Is this a stock-picker’s market?

Is this a stock picker’s market?

Moneyweb recently hosted their first Boutique Asset Manager event in conjunction with IRESS. They brought together a number of Boutique Asset Managers to discuss the state of local markets right now and where the best opportunities for investors lay.

As part of the conference, Delphine Govender, Chief Investment Officer at Perpetua in her presentation attempts to answer the question: “Is this a stock-picker’s market?”

Watch Delphine’s presentation here.

Under the spotlight

Under the spotlight

In the December 2016 edition of Insights, the value investment style is discussed and Perpetua Investment Managers is reviewed (by Tatjana Raunich, Qualitative Research Analyst, Momentum)

Value investment managers – nerves of steel, patience of Job and unwavering conviction
Value investment managers seek companies in the market that have been priced cheaply relative to their intrinsic value; where the fundamental value of a company has not been acknowledged in the market price, or a catalyst that will unlock value of the company in the future is identified. When the rest of the market realises the true value of the company, it will be reflected in the market price. Once the market price of the share increases to a price level the investment manager considers to reflect fair value of the company, the investment manager will sell the share and a profit will be realised. The value philosophy advocates buying good companies, at good (low) prices. After purchasing the share, time is needed for realisation of value; this time frame is usually longer than
anticipated, hence the need to think of value investing as a long-term strategy.

Read the full article here.

Boutiques pull investor interest

Boutiques pull investor interest

Even though we live in a small economy, SA’s investors have a bafflingly large choice of asset managers wanting to manage our money.

I knew there was an extensive list of more than 40 black-owned asset managers. But according to a study just released by RMI Investment Managers, there are now 126 independent boutique managers running R2.4-trillion of assets. And this excludes all the asset managers attached to banks and life insurers.

Read the full article here.

Ten stocks for ten-year olds

Ten stocks for ten-year olds

The Moneyweb Investor spoke to three investment managers to get their views and recommendations on what to buy if you were buying stocks for your ten-
year old.

They include Andrew Dittberner, CIO at Cannon Asset Managers; Delphine Govender, CIO of Perpetua Investment Managers, and Matt Brenzel joint CIO at Cadiz Asset Management. In thinking around investments that could be recommended for a ten-year old, a number of factors have to be considered.

These include a very long investment horizon, which allows for one to put volatility and cyclicality to the side, as well as wanting to identify companies that have proven to have figured out the key ingredients of success, which incorporates agility, absorption and reinvention, says Andrew Dittberner.

Investors should also take the time to understand what it is the company does and whether this makes sense as a business, adds Delphine Govender.

Read full article here.

Emerging Asset Manager of the Year

Batseta honours retirement fund service provider excellence

The Batseta Council of Retirement Funds for South Africa is delighted to announce the winners of the 2016 Imbasa Yegolide Awards.
This year saw 22 Awards being made, to celebrate excellence among service providers to the retirement fund industry. In addition, seven member funds achieved recognition for their contribution to member education.

 

 

Read the full article here.

RMI: Starting its own shops

RMI: Starting its own shops

Few financial groups have had a well-developed incubation programme. There have been a few ad hoc investments into start-up asset managers, such as Old Mutual’s into Cachalia Capital and Sanlam’s into First Avenue, but little on a sustained basis.

There is an element of incubation in the allocations to smaller managers by the Public Investment Corp, as well as by multimanager 27four. But neither of these has invested permanent capital in these managers or provided formal logistical or distribution support.

So when RMI Investment Services opened last year under former RMB Morgan Stanley boss Chris Meyer, it was the first mover. RMI has an advantage over Old Mutual, Sanlam and Stanlib as it does not have an incumbent legacy fund manager. And much as it has no desire to hold more than a minority stake in Discovery or MMI, RMI holds minority stakes in its affiliates. It is a model adopted from the US-based Affiliated Managers Group, which owns 25% of midsized Cape Town manager Abax.

“RMI comes from a group which has encouraged the development of entrepreneurial businesses,” says Delphine Govender, chief investment officer of Perpetua, one of the first RMI affiliates, “and it came with a reputation of noninterference, which it has stuck to.”

Govender says she believes RMI really wants to build up the next tier of managers with scale. “We hope that with a shareholder of the stature of RMI the consultants and other gatekeepers will at least listen to us, instead of giving all mandates to a handful of large managers.”

Read the full article here.