Our quarterly insights on the investment industry
Should you continue to do so or should you reduce your contributions and instead contribute towards voluntary savings like unit trusts?
he Nedgroup Investments Opportunity Fund is structured to maximize expected returns for an acceptable level of downside risk. To this end, we are prepared to adjust the asset allocation quite actively if needs be; we will go where the opportunities are.
There have been many headlines in the national newspapers and financial magazines commenting on the current South African political climate as well as the numerous headwinds that both the country and the world are facing from an economic perspective.
Good advisors should first make sure that they are adding this value (whether it is true and sustainable) and secondly present their services in such a way that their clients recognise and appreciate this contribution. Such advisors are likely to be able to withstand the rapid change and position themselves and their businesses for a successful future.
Old Mutual is currently one of the biggest positions in our portfolios. From a valuation perspective the stock is attractively priced with many of its underlying divisions trading at a significant discount to their fair value. At a group level, the stock as a whole offers an attractive entry dividend yield and a compound annual growth rate in earnings of 12.5% p.a.
Winter is coming
Portfolio construction, at the fund management level, has to deal with the complexities of the markets and needs to ensure that the portfolio can achieve the set investment goals while staying on track during turbulent and uncertain times.
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