PENSION FUND 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 at the moment see South Africa?Growth/momentum institutional investors would be the least persuaded by the South African story. This reflects issues at the weak and weakening rand around the one hand, along with the weak all round financial development overall performance projected into a lacklustre corporate earnings outlook around the other. This is not unique to South Africa.A comparable slowdown in other development markets like Turkey is forecast as their central banks start off to improve rates of interest. Ultimately, this really is probably to result in an financial slowdown.Money flow oriented/value investors continue to method South African investments with a deep basic method as well as a constructive outlook. Their concerns have resulted in their applying a larger discount to their investment thesis and ultimately looking for more affordable valuations to boost investments.Liquid, well-managed organizations with well-understood equity stories are in the best of the add-on list.Among certain mining investors and numerous specialist mining funds, regional mining has become nearly ?untouchable? as a result of the labour strife. Really should the labour troubles be resolved, the platinum group metals sector may possibly as soon as once more turn into an attractive investment.Hedge funds, in certain, 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 many 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 real cash investors that were lengthy South African equities and bonds.But so far, this year has been somewhat different: portfolio flows in each bonds and equities happen to be disappointing. Because the get started with the year, there happen to be only 4 days of positive inflow in to the bond marketplace, totalling R1.5 billion (versus bond outflows of virtually R7bn).The equity market place has noticed net outflow of around R1bn for the year to date and only six positive days of inflow. In other words, what we're experiencing may be the impact of a 6.eight % existing account deficit inside the absence of portfolio inflows.Clearly the US dollar inside a tapering atmosphere as well as expectations concerning the potential near-term performance of development markets generally and much more particularly issues over the perpetual labour difficulties are all combining to producefragile sentiment. This really is correct in respect of emerging market assets usually and for the nation. This suggests the opportunistic inflows that we would have expected in the previous are basically not materialising to support the currency,.Ultimately, the ?shorts? seem to be continuing to concentrate on nations that preserve considerable existing account deficits and are overly reliant on portfolio inflows because the primary source of their financing.The ?early adopters? of a more hawkish monetary policy stance (Brazil, India and Indonesia) have observed their currencies stabilise within the previous six weeks, whereas these viewed as continuing with true rates which can be as well low to attract or perhaps retain capital continue to weaken. South Africa?s rate hike last week may have met some, although not all, of those expectations.As opposed to the central banks of other key emerging markets, the SA Reserve Bank established an inflation targeting framework in 2000. The framework has been helpful in managing inflationary (and deflationary) pressure, anchoring inflation expectations and supporting growth inside the previous 14 years. Therefore, we expect the Reserve Bank to retain its measured strategy to any additional rate action and focus on the inflation and development outlook consistent with this framework.