Advice for investing in the run-up to the ANC’s elective conference
With the outcome of December’s ruling-party leadership contest impossible to forecast, a South African money manager says the best strategy is not to position for the event, but rather to look beyond it. Instead of assuming the worst and piling into stocks that fare well when the rand weakens, or adding holdings in banks in the conviction a market-friendly candidate will win the ANC’s top job, PSG Asset Management says those running its funds are positioning to ride out the storm. "What we want to do is own stocks that are going to do fine for our clients on a long-term view, regardless of what happens," said Shaun le Roux, who helps oversee R33bn with PSG. The contest to succeed President Jacob Zuma has divided the ruling party, with factions forming around two front runners: Nkosazana Dlamini-Zuma, Zuma’s former wife ; and Cyril Ramaphosa, regarded as the most favourable to investors. PSG sees the best approach to navigate the potential turmoil as using "bottom-up" selections of i...
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