REZCO CASH: SHORT TERM GAIN = LONG TERM PAIN CASH VS EQUITY 2 - - PowerPoint PPT Presentation

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REZCO CASH: SHORT TERM GAIN = LONG TERM PAIN CASH VS EQUITY 2 - - PowerPoint PPT Presentation

Mar 05, 2024 1.22k likes •1.73k views

REZCO CASH: SHORT TERM GAIN = LONG TERM PAIN CASH VS EQUITY 2 CASH VS EQUITY CASH VS EQUITY LONG TERM STATS WHY EQUITIES BEAT CASH LONG TERM HAS THE GAME CHANGED? THE REZCO APPROACH BALANCED FUNDS ADD VALUE 4 1 YEAR 5

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REZCO

CASH: SHORT TERM GAIN = LONG TERM PAIN

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2

CASH VS EQUITY

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CASH VS EQUITY

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CASH VS EQUITY

  • LONG TERM STATS
  • WHY EQUITIES BEAT CASH LONG TERM
  • HAS THE GAME CHANGED?
  • THE REZCO APPROACH
  • BALANCED FUNDS ADD VALUE
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SOURCE: MORNINGSTAR

1 YEAR

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SOURCE: MORNINGSTAR

5 YEARS

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SOURCE: MORNINGSTAR

15 YEARS

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SOURCE: MORNINGSTAR

SINCE COMMON INCEPTION

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CASH VS EQUITY OVER 15 YEARS

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SOURCE: MORNINGSTAR

ROLLING 1 YEAR: EQUITIES WIN 71%

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SOURCE: MORNINGSTAR

ROLLING 3 YEARS: EQUITIES WIN 63%

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SOURCE: MORNINGSTAR

ROLLING 5 YEARS: EQUITIES WIN 88%

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SOURCE: MORNINGSTAR

ROLLING 10 YEARS: EQUITIES WIN 100%

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SOURCE: MORNINGSTAR

REZCO VS CASH - ROLLING 3 YEARS - WINS 67%

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SOURCE: MORNINGSTAR

REZCO VS CASH - ROLLING 5 YEARS - WINS 95%

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SOURCE: MORNINGSTAR

REZCO VS CASH - ROLLING 10 YEARS - WINS 100%

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WHY EQUITIES BEAT CASH

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  • RETURN =
  • “TRUE” EARNINGS YIELD +
  • EARNINGS GROWTH

LONG TERM: WHY EQUITIES BEAT CASH

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19 THIS IS THE TRUE RETURN EARNED BY INVESTORS

JSE EARNING YIELD (ex-NPN)

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EARNINGS YIELD PLUS GROWTH: JSE

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HAS THE GAME CHANGED ?

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RSA: LOWER GDP GROWTH

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RSA - NO INVESTMENT

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EARNINGS YIELD PLUS GROWTH JSE

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REZCO APPROACH

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REZCO’S INVESTMENT STYLE

FIND GROWING EARNING AT THE RIGHT PRICE

GROWTH PROSPECTS PRICE EARNINGS RATIO

Cheap Companies Expensive Companies High Growth Low Growth

NO VALUE ZONE TO INVEST IN VALUE TRAPS

5 25 25% 0% 5% 10% 15% 20% 15 20 10

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27 9,4% EARNINGS YIELD AND 9% GROWTH

REZCO GROWTH ASSETS (EQUITY FUND)

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28 DISCOVERY

FIND THE COMPANIES WITH GENUINE GROWTH

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INTERNAL INVESTMENT CREATES GROWTH

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30 DISCOVERY

BUSINESSES INVEST FOR THE LONG TERM

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DSY: HAVE DELIVERED THE EPS GROWTH

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LONG TERM DSY SHARE PRICE DRIVEN BY EPS

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ENTRY P/E IMPACTS THE RETURN

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ENTRY P/E IMPACTS THE RETURN

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35 NEED TO POCKET THE ALPHA - MONDI

RANGE BOUNDS MARKETS

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36 TURNOVER

REZCO VALUE TREND FUND

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BALANCED FUNDS ADD OPPORTUNITIES

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SOURCE: MORNINGSTAR

BALANCED FUND OPPORTUNITIES

DON’T HAVE A 1 PLAYER TEAM

USD vs ZAR 19.20% 5.94% 2.93% 4.90%

SOURCE: THOMSON REUTERS

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TACTICAL VS STRATEGIC ASSET ALLOCATION

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40 HISTORICAL ASSET ALLOCATION

REZCO VALUE TREND FUND

SOURCE: JTC GROUP

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THANK YOU!

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DISCLAIMER

This presentation does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it would be unlawful to make such offer or solicitation, and is only intended for the use by the original recipient/addressee. If further distributed by the recipient, the recipient will be responsible to ensure that such distribution does not breach any local investment legislation

  • r regulation.

Opinions expressed are current opinions as of the date appearing in this material only. The information is confidential and intended solely for the use of Rezco Asset Management’s clients and prospective clients, and other specific addressee’s. It is not to be reproduced or distributed to any

  • ther person except to the client's professional advisers.

All data, models and tests are sourced from Rezco Asset Management unless otherwise stated thereon. While information obtained is from sources we believe to be reliable, Rezco Asset Management does not guarantee the accuracy or completeness thereof. Same as may be provided under law, Rezco Asset Management does not accept any liability for inaccurate or incomplete information contained, or for the correctness of any

  • pinions expressed.

Prospective investors should inform themselves and take appropriate advice as to any applicable legal requirements and any applicable taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant to the subscription, purchase, holding, exchange, redemption or disposal of any investments. While the portfolio manager will attempt to minimise risk, the value of investments in discretionary accounts and the income derived from those investments may fluctuate and it is possible that the investor could incur losses, including the loss of principal invested. Past performance is not necessarily indicative as to future performance. An investor whose reference currency differs from that in which the fund or segregated account is denominated may be subject to exchange rate movements, which may cause fluctuations in the value of their investments. In addition, investments involving exposure to a currency other than that in which the segregated account or fund is denominated may also cause values to fluctuate.