With the elections now largely behind us, investors’ focus will shift to President Cyril Ramaphosa’s ability and political will in addressing issues of concern, namely: the composition of cabinet to be announced on the 28th of May, transforming the economy with the promised policy reform and resolving the problem that Eskom poses to South Africa.
South African listed retailers have been going through a difficult period of late. Not only have the retailers been faced with extremely tough economic conditions, but many retailers have also meaningfully slowed down their space expansion (especially within urban areas), which has been a significant driver of growth in the past.
The JSE has published for comment proposed amendments to its Listings Requirements to strengthen the regulation of primary listings and secondary listings. The proposed changes take account of the public comments raised during the consultation process that kicked off in September 2018 after the JSE released a consultation paper (Paper) on 'possible regulatory responses to recent events surrounding listed issuers and trading in their shares'.
Africa is a large continent, and investors tend to pick and choose their markets based on a multitude of criteria. Some see opportunities in emerging arenas while others focus on more developed and mature opportunities.
For the past few years, the industrial property sector has outperformed the office, retail and leisure property sectors. The good news is that it appears that the industrial property sector should continue to perform reasonably well into the foreseeable future.
With 2018 having been a particularly dismal year for local equities – the worst, in fact, since the 2008 financial crisis – South African investors are increasingly opting to build and manage their own direct equity portfolios in an attempt to take back control, cut out the middle man, and ultimately save money on fees.
An avalanche of regulations governing wealth management means that wealth managers have had to adapt their business models to remain compliant. With all the new rules and regulations in place it is important to ask your financial advisor certain questions to ensure they are compliant.
A new industry standard will drive transparency around hidden fees in the financial services sector, and there is optimism that consumers will benefit in the long run. Big financial services companies may soon need to find new ways to pad their earnings, as a new industry standard is threatening to expose the financial service sector’s worst kept secret – hidden fees.