April in review

Developed equity markets continued to rally in April, following on from a strong first quarter. The S&P 500, FTSE 100, Euro STOXX 50 and Nikkei 225 were all up 4.0%, 2.3%, 5.5% and 5.0% respectively. The environment during this time was characterised by accommodative central banks, strong US earnings, recovering Chinese growth and an improvement in US/China trade negotiations. With regards to Brexit, the EU granted the UK a flexible Brexit extension until 31 October 2019, delaying the threat of a no-deal Brexit; the pound sterling was unchanged against both the euro and US dollar. Brent crude oil was up 7.4% over the month as Trump decided not to renew waivers on US sanctions granted to some countries. In the fixed income market, the yield on US, UK and Germany 10-year bonds all increased 10, 19 and 8 basis points respectively.

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Investment Week features Jarrod Cahn

Jarrod Cahn, Fund Manager of Credo Global Equity, was featured in the latest edition of Investment Week’s Bull & Bear. He examines the benefits of a global mandate as well as highlighting the recent compelling opportunities in high-quality technology stocks.

Click here to read the article.

Click here to read the full publication.

Managing risk

You don’t get paid for taking risk, you get paid for creating value. Risk doesn’t disappear, but it can be managed. It can be avoided, accepted, reduced, or transferred. Commodity risks such as those in car, home and life insurance are well understood. These follow the “Law of Large Numbers” where something that isn’t at all predictable on an individual basis, becomes very predictable for large groups. In contrast, the risks involved in speciality insurance against events such as art theft and cyber-attacks are more esoteric. If you are selling cans of Coke, it is very easy to know what you have sold, and what profit you have made. Insurance is different. You are covering an unknown event in the future for...

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Investing in turbulent times

CREDO Client Seminar

Financial Intermediaries, please join us for a breakfast and discussion about Credo's investment philosophy. Deon Gouws (CIO), Rupert Silver (Dynamic Fund Manager) and Jarrod Cahn (Global Equity Fund Manager) will talk about Credo’s investment philosophy focusing on our value-based approach. Tuesday 21 May 2019 at The Ivy Soho Brasserie, London. Please contact your Relationship Manager should you wish to attend.

Why we sold Sainsbury’s

Citywire features Credo Global Equity Fund

Credo’s Equity Spotlight article on Sainsbury’s was featured in a recent edition of Citywire Wealth Manager. The article highlighted the strong outperformance of Credo’s flagship Global Equity Fund over the last 12 months.

Click here to read the article.

March in review

In the month that was supposed to see the UK leave the EU, but instead saw the Brexit deadline extended to the 12th April and the House of Commons gaining control of the Brexit process, European equity markets continued to shrug off the political uncertainty; the FTSE 100 was up 3.3%, while the Euro STOXX 50 was up 1.9%. The political and economic uncertainty surrounding the UK was a drag on the value of the pound sterling which fell 1.7% against the US dollar and 0.3% against the euro. In the US, the S&P 500 ended the month up 1.9%, despite weaker than expected jobs figures and the US yield curve inverting for the first time since the financial crisis. The yield on US, UK and German 10-year bonds all decreased by 31, 30 and 25 basis points respectively, as fears of a global slowdown started to re-surface once again.

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Credo publishes the "Brexit and beyond" edition of CREDONEWS

CREDONEWS #29

Click here to read it.

Interview on Afrikaans radio

Last week, Deon Gouws (Chief Investment Officer at Credo) was interviewed by Moneyweb on South African radio program RSG Geldsake on the topic of how international investors view the country.

Those who understand Afrikaans can click here to listen to it.

@DeonGouws_Credo

Is bigger better?

Sainsbury’s is a food retailer with about 17% of the market share of all UK grocers. In 2016, the company bought Argos, a UK home and general merchandise retailer which operates both online and physical stores. As the domestic market opportunities have saturated, the big UK retailers like Tesco and Sainsbury’s have had to get creative to...

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Investment research from Credo featured in Barron’s

Investment research from Credo featured in Barron’s

An article written by Jason Spilkin (Co-Portfolio Manager of the Credo Global Equity Fund) has just been featured in the Barron’s column: View From The Buyside. Barron’s is one of the leading sources worldwide for financial news and in-depth investment analysis and commentary.

Click here to read the article.

February in review

Global equity markets continued to perform strongly in February, as progress was made with regards to US-China trade talks, averting a scheduled increase in tariffs by 1st March. US equity markets were also boosted by a relatively strong earnings season. All major equity indices made gains over the month, with the S&P 500, FTSE 100 and Nikkei 225 all up 3.2%, 2.3% and 3.0% respectively. Pound sterling increased 1.1% against the US dollar and 1.7% against the euro, as resistance against a no-deal Brexit, the perceived worst-case scenario for business, increased. In the fixed income markets, yield on US, UK and Germany 10-year bonds all increased 9, 8 and 3 basis points respectively. Brent crude oil increased 9.0%, as larger than expected production cuts from Saudi-Arabia restricted supply and as demand was boosted by the prospect of a truce of the trade war between the US and China.

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Holy guacamole

Chipotle Mexican Grill (CMG) is a fast-casual, Mexican restaurant chain in the United States, United Kingdom, Canada, Germany and France. McDonalds (MCD) was an investor from 1993 to 2006. During that time, CMG went from 16 locations to around 500. Today it has over 2,000. Sometimes making money is about “thinking inside the box”. Taking something that works well and doing it again in a similar market. Good management is largely on the edges, tweaking something that already works (the menu, the prices, the store layout). CMG has proven...

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Home is where the heart is…

Home is where the heart is…

Global investing is the topic of this quarter’s Collective Insight (supplement to South African business magazine Finweek).

Click here to read the contribution from Credo’s Deon Gouws (Chief Investment Officer) and Ainsley To (responsible for the firm’s Multi-Asset Portfolio offering).

Click here to read the full publication.

@DeonGouws_Credo

@AinsleyTo_Credo

Citywire features Credo Global Equity Fund

Citywire features Credo Global Equity Fund

Credo’s Equity Spotlight article on Prudential was highlighted in a recent edition of Citywire Wealth Manager. Jarrod Cahn, Manager of the Credo Global Equity Fund, analyses the globally diversified nature of the business and why we are happy to invest in the stock.

Click here to read the article.

January in review

January saw global equity markets make positive ground following recent weak performance. All major equity indices made gains over the month, with the S&P 500, FTSE 100 and Nikkei 225 up 8.0%, 3.6% and 3.8% respectively. Despite this turnaround, the same underlying geopolitical issues still seemed to persist. However, this time, added to the mix, was the US Government shutdown. As the 29th March approaches, progress with regards to Brexit was lacking. There was temporary optimism as MPs voted in favour of replacing the backstop, the insurance policy designed to avoid a hard border in Ireland in the event of a no deal. However, the EU seems adamant that there would be no change to the deal already agreed. Despite this gridlock, the pound rose 3.0% against the euro. Amongst other currencies, the pound rose 2.9% against the US dollar. In the fixed income market, the yield on US, UK and Germany 10-year bonds decreased 5, 6 and 9 basis points respectively.

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Collective Insight Round Table Discussion

Collective Insight Round Table Discussion I

Join Ainsley To, Research Analyst at Credo Wealth, and other senior investment professionals and thought leaders at a round table discussing finweek's Collective Insight supplement on the topic "Getting to Grips with Going Global", jointly organised by CFA Society South Africa and ABSIP (Association of Black Securities and Investment Professionals).

Click here for details and to attend the event.

Credo Wealth featured in Business Day article

Credo Wealth featured in Business Day article

On Friday last week, veteran investment writer Stephen Cranston was responsible for an article in leading South African financial publication Business Day, focusing on alternatives for investors when it comes to global diversification. We were proud to see that Credo Wealth was the first manager mentioned in this piece.

The first two paragraphs of the article were as follows:

"It is a good idea to remind ourselves why we invest in global assets. In the days before the relaxation of exchange controls the focus was simply on taking money out of the country in case of a national emergency. Few people cared about the returns they would receive, they just squirrelled away the unused portions of their travel allowances in low-yielding bank accounts.

But more sophisticated professional advisers have come onto the market and can offer multi-asset and multijurisdictional portfolios. I would say businesses such as Credo Wealth, Stonehage Fleming and Citadel offer a much better alternative than sticking your money in a NatWest savings account."

The full article is only available to subscribers to Business Day, and can be found here.

Life insurance goes on

Companies have nationalities just like people - even multi-nationals. Prudential is a British Multinational Life Insurance and Financial Services company headquartered in London. It was founded in 1848, with door-to-door salesmen selling insurance for as low as a penny a contract, to the working class. An army of collection agents became known as “the men from Pru”, and the company became as British as a pint at the local pub. However, the world changes. Prudential now has...

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Credo featured in Citywire Pub Club

Credo featured in Citywire Pub Club

Credo Dynamic Fund Managers Rupert Silver and Ben Newton joined Citywire journalists for an informal lunch to discuss the fund and recent developments at Credo. The pair teamed up in 2017 when the fund was launched and have produced impressive performance, despite recent market volatility.

Click here to read the article.

Another take on Brexit

Another take on Brexit

Following the appearance by Deon Gouws (Chief Investment Officer at Credo Wealth) on South African news channel ENCA, he was also interviewed on CNBC Africa, discussing the same topic

Click here to watch the clip.

@DeonGouws_Credo

Brexit - what next?

Credo CIO Deon Gouws interviewed by eNCA

Last night, British Prime Minister Theresa May’s controversial Brexit deal was rejected by an overwhelming majority in the UK parliament. Soon after, Deon Gouws (Chief Investment Officer at Credo Wealth) discussed the aftermath on South African news channel ENCA.

Click here to watch the interview.

@DeonGouws_Credo

December in review

December failed to provide the Christmas rally many investors were hoping for as major global equity markets made significant losses over the month. As has been the case for much of the preceding year, the usual themes of trade wars and the US Federal Reserve Bank increasing interest rates played a significant role in the continued sell-off. The S&P 500, FTSE 100 and Nikkei 225 ended the month down 9.0%, 3.5% and 10.3% respectively. In the UK, progress with regards to Brexit was minimal with political tussles at the forefront as the government was found in contempt of Parliament, and Theresa May survived a vote of no confidence. Pound sterling reflected the Brexit stalemate as it dropped 1.2% against the euro. Oil prices continued to decline, with Brent Crude oil down 9.5% over the month as increasing supply and a weaker global outlook continued to weigh on the market. In fixed income, yields on US and UK 10-year bonds decreased 30 and 9 basis points respectively as investors migrated towards safe haven assets.

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Living in interesting times

Living in interesting times

Investors have just been through a tumultuous few weeks, with December 2018 being the weakest month for the US and international markets in nearly a decade, only to be followed by a rapid bounce over the last couple of weeks.

Click here to read Deon Gouws' perspective.

@DeonGouws_Credo