Stock picks to weather the New Year
2011 was a difficult year for South African investors with tumbling markets, soaring volatility and ...
Meeting Jenny Sheehy, Fixed Income Portfolio Manager, Futuregrowth Asset Management
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Q: How did you get involved in financial services?
A: I started studying actuarial science at university and worked in the actuarial development department of a large insurance company. Of all the actuarial exams, the investment modules were the most interesting. After travelling overseas I looked for a job in investments and started doing fixed income research for the Investments Department of Old Mutual from 1989, followed by fixed income portfolio management from 1994. Old Mutual bought Futuregrowth in 2008 and since then I have been based at Futuregrowth in Newlands as a fixed income portfolio manager.
Q: When did you make your first investment and do you still have it?
A: I invested in a futures contract indexed to the dollar gold price in 1990. Although this is a short term investment and one is only required to place a margin upfront, one has full exposure to the movements in the price of the underlying instrument until the contract expires. This proved to be a useful experience to gain knowledge of the mechanics of the derivatives market early on in my career.
Q: How should institutions and retail investors use a cash investment?
A: Institutions and retail investors should use a cash or fixed income investment as part of their investment portfolio. Their overall portfolio should be well diversified with equity, property and offshore investments in addition to bonds and cash. Weights across the various asset classes will depend on the investor’s risk appetite and cashflow requirements.
Q: Are you concerned about inflation locally and / or globally in 2012?
A: With global growth expected to continue recovering slowly in 2012, I would not be overly concerned about global inflation in 2012. Although local inflation is currently increasing and is above the upper band of the inflation target of 6.0%, it is expected to trend lower during the second half of 2012. The risks to this outlook are to the upside with potential volatility from food and oil prices as well as from the rand.
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The bad news is good news
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At the start of each new year we aspire to better lives – hopes, dreams, and all that goes with it. And then as cynics must – we deride it and say it will never happen. 2012 felt like déjà vu – same story, same problem. What is the state of the world economy – [...]
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New dividend tax will impact companies and shareholders
By Tasneem Gangat, Tax consultant, Grant Thornton Johannesburg The introduction of the new dividends tax (DWT), coming into effect from 1 April this year, will require that dividend tax is paid to SARS by the company, on behalf of the shareholder, before the dividend is paid out in full and will be levied at a [...]
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Car jamming has insurance implications
Vehicle owners are being hit hard with thefts of valuables from parked cars as car jamming gangs targets shopping centres and schools in the northern suburbs. A report on the front page of the Star newspaper today (25 Jan) says a dramatic shootout unfolded at Bryanston Parallel Medium Primary School between police officers and a [...]
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Top up your RA for a tax break but remember new regulations
The end of the tax year is a good time to maximise the tax breaks SARS allows on retirement annuities (RAs) by topping up yours with an additional contribution. Perhaps you’ve earned a bonus, or put aside money for a rainy day that never came. If to date you’ve contributed less than the maximum tax-deductible [...]
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New retirement reforms must be sustainable
Government’s planned retirement reforms are set to provide South Africans better protection and an enhanced deal from the financial services industry, yet if this new model is to prove successful, it is critical that reform is structured in a sustainable manner in the long term. This is according to Willem Loots, head of umbrella fund [...]
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The year ahead
By Tendani Mantshimuli, consumer economist, Liberty (pictured) Indicators to watch in the year ahead. A possible global recession Economic performance in 2012 is not expected to be much of an improvement on what we experienced in 2011. Global economic developments will still have a major impact on the domestic economy. Since it doesn’t look like [...]
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Are you in-flow with your finances?
SA consumers are hoping for a better 2012 but only “in flow” consumers have reason to be optimistic. The consumer’s current own financial position and the influence of the South African economy are the two key drivers for consumers in 2012. According to Paul Slot, Director of Octogen, consumers should know if they are “in [...]
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Double click on terms and conditions before insuring online
Santam, South Africa’s largest short-term insurance company, urges customers to do their own research before opting for online insurance ‘one-stop’ shops that offer cheap insurance products, such as aggregators. The company warned today that whilst it understood the attraction to Aggregators, especially in today’s Internet-aware environment, convenience and price alone should not be the only [...]
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Private equity investment in Africa
Private equity investment in African projects is fast gaining recognition as a unique vehicle for investors to reap emerging market benefits while making a tangible difference to the fortunes of millions. So says Soula Proxenos, Managing Partner at International Housing Solutions (IHS) and member of the Emerging Markets Private Equity Association (EMPEA) Africa council. Proxenos [...]
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PPS to award R1 million in bursaries and scholarships
PPS – the financial services company focused on graduate professionals – has announced it is giving away R1m in bursaries and scholarships to help South African students finish their university degrees. According to Mike Jackson, CEO at PPS, applications for PPS’ annual bursaries and scholarships have now been opened to South African students, as part [...]
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Latest Issue - 31 December 2011
In This Issue:
- 2012 - Not all gloom and doom
- Financial planning gaining momentum in SA
- Compliance tips for 2012
- Asset Allocation survey
Newsletters
Newsletter 26 January 2012: Reasons for hope and fear for SA
What a start to the year – record highs (JSE), Europe woes, more weather turmoil and some fabulous tennis in Australia. In investing there are many successful strategies that will work at any one time – one of these is the art of doing nothing at the right time. There is a case for sitting [...]
