Investments

Assets allocation in constantly evolving markets

With constantly changing markets and macroeconomic fundamentals, asset allocation has become a more engaging process where the employment of robust processes no longer serves as a way of staying ahead of the curve, but rather a prerequisite for survival. At Prescient Investment Management we are cognisant of continuously evolving markets and take on a quantitatively and macroeconomically inclined asset allocation methodology.

The right Reserve Bank debate

President Ramaphosa’s announcement that the government intends to push ahead with nationalising the SA Reserve Bank ruffled feathers recently. The Reserve Bank is one of a handful of privately owned central banks in the world, but its leadership is appointed by the government. Importantly, its operational independence – how it sets interest rates and regulates banks - is written into the Constitution, and a change from private to public ownership won’t change this. Moreover, the President already appoints the Governor, and the inflation target is set by National Treasury. This is low on the list of things investors should worry about now. Rather, the nationalisation issue is a distraction from a more important debate: what is the appropriate level of interest rates for South Africa?

The rise of DIY stock investing in SA

Outlook of the SA fundraising environment

Regardless of a challenging economic and political environment in South Africa last year, the outlook for 2019 remains positive, with strong indications of sustained confidence in the local private equity and venture capital industry.