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 would be the least persuaded by the South African story. This reflects concerns at the weak and weakening rand on the 1 hand, and also the weak all round economic growth overall performance projected into a lacklustre corporate earnings outlook around the other. This isn't exclusive to South Africa.A similar slowdown in other development markets for instance Turkey is forecast as their central banks start out to boost rates of interest. Ultimately, this can be most likely to result in an financial slowdown.Money flow oriented/value investors continue to strategy South African investments using a deep fundamental strategy in addition to a constructive outlook. Their issues have resulted in their applying a higher discount to their investment thesis and eventually looking for more affordable valuations to boost investments.Liquid, well-managed companies with well-understood equity stories are in the prime from the add-on list.Amongst specific mining investors and a lot of specialist mining funds, neighborhood mining has develop into pretty much ?untouchable? because of the labour strife. Must the labour difficulties be resolved, the platinum group metals sector could as soon as once again turn into an appealing investment.Hedge funds, in unique, 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 a great deal of the outflow that pushed the rand weaker was a mixture of speculative interest inside the context of a tapering atmosphere, a reduction of overweight offshore bond positions and active ?overlay hedging? from actual income investors that had been extended South African equities and bonds.But so far, this year has been somewhat distinct: portfolio flows in each bonds and equities happen to be disappointing. Because the start out with the year, there happen to be only four days of constructive inflow in to the bond market place, totalling R1.5 billion (versus bond outflows of pretty much R7bn).The equity market has noticed net outflow of around R1bn for the year to date and only six good days of inflow. In other words, what we're experiencing is definitely the effect of a six.8 percent present account deficit within 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 development markets usually and more specifically issues over the perpetual labour difficulties are all combining to producefragile sentiment. This can be correct in respect of emerging market assets generally and for the country. This implies the opportunistic inflows that we would have anticipated in the past are merely not materialising to support the currency,.In the end, the ?shorts? seem to become continuing to concentrate on nations that maintain significant current account deficits and are overly reliant on portfolio inflows because the primary source of their financing.The ?early adopters? of a additional hawkish monetary policy stance (Brazil, India and Indonesia) have noticed their currencies stabilise within the previous six weeks, whereas these viewed as continuing with real prices which might be also low to attract or perhaps retain capital continue to weaken. South Africa?s price hike final week will have met some, even though not all, of these expectations.In contrast to the central banks of other important emerging markets, the SA Reserve Bank established an inflation targeting framework in 2000. The framework has been productive in managing inflationary (and deflationary) stress, anchoring inflation expectations and supporting growth within the previous 14 years. Therefore, we anticipate the Reserve Bank to maintain its measured approach to any further rate action and focus on the inflation and growth outlook constant with this framework.