EDITOR’S NOTE

Rigorous research in the broker results

THIS EDITION OF Investors Monthly is one of the most eagerly anticipated magazines around, taking an empirical approach to rating the top brokers in the country, based on the views of the investment community.

The research is put together by Stuart Theobald’s company, Intellidex, and it’s safe to say that there are few people out there who would have taken as thorough an approach to this sort of study as he has. A few years back, I worked with Stuart at the Financial Mail, where he became one of the standout stars of the business journalism sector, respected for his insight and precision.

It might seem incongruous considering that he studied at Rhodes University, but Stuart has one of the most formidable work ethics around.

To give you a sense, Stuart is not only quietly building Intellidex into a top research house, he also happens to be completing a doctorate at the London School of Economics on the foundations of theoretical finance. So when you read this year’s results, you can be assured there’s some real rigour behind it.

The fact that a large portion of South Africa’s estimated 200 000 retail investors keep such a close eye on these rankings attests to the fact that in an always-on world, people need brokers more than ever. What the internet has done, however, is to expose those who’re not as competitive as they should be.

The evidence from this year’s research suggests it’s not just the winners who have improved on this score, but all the brokers we’re celebrating in this edition today.

What’s pretty evident is that there’s enough happening in the market to keep people interested — especially after SABMiller confirmed, as we went to press, that it had been approached by its larger rival, Anheuser-Busch InBev, for a possible takeover.

A deal between the two brewing giants would be landscape-altering for South African investors, not least because the immense size of the deal — $275bn — would dwarf any other takeover or merger involving a local company.

People are often quick to point out that SABMiller’s primary listing is now in London, so its identity is less South African than ever. That may be true, but about 16% of its investors are still based in South Africa, so it’s a big deal locally.

There are far too many potential hurdles to even suggest it’s a done deal — from the competition authorities around the world, to the response of both sets of shareholders to the eventual premium that will have to be offered. Deals of this size are never put to bed quickly, but this one may linger longer than most.

Expect a world-class soap opera likely to keep the investment community on the edge of its seat for months.