While we do not advocate blanket investment advice across all our client portfolios, we feel that it is important to let our clients know when major changes occur within the fund management space. During the last 10 days there were two important announcements, one was a spot of good news while the other was not.
Firstly, Allan Gray has announced that its three Rand denominated overseas feeder funds, which give one Rand-hedged performance, are open to investors again after being closed for the last year and a half or so.
Should you wish to discuss this further, please give your advisor a call.
Secondly, we were notified on Monday that Simon Pearse, 56 years old, the CEO of Marriott in Hillcrest, KZN and one of South Africa’s most highly regarded fund managers, passed away suddenly on his farm in Howick. He was not ill and this was a total surprise to everyone. No foul play was involved. Marriott have issued a statement reassuring clients that, although the income-based investment philosophy, which Marriott are so well-known for, was largely developed by Simon, their investment team is well-versed in the implementation of this approach and they are confident that the client portfolios and unit trust funds which they manage will not be adversely affected by this loss. Simon was a super-fit individual who was famous for taking on the world’s longest and toughest horse race, the Mongol Derby, twice. He will be sorely missed.
How can one write about the investment world without for a minute mentioning the recent shenanigans of our president & his cronies? After recalling Finance Minister Pravin Gordhan and his deputy, Mcebisi Jonas from their overseas investment promotion roadshow to the UK & US on Monday, the president seems to have been blocked in his endeavour to replace Gordhan by at least 3 of the 6 ANC NEC members when they met yesterday to discuss possible cabinet shuffles. It is not known whether this will merely delay the removal of Minister Gordhan or if it will trigger a long overdue revolt from with the ANC itself against Zuma , Duarte et al. The Rand and the local stock and capital markets are reflecting the heightened level of uncertainty which these developments, together with others in the US and the UK, are causing. We advise investors to tread with caution when making investment decisions at this time.
We hope you enjoy a safe and successful month ahead.
Your team at Intasure Life