Seed – Growing A Brighter Tomorrow

2018-Q2 Seed Window

2018-06 Seed Market Overview

The positive market sentiment in South Africa was cut short after the disappointing GDP data release at the start of June, which showed that the SA economy shrank by 2.2% in the first quarter of 2018. This is the largest quarterly fall since the second quarter of 2009.

Seed Global Fund A MDD

The Fund aims to generate a return of Libor + 3% pa over rolling 5 year periods and avoid negative returns over any 3 year period.

Seed Balanced Fund A1 MDD

The Fund aims to generate CPI + 6% pa over rolling 5 year periods and avoid negative returns over any 3 year period.

Seed Stable Fund A1 MDD

The Fund aims to generate CPI + 4% pa over rolling 3 year periods and avoid negative returns over any 1 year period.

Seed Income Fund A1 MDD

The Fund aims to generate STEFI Call + 1% pa over rolling 1 year periods and avoid negative returns over any 6 month period.

Seed Weekly – The Importance of Doing Nothing

In this day and age of instant gratification, constant information flow, and the general speed of doing things, people constantly need to be kept entertained and constantly need to be “seen to be doing something”. If you look at the first graph below you will see the Monster Beverage share price from inception in 1985 to date. If you invested $ 10,000 in December 1985 into the share, in June 2018 it would be worth around $ 4,300,000 and this is quite a bit lower than its peak of $ 5,260,000.

Seed Weekly – Components Driving Our Local Bond Yield

An important part of Seed’s multi management process is performing monthly asset class valuations using our in-house quantitative models. This process covers all the local and global asset classes that are suitable for inclusion in our multi asset class funds and model portfolios. The output of these models guides our tactical asset allocation decisions, where we under- or overweight certain asset classes in the short term, compared to our longer-term target weights.

2018-05 Seed Market Overview