My 2 Cents

FATCA – Foreign Act To Cry About?

The acronym FATCA has been around for a considerable amount of time. But what exactly does it stand for? And more importantly, who is affected by this legislation? FATCA stands for Foreign Account Tax Compliance Act, legislation implemented by the United States Department of Treasury to counteract tax evasion in the US. The main purpose…
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Time in the Markets – Dave Foord

Dave Foord is a legend in the local investment world. A few years back he wrote a chapter in Franco Busetti’s book, The Effective Investor, which was subsequently published by Foord Asset Management for their thirtieth anniversary as a 53 page book entitled Time in the Market. This book is undeniably the best starting point…
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Coronation Balanced Defensive Fund – Feedback

The Coronation Balanced Defensive Fund, Prudential Inflation Plus Fund and the Nedgroup Investments Stable Fund (managed by Foord Asset Management) form part of our Defensive Strategy. Most of our clients would have exposure to these funds. The more conservative a risk profile, the bigger the exposure would be. We met with Charles De Kock, Manager…
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Asset Class Returns – May 2015

“Sell in May and go away” is a saying that has stood the test of time again this year. We had a subdued May until the last week when emerging markets was sold off. Local equities was negative with 4%. The darling of all asset classes, listed property performed even worse with a 6% decline. Global equities…
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Foord International Fund

Most of my clients will have exposure to the Foord International Fund – the name changed last year and it was previously known as Foord International Trust or it’s South African version, Foord International Feeder Fund (reports in rand). The Feeder Fund is the same as the International Fund except that it is an asset…
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Are we snookering ourselves with confirmation bias?

Allan Gray sends out a regular communication to their clients focusing on an aspect of investments. The latest newsletter focuses on clients reaction to noise in the market. Noise in the market is all the news that we receive from commentators on radio, TV and newspapers. Inexperienced investors react to the noise and this could…
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BCI Global Investment Conference – Local Equity View

The BCI Global Investment Conference always leaves on with new ideas and a different point of view. This year’s conference was held on the Spier wine farm in the Stellenbosch area. Despite all the distractions Cape Town offers, I managed to summarise the salient points! The questions put to a panel of three local equity…
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Asset Class Returns April 2015

Despite the negative international publicity South Africa received in April, the local equity market performed well on the back of a 8% return from the beaten down resources sector to return 4.7% for the month. Listed property for once did not make a contribution and nominal bonds gave a negative return. Inflation-linked bonds recorded a…
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Practice Closed for New Clients

It has been five years since Anton and I left RMB Private Bank and started Capvest Wealth Management (Pty) Ltd. Our main objective was to place the interest of clients above our own. We knew that our worth, our strength, our primary merit would reside in adding substantial value to our clients. In pursuing our…
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Asset Class Returns March 2015

After a solid run in February, the JSE retreated in March with -1.33%. Bonds did not fare much better with a negative return of 0.5%. International equities returned a positive 2.3% but keep in mind that the rand weekend with 4%. That leaves international markets negative in dollar terms. Top performer is international cash with…
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