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.
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
Finweek - Collective Insight
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).
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
Jason Spilkin / Trevor Black
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...
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.
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.
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
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.
Credo is a global independent wealth management business that has been in existence since 1998 and employs over 90 staff. The group has assets under custody in excess of £3.1bn (£1bn of which is under management), represented by over 7,100 client accounts.