Classic Business

Anthea Gardner, MD Cartesian Capital

The fallout from the COVID-19 pandemic creates the need for a new type of financial advisor who can integrate investment portfolios embracing client-facing automation, dynamic modeling and solutions that make risk more transparent. Clients today care more about risk than reward; the pandemic turned a paradigm on its head. Michael Avery speaks to the founder and CEO of the Collaborative Exchange, Kevin Hinton; Alex Babich, Managing Director of Alex Babich and Associates, an independent wealth, investment, employee benefits and retirement advisory services company; and Elke Brink, Financial Advisor with PSG Wealth, about Covid and future of financial advice

Aneesa Razack, CEO of FNB Share Investing

COO Mfundo Nkuhlu

Cobie Legrange, co-founder of Rex Solom Invest

FinTech SME capital provider, ProfitShare Partners recently secured a whopping R100-million from the SA SME Fund. With this funding, ProfitShare Partners will be able to partner with small and medium businesses to help accelerate growth for SME’s. ProfitShare Partners provides disruptive alternative funding to SME’s which have a contract with a reputable company or government department. This funding allows SME’s to deliver successfully on their orders and contracts which in turn allows them to access a bigger pool of business resulting in exponential growth.Andrew Maren, CEO and founder of ProfitShare Partners explains to Michael Avery how the Get SA Working initiative aims to plug a funding gap in the local sme ecosystem.

Professor Michael le Cordeur, head of the Department of Curriculum Studies at the University of Stellenbosch

What is the smart money doing right now as life starts to return to some semblance of normality? The Bank of America Merrill Lynch South Africa Fund Manager Survey shows a Dash from cash and a stampede of bond & stock bulls. Michael Avery speaks to John Morris, Investment Strategist at Bank of America, about asset managers’ expected returns for cash versus bonds and equities over 12 months.

Bidcorp, the global food services company spun off from Bidvest in 2016, said the post-Covid-19 recovery had been faster than expected, and it was somewhat more optimistic about the next 12-18 months.The group, which delivers to the food services industry, reported FY HEPS decreased by 48,6% to 741,3 cents per share. While its gross profit percentage increased to 24,1%.Bidcorp continues to perform in line with the broader peer group of leading foodservice and catering companies. The stock is down 33% YTD in USD terms, which is exactly in line with Sysco and a bit ahead of Compass Group and Sodexo.

What is striking is that Total Return CAGR over 4 years is -2.4%pa. It’s been four years since the company spun off from Bidvest (at an overvalued price of R305/share) and averaging a ROIC of +-10%pa. That equates to 46% growth in inherent value over four years. If one applies that growth to today's share price to solve for what price the company should have listed at one arrives at R182. Interestingly the share price hit a low of R184 on 19 March 2020. In this interview Michael Avery speaks to CFO David Cleasby about when the company expects restaurants to return to pre Covid levels.

Wayne McCurrie, portfolio manager, FNB Wealth and Investments & Nerina Visser, director, ETF strategist and financial advisor at etfSA