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Local is lekker (2)

23 August 2004 Angelo Coppola

(23.8.04) Local equities are the asset class of choice with returns in excess of 10% predicted over the next 12 months, according to the Sanlam Personal Portfolios (SP2) investment managers’ survey, the SP² Bull and Bear Report.

“There has been a significant shift in some of the views that were expressed in the previous survey”, says Shane Tremeer, head of Advice and Funds Management at SP². The first survey was conducted in March 2004 and the latest one in July 2004.

The March survey saw asset managers divided on the rand’s 12 month trading ranges against the US dollar and euro. There is now consensus in a stronger rand/dollar and rand/euro exchange rate, with the upper rand/dollar range decreasing from R8.50 to R7.50.

In the global market, sentiment has moved away from the Far Eastern emerging markets like China and South Korea in favour of the developed markets of the Euro-zone and Japan.

On the local equity front the industrial sector is the asset managers’ preferred sector with financials in the second place. Both the Small Cap and Mid Cap sectors enjoyed more favourable ratings than in the first survey.

The asset managers are either neutral or bearish towards the Resources and IT sectors.

The latest combined houseviews see local assets still favoured above international assets and there has been a slight increase in the weightings given to local cash and bonds.

“This survey is unique in the retail investment market and is conducted by SP² Advisory Service, an independent research and fund advice division within Sanlam Personal Portfolios”, says Tremeer.

It contains the combined views of Coronation Fund Managers, RMB Asset Management, Old Mutual Asset Management, Stanlib Asset Management, Sanlam Investment Management and Investec Asset Management.

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