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Simon’s weekly wrap: EasyEquities, inflation, listed property and diversification

MoneywebNOW looked at EasyEquities’ explosive growth; whether inflation has been tamed; a rural and township mall fund; investing offshore; 12J and more.
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Purple Group’s* results were out late last Friday, and on Monday I spoke to CEO Charles Savage about the explosive growth in EasyEquities, helped in part by the pandemic, which helped the group into profit for the year. It has great partnerships in place that will fuel future growth and we also discussed how investing has changed and how the small investor is really able to compete against, and often outperform, professional asset managers.

One of the oddities of the last decade or more has been low inflation globally, and even locally. This has happened even as we’ve seen central banks go on the biggest money-printing spree, first for the 2008/9 crisis and then this year in response to the Covid-19 pandemic. I spoke with Old Mutual Wealth investment strategist Izak Odendaal on whether inflation really has been tamed and if so, what has driven this taming. More importantly, I also asked if this is permanent or likely to be temporary?

Listed property stocks have been under severe pressure in 2020, however a few sub-sectors have managed to do well (chiefly storage and logistics). Another sub-sector doing well has been rural and township malls. Smital Rambhai from Future Growth manages just such a fund and he helped us understand the different dynamics compared with the large metro malls. Rambhai’s fund is not listed, but there are a few listed REITs exposed to this space such as: Vukile, Fairvest, Resilient, Exemplar and others.

I also spoke with Nerina Visser of etfSA, asking her how much money an investor should have offshore. Her answer was unfortunately “it depends”, no nice clean percentage we can all aim for. It concerns issues such as “asset liability matching” and of course a “well diversified portfolio”. But at the end of the day, being 100% invested in SA Inc would be as bad an idea as being 100% invested in hot tech stocks. It’s about managing risk and being diversified across markets, asset classes and sectors.

Also this week:

RMB’s Matete Thulare talks about the rand, Sunette Mulder of Asisa discusses record inflows into collective investment schemes and Dino Zuccollo from the 12J Association talks about the sunset clause and the ins and outs of Section 12J investing.

 

The writer holds shares in Purple Group

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