UNIT TRUST 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 currently see South Africa?Growth/momentum institutional investors are the least persuaded by the South African story. This reflects concerns at the weak and weakening rand around the 1 hand, plus the weak all round economic growth overall performance projected into a lacklustre corporate earnings outlook around the other. This isn't exceptional to South Africa.A equivalent slowdown in other growth markets for example Turkey is forecast as their central banks begin to improve interest rates. In the end, this can be most likely to result in an financial slowdown.Money flow oriented/value investors continue to method South African investments using a deep basic approach and a constructive outlook. Their concerns have resulted in their applying a greater discount to their investment thesis and in the end looking for cheaper valuations to enhance investments.Liquid, well-managed companies with well-understood equity stories are at the major of your add-on list.Amongst specific mining investors and several specialist mining funds, local mining has turn into practically ?untouchable? because of the labour strife. Need to the labour challenges be resolved, the platinum group metals sector may possibly as soon as again turn into an appealing investment.Hedge funds, in certain, continue to think that local 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 loads of 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 genuine funds investors that had been long South African equities and bonds.But so far, this year has been somewhat diverse: portfolio flows in both bonds and equities happen to be disappointing. Because the start in the year, there happen to be only 4 days of optimistic inflow into the bond market, totalling R1.5 billion (versus bond outflows of pretty much R7bn).The equity market place has seen net outflow of around R1bn for the year to date and only six optimistic days of inflow. In other words, what we're experiencing is the impact of a 6.eight % present account deficit inside the absence of portfolio inflows.Clearly the US dollar within a tapering atmosphere in conjunction with expectations with regards to the prospective near-term performance of development markets usually and much more especially concerns over the perpetual labour issues are all combining to producefragile sentiment. This really is accurate in respect of emerging market place assets typically and for the nation. This indicates the opportunistic inflows that we would have expected in the past are simply not materialising to help the currency,.Eventually, the ?shorts? appear to become continuing to focus on countries that sustain important present account deficits and are overly reliant on portfolio inflows as the major source of their financing.The ?early adopters? of a a lot more hawkish monetary policy stance (Brazil, India and Indonesia) have noticed their currencies stabilise inside the past six weeks, whereas those viewed as continuing with genuine prices which can be also low to attract and even retain capital continue to weaken. South Africa?s price hike final week will have met some, although not all, of those expectations.Unlike the central banks of other essential emerging markets, the SA Reserve Bank established an inflation targeting framework in 2000. The framework has been successful in managing inflationary (and deflationary) pressure, anchoring inflation expectations and supporting development within the previous 14 years. Therefore, we count on the Reserve Bank to maintain its measured approach to any further rate action and concentrate on the inflation and growth outlook constant with this framework.