Our quarterly insights on the investment industry
The downward pressure on bond yields was driven by the record level of foreign flows into South African bonds. This was in line with global flows into emerging market bonds in the search for yield, while SA bonds were further aided by their inclusion in the Citigroup World Government Bond Index. Foreign ownership of bonds has grown from 10% in 2007 to a current estimated level of 40%.
For the investor with a short term outlook, things are undoubtedly improving: unemployment is slowly decreasing from high levels, order levels are improving, interest rates are low, inflation is not a concern, the euro area seems to have stabilised, and while economic growth remains slow it should continue to pick up as we move through the year.
With four small kids, one of our favourite family holidays is to go to the Southern Cape for a couple of weeks at the end of the year.
The past year has been a very good one for investors with almost all asset classes delivering returns well in excess of inflation and their long term averages. Central bankers in the developed world, led by US Federal Reserve Chairman, Ben Bernanke, have been remarkably successful in 'nudging' investors further up the risk spectrum.
MyFinancialLife is a web-based tool that presents personal finance information on an easy-to-use platform. It uses Nedbank's highly secure Approve-itTM technology, which provides the same features that protect Nedbank's online banking.
There are three interesting things about the launch of Agang: First, it came two months after the Mangaung conference of the African National Congress (ANC). Second, it happened at a time when there was talk of 'political realignment' in opposition ranks. Third, it occurred fourteen months prior to the 2014 elections. In short, the launch of Ramphele's political platform is as much about the ANC as it is about Agang itself.
A change in management Manager changes form one of the more significant costs within an investment strategy. In fact, most investors who make hiring and firing decisions tend to make them at the worst possible time, firing underperforming managers just before they have a good run and hiring outperforming managers about to enter a lull in performance.
SARS published Retirement Fund Practice Note RF 1/2012 on 1 November 2012 and explained the problem.
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