Brodziak leaves Old Mutual
Old Mutual Investment Group portfolio manager Tracy Brodziak has resigned after more than 20 years with the Cape Town-based company. Brodziak will remain in the asset management industry and will start in her new role in mid-July, though she did not disclose the name of the company she will join.
Old Mutual Investment Group portfolio manager Tracy Brodziak has resigned from after more than 20 years with the Cape Town-based company.
Brodziak handed in her resignation at the end of April and is serving her notice period until end-June, she told Business
Day. She will remain in the asset management industry after completing her notice period, commonly known in the industry as “gardening leave”, and will start in her new role in mid-July, though she did not disclose the name of the company she would be joining.
“I have enjoyed my time at Old Mutual, but I am looking forward to a change and new challenges,” she said. “I’ll be staying in asset management.”
Brodziak began working for Old Mutual in January 2001 as an equity research analyst, a position she held for six years.
She rose through the ranks, holding several roles, including portfolio manager and head of financial sector research. She spent a number of years as Old Mutual’s head of equities research before handing over the position to Meryl Pick about two years ago to concentrate on her role as portfolio manager.
She holds a Bachelor of Business Science in accounting and finance from UCT and is a CFA charter holder. Brodziak is also a qualified chartered accountant, having completed her articles at KPMG in 2000.
From 1 Main Capital Q1’21 letter:
We should all care about inflation because when prices rise, all else being equal, our purchasing power erodes.
While inflation is usually measured in averages across the economy, it actually occurs on a micro level. Not surprisingly, the things that see the most inflation are usually the ones where supply is limited.
Over the last few decades, global demand and supply have been balanced. The outcome: tepid inflation. Demand growth has been manageable due to a disproportionate share of global GDP growth flowing to the wealthy, who tend to save rather than consume their marginal income.
A high marginal savings rate has had the effect of pushing interest rates lower, since when wealth is saved, it is forced to accept lower returns. A high savings rate also puts pressure on wages. After all, companies get more efficient each year, so without a lot of demand growth they need fewer employees each year to produce their goods and services. Wage declines lead to higher corporate profits. This is a self-reinforcing dynamic where the rich get richer while the working class runs in place.
However, at some point this feedback loop becomes selfcorrecting. Eventually, labour is likely to demand a regime change. In regime change, government is likely to facilitate a transfer of wealth from corporations and the wealthy towards labour and the middle class.
So, while some may be looking for a temporary reflation followed by more of the same, I think sustained inflation is not out of the question and a risk every investor should be prepared for. As wealth gets transferred to the middle class, they tend to consume more rather than save, which leads to higher demand, higher inflation and higher rates. /Michel Pireu (pireum@streetdogs.co.za)