HIGH NET WORTH INVESTMENTS
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 presently see South Africa?Growth/momentum institutional investors would be the least persuaded by the South African story. This reflects issues in the weak and weakening rand around the one hand, along with the weak all round economic development functionality projected into a lacklustre corporate earnings outlook on the other. This isn't distinctive to South Africa.A comparable slowdown in other growth markets for example Turkey is forecast as their central banks commence to boost interest rates. Eventually, this really is most likely to result in 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 issues have resulted in their applying a larger discount to their investment thesis and ultimately seeking for less costly valuations to enhance investments.Liquid, well-managed firms with well-understood equity stories are in the leading of your add-on list.Amongst certain mining investors and lots of specialist mining funds, local mining has come to be almost ?untouchable? as a result of the labour strife. Need to the labour troubles be resolved, the platinum group metals sector might after again develop into an attractive investment.Hedge funds, in unique, continue to think that neighborhood 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?Last year loads of the outflow that pushed the rand weaker was a combination of speculative interest inside the context of a tapering atmosphere, a reduction of overweight offshore bond positions and active ?overlay hedging? from actual money investors that were lengthy South African equities and bonds.But so far, this year has been somewhat unique: portfolio flows in both bonds and equities happen to be disappointing. Because the start off in the year, there have been only four days of good inflow in to the bond market, totalling R1.5 billion (versus bond outflows of practically R7bn).The equity industry has observed net outflow of around R1bn for the year to date and only six constructive days of inflow. In other words, what we are experiencing is definitely the impact of a 6.eight percent current account deficit inside the absence of portfolio inflows.Clearly the US dollar within a tapering environment as well as expectations with regards to the potential near-term performance of growth markets normally and much more particularly concerns over the perpetual labour problems are all combining to producefragile sentiment. This is accurate in respect of emerging industry assets typically and for the nation. This means the opportunistic inflows that we would have expected within the past are merely not materialising to assistance the currency,.In the end, the ?shorts? look to be continuing to focus on countries that maintain significant present account deficits and are overly reliant on portfolio inflows as the primary supply of their financing.The ?early adopters? of a much more hawkish monetary policy stance (Brazil, India and Indonesia) have noticed their currencies stabilise within the past six weeks, whereas those viewed as continuing with real rates that are too low to attract and even retain capital continue to weaken. South Africa?s rate hike final week will have met some, though not all, of these expectations.As opposed to the central banks of other essential emerging markets, the SA Reserve Bank established an inflation targeting framework in 2000. The framework has been helpful in managing inflationary (and deflationary) stress, anchoring inflation expectations and supporting growth in the previous 14 years. Hence, we anticipate the Reserve Bank to preserve its measured strategy to any additional price action and focus on the inflation and growth outlook constant with this framework.