RSA Au shrinkage – driven by increasing depth and plummeting grades-uneconmic-accelerated decline Overall Au has increased despite RSA-high Au price incentivised exploration- high Cu priceRSA and Zim dominate Pt supplyRSA structural decline- not grades and depth rather- lack of capital spend due to low prices (and labour disruptions)
Looking more at Au investment:-many of the current positive contributors have been sources of supply for most of history!
AND Pt has theautocat recoveryChina has shown incredible growth and is now largest market in WWW (Pd dominant)US has bounced up to natural replacement demand on eco stability. May overshoot replacement demand for a while on pent up dd. (Pd dominant)Europe 5 years of contraction- lowest level in 17 years5th consecutive year of sales running below natural replacement demand (235m vehicle parc scrapping at 6% p.a.)Does not need major eco recovery for vehicle sales to bounce up to replacement demand. (mild eco growth and stability and sentiment)April vehicle sales showing very early signs of stabilisation-2013 will be a another down year though. 2014 Euro 6 (Pt dominant diesel market)