Foreword | Issue 66 | 2nd Quarter 2023
DID YOU KNOW? HAIRCUT
In the world of finance, a 'haircut' isn't about trimming your locks. It refers to the reduction in the value of debt that creditors agree to accept when there's a default. When a sovereign debt haircut is implemented, bondholders and other creditors agree to accept a lower repayment amount than the face value of the debt. This reduction can be expressed as a percentage, for example a 20% ‘haircut’.
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SOUTH AFRICA’S DEBT DILEMMA — RISKS AND OPPORTUNITIES
South Africa’s sovereign fundamentals have deteriorated alarmingly over the past decade — so much so that the country now finds itself entangled in a debt crisis. Portfolio manager FARZANA BAYAT looks at the implications of the debt dilemma and the investment strategies Foord employs to protect investor capital while yielding inflation-beating returns.
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FOORD’S HIGH CONVICTION CALL ON THE GLOBAL ENERGY TRANSITION
The global energy transition presents a compelling opportunity for the astute investor. Its implications extend far beyond a simplistic switch from fossil fuels to renewable energy. Instead, it invites a nuanced understanding of the complex interplay between economics, technology, geopolitics, and societal aspirations that underpin the global energy system. In this comprehensive review, Foord Singapore portfolio manager ISHRETH HASSEN unpacks these dynamics to identify the potential winners and losers of this momentous shift.
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ARE THERE OPPORTUNITIES IN SA INC. STOCKS?
As fund managers, we are always on the lookout for opportunities that can generate good returns. This is true even — or perhaps especially — when sentiment is at its worst. An area of the local market that has received a lot of attention lately for its historical cheapness are ‘SA Inc.’ stocks. Portfolio manager NANCY HOSSACK takes a closer look at prospects for this segment.
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CULTIVATING FINANCIAL LITERACY IN THE YOUNG MINDS OF TOMORROW
While the thought of introducing complex monetary concepts to a young mind may seem overwhelming, studies from institutions like Cambridge University suggest that children as young as three can begin grasping basic financial principles. By providing an early education in finance, we encourage monetary independence and responsible spending in adulthood.
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MARKETS IN A NUTSHELL
We summarise the market movements for the latest quarter.
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