Advertise Here
Icon

Directory

IconActuaries
IconAdministration Outsourcing
IconAsset Managers
IconAssociations & Institutes
IconAuditors
IconBanking
IconBBBEE Consulting and Verification Agencies
IconBusiness Chambers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconCurrencies
IconDebit Order Collection Facilities
IconEducation and Training
IconFAIS
IconHuman Resources
IconInformation Technology and Software Partners
IconInvestment Consulting
IconInvestment Fund Managers
IconLegal
IconLISPs
IconListed Equities
IconOmbud
IconParticipation Bond Managers
IconPolicy Administration
IconPolicy Trading
IconProperty Unit Trusts (PUTS)
IconPublications
IconRegulatory Authorities
IconStock Exchange
IconSurveys and Research
IconTraining Courses & Workshops
IconUnit Trust Fund Managers
IconWellness Programs
Image
  Subscribe To »

Five different Nedgroup Investments’ fund managers, five differing investment views

Published

2006

Tue

22

Aug

Company Listing: Nedgroup Investments »
 
Divergent views about the investment climate and outlook for different sectors of the markets and shares abounded at a recent Nedgroup Investments’ fund manager workshop, where five managers of Nedbank’s unit trust funds explained their market views and current portfolio positions. The five were: Eldria Wagenaar of Prescient Investment Management (Nedbank Positive Return Fund and Nedbank Flexible Income Fund), Walter Aylett of Aylett & Co (Nedbank Bravata Worldwide Flexible Fund), Piet Viljoen of RE:CM (Nedbank Managed Fund), Dave Foord of Foord Asset Management (Nedbank Value Fund), and Tim Allsop of Polaris Capital (Nedbank Rainmaker Fund). “What is clear when listening to these experienced money managers is that, while they all have exceptional long term track records of generating real returns for investors, they do have differing views on the market and individual shares,” says Nic Andrew, head of Nedgroup Investments. “The differences are largely explained by their differing investment philosophies and management styles, investment time horizons and the differences in the investment mandates of the funds which they manage for Nedgroup Investments. However, most important to investors is that an analysis of the performance generated by each of these managers illustrates their ongoing ability to identify opportunities to deliver outperformance.” Tim Allsop believes that the current ‘super cycle’ for resources stocks would continue for at least another year: “I think that the Chinese market and its demand for commodities will last for quite a while.” Consequently he plans to stick with relatively large stakes in resources stocks, BHP Billiton and Anglo American. “They still offer value even though there has been a drop in commodity prices.” He is also taking comfort in the view that the rand will further weaken and add to the rand prices of commodities. Allsop is concerned about the retail market and banks because of inflationary pressures, consumer debt and higher interest rates. On the other hand, Piet Viljoen says there is a lot of speculative buying happening in commodities, which indicates that the current cycle of sustained growth in resources may be approaching a peak. But he did agree with Allsop’s views on the rand, saying that on a purchasing price parity basis the rand, at its current level, is slightly overvalued and a fair price for the currency is probably around R7.50 against the US dollar. Viljoen believes the local property market has become fairly expensive and he is concerned that the market is discounting higher earnings and distributions of property unit trusts (PUTs) than they have been able to achieve historically. He described the listed property sector as a “serial non-performer” and argues that: “People get emotionally attached to property because it is something that they can see.” The maintenance of property is a major factor in the cost equation, which investors consistently underestimate. Both Viljoen and Eldria Wagenaar do not see much value in bonds, with Wagenaar adding that this is due to inflation showing a rising trend. Dave Foord, who has been managing the Nedbank Value Fund for the past two years, says investors in local equities can look forward to a long-term buoyant market. He is upbeat about the long-term prospects of the local economy. Foord says the Nedbank Value Fund has a concentrated portfolio of between 20 and 25 shares. “We focus on companies that have a high cash flow, quality management, provide a high-dividend yield and a low price-to-earnings ratio. The foundation of our valuation of shares rests on earnings, earnings and more earnings.” Unlike Viljoen, Foord believes that that there is still a long-term bull phase ahead for commodities. He says due to prolonged worldwide shortages of minerals and metals, the demand will increase, especially for metals like platinum, which will outperform gold as they have more uses than the yellow metal. Foord is more upbeat about the prospects of the banking sector than Allsop. He thinks that the valuations of the four major banks are “fantastic” and that they are cheap in relative terms. Walter Aylett who manages the Nedbank Bravata Worldwide Flexible Fund, a fund that has complete flexibility to invest in any asset class locally or internationally, says local shares are still fairly valued and foreign equities could provide better opportunities. The fund has a fair amount of exposure to shares of Berkshire Hathaway, US investment guru Warren Buffet’s company and is about 65% invested offshore. “While it is clear that, although these managers have differing views, they are similar in a number of important ways. In particular, they are all passionate about managing money; their interests are aligned with investors, as they own or are shareholders in the respective asset management businesses and are also often invested alongside their clients; they all display high levels of conviction; and they all apply a sensible and well thought through investment process and philosophy, consistently over time and through various market cycles”, concludes Andrew.
 
Source: Meropa Communications
 
« Back to previous page Print this page » |
 

Breaking News »

OLD MUTUAL LAUNCHES HANDPICKED RANGE OF PRODUCTS TO SUIT SPECIFIC INVESTMENT GOALS

According to the 2019 Old Mutual Savings and Retirement Monitor, less than 30% of people are saving for emergencies and more than 42% are not making contributions to formal retirement savings. Coupled with this, ...
Read More »

  

Looking to reduce PI exposure and develop premium growth at the same time?

Commercial Risk surveys; Critical for growth in current market conditions. Looking to reduce PI exposure and develop premium growth at the same time? PI exposure mitigation with premium growth all under the same ...
Read More »

  

What SA investors can learn from the case of Greek government bonds

Justin Floor, PSG Asset Management   Ten-year Greek government bonds – deemed ‘uninvestable’ at the height of the eurozone crisis – are currently yielding 2. What makes this ...
Read More »

  

Millennials and the coming war for talent

At the stroke of midnight 2018, the last-born millennial turned 18. As more and more of this coming generation complete formal education and take up jobs, they are dramatically changing the nature of the modern ...
Read More »

 

More News »

Image

Healthcare »

Image

Life »

Image

Retirement »

Image

Short-term »

Advertise Here
Image
Image
Image
Advertise Here

From The Glossary »

Icon

Line Of Business:

The general classification of business as utilised in the insurance industry, e. g. personal accident, etc.
More Definitions »

 

Advertise

 

eZine

 

Contact IG

 

Media Pack

 

RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2019. All Rights Reserved.