FINANCIAL INVESTMENT ADVISORS
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 the moment see South Africa?Growth/momentum institutional investors are the least persuaded by the South African story. This reflects concerns in the weak and weakening rand on the a single hand, along with the weak all round economic development overall performance projected into a lacklustre corporate earnings outlook around the other. This is not one of a kind to South Africa.A related slowdown in other development markets including Turkey is forecast as their central banks start off to boost rates of interest. Ultimately, that is probably to lead to an financial slowdown.Money flow oriented/value investors continue to approach South African investments having a deep basic approach along with a constructive outlook. Their concerns have resulted in their applying a greater discount to their investment thesis and ultimately seeking for more affordable valuations to increase investments.Liquid, well-managed firms with well-understood equity stories are at the best in the add-on list.Amongst specific mining investors and quite a few specialist mining funds, regional mining has come to be almost ?untouchable? as a result of the labour strife. Must the labour difficulties be resolved, the platinum group metals sector may perhaps after once again turn into an appealing investment.Hedge funds, in particular, continue to believe that nearby banks are broadly exposed to unsecured lender credit pressures and that these will contaminate loan development and non-performing loan ratios. This, in turn, will contaminate the earnings and return outlook.How do the offshore institutions see our currency?Final year plenty of the outflow that pushed the rand weaker was a combination of speculative interest in the context of a tapering environment, a reduction of overweight offshore bond positions and active ?overlay hedging? from actual money investors that were extended 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 begin from the year, there have been only four days of positive inflow into the bond market, totalling R1.five billion (versus bond outflows of practically R7bn).The equity industry has seen net outflow of around R1bn for the year to date and only six good days of inflow. In other words, what we are experiencing may be the effect of a six.eight percent existing account deficit within the absence of portfolio inflows.Clearly the US dollar inside a tapering atmosphere together with expectations with regards to the possible near-term performance of development markets commonly and more specifically concerns more than the perpetual labour challenges are all combining to producefragile sentiment. This can be correct in respect of emerging marketplace assets commonly and for the nation. This indicates the opportunistic inflows that we would have expected in the past are basically not materialising to support the currency,.Eventually, the ?shorts? look to be continuing to concentrate on countries that retain considerable existing account deficits and are overly reliant on portfolio inflows as the main supply of their financing.The ?early adopters? of a much more hawkish monetary policy stance (Brazil, India and Indonesia) have seen their currencies stabilise within the previous six weeks, whereas those viewed as continuing with genuine rates which are as well low to attract and even retain capital continue to weaken. South Africa?s rate hike last week may have met some, although not all, of these expectations.Unlike the central banks of other essential emerging markets, the SA Reserve Bank established an inflation targeting framework in 2000. The framework has been effective in managing inflationary (and deflationary) pressure, anchoring inflation expectations and supporting development in the past 14 years. Hence, we count on the Reserve Bank to keep its measured strategy to any further price action and focus on the inflation and development outlook consistent with this framework.