Insights

Since 1987 all sudden movements in the Rand versus global currencies have occurred as a consequence of global events. Zuma’s supposed unilateral move to fire Nene has triggered an idiosyncratic sell off in the Rand and quite simply a loss of confidence domestically and abroad in our markets, businesses and leaders. The 32% year to date decline in the Rand against the Dollar and the recent 6%…

Apple is the largest position in our equity funds at just over 12% of the fund as at 31 December 2015. During 2015 the stock price declined by 4.6%. Given its size in our equity portfolios and its stock performance during 2015, it was gratifying that the position delivered a small profit for the year. Apple is an extremely polarising stock in that investors either love or hate it. This has…

Whilst we cannot predict whether equity markets will be higher or lower over the next 12-24 months, the significant over-valuations and storm clouds on the horizon are likely to result in equity markets delivering mid to low single digit returns over the next 3-5 years. We believe that equity markets are overestimating the growth in earnings achievable by stocks in general over the next 12…