2019-05 Seed Market Overview

The FTSE/JSE All Share Index lost 4.8% in May bringing to a halt five consecutive months of positive returns. This was on the back of heightened trade tension, as the rhetoric between the US and China took a sharper tone. Losses were broad based, with industrials and resources recording the largest losses (down 6.0% and 5.1% respectively). Heavyweight counters like Naspers, Sasol and British American Tobacco suffered significant losses ranging from 9.0% to 22.7%.

Seed Weekly – Potential Harmful Effect of Over-Diversification

Diversification is a tried and tested method of reducing investment risk. South African investors embrace this, as seen by the popularity of multi-asset funds. Half of the R2.4 trillion local Collective Investment Schemes (CIS) industry assets are invested in multi-asset portfolios.

Seed Weekly – Sector Earnings Growth

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.

Seed Stable Prescient 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. The Fund is Regulation 28 compliant and is therefore suitable for investments in retirement funds. The net equity weighting (including global equity) will never exceed 40% of the Fund’s market value.

Seed Balanced Prescient 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. The Fund is Regulation 28 compliant and is therefore suitable for investments in retirement funds. The net equity weighting (including global equity) will never exceed 75% of the Fund’s market value.

Latest Seed Prescient Fund MDDs

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. The net equity weighting will never exceed 75% of the Fund’s market value.

Seed Income Prescient 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. The Fund is Regulation 28 compliant and is therefore suitable for investments in retirement funds. The net equity weighting (including global equity) will never exceed 10% of the Fund’s market value.

Seed Weekly – Sporting Investments (Part 2)

Following on the article from last week where the transfer policy of football clubs was discussed, we take a look at some of the assets held by football clubs …

Little Eagle’s Newspaper – 1st Edition