FFM podcast ep13: Playing the Rand; Trust the fundamentals; Beating the benchmark

The South African Rand hit a record level of 19.92 against the United States Dollar in June. And despite returning to the mid-17s this week, the longer-term trend is weaker. But what does this mean for Fantasy Fund Managers? In this week’s podcast, BizNews’ Stuart Lowman was joined by Corion Capital’s David Bacher and Simon du Plooy. Simon, the head of asset allocation at the fund manager, broke down internal and external events that drive the local currency but, more importantly, how these movements impact the shares in the game. Stock rotation has been spoken about on the podcast before, and the currency trend, whether up or down, is at the heart of this rotation. David also pulled out the benchmark return of the 60 shares and explained how 64% of managers are currently beating the index. Remember to make your picks each week by the market open on Monday to have a chance to win any of the prizes up for grabs. And invite your friends. Register at www.fantasyfundmanager.co.za—thanks to our platinum sponsors Sharenet, Terebinth Capital, ClucasGray Asset Management, and Money Better. Remember to subscribe to the podcast so you don’t miss an episode.

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In the 13th episode of the Fantasy Fund Manager podcast, host Stuart Lowman from BizNews was joined by Corion Capital’s David Bacher and Simon du Plooy.

David discusses the game’s success so far, with positive feedback from players, and shares his experience in the game. He had a setback recently after making a wrong move with Richemont shares. At the same time, Simon du Plooy talks about the banter and excitement among friends, family, and colleagues in the office.

Simon explains his role as head of asset allocation at Corion, which involves identifying major macro risks to portfolios and managing institutional portfolios for clients. He emphasises the importance of the volatile South African rand in portfolio management, which offers both challenges and opportunities. Simon highlights the need to understand the factors driving the currency and to diversify internationally while being mindful of risks.

The podcast then delves into the impact of the rand on stock choices on the JSE. Simon mentions that although some stocks are expected to perform better during certain currency trends, it’s not always the case, as various factors come into play. David adds that in the game, they encourage stock-picking rather than solely focusing on macro themes, which allows players to leverage their knowledge and make informed decisions.

Simon provides an investment tip, advising players not to change their portfolios too frequently and instead consider a long-term strategy. He also points out that catching up in the game is possible, even for players trailing behind, as stock performance can change quickly.

David shares an interesting finding from analysing player performance in the game, revealing that 64% of players have outperformed the benchmark, mainly because they picked well-known companies. He suggests that players willing to take risks could explore lesser-known shares for potential opportunities.

FFM podcast ep12: SA inc rotation; Share buybacks; Watch those insurers
FFM podcast ep11: SA a bobbing cork in a weaker dollar environment; Absa to watch; Dividend explained
FFM podcast ep10: The winning formula

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