HEARD on the street


Eq­uity fund per­for­mance down

De­spite the strength­en­ing of the rand and suc­cess­ful elec­tions held last year, eq­uity fund man­agers ap­peared to strug­gle to out­per­form the re­spec­tive bench­marks, ac­cord­ing to the South Africa S&P In­dices Ver­sus Ac­tive Funds Score­card, which comes out semi­an­nu­ally.

It found that 72% of ac­tively man­aged South African eq­uity funds failed to beat the S&P South Africa DSW Index over a one-year pe­riod and that the group’s per­for­mance was also poor over three- and five-year pe­ri­ods, as 80% and 77% un­der­per­formed the bench­mark, re­spec­tively.

Mean­while, 77% of ac­tively man­aged global eq­uity funds trailed the S&P Global 1200 Index. This num­ber in­creased to 96% and 93% over a three- and five-year pe­riod.

How­ever, 87% of ac­tively man­aged short-term bonds beat the STeFI Com­pos­ite Index over a one-year pe­riod. This fig­ure dropped slightly over three- and five-year pe­ri­ods to 73% and 79%, re­spec­tively.

But di­ver­si­fied ac­tively man­aged funds had a tougher time with 83% un­der­per­form­ing the JSE/ASSA ALBI Index over a one-year pe­riod, a dra­matic drop in per­for­mance com­pared with the three- and five-year pe­ri­ods where these num­bers were 43% and 57%, re­spec­tively.

Cash rob­beries will rise in April

Shop­pers are be­ing asked to be vig­i­lant this Easter and on other pub­lic hol­i­days as cash rob­beries are set to in­crease in April, ac­cord­ing to Cash Con­nect Man­age­ment So­lu­tions. “All in­di­ca­tions suggest that the re­tail sec­tor ex­pe­ri­enced an in­crease of 150% in rob­beries in 2016. In the same pe­riod, the use of plas­tic ex­plo­sives in at­tempts to steal from cash de­posit de­vices in­creased by over 400%.

“We can rea­son­ably ex­pect to see a spike in busi­ness crime in April as con­sumers go on hol­i­day and the vol­ume of cash in­creases at re­tail stores through­out the coun­try,” said Richard Phillips, joint CEO of Cash Con­nect Man­age­ment So­lu­tions.

Phillips said that trends showed that syn­di­cates at­tack in groups of six to 12 armed men, with armed rob­beries as the high­est num­ber of at­tacks, closely fol­lowed by busi­ness bur­glar­ies.

“The com­mon use of plas­tic ex­plo­sives in the ex­e­cu­tion of an armed rob­bery against cash de­posit de­vices and the dra­matic in­crease in this kind of at­tack suggest that crim­i­nals are en­joy­ing an ab­nor­mally high de­gree of suc­cess and that many of the de­vices in use are not strong enough to of­fer the type of re­sis­tance nec­es­sary to dis­cour­age them,” he said.

Long4Life lists on the JSE

Long4Life, a new in­vest­ment com­pany launched by Bid­vest and Bid­corp founder Brian Joffe, listed on the JSE’s Main Board this month in the fi­nan­cial ser­vices – spe­cialty fi­nance sec­tor. Long4Life said it would pur­sue in­vest­ments pre­dom­i­nantly with a life­style fo­cus, in­clud­ing busi­nesses sec­tors such as beauty, out­door, sport, re­tire­ment vil­lages, and restau­rants, among oth­ers.

The com­pany raised R2 bil­lion in its ini­tial pri­vate of­fer­ing (IPO) through the list­ing of just over 405 mil­lion or­di­nary shares. The IPO was open to in­sti­tu­tional in­vestors and Joffe pro­vided R100 mil­lion of the ini­tial cap­i­tal him­self.

“This list­ing is the start of Long4Life’s ex­cit­ing jour­ney. It brings to­gether a group of ded­i­cated peo­ple with unique skills that of­fer in­vestors a dis­tinc­tive propo­si­tion, lever­ag­ing a col­lec­tive and out­stand­ing en­trepreneurial track record es­tab­lished over an ex­tended pe­riod to iden­tify, ac­quire and grow busi­nesses, and thereby gen­er­ate ex­cep­tional value for all stake­hold­ers. We are look­ing for­ward to shar­ing this jour­ney with our new share­hold­ers and part­ners,” said Joffe, whose role will be that of CEO.

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