INVESTMENT MANAGEMENT COMPANIES
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 on the one particular hand, as well as the weak all round financial growth performance projected into a lacklustre corporate earnings outlook around the other. This isn't unique to South Africa.A related slowdown in other development markets which include Turkey is forecast as their central banks start off to increase interest rates. Ultimately, this can be probably to lead to an economic slowdown.Money flow oriented/value investors continue to approach South African investments having a deep fundamental method plus a constructive outlook. Their concerns have resulted in their applying a larger discount to their investment thesis and in the end hunting for less expensive valuations to increase investments.Liquid, well-managed providers with well-understood equity stories are in the prime from the add-on list.Amongst certain mining investors and several specialist mining funds, nearby mining has turn into virtually ?untouchable? because of the labour strife. Really should the labour troubles be resolved, the platinum group metals sector may perhaps after again come to be an appealing investment.Hedge funds, in unique, continue to think 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?Final year many 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 cash investors that were long 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 start out in the year, there have already been only four days of good inflow into the bond marketplace, totalling R1.five billion (versus bond outflows of almost R7bn).The equity marketplace has noticed net outflow of about R1bn for the year to date and only six good days of inflow. In other words, what we're experiencing could be the effect of a 6.8 % current account deficit within the absence of portfolio inflows.Clearly the US dollar in a tapering atmosphere along with expectations regarding the prospective near-term efficiency of growth markets typically and more particularly concerns more than the perpetual labour issues are all combining to producefragile sentiment. This is correct in respect of emerging market assets generally and for the nation. This indicates the opportunistic inflows that we would have anticipated within the previous are merely not materialising to assistance the currency,.Ultimately, 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 main supply of their financing.The ?early adopters? of a far more hawkish monetary policy stance (Brazil, India and Indonesia) have noticed their currencies stabilise in the previous six weeks, whereas these viewed as continuing with real rates that are also low to attract or even retain capital continue to weaken. South Africa?s price hike last week will have met some, even though not all, of these 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 powerful in managing inflationary (and deflationary) stress, anchoring inflation expectations and supporting growth within the previous 14 years. Therefore, we count on the Reserve Bank to retain its measured method to any additional rate action and concentrate on the inflation and growth outlook constant with this framework.