INVESTMENT 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 the moment see South Africa?Growth/momentum institutional investors would be the least persuaded by the South African story. This reflects concerns at the weak and weakening rand around the one hand, and also the weak overall economic development functionality projected into a lacklustre corporate earnings outlook around the other. This isn't special to South Africa.A related slowdown in other growth markets like Turkey is forecast as their central banks commence to enhance rates of interest. Eventually, this really is most likely to lead to an financial slowdown.Money flow oriented/value investors continue to approach South African investments using a deep fundamental approach plus a constructive outlook. Their issues have resulted in their applying a higher discount to their investment thesis and ultimately searching for more affordable valuations to enhance investments.Liquid, well-managed companies with well-understood equity stories are in the leading of the add-on list.Amongst specific mining investors and several specialist mining funds, nearby mining has turn into virtually ?untouchable? because of the labour strife. Must the labour troubles be resolved, the platinum group metals sector may possibly as soon as once again come to be an appealing investment.Hedge funds, in certain, continue to think that nearby 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?Final year a lot 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 real cash investors that had been lengthy South African equities and bonds.But so far, this year has been somewhat different: portfolio flows in both bonds and equities happen to be disappointing. Since the get started on the year, there have already been only four days of optimistic inflow into the bond marketplace, totalling R1.5 billion (versus bond outflows of nearly R7bn).The equity market has seen net outflow of about R1bn for the year to date and only six optimistic days of inflow. In other words, what we are experiencing could be the impact of a 6.eight % present account deficit inside the absence of portfolio inflows.Clearly the US dollar inside a tapering environment as well as expectations with regards to the potential near-term overall performance 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 market assets commonly and for the nation. This implies the opportunistic inflows that we would have anticipated inside the previous are simply not materialising to support the currency,.Ultimately, the ?shorts? seem to become continuing to concentrate on countries that preserve substantial existing account deficits and are overly reliant on portfolio inflows because the major source of their financing.The ?early adopters? of a far more hawkish monetary policy stance (Brazil, India and Indonesia) have seen their currencies stabilise within the past six weeks, whereas these viewed as continuing with genuine rates which are as well low to attract or even retain capital continue to weaken. South Africa?s rate hike last week may have met some, though not all, of those expectations.In contrast to the central banks of other essential 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 inside the past 14 years. Hence, we count on the Reserve Bank to retain its measured method to any additional rate action and concentrate on the inflation and growth outlook consistent with this framework.