Google
RSS Feeds RSS | Views on ITInews | contact | terms of use | privacy 
 


Editorial Categories:

FINANCIAL SERVICES
ADVISERS & BROKERS
BANKING & BONDS
BUSINESS MANAGEMENT
COLUMNISTS
CONSUMER AFFAIRS
CRIME & FRAUD
ECONOMY & GLOBAL
EDUCATION & TRAINING
ESTATES & WILLS
HEALTHCARE INSURANCE
INDUSTRY & LEGISLATION
INSURANCE
INVESTING
LEGAL AFFAIRS
LIABILITY INSURANCE
LIFE INSURANCE
MARKETING
PEOPLE & COMPANIES
POLITICS
PROPERTY
RETIREMENT PROVISION
REVIEWS
ROAD ACCIDENT FUND
SHARES & UNIT TRUSTS
SHORT-TERM INSURANCE
TAXATION
TECHNOLOGY
VIEWS & LETTERS


Forthcoming Events:

No Upcoming Events


Available Recruitment:

No Vacancies Listed...


Save by getting insurance quotes


Your Editor, Brent WilsonInforming Consumers and Financial Advisors since 1988 | Click Here to Advertise
Press Offices > Investment Managers

Marriott Asset Management
Press Office Feature : The importance of adopting a global mind set when investing today

Company: Marriott Asset Management
Author:Lourens Coetzee
Email:[email protected]
Posted:31 Jul 2015

 Email this article Comment on this Article  Print this article

Accessing global investments through Marriott Asset Management

The South African stock market makes up just less than 1% of global stock market capitalisation.

Considering the small size of this market and that local shares are relatively expensive, Marriott is of the view that investors who adopt a global investment mind set will be well served from both a diversification and valuation perspective.

The chart below illustrates the relative size of stock markets around the world:


 
Source: Bloomberg

Based on current first world market valuations it is possible to invest in some of the largest and most recognizable companies in the world on yields higher than South African equities.

These attractive yields afford investors the opportunity to diversify internationally and improve the overall quality of their portfolios.

Nestlé is a prime example of a quality company investors can choose to invest in when adopting a global mindset. With over 2000 brands and 10 000 products, Nestlé sells over 1 billion products daily, making it one of the most prolific companies in the world. 

Its success can be attributed to the nature of its brands, which allows the company to form part of the day-to-day lives of people around the world. Nescafe, for example, is the world’s best-selling coffee brand and accounts for 44 percent of the instant coffee market. Consumers around the world drink on average 5500 cups of Nescafe every second of every day.

Other examples of Nestlé brands include Maggi 2 Minute Noodles and Kit Kat - 5.2 billion packets of Maggi Noodles are sold every year and 650 Kit Kat fingers are consumed every second of the day.

Source: Nestle & Marriott
 
Dividend Track Record:


 
Source: Bloomberg

Although there are many quality South African listed companies, none can equate to Nestlé in terms of size, track record, global diversification and number of brands. A global investment mindset opens the door to these qaulity companies.

With the JSE All Share Index currently at historic highs (above 50000) and dividend yields below historic averages, we feel investors looking for good returns from the South African market could be disappointed in the years ahead.

The South African equity market in general offers little value; however our outlook for certain global equities is very positive.

The chart below highlights the yield differential between a selection of quality international companies and the yield of the South African All Share Index.


 
Equities are also attractively priced relative to bonds and cash in first world markets.  Very low interest rates means investors can currently receive more income from equities than government bonds and money in the bank.

This is a very rare occurance as equities, unlike bonds, also provide investors with income growth which ultimately translates into capital growth.
 
The chart below compares the yields of Proctor & Gamble, Nestlé and Johnson & Johnson to the yields of the US 10 year Government Bond and US cash.


 
In summary, the case for investing in first world equities remains compelling as the yields of high quality multi-national companies are currently higher than first world bonds as well as South African equities.

A global mindset will allow investors to take advantage of this opportunity and improve the overall quality of their portfolios.

Investors can access these companies in three ways:

1.        Marriott’s rand-denominated feeder funds offering access to Marriott’s International Funds

2.        Marriott International Funds (Ireland Domiciled)

a.        First World Equity Fund (£)
b.        International Income Growth Fund ($)
c.        International Real Estate Fund ($)

Minimum investment - £ 15,000
 
3.        The International Investment Portfolio - personalised share portfolio

Investors may select one of three managed discretionary share portfolios or create a non-discretionary portfolio.

One of the major benefits of an offshore share portfolio is its tax efficiency. As the investor is the beneficial owner of the shares they will not be taxed twice on the dividends they receive.

Minimum investment - £ 50,000

Comments:
There are no comments at this stage. Be the first to comment!
Please Login To Comment On an Article - Click here To Login

ITInews invites comments at the foot of each of its articles in which readers can respond freely - anonymously if they wish - to various topical issues and industry debates. However, comments submitted by readers that are defamatory or deemed, by the editors, to be racist or obscene will be deleted from the database. Furthermore, ITInews's editor would like to caution potential posters on its websites that while it welcomes robust debate, it will not hesitate to make the IP addresses of the authors of such defamatory statements available to the authorities, in the event of a court order compelling them to do so.

Solutions for Retirement


Get car, home, life and business insurance quotes in 3 easy steps


Marriott Asset Management


Join us today

More from Marriott Asset Management
New investment strategies for a changing investment landscape?
Don't rely on investment strategies that worked well in the past
Weathering the storm: Marriott’s 6 Investment tips for 2016
Investing should ultimately be focused on building an income stream to fund a lifestyle
Simplifying offshore investing - Invest in companies that produce reliable and growing dividends
More predictable dividend growth means more predictable capital growth over the long term
Marriott’s advice to investors: Invest your money where you spend your money
Ensure reliable and consistent dividend growth
Fees have a significant impact on the retirement outcome over a 40 year period
Marriott’s Umbrella Solution – a simple cost effective solution for employers
Planning for income and capital growth in 2015 and beyond
A reasonably accurate idea of a likely investment outcome
The case for offshore still remains compelling
Attractive dividend yields afford investors the opportunity to diversify internationally
Plan your current investments today to ensure your desired lifestyle tomorrow
Marriott have developed a unique online investment planning tool
Invest for income
Investment planning can be reduced to two words - income replacement
15 investment tips for 2015
Sound investment advice from Duggan Matthews


Archived Articles featuring this company ...


Insurance Quotes


Car Insurance Quotes
Household Insurance Quotes
Business Insurance Quotes
Funeral Insurance Quotes
Life Insurance Quotes

Read the InsuranceQuotes Blog
ITM Website Design Cape Town
Copyright © 2005 - 2015 ITInews Online Publications (Pty) Ltd. All rights reserved Insurance Times & Investments Online and ITInews. ..::ISSN 1995-1256::.. No part of the materials including graphics or logos, available in this Web site may be copied, photocopied, reproduced, translated or reduced to any electronic medium or machine-readable form, in whole or in part, without specific permission from ITInews Online Publications (Pty) Ltd. Distribution for commercial purposes is prohibited.