Aasset Manager Q&A

Aasset Manager Q&A

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All amounts invested should be viewed in light of the individual investor’s particular circumstances and diversified across asset classes if possible. With regard to the specific investments in equities the comments below are appropriate. Investors should always seek financial advice before investing – from a professional.

What stocks would you buy with R5 000?

I would buy a unit trust which would provide exposure to a diversified group of companies. The important points to consider are the manager’s long-term track record and in the current environment I would want the fund to have at least 20% exposure to offshore stocks.

R10 000?

Same as R5 000

R50 000?

Same as R5 000

R500 000?

» Large caps – Sasol, Anglo American, Implats, Remgro, SAB Miller

» Small caps – Amaps,
Pinnacle, Eqstra, Pan-af

R1 million?

Same as for R500 000

Which stocks/market do you regret not investing in?

» Capitec at R31 when the Imara Equity fund was started in May 2008 (currently R180)

» EOH at R 7,50 when the fund started (currently R27)

What stocks/markets are you keeping an eye on?

» The Eurozone is key. If the sovereign debt stresses escalate out of control, the global economy might be at risk.

» The recovery in the US has been disappointing while deleveraging continues. Indicators to watch are housing prices and unemployment levels.

» Relative to emerging markets, developed markets, particularly in the US, offer more attractive investment options. The Chinese economy looks vulnerable and monetary policy action will be important.

» In general offshore stocks are currently far more attractive than domestic stocks. General Electric and Johnson & Johnson are trading at decade-low multiples.

What are your goals when investing?

Strong capital and dividend growth over the longer term. As a value-bias investor, I buy stocks that have typically been ignored or are out of favour. These opportunities will be backed up by attractive valuation multiples.

What was the best investment decision you have made to date?

Two that stand out are:

» Re-investing the proceeds of the Dimension Data buy-out (at an excellent short-term profit) into EOH at R14,50.

» Adding to Mondi plc at R23 in 2009 (currently R58).

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