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 SOURCE: MORNINGSTAR
5 YEARS 6 SOURCE: MORNINGSTAR
15 YEARS 7 SOURCE: MORNINGSTAR
SINCE COMMON INCEPTION 8 SOURCE: MORNINGSTAR
CASH VS EQUITY OVER 15 YEARS 9
ROLLING 1 YEAR: EQUITIES WIN 71% 10 SOURCE: MORNINGSTAR
ROLLING 3 YEARS: EQUITIES WIN 63% 11 SOURCE: MORNINGSTAR
ROLLING 5 YEARS: EQUITIES WIN 88% 12 SOURCE: MORNINGSTAR
ROLLING 10 YEARS: EQUITIES WIN 100% 13 SOURCE: MORNINGSTAR
REZCO VS CASH - ROLLING 3 YEARS - WINS 67% 14 SOURCE: MORNINGSTAR
REZCO VS CASH - ROLLING 5 YEARS - WINS 95% 15 SOURCE: MORNINGSTAR
REZCO VS CASH - ROLLING 10 YEARS - WINS 100% 16 SOURCE: MORNINGSTAR
WHY EQUITIES BEAT CASH 17
LONG TERM: WHY EQUITIES BEAT CASH ● RETURN = ● “TRUE” EARNINGS YIELD + ● EARNINGS GROWTH 18
JSE EARNING YIELD (ex-NPN) THIS IS THE TRUE RETURN EARNED BY INVESTORS 19
EARNINGS YIELD PLUS GROWTH: JSE 20
HAS THE GAME CHANGED ? 21
RSA: LOWER GDP GROWTH 22
RSA - NO INVESTMENT 23
EARNINGS YIELD PLUS GROWTH JSE 24
REZCO APPROACH 25
REZCO’S INVESTMENT STYLE FIND GROWING EARNING AT THE RIGHT PRICE 25% ZONE TO High Growth INVEST IN 20% 15% VALUE GROWTH TRAPS PROSPECTS 10% NO VALUE 5% Low Growth 0% 15 20 25 Cheap Companies 5 10 Expensive Companies PRICE EARNINGS RATIO 26
REZCO GROWTH ASSETS (EQUITY FUND) 9,4% EARNINGS YIELD AND 9% GROWTH 27
FIND THE COMPANIES WITH GENUINE GROWTH DISCOVERY 28
INTERNAL INVESTMENT CREATES GROWTH 29
BUSINESSES INVEST FOR THE LONG TERM DISCOVERY 30
DSY: HAVE DELIVERED THE EPS GROWTH 31
LONG TERM DSY SHARE PRICE DRIVEN BY EPS 32
ENTRY P/E IMPACTS THE RETURN 33
ENTRY P/E IMPACTS THE RETURN 34
RANGE BOUNDS MARKETS NEED TO POCKET THE ALPHA - MONDI 35
REZCO VALUE TREND FUND TURNOVER 36
BALANCED FUNDS ADD OPPORTUNITIES 37
BALANCED FUND OPPORTUNITIES DON’T HAVE A 1 PLAYER TEAM USD vs ZAR 19.20% 5.94% 2.93% 4.90% SOURCE: THOMSON REUTERS 38 SOURCE: MORNINGSTAR
TACTICAL VS STRATEGIC ASSET ALLOCATION 39
REZCO VALUE TREND FUND HISTORICAL ASSET ALLOCATION 40 SOURCE: JTC GROUP
THANK YOU! 41
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 or 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 o r distributed to any other 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 opinions 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. 42
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