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Plexus Platform

2012

19 April 2012: World economic growth through the eyes of the IMF

In this week's edition of Plexus Platform we take a quick look at some of the main aspects of the latest IMF World Report and give our view on the likely outcome for the global economy.  

Please click here to read the full article.

Enjoy the read.

NEWSRELEASE / PERSVERKLARING: Plexus Asset Management/Grindrod Asset Management merger -- Plexus Batebestuur/Grindrod Batebestuur samesmelting

Over the past two years Plexus Asset Management has developed a strategic relationship with boutique investment house Grindrod Asset Management, a company that specialises in the management of mainly listed property portfolios and wealth management for private clients.

In 2010 Grindrod decided to enter the collective investment industry and made formal application to establish the Grindrod Collective Investments Management Company. This entity was subsequently approved by the regulator in 2011 and paved the way for the creation of a strategic joint venture between the two companies as Plexus sought a new partner to take over the administration and distribution of the Plexus collective investment scheme (CIS) fund range. In February this year investors in the Plexus CIS funds and the Registrar of Collective Investments gave approval for Plexus to move its funds from the PSG Collective Investments Management Company to Grindrod Collective Investments, effective 1 March 2012.

However, as negotiations progressed over the past two years, many synergies between the two parties were identified and it became clear that a formal merger of the complementary Plexus and Grindrod Asset Management investment teams and supporting services would be beneficial to both shareholders and clients alike. We are therefore pleased to announce that agreement has now been reached between the Plexus Group and Grindrod Asset Management to merge our respective asset management businesses. The new entity will operate under the Grindrod Asset Management brand.

This is a very exciting development for our asset management business and we look forward to the benefits the deal will bring to our clients, staff and shareholders.

For more information on the merger, please click here for the news release.

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Oor die afgelope twee jaar het Plexus Batebestuur ‘n strategiese verhouding ontwikkel met boetiek-beleggingshuis Grindrod Batebestuur, ‘n maatskappy wat in die bestuur van hoofsaaklik genoteerde eiendomsportefeuljes en welvaarbestuur vir privaat kliënte spesialiseer.

In 2010 het Grindrod besluit om toe te tree tot die kollektiewe beleggingsbedryf en formeel aansoek gedoen om die Grindrod Kollektiewe Beleggingsbestuurmaatskappy te stig. Hierdie entiteit is in 2011 deur die reguleerder goedgekeur en het die weg gebaan vir die skepping van ‘n strategiese gesamentlike onderneming tussen die twee maatskappye aangesien Plexus op soek was na ‘n nuwe vennoot om die administrasie en distribusie van die Plexus kollektiewe beleggingskemafondsreeks oor te neem. In Februarie vanjaar het beleggers in hierdie Plexus-fondse en die Registrateur van Kollektiewe Beleggings goedkeuring aan Plexus verleen om sy fondse met ingang van 1 Maart 2012 van die PSG Kollektiewe Beleggingsbestuurmaatskappy na Grindrod Kollektiewe Beleggings te skuif.

Namate onderhandelinge oor die afgelope twee jaar gevorder het, is talle sinergieë tussen die twee partye geïdentifiseer en het dit duidelik geword dat ‘n formele samesmelting van Plexus en Grindrod Batebestuur se beleggingspanne en ondersteuningsdienste, wat mekaar aanvul, voordelig vir aandeelhouers sowel as kliënte sou wees. Ons kondig dus met genoeë aan dat ooreenkoms nou tussen die Plexus-groep en Grindrod Batebestuur bereik is om ons onderskeie batebestuurbesighede saam te smelt. Die nuwe entiteit sal onder die Grindrod Batebestuur-handelsmerk bedryf word.

Dit is ‘n baie opwindende verwikkeling vir ons batebestuurbesigheid en ons sien uit na die voordele wat hierdie transaksie vir ons kliënte, personeel en aandeelhouers sal bring.

Vir meer inligting oor die samesmelting, kliek asb hier.

22 March 2012: JSE Sectors: Cheap or Expensive?

In this week's edition of Plexus Platform we take a look at the domestic equity market and try to determine whether the JSE is cheap or expensive by historical standards. Read on to find out the answer.

Please click here to download the full article.

While the stellar equity returns during the first two months of this year came as somewhat of a surprise, the implications for emerging markets have been rather beneficial. As the European situation has gone through its ups and downs, market participants have applied a risk-on versus risk-off scenario, which is clearly evident in the flows into and out of South African financial markets. In this latest edition of Plexus Platform we give some interesting insights into what foreign investors have been up to in the local financial markets recently.

Please click here to download the full article.

22 February 2012: Proceed with caution

To say that investors have been content with where markets have been heading the past few weeks is an understatement. But with various market sentiment indicators all looking like they are heading for the moon, the question that needs to be answered is: What is this telling us about the stock market? Read on to find out.

Please click here to download the full article.

14 February 2012: An update on the world's economic headache .... Greece 

In this week’s edition of Plexus Platform we take a look at the recent developments in Greece, Europe’s economic headache. Although markets generally welcomed Sunday’s news that the Greeks had agreed on a solution to their problems, the test might only come on Monday, 20 February 2012, when another meeting of the EU/IMF is to be held to review the additional austerity measures. Greece is not the Eurozone’s only problem, though, and we can expect the unfolding of events to make for a very volatile period in the global equity markets.   

Please click here to download the full article.

8 February 2012 - 2012 - Off with a Bang!

As far as global equity markets are concerned, 2012 has started off with a bang! The strong returns achieved during the first few weeks of 2012 surprised most professionals and were far better than any forecasters could have envisaged. The FTSE/JSE All Share Index has already notched up a return of almost 7% in the first five weeks. But with most professionals having predicted rather benign returns for the domestic equity market, the most important question at this point is what investors should do now.

Please click here to download the full article.

10 January 2012 - 2012 - Outperformance or Wipeout?

In this week’s edition of Plexus Platform, managing director Paul Stewart reviews Plexus’s score-card with regard to its predictions for 2011, and more importantly takes a stab at making some forecasts for the main asset classes for 2012. Read on to find out whether he believes the scenario is one of outperformance or wipe-out. 

Please click here to download the full article.

2011

29 November 2011 - Sarb's Conundrum - Inflation targeting or growth?

With inflation on the rise and an economy that is facing headwinds, the South African Reserve Bank has a conundrum to answer. Should it focus on inflation or on trying to prop up growth amidst the looming global slowdown? In this week's edition of Plexus Platform, managing director Paul Stewart takes a look at what local interest rates are saying about the SARB's next move.     

Please click here to download the full article.

22 November 2011 - Italy's economic scandal

In this week’s edition of Plexus Platform we discuss the latest potential casualty in the Eurozone’s ongoing debt debacle, namely Italy. We look at how much exposure various countries have to Italian debt and consider the question “Is Italy too big to fail?”.      

Please click here to download the full article.

9 November 2011 - Dinosaurs and Volcanoes

In this week’s edition of Plexus Platform Paul Stewart, managing director of Plexus Asset Management, describes a recent visit to the Cape Town Museum with his children. He equates the gory dinosaur exhibit with the events we have witnessed in the financial world over the past few years, and wonders whether investors view risk and specifically risk taking in the same way as they did previously. Read on to find out what his views are on the current uncertain global scene, and what the possible outcome might be.

Please click here to download the full article.

25 October 2011 - The Rand: A case for diversification 

The past quarter has been a roller-coaster ride for investors, with global financial markets exhibiting levels of volatility similar to and some even greater than those of past major crises. The recent scenario of elevated levels of risk aversion has led to a significant sell-off among emerging-market currencies. In this week’s edition of Plexus Platform we revisit the benefits of foreign diversification in a local investment portfolio.

Please click here to download the full article.

18 October 2011 - Looking at entry points into equities as volatility subsides 

In this week’s edition of Plexus Platform we take a look at the South African Volatility Index and how this index can help us make investment decisions. We also look at what foreigners have been up to in our markets over the past few weeks.

Please click here to download the full article.

13 October 2011 - Why we should care about Europe 

As South Africans, we started this week down in the dumps after the embarrassing display by Bafana Bafana in Nelspruit, and the unfortunate way the Springboks were booted out of the Rugby World Cup. From an economic point of view things have also been miserable, especially in the Eurozone. In this week’s edition of Plexus Platform we explain in simple terms why we as South Africans should care about a speedy and orderly solution to the very serious situation in the Eurozone.   

Please click here to download the full article.

5 October 2011 - Extreme volatility in markets - What is the reason?

The rout in global financial markets is continuing, characterised by extreme swings of up to 5% in some markets. In this week’s edition of Plexus Platform we discuss the reasons behind the extreme volatility and try to establish what will bring the extreme volatilities down and calm the markets.

Please click here to download the full article.

28 September 2011 - DéJà Vu All over again!

During the tumultuous years of the 2007/2008 credit crisis, the South African rand (ZAR) weakened by 48% (best to worst rate) against the US dollar (USD) and 47% against the euro (EUR). The mechanics that led to the ZAR’s depreciation were not unique to South Africa and quite simple. Over the past two weeks we have seen the rand take another dive. In this week’s edition of Plexus Platform we look at the reasons for the decline. Is this déjà vu?

Please click here to download the full article.

15 September 2011 - Caution - Volatility Index starting to rise

In this week’s edition of Plexus Platform we take a look at the South African Volatility Index and try to fathom out what it bodes for the domestic stock market.

Please click here to download the full article.

8 September 2011 - Interest Rate Conundrum

South African inflation that has been edging up over the past few months and is expected to breach the SARB’s upper target limit of 6% before year end. However, the South African GDP for the second quarter of 2011 has disappointed and, considering current conditions in the developed economies, prospects for the rest of the year are not that rosy. It seems the SARB is caught between a rock and a hard place with regard to its next interest rate decision, but to find out what market makers are anticipating we take a look at what the Forward Rate Agreement (FRA) curve has been doing recently.  

Please click here to download the full article.

25 August 2011 - Mysterious Mr Market

In this week’s edition of Plexus Platform, managing director Paul Stewart discusses the recent market shenanigans and tries to make some sense of it all.

Please click here to download the full article.

10 August 2011 - Listed property's performance: Is it correlated more with bonds or equities?

 In this special edition of Plexus Platform we attempt to give some perspective on the sharp decline in equity markets over the past two weeks, how we as investment managers view the current situation and what investors should be doing.

Please click here to download the full article.

5 August 2011 - Markets tumble - Is it time to panic?

In this special edition of Plexus Platform we attempt to give some perspective on the sharp decline in equity markets over the past two weeks, how we as investment managers view the current situation and what investors should be doing.

Please click here to download the full article.

4 August 2011 - The golden question: To what level?

Over the past couple of weeks the news wires have hummed about the issue currently engulfing the global economy and market-places, namely the issue of debt. In this week’s edition of Plexus Platform we discuss the effect of the current debt crisis in the US and Europe on the prices of commodities and more so gold.

Please click here to download the full article.

27 July 2011 - Changes in interest rates: What effect do they have on property returns?

In this week’s edition of Plexus Platform we take a look at what effect changes in interest rates have on the performance of listed property. In the current interest rate cycle, should one be over- or underweight in property?

Please click here to download the full article.

19 July 2011 - Platinum price to benefit from strike action in South Africa?

As wage talks between South African mines and labour have become deadlocked, the mood among mine workers and labour in general is for strikes and I doubt it will be averted. So says Dr Prieur du Plessis, chairman of Plexus Asset Management and author of the Investment Postcards blog.

“Last year’s settlements were generally below 10% but expectations are much higher this time around,” says du Plessis. “I think we are probably in for a minimum of two to three weeks – similar to what happened in 2009.” The major two-week strike in 2009 from 24 August to 8 September saw Implats lose 50 000 oz of production and Aquarius about 17 000 oz.

Please click here to read the full article.

4 July 2011 - It doesn't have to be black or white

In this week’s edition of Plexus Platform managing director Paul Stewart looks at the ongoing debate on active versus passive investing, and investigates whether any common ground exists between the two disciplines. He also discusses the relatively new fundamental indices^® (RAFI^® indices) and why leading global investment consultants and academics are now swiftly adopting this “smart index” methodology as core strategies within investment portfolios.  

According to Stewart, RAFI^® indices provide a neat synthesis between the active and passive strategies of old and can be used in isolation or in combination with other strategies to provide enhanced risk and return benefits to both retail and institutional investors. Read on to find out more.

Please click here to download the full article.

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