Investment Landscape Articles

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    Market review: August 2017
    anemptytextlline
    14 September 2017
    Locally, August was the month that saw Parliament vote (again) on a motion of no confidence in President Jacob Zuma and the plight of SA citizens remain concerning as SA unemployment persists stubbornly at the 27.7% level. Because Moody’s views the situation in the country as ‘largely unchanged’ the agency announced shortly after the vote of no confidence that it is delaying its ratings decision on the SA sovereign. Good news arrived in the form of slowing consumer inflation, surprising at 4.6% in July, down from 5.1% for the previous month. Producer inflation eased too - to 3.5% - and hence there is a case for a disinflation outlook.
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    What do foreigners see that local investors don’t?
    anemptytextlline
    8 August 2017
    Local investors’ perception of SA assets stands in sharp contrast to foreign sentiment. Despite all the uncertainty facing South Africa, foreign investors are grabbing the yields on offer from SA fixed income assets with both hands. According to the Institute of International Finance, foreign inflows into emerging debt markets surpassed $100bn in the first half of 2017 and according to Deutsche Bank have reached an all-time high of $700bn. SA received its fair share - inflows totalled R30bn in the second quarter of 2017 and almost R45bn year to date. What do foreigners see that local investors don’t? SIM portfolio manager Melville du Plessis confirms that, despite the uncertainty in South Africa – or perhaps because of it – his team sees value in local fixed interest and credit markets.
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    Market update: June 2017
    anemptytextlline
    27 July 2017
    Globally, the UK general election called by Theresa May to strengthen her majority resulted in a hung parliament. President Macron’s party won an outright majority in the French Parliamentary elections – making it the second successive defeat for nationalist apologists in Europe. And the ECB left rates unchanged but changed their language saying further rate cuts are off the table. What else happened during the month of June?
  • i3 summit 2017
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    Financial planning: a business reinventing itself
    anemptytextlline
    6 July 2017
    The world is currently poised at a very interesting point and we’re facing significant challenges economically and politically. These challenges are not new, but we need to prepare our clients for a few rough years ahead. ‘Where do investors go for help? To the press? To friends and family? Or do they turn online for robo-advice? I think what they need more than ever is a financial planner and this creates an opportunity for all advisers.’ That was the view of Brian Foster, author, co-founder of Beyond RDR and financial planning consultant. Foster was part of a panel discussion on financial planning practice at this year’s i3 Summit hosted by Sanlam Investments and Glacier by Sanlam.
  • i3 summit 2017
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    RDR: winners and losers
    anemptytextlline
    28 June 2017
    With the Financial Services Board’s Retail Distribution Review (RDR) regulations looming, South Africa’s intermediaries are understandably nervous. However, in the experience of the UK’s David Ferguson, the local investment community has nothing to fear - as long as it embraces the priorities of RDR, which are to put the client first and take full responsibility for professional financial services and overall practice. Ferguson, CEO of Nucleus Financial Group and Scotland’s fintech envoy to the UK Treasury, was speaking at the annual i3 Summit presented by Sanlam Investments and Glacier by Sanlam last month.
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    Populism driven by debt, low growth and a broken social contract
    anemptytextlline
    21 June 2017
    US President Donald Trump may perplex and exasperate the old order of established geopolitical interests, but his maverick style may turn out to be a boon for the global economy. That’s the word from Dr Pippa Malmgren, speaking at the annual i3 Summit last month. Malmgren said Trump is the “Uber” of politics. He is disintermediating traditional media companies by posting directly on social media; he’s shrinking the government’s staff constituent; and also declared it his aim to disintermediate Washington. And those who are decentralising power in America are clearly winning. “We will continue to see a president who thinks his job is to cut deals,” says Malmgren. “And markets like deals.”