Tag Archives: South Africa
Even Smarter Beta in South Africa? – Diversifying and Optimizing
The equity risk premia from factors (such as quality, momentum, and low volatility) have been widely accepted and adopted by investment practitioners across the globe and South Africa alike. The belief by many is that exposure to these risk factors, in addition to the market, could reward investors over the long term. While the long-term…
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ETFs Add to African Access
The exchanged-traded fund (ETF) structure has led to increased investment options within fixed income, and the African markets are a clear example of this. Over the past few years, several African ETFs have been introduced to the market, tracking indices provided by S&P Dow Jones Indices in South Africa, Nigeria, and Namibia, giving investors options…
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Sustainability in South Africa: The Swing from SRI to ESG
Socially responsible investing (SRI) has deep roots in the South African market. Indeed, some of the earliest records of this type of investing date back to the boycotts against South African companies during the era of Apartheid. The movement paved the way for a generation of socially conscious investors seeking to affect social…
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The IMF Comment May Push South Africans to Sovereigns
The South African economy, Africa’s second-largest economy after Nigeria, may be helped by reforms put in place by President Cyril Ramaphosa. Earlier this year, South Africa suffered a setback, as data showed the economy dipping into a recession, but Ramophosa has since unveiled a stimulus and recovery plan to try and get it back on…
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Outperformance in South Africa and Avoiding Single-Stock Risk
The returns of two liquid equity benchmarks in South Africa with the same target market have been significantly different YTD as of Oct. 26, 2018. Over the period, the S&P South Africa 50 has declined 8.8% while the FTSE/JSE Top 40 has fallen 12.6%—a difference of over 380 bps—a considerable performance gap over a fairly…
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SPIVA® South Africa: Active Equity Funds Followed the Global Trend—They Underperformed
South African equity markets have once again performed poorly, especially in comparison with global equity markets. One reason for this drab performance was that its GDP contracted 1.2% in the first quarter, although the price of gold—one of the country’s key exports—increased and the South African rand recovered somewhat with respect to other currencies. Poor…
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How Did South African Active Managers Perform in 2015?
In 2015, equity markets in South Africa were turbulent amid falling commodity prices and the depreciation of the South African rand. Political uncertainty surrounding the appointment of the country’s finance minister and the lowering of the country’s debt rating by leading rating agencies also contributed to the lackluster performance of equities. This may partly explain…
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How Have South African Active Fund Managers Performed?
The performance of the South African equities market has been lackluster as a result of poor employment data, weak consumer confidence, and continued power shortages. This has led to an underperformance of approximately 5% in ZAR-denominated domestic equities, as measured by the S&P South Africa Domestic Shareholder Weighted (DSW) Index, compared with global equities. Equities:…
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How did South African active managers perform against their benchmarks in 2014?
Following the success of the SPIVA (S&P Indices versus Active) in the U.S., Australia, Canada, India, Japan, Europe and Latin America, we are now starting coverage on South Africa. Like the reports covering other regions, we aim to shed some light on the ongoing active vs. passive debate. SPIVA South Africa will be published twice…
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Global Inflation Beta
It is a familiar concept that commodities have provided inflation protection as discussed in a recent post about a discussion I had with Bluford Putnam, Managing Director and Chief Economist, of our partner, CME Group, to discuss why inflation is likely to appear this year. I have also discussed how much inflation protection has been provided in a special video…
- Categories Commodities
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- Commodities
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