Tuesday, July 10, 2007

Mirror, mirror on the wall, who is the fairest of them all?

As promised at the end of May, we have conducted an in-depth analysis of asset managers and unit trusts, with the intention of providing readers with our list of recommended asset managers and unit trusts. We examined asset managers' investment philosophy, proceeses and track record. We aimed to identify asset managers that will provide consistently superior long-term returns for investors.

Our recommendations are as follows:

Domestic Equities: Allan Gray; Tim Allsop of Polaris, which manages Nedgroup Investments Rainmaker Fund; PSG Alphen; John Biccard, who manages Investec Value Fund; Anthony Sher of Stanlib Small-Cap Fund.

Domestic Bonds / Income Funds: Nedgroup Investments Gilt Fund; Henk Viljoen of Stanlib Bond Fund; Investec Opportunity Income Fund

Domestic Prudential Funds: Allan Gray Balanced, Allan Gray Stable

Property Funds: Oasis, Marriot, Stanlib and Investec

Global Equities: Orbis / Allan Gray Global Equity Feeder Fund; Investec Strategic Value Fund; Investec Worldwide Equity Feeder Fund; Old Mutual Global Equity Fund; Momentum Global Fund; Sanlam Global Best Ideas Feeder Fund; Berkshire Hathaway

Happy investing!

Friday, July 6, 2007

AltX clocks its fiftieth company

Below is the official press release from JSE:

"On the 3rd of July, AltX listed its fiftieth company, William Tell. The board opened without any listings at the end of October 2003 and listed its first company, Beige on 29 January 2004. Since then there have been 10 listings in 2004, 7 in 2005, 23 in 2006 and so far 10 in 2007.

According to Noah Greenhill, head of marketing and business development at the JSE, “We have said initially that three interdependent aspects are needed for a successful market: number of companies, market capitalisation and liquidity. AltX has exceeded the JSE’s expectations in all three areas. The board now has a market cap of approximately R17 billion.”

Investors would have done rather well to invest in AltX shares. If they would have bought every share at closing price on listing day, their portfolio would be up 134%.

Greenhill believes the success of the market is on account of the quality controls which have been imposed on the companies and their advisors. “Our initial strategy was to ensure that this was a quality market. To make this possible we made sure that companies had to be recommended by the AltX Advisory Committee comprised of market experts, that company directors have to attend a Directors Induction Programme to ensure good governance and the companies needed full time designated advisors to ensure compliance with the listing requirements.”

The board has also started to see appetite from foreign companies to dual list on AltX. This is on account of the marginal cost and maximum value proposition, says Greenhill, “We don’t impose another regulatory regime and offer both an alternative pool of capital and liquidity. We have an example of an AIM listed company on AltX where the primary listing is offshore but the majority of trading takes place locally.”

The JSE has also supported AltX companies to market their shares. Monthly showcases are held nationally where companies get introduced to potential investors. Local and international, institutional and retail investors have taken an interest in AltX counters.

The AltX index which began on 3 April 2006 at 2000 points, closed yesterday at 4 581 points.
According to Greenhill, the pipeline of quality companies for the remainder of the year looks very promising, “We see that the nature and size of companies coming to market is improving all the time. We weren’t sector specific since the start and are now seeing companies from diverse sectors coming to market. This bodes well for the future.”


We at Daberistic also see investment opportunities in some of the AltX companies at right prices.