South Africa is entering a sustainable low-interest and low-volatility environment, making it ripe for investment, says Old Mutual South Africa trust manager Richard Hasson.He has increased the exposure of the fund to stocks capitalising on growing dom- estic demand, such as retailers, with a 12 per cent weighting in the sector. He has given a positive tilt to Nasionale Pers, a domestic pay-TV firm with a growing and loyal customer base. He also says car sales are returning to long-term trends after suffering what he describes as “two lost decades” in the last years of apartheid. The fund is underweight in SAB Miller, one of South Africa’s bigger and better-known stocks, making up 5.9 per cent of the South African JSE index. The brewing company has got an aggressive internat- ional expansion strategy, having bought Italian beer firm Peroni, but its positioning does not suit Hasson’s bullishness on the domestic market. The fund is up by 163.3 per cent over three years but Hasson says global emerging markets fund managers remain underweight in South Africa relative to their positions in China and Latin America. He confidently expects the domestic market to grow by 20 per cent in the next 12 months. Hasson says: “At the end of the 1990s, post-apartheid, increased competition kept growth low and there were concerns that the economy might collapse. But we now believe that South Africa is globally competitive and foreign investment has been pouring in.” Bestinvest business development manager Justin Modray says: “There are some good investment stories to talk about in South Africa and we are likely to see global emerging markets managers upping their exposure but I think that negative perception of the country’s political situation continues to cloud UK investors’ judgement.”
Cavanagh has announced a pre-tax loss of 0.2m for the six months ending June 30, compared to a 1.5m loss in 2004.It also announced an operating cash flow profit of 133,000, compared to a loss of 702,000 in 2004. Turnover for the period was 6.3m, unchanged from 2004.Cavanagh chief executive Andrew Fay says: “I am […]
Jupiter is relaunching its environmental opportunities fund as the environ-mental income fund.
Big may be beautiful once again. During the 1980s and 1990s, average annual returns of around 12 per cent above the rate of inflation were commonplace for blue chips.
Lighthouse has crept into profit for the first time. The group posted a pro- fit before amortisation of 71,000 in the six months to June 30 compared with a loss of 992,000 last year. Losses before tax were cut to 131,000, from 1,440,000 in 2004 as the group had significant tax losses brought forward. Turnover […]
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