Asset Manager Q&A

Asset Manager Q&A


What would you do with: R5 000?

Have a weekend away with my wife.

What stocks would you buy with: R10 000?

Buy Satrix Rafi for my nephew and niece.

R50 000?

ISA and Grindrod

R500 000?

I would split this 50/30/20 between my two investment portfolios with 20% in cash for opportunities. Into my top tier portfolio I would put equally: Satrix Rafi, PropTen (new property ETF), SBAEI (Standard Bank’s Africa ETN), Sasol & BHP Billiton (I need to bulk up resource exposure). The market isn’t cheap but I don’t see it suddenly becoming much cheaper so I would rather invest the money and have it working and earning dividends for me than keep the bulk in cash.

In the second tier portfolio I would put equally: SSK (Sentraal-Suid Kooperasie), Grindrod and IT company, ISA Holdings.

R1 million?

I would split it 60/15/25 with the 25% staying in cash for any opportunities that come along. With the 60/15 I would do the same as above.

What stocks/markets are you keeping an eye on?

Beaten down ones such as construction and Grindrod. They won’t give quick returns but current valuations are very cheap and with a three to five year view they should offer excellent returns.

Grindrod is really a play on the global recovery which is fragile, but is broadly happening. It also plays into the commodity space as the commodities have to be shipped.

I also like ISA. They offer IT security which is the big issue for both data centres and cloud computing. Both data centres and cloud computing are really just commodities, but securing them is the vital issue. Mobile security in terms of tablets, mobile phones and laptops is also going to become more and more important as time goes on.

What are your goals when investing?

Current market out- performance, with an eye to being able to retire on the dividends. I still have a decade or three before retirement so the current focus is on building a portfolio of solid dividend paying stocks.

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  • Given how bullish everyone is about African economies (from the IMF to Lakshmi Mittal), it’s puzzling that the Standard Bank Africa ETN hasn’t taken off. Investor apathy or is it just early days for this security?