Investment views

Cordatus Capital Quarterly - March 2019The past quarter and looking forward into an uncertain future.... DOWNLOAD PDF

Cordatus Capital Quarterly - 12.2018A quick review of how indices that have an effect on most SA investors have performed, a review of geopolitical events likely to remain influential and what we have been doing in the business of the recent past.... DOWNLOAD PDF

Cordatus Capital Quarterly - 09.2018We take a look at returns on various indices, currency markets and a brief overview of the operating environment in which investor find themselves. We end off with a quick update on the happenings at Cordatus over the quarter.... DOWNLOAD PDF

Cordatus Capital Quarterly - 06.2018Updating our views as at the end of June 2018... DOWNLOAD PDF

Cordatus Capital Quarterly - 03.2018The first quarter of 2018 was yet another period of heightened uncertainty with Trumps’ move to impose tariffs on Chinese goods, the US stance towards armed intervention in Syria, an increase in the VAT rate locally and political rhetoric around the land expropriation issue. These factors have been moderated by improving local sentiment around upwardly revised domestic economic growth, the long-awaited signing of IPP contracts, Moody’s revised SA credit rating to stable, low inflation, a cut in interest rates and the replacing senior Government ministers. While the above tend to dominate the daily news-flow; a rise in European nationalism, Brexit talks and US interest rate levels add to the uncertainty.... DOWNLOAD PDF

Cordatus Capital Quarterly - 12.2017The last quarter of 2017 was one to remember for South Africans as our credit rating was downgraded to junk status by S&P Global, the “Wolf of Dorp Street” Marcus Jooste abandoned Steinhoff International to play with his horses, and Cyril Ramaphosa won an unconvincing race to head up the ANC. Contrary to our expectations, this translated into a relief rally in the ZAR to end the year at 12.38/USD, up 8.6% over the quarter. ... DOWNLOAD PDF

Cordatus Capital Quarterly 09.2017Despite investing being about making decisions, with imperfect information, in the midst of an uncertain future, on a worldwide basis - we continue to focus on deriving the best outcome for our investors with a continued focus and current emphasis on risk management. Your assets remain well diversified and liquid. ... DOWNLOAD PDF

Cordatus Capital Quarterly 06.2017An update on markets, our current thinking, the risks we expect to impact on performance & the actions that we undertake "behind the scenes" on an on-going basis.... DOWNLOAD PDF

Cordatus Capital Quarterly 03.2017An update on market returns, calculating the impact of rand-hedge shares on portfolios, explaining the annual distribution on Cordatus funds & what we have being doing across portfolios during the past quarter.... DOWNLOAD PDF

Cordatus Capital Quarterly 12.2016Welcome to 2017! In this new format, which will be produced quarterly, we detail the positioning across the funds we manage, we expand on our views as to what to expect in 2017 and explain any changes in asset allocation. ... DOWNLOAD PDF

Cordatus news

4 things to do before Feb 2019Tax deadlines, RA contributions, Donations tax and Tax-Free savings... DOWNLOAD PDF

New staff & share name changesA new staff member and changing tickers for Grindrod, ABSA and Old Mutual... DOWNLOAD PDF

What to do with your Preference Share proceedsSince their introduction in around 2004, preference shares (“prefs”) have provided investors with high-yielding equity (even though they look and act like debt) instruments linked to the prime interest rate, which is currently 10.5%. This has been a very attractive option relative to cash and bonds for income seeking investors, but the environment is changing thanks to legislation (called “Basel”) around the capital structure of banking institutions. ... DOWNLOAD PDF

What to do with SAB?The deal between SABMiller Plc (“SAB”) and Anheuser-Busch InBev NV (“Anheuser”) looks to be progressing smoothly, with any regulatory and or local employment issues seemingly being accommodated and dealt with swiftly. So what to do with the SAB shares that you own in your share portfolios?... DOWNLOAD PDF

Kids and their moneyAs your parents, Mom and I have started these TFSA’s because it is tax efficient to move money out of our estate and into yours while we are still alive, instead of you only getting this money when we are no longer here (if there is anything left). Starting to invest when you are young gives you a massive financial advantage in life, no matter the amount actually involved. I want to tell you a story about two children (you know me, there is always a lesson!), not much different than yourselves.... DOWNLOAD PDF

Retirement Reforms 01 March 2016 Q&AA comprehensive guide to the retirement reforms taking place from 01 March 2016 in the form of a Q&A published by National Treasury. Worth the read.... DOWNLOAD PDF

China devalues its currencyThe attached Morningstar Research paper on the reasons behind & possible consequences of, the RMB devaluation, is well worth the read.... DOWNLOAD PDF

Benchmarking children & funds!Over the past few years Cordatus has been dismayed and disappointed by the increase in the number of SA unit trust managers, across various sub-sectors within the industry, adopting the “sector average” as a preferred benchmark and even worse, a hurdle rate for calculating performance fees. We believe this to be seriously flawed when evaluating fund performance and find that using widely understood real world scenarios to understand a complex scenario, instructive.... DOWNLOAD PDF

The Cordatus Tax-Free Savings Account. What you need to know.In an attempt to boost the nation’s savings, National Treasury has introduced TFSA legislation, effective 1 March 2015. While it is not designed to replace the current exemptions individual tax payers receive on interest and capital gains, it does have its uses. This is how it works and why you should consider it. ... DOWNLOAD PDF

Berkshire Hathaway Inc - Letter to shareholders50-years of sensible and effective investing explained in great detail and with great humility. The latest letter to shareholders from Warren Buffet & Charlie Munger can be read here. We recommend that you do, as we try to emulate so many of these behavioural biases here at Cordatus.... DOWNLOAD PDF