San­lam Private In­vest­ments

Martin Sch­mu­lian

Finweek English Edition - - Cover -

MTN: It’s one of only a few South African listed com­pa­nies of­fer­ing ex­po­sure to Mid­dle East­ern and African mar­kets. The group con­tin­ues to sur­prise on the up­side in terms of mo­bile tele­phone pen­e­tra­tion in Nige­ria. Pen­e­tra­tion lev­els in Iran are very low and most peo­ple don’t have cell­phones as yet, pro­vid­ing huge po­ten­tial for fu­ture growth. Man­age­ment has a record of demon­strat­ing a rig­or­ous approach in eval­u­at­ing op­por­tu­ni­ties and pos­si­ble ac­qui­si­tions. STAN­DARD BANK: The group has a long and con­sis­tent record of pro­vid­ing above av­er­age re­turns on share­hold­ers’ cap­i­tal. Be­tween the re­tail, cor­po­rate and in­vest­ment bank­ing and in­sur­ance busi­nesses its in­come stream is very well di­ver­si­fied. With Jacko Ma­ree at the helm, share­hold­ers are in the hands of a highly re­garded CE, along with a solid man­age­ment team. A qual­ity com­pany with qual­ity man­age­ment. TIGER BRANDS: This com­pany is among SA’s fore­most con­sumer goods and phar­ma­ceu­ti­cals com­pa­nies – with brands in­clud­ing All Gold, Koo, Oros, Bea­con, Panado and Myprodol that en­able the group to ex­er­cise above av­er­age pric­ing power com­pared to com­peti­tor prod­ucts in the mar­ket, earn­ing high re­turns on share­hold­ers’ eq­uity. We be­lieve their good per­for­mance will con­tinue into the fu­ture. REM­GRO: It’s an in­vest­ment com­pany with a high qual­ity port­fo­lio of SA busi­nesses and in­ter­na­tional ex­po­sure through their in­vest­ment in Bri­tish Amer­i­can To­bacco. Lo­cal in­vest­ments in­clude FirstRand, Im­plats, Medi-Clinic and Dis­tell. Rem­gro has a long his­tory of grow­ing its earn­ings and div­i­dends faster than the mar­ket and we be­lieve that the qual­ity of its busi­nesses will en­sure the con­tin­u­a­tion of that track record over the next five to 10 years. BHP BIL­LI­TON: We be­lieve this well-di­ver­si­fied group will con­tinue rid­ing the com­mod­ity wave be­yond 2010. With China striv­ing to up­lift the ma­jor sec­tion of its pop­u­la­tion out of poverty, much of Asia will re­main hun­gry for re­sources. We don’t ex­pect a down­turn in Asia’s de­mand for com­modi­ties – that will fuel com­mod­ity prices.

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