FINANCIAL ADVISORY SERVICES
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 at present see South Africa?Growth/momentum institutional investors will be the least persuaded by the South African story. This reflects issues in the weak and weakening rand around the one particular hand, and also the weak overall financial growth efficiency projected into a lacklustre corporate earnings outlook around the other. This is not one of a kind to South Africa.A equivalent slowdown in other development markets which include Turkey is forecast as their central banks start to boost interest rates. In the end, this really is probably to lead to an financial slowdown.Cash flow oriented/value investors continue to method South African investments using a deep fundamental method plus a constructive outlook. Their issues have resulted in their applying a larger discount to their investment thesis and in the end seeking for less expensive valuations to enhance investments.Liquid, well-managed businesses with well-understood equity stories are at the top on the add-on list.Amongst specific mining investors and a lot of specialist mining funds, regional mining has become virtually ?untouchable? because of the labour strife. Really should the labour problems be resolved, the platinum group metals sector may perhaps once once again become 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 plenty of the outflow that pushed the rand weaker was a combination of speculative interest inside the context of a tapering environment, a reduction of overweight offshore bond positions and active ?overlay hedging? from true dollars investors that have been lengthy South African equities and bonds.But so far, this year has been somewhat various: portfolio flows in both bonds and equities have already been disappointing. Because the get started in the year, there happen to be only 4 days of good inflow into the bond market place, totalling R1.five billion (versus bond outflows of almost R7bn).The equity marketplace has seen net outflow of around R1bn for the year to date and only six optimistic days of inflow. In other words, what we are experiencing is the effect of a six.8 percent existing account deficit in the absence of portfolio inflows.Clearly the US dollar within a tapering atmosphere together with expectations regarding the prospective near-term functionality of growth markets generally and much more especially concerns over the perpetual labour problems are all combining to producefragile sentiment. This really is accurate in respect of emerging marketplace assets normally and for the nation. This suggests the opportunistic inflows that we would have expected within the past are simply not materialising to support the currency,.In the end, the ?shorts? look to be continuing to concentrate on countries that keep important current account deficits and are overly reliant on portfolio inflows as the principal source of their financing.The ?early adopters? of a additional hawkish monetary policy stance (Brazil, India and Indonesia) have noticed their currencies stabilise inside the previous six weeks, whereas those viewed as continuing with actual prices which are also low to attract and even retain capital continue to weaken. South Africa?s price hike last week will have met some, although not all, of those expectations.Unlike the central banks of other crucial 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 previous 14 years. Therefore, we anticipate the Reserve Bank to maintain its measured method to any further price action and focus on the inflation and development outlook consistent with this framework.