Got a note yesterday from our community member who put up R1m of his own money to settle the Local v Offshore debate for good. Wednesday, Nov 2 marked one year into the five year challenge and for the moment it’s the proverbial ‘one horse race’.
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After all costs, the R500 000 that was allocated to Counterpoint’s Piet Viljoen has grown by 10.5% to R550 239. The other half a bar that Magnus Heystek was entrusted has ended its first year at R365 470, down 26.9%. I’m expecting to get some perspective from the two principals in an interview next week. But right now two things spring to mind.
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First, even when a long-term trend appears obvious, it makes sense to hedge your bets. Our community member’s total investment is worth R915 709. Sure, that’s down 8.4%. But it’s also a massive outperformance compared with the ‘safe’ option which would have been the MSCI World Index, down 22% over the same period.
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The second is a reminder of my all-time favourite racehorse, Mary Liley’s New Zealand import called Bold Monarch who raced in the 1970s. The gelding always settled right at the back of the field, often hopelessly last. But he possessed a devastating and very exciting finishing burst that usually took him past the leaders when it mattered.
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In racing terms, this Local v Offshore challenge is now 200m into a 1000m contest. The big question is whether Magnus is going to pull a Bold Monarch on us. I wouldn’t bet against it.
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The Helen Suzman Foundation (HSF) is concerned by two pieces of legislation the government is aiming to push through as it seeks to comply with recommendations of the Financial Action Task Force (FATF) to avoid greylisting. The HSF has made submissions to Parliament’s Standing Committee on Finance, taking issue with aspects of both the Anti-Money Laundering and Combating Terrorism Financing Amendment Bill, as well as the Draft Non-Profit Organisation Amendment Bill. In an interview with BizNews correspondent Michael Appel, director of the HSF, Nicole Fritz, says: “We’re concerned for freedom of civil society, NPOs generally, and we would point to the fact that the FATF itself maintains that any reforms or amendments undertaken by governments should be consistent with international law obligations, and this requirement of mandatory registration is concerning in that it provides for the potential of government interference, [and] politicisation.”Â
