IFG is aligned with the new legislative environment and has implemented a standard financial planning and investment process to meet all the requirements in terms of the relevant laws. We recognise the need to measure our advice to clients according to a benchmark that sets the standard in the industry. Our benchmark of the "best advice" and offering "superior services" are the cornerstones of this process.
We ensure a high standard of financial planning within the company and provide the means to maintain that standard. Our in-house designed financial planning tools and modules make it possible to deliver a professional financial and investment planning service, backed by our excellent reporting processes. Through our para-legal team we provide financial planners with support on legal technical matters.
WHY IFG AFRICA?
We are a specialist equity team within IFG Africa Financial Investment Group and offer both sector-specific and general equity funds, predominantly within the South African market. We also offer Pan Africa funds to investors seeking exposure to the broader African continent.We invest in companies that are undervalued and demonstrate an ability to create shareholder value over time, and our investment approach gives us the ability to deliver competitive returns through different market style cycles. We do this by combining a fundamental, valuation-based approach with other proven investment factors such as quality and momentum.
While valuation has proven to be a vital ingredient to long-term outperformance, our research shows that the inclusion of other key variables adds a crucial dimension. The combination of valuation and these uncorrelated variables broadly grouped as Quality, Growth and Momentum, provides a more balanced approach to decision making, enhancing our ability to avoid ‘value traps’ and deliver competitive returns though different market cycles.
Entrepreneurship is about passion. Great entrepreneurs are not driven by a simple desire to make money. They are driven by a need to change the world. They may change the world by building a better operating system or a better search engine or a better social network. But whatever it is they are building, great entrepreneurs are driven by passion.
The same is true of IFG Africa.
It is not enough to simply hope to make a buck. The best Venture Capitalists fund companies about which they are truly passionate. Building great companies takes a long time. And it is never a straight path. But a shared desire to create something great "something important" will carry entrepreneurs and IFG Africa alike through the tough times, but more important to grow financial investemnts for our clients.
So, how do the offshore equity investors currently see South Africa?
Growth/momentum institutional investors are the least persuaded by the South African story. This reflects concerns at the weak and weakening rand on the one hand, as well as the weak all round financial growth functionality projected into a lacklustre corporate earnings outlook on the other. This is not one of a kind to South Africa.A equivalent slowdown in other growth markets such as Turkey is forecast as their central banks start out to boost interest rates. Ultimately, this is likely to lead to an financial slowdown.Money flow oriented/value investors continue to approach South African investments having a deep basic approach as well as a constructive outlook. Their concerns have resulted in their applying a higher discount to their investment thesis and in the end looking for more affordable valuations to improve investments.Liquid, well-managed organizations with well-understood equity stories are at the best on the add-on list.Amongst particular mining investors and many specialist mining funds, regional mining has come to be virtually ?untouchable? because of the labour strife. Need to the labour problems be resolved, the platinum group metals sector might as soon as again come to be an appealing investment.Hedge funds, in specific, continue to believe that regional banks are broadly exposed to unsecured lender credit pressures and that these will contaminate loan growth and non-performing loan ratios. This, in turn, will contaminate the earnings and return outlook.How do the offshore institutions see our currency?Last year lots of the outflow that pushed the rand weaker was a combination of speculative interest in the context of a tapering atmosphere, a reduction of overweight offshore bond positions and active ?overlay hedging? from actual revenue investors that have been lengthy South African equities and bonds.But so far, this year has been somewhat unique: portfolio flows in both bonds and equities have already been disappointing. Because the start out of the year, there happen to be only four days of optimistic inflow into the bond market place, totalling R1.five billion (versus bond outflows of nearly R7bn).The equity market has observed net outflow of about R1bn for the year to date and only six constructive days of inflow. In other words, what we're experiencing is definitely the impact of a 6.eight percent present account deficit in the absence of portfolio inflows.Clearly the US dollar inside a tapering environment in addition to expectations with regards to the prospective near-term overall performance of development markets generally and much more specifically issues more than the perpetual labour difficulties are all combining to producefragile sentiment. This can be correct in respect of emerging marketplace assets usually and for the nation. This indicates the opportunistic inflows that we would have anticipated within the past are simply not materialising to support the currency,.In the end, the ?shorts? look to become continuing to concentrate on nations that sustain important present account deficits and are overly reliant on portfolio inflows as the major source of their financing.The ?early adopters? of a extra hawkish monetary policy stance (Brazil, India and Indonesia) have observed their currencies stabilise within the previous six weeks, whereas these viewed as continuing with true prices which can be also low to attract or even retain capital continue to weaken. South Africa?s price hike last week will have met some, though not all, of these expectations.As opposed to the central banks of other key emerging markets, the SA Reserve Bank established an inflation targeting framework in 2000. The framework has been efficient in managing inflationary (and deflationary) stress, anchoring inflation expectations and supporting development within the past 14 years. Hence, we expect the Reserve Bank to preserve its measured method to any further rate action and focus on the inflation and growth outlook consistent with this framework.