Thesis (MComm)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: Individual and institutional investors alike are continuously searching for investment styles and strategies that can yield enhanced risk-adjusted portfolio returns. In this regard, a number of investment styles have emerged in empirical analysis as explanatory factors of portfolio return. These include size (the rationale that small stocks outperform large stocks), value (high book-to-market ratio stocks outperform low book-to-market ratio stocks) and momentum (stocks currently outperforming will continue to do so). During the mid-eighties it has been proposed that liquidity (investing in low liquidity stocks relative to high liquidity stocks) is a missing investment style that can further enhance the risk-adjusted performance in the United States equity market. In the South African equity market this so-called liquidity effect, however, has remained largely unexplored. The focus of this study was therefore to determine whether the liquidity effect is prevalent in the South African equity market and whether by employing a liquidity strategy an investor could enhance risk-adjusted returns. This study was conducted over a period of 17 years, from 1996 to 2012. As a primary objective, this study analysed liquidity as a risk factor affecting portfolio returns, first as a residual purged from the influence of the market premium, size and book-to-market (value/growth) factors, and then in the presence of these explanatory factors affecting stock returns. Next, as a secondary objective, this study explored whether incorporating a liquidity style into passive portfolio strategies yielded enhanced risk-adjusted performance relative to other pure-liquidity and liquidity-neutral passive ‘style index’ strategies. The results from this study indicated that liquidity is not a statistically significant risk factor affecting broad market returns in the South African equity market. Instead the effect of liquidity is significant in small and low liquidity portfolios only. However, the study indicated that including liquidity as a risk factor improved the Fama-French three-factor model in capturing shared variation in stock returns. Lastly, incorporating a liquidity style into passive portfolio strategies yielded weak evidence of enhanced risk-adjusted performance relative to other pure-liquidity and liquidity-neutral passive ‘style index’ strategies. This research ultimately provided a better understanding of the return generating process of the South African equity market. It analysed previously omitted variables and gave an indication of how these factors influence returns. Furthermore, in analysing the risk- adjusted performance of liquidity-biased portfolio strategies, light was shed upon how a liquidity bias could influence portfolio returns. / AFRIKAANSE OPSOMMING: Individuele en institusionele beleggers is voortdurend op soek na beleggingstyle en strategieë wat verhoogde risiko-aangepaste portefeulje-opbrengste kan lewer. In hierdie verband is ’n aantal beleggingstyle deur empiriese analise geïdentifiseer as verklarende faktore van portefeulje-opbrengs. Hierdie style sluit in: grootte (die rasionaal dat klein aandele beter presteer as groot aandele), waarde (hoë boek-tot-mark verhouding aandele presteer beter as lae boek-tot-mark verhouding aandele) en momentum (aandele wat tans oorpresteer sal daarmee voortduur). Gedurende die midtagtigs is dit aangevoer dat likiditeit (die belegging in lae likiditeit aandele relatief tot hoë likiditeit aandele) ’n ontbrekende beleggingstyl is wat die risiko- aangepaste prestasie in die Verenigde State van Amerika (VSA) aandelemark verder kan verhoog. In die Suid-Afrikaanse aandelemark bly hierdie sogenaamde likiditeit-effek egter grootliks onverken. Die fokus van hierdie studie was dus om te bepaal of die likiditeit-effek teenwoordig is in die Suid-Afrikaanse aandelemark en of dit vir ’n belegger moontlik is om risiko-aangepaste opbrengste te verbeter deur ’n likiditeit-strategie te volg. Die studie is uitgevoer oor ’n tydperk van 17 jaar, vanaf 1996 tot 2012. As ’n primêre doelwit het hierdie studie likiditeit ontleed as ’n risiko faktor van portefeulje-opbrengste, eers as ’n residu-effek vry van die invloed van die markpremie, grootte en boek-tot-mark (waarde/groei) faktore, en daarna in die teenwoordigheid van hierdie verklarende faktore van aandeel opbrengste. As ’n sekondêre doelwit, het hierdie studie ondersoek of die insluiting van ’n likiditeit-styl in passiewe portefeulje-strategieë verbeterde risiko- aangepaste prestasie kan lewer relatief tot ander suiwer-likiditeit en likiditeit-neutrale passiewe ‘styl indeks’ strategieë. Die resultate van hierdie studie het aangedui dat likiditeit nie ’n statisties beduidende risiko faktor is wat die breë markopbrengs in die Suid-Afrikaanse aandelemark beïnvloed nie. In plaas daarvan is die effek van likiditeit beperk tot slegs klein en lae likiditeit portefeuljes. Die studie het wel aangedui dat die insluiting van likiditeit as ’n risiko faktor die Fama- French drie-faktor model verbeter in sy vermoë om die gedeelde variasie in aandeel opbrengste te verduidelik. Laastens lewer passiewe portefeulje strategieë, geïnkorporeer met ’n likiditeit-styl, swak bewyse van verbeterde risiko-aangepaste opbrengs relatief tot ander suiwer-likiditeit en likiditeit-neutrale passiewe ‘styl indeks’ strategieë. Hierdie navorsing verskaf ’n beter begrip van die opbrengs-genererende proses van die Suid-Afrikaanse aandelemark. Dit ontleed voorheen weggelate veranderlikes en gee ’n aanduiding van hoe hierdie faktore opbrengste beïnvloed. Daarbenewens word lig gewerp op die invloed van ’n likiditeit vooroordeel op portefeulje-opbrengste deur die risiko- aangepaste opbrengs van likiditeit-bevooroordeelde strategieë te analiseer.

Thesis (MBA (Business Management))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: This study was conducted to investigate the contribution of progressive elaboration on the effectiveness of conducting projects. Effectiveness relates to project success in contrast to efficiency which relates to project management success. This study attempts to determine what the contribution of progressive elaboration of project detail is on the success of conducting projects, by examining three different aspects of project management. First, a historical background study was done of project management, highlighting the origin, paradigms and trends within project management. The underlying finding here is that in spite of the fact that it originated from a hard rules based environment, probably with memes delaying it from progress, project management is changing into a theoretically based hard and soft science, offering exciting opportunities. This was followed by a look into current best practice by means of the Project Management Institute’s (PMI’s) Project Management Body of Knowledge Guide (PMBOK Guide). Each of their nine project management knowledge areas was explored to determine the applicability of applying progressive elaboration within that area. Both scope management and risk management presented excellent opportunities for applying progressive elaboration while cost, quality, human resource and procurement management posed to be problematic. The third comparison area shows that a theoretical foundation exists, and that the theory underwrites progressive elaboration. Progressive elaboration has the potential of improving the effectiveness of projects, and of ensuring greater project success. The practical implementation is not well presented in literature and further research in this area is proposed. / AFRIKAANSE OPSOMMING: Die doelwit van hierdie studie is om te bepaal watter invloed of bydrae progressiewe uitbreiding in projekbestuur het op die effektiwiteit van die uitvoering daarvan. Effektiwiteit hou verband met die sukses van 'n projek, in teenstelling met doelmatigheid wat verband hou met die sukses van die projekbestuur proses. Hierdie studie poog om te bepaal wat die bydrae van die progressiewe uitbouing van projek detail op die sukses van projekte is. Die vraag word beantwoord deur na drie verskillende aspekte van projekbestuur te kyk. Eerstens is ' historiese agtergrondstudie gedoen wat poog om die oorsprong, sekere paradigmas en tendense in projekbestuur te ondersoek. Die slotsom hiervan is dat alhoewel projekbestuur sy oorsprong het in harde, reëlsgebaseerde omgewing, met oorgedraagde gebruike wat verandering strem, dit tog besig is om te migreer na 'n teoreties gefundeerde hard en sag gekombineerde wetenskap wat opwindende geleenthede bied. Vervolgens is gekyk na 'n hedendaagse beste praktyk model soos gevind in die “Project Management Institute (PMI)” se “Project Management Body of Knowledge Guide(PMBOK Guide)”. Elk van die nege projekbestuurkennisareas is ondersoek om te bepaal wat die toepaslikheid van implementering van progressiewe uitbreiding in die spesifieke kennisarea is. Beide werkomvang-bestuur en risikobestuur het uitstekende geleenthede gebied vir die toepassing van progressiewe uitbreiding, terwyl koste, kwaliteit, menslike hulpbron en kontrak-bestuur uitdagings voorgehou het. In die laaste van die vergelykings areas is daar getoon dat 'n teoretiese basis vir projekbestuur bestaan en dat die teorie progressiewe uitbouing onderskryf. Progressiewe uitbreiding beloof om die effektiwiteit van die uitvoering van projekte te verbeter en sodoende die kanse op sukses van projekte te verbeter. Praktiese implementering word nie volledig in die literatuur beskryf nie en verdere navorsing in die verband word aanbeveel.

Thesis (MBA (Business Management))--University of Stellenbosch, 2007. / ENGLISH ABSTRACT: The structure of Sanlam Limited is continually changing in order to align with the strategy. The aim of this research report is to determine the effectiveness of the current structure and whether it is aligned with the strategy. The current corporate strategy is to become the leader in wealth creation. This will be done through being a leader in all areas of the financial services industry and not only a provider of life insurance. The strategy is currently supported through a structure consisting of four channels, namely a life insurance cluster, investment cluster, short-term insurance cluster, and independent financial services cluster. An analysis of the life insurance cluster shows that Sanlam is currently struggling in the employee benefits sector of the industry but is a definite force in the individual life sector. In the short-term insurance industry Sanlam is represented through a shareholding in Santam. Analysis shows that Santam is currently the dominant player in this industry and should continue to be so in the future. The investment cluster consists of a number of entities with the biggest being Sanlam Investment Management. They currently have a big share of asset under management in the industry and performances are also improving after corrective measures were taken in 2004. It is difficult to compare the independent financial services cluster with other companies as they are present in so many areas of the financial services industry. Determination of the industry attractiveness has shown that all three focus areas of the clusters are fairly attractive, with the short-term insurance market being the most attractive. Competitive strength analysis indicates that the main players in each of the clusters do have competitive strength in their industry, with Santam once again being the most competitive. The results mentioned in the previous paragraphs definitely indicate that Sanlam is focussing on the correct areas and has the strengths to compete in these areas. The only concern is that growth is slowing down in the main contributor to profits, that is Sanlam Life, and they need to find areas of growth or diversification to address this risk. / AFRIKAANSE OPSOMMING: Die struktuur van Sanlam Beperk is gedurig aan die verander om met die strategie belyn te wees. Die doel van die navorsingsprojek is om te bepaal hoe effektief die strukture is en of dit wel belyn is met die strategie. Die huidige korporatiewe strategie is om die leier te wees in rykdom skepping. Dit kan alleenlik gedoen word deur die leier te wees in alle areas van die finansiele dienste sektor en nie alleenlik 'n verskaffer van lewensversekering nie. Hierdie strategie word tans ondersteun deur 'n struktuur bestaande uit vier kanale, naamlik die lewensversekeringskanaal, beleggingskanaal, korttermynversekeringskanaal, en die onafhanklike finansiele dienste-kanaal. 'n Ontleding van die lewensversekeringskanaal loon dat Sanlam tans sukkel in die werknemersvoordele area van die besigheid maar 'n definitiewe sterk verteenwoordigheid het in die individuele lewens area van die besigheid. In die korttermynversekeringskanaal word Sanlam verteenwoordig deur Santam in wie Sanlam 'n aandeelhouer is. Die analise van die industrie toon dat Santam die dominante leier in die area is en so behoort te bly in die afsienbare toekoms. Die beleggingskanaal bestaan uit 'n hele aantal besighede waarvan Sanlam Beleggingsbestuurders die grootste is. Hulle het tans 'n groot persentasie van die bates onder bestuur in die mark en vertoon ook aansienlik beter na korrektiewe stappe geneem is in 2004. Dit is moeilik om die onafhanklike finansiele dienste-kanaal met mededingers te vergelyk aangesien hulle 'n teenwoordigheid het in baie areas van die finansiele dienste sektor. Bepaling van die industrie aantreklikheidsfaktor het getoon dat al die areas waarop die kanale fokus redelik aantreklik is, met die korttermynversekering die mees aanloklikste. Die analise van die kompeterende sterkte het ook aangetoon dat die grootste eenhede in elke kanaal definitief kompeterend is, met Santam weereens die mees kompeterende. Die resultate uiteengesit in die vorige paragrawe toon aan dat Sanlam op die regte areas fokus en ook 'n sterk teenwoordigheid in die areas het. Die enigste rede tot kommer is die feit dat Sanlam Lewens, wat die grootste bydra lewer tot die groep winste, nie groei toon nie. Daar sal dus planne gemaak moet word om die besigheid te groei.

Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: The Brandes Institute and Global Wealth Allocation developed a measure of concentration to investigate whether more concentrated portfolios will give better returns. The Concentration Coefficient of a portfolio is defined as the inverse of the sum of the squares of the weights of the different shares within a given portfolio. As such it describes the concentration of the portfolio as if the investor invested in a number of equally weighted shares. Using the Concentration Coefficient the Brandes Institute investigated the relationship between a number of portfolio characteristics and portfolio concentration for a number of portfolios in the United States market. This study firstly looks at the literature available on portfolio concentration. To this end it discusses a number of different measures of portfolio concentration, and give the pros and cons of each. The author then attempts to recreate the study that was done by the Brandes Institute for the South African Market. The analysis shows that there are some similarities in behaviour between the South African and United States markets, even though the South African market is much smaller. The findings of the above analysis concurs with that of the Brandes Institute, in that there does not seem to be a significant relationship between return and portfolio concentration. The author further investigates how concentration would have impacted returns, had each portfolio manager used his chosen strategy, but only in a more concentrated fashion. In order to do this the return of the actual portfolio was calculated and compared with the return from an idealized portfolio. TIlls idealized portfolio was taken as consisting only of the top ten equity investments in which the portfolio manager invested for the gi yen period. Again the result showed no significant relationship between the perfonnance of the portfolio and portfolio concentration. The inruitive result thus holds, in that increased portfolio concentration does not necessarily lead to higher returns, but that it does lead to more volatility in perfonnance. In conclusion the author makes a number of recommendations for future research that will contribute to the understanding of the effect of portfolio concentration. / AFRIKAANSE OPSOMMING: Die Brandes lnstituut en Global Wealth Allocation het 'n maatstaf van konsentrasie ontwikkel om te bepaal ofmeer gekonsentreerde fondse beter opbrengste sal1ewer. Die Konsentrasie Koeffisient van 'n fonds word gedefinieer as die invers van die sam van die kwadrate van die gewigte van die verskillende aandele in die fonds. Dil beskryf dus die konsentrasie van 'n fonds asaf die beJegger in 'n aantal ewewigte aandele bele het. Die Brandes lnstituut het die Konsentrasie Koeffisient gebruik om die onderlinge verband tussen 'n aanta! fonds eienskappe en die konsentrasie van fondse in die markle van die Verenigde State van Amerika te ondersoek. Hierdie ondersoek deen eerstens 'n literatuur studie oor fonds konsentrasie. Die verskillende maatstawwe van fonds konsentrasie word bespreek, en rue voor- en nadele van elk word gegee. Die skrywer poog verder om die studie soos gedoen deur die Brandes Instituut te dupliseer vir die Suid Afrikaanse mark. Die analise toon dat alhoewel die Suid Afrikaanse mark heeJwat kleiner is as die van die Verenigde State van Amerika. daar tog duidelike ooreenkomste in die resultate is. Die bevindinge van die bogenoemde analise stroak met die resultate verkry deur die Brandes lnstituut, aangesien daar geen duidelike verb and tussen ophrengs en fonds konsentrasie blyk te wees nie. Die skrywer ondersoek verder hoe konsentrasie opbrengs sou be'invloed het indien elke fonds bestuurder sy gekose strategie gevolg het, maar net meer gekonsentreerd. Ten einde dit te doeo word die oprengs van die werklike fonds vergeJyk met die opbrengs van 'n geYdialiseerde fonds. Die geYdialiseerde fonds bestaan slegs uit die top tien ekwiteit aandele waarin die fonds bestuurder in die betrokke periode bele het. Weereens toon die reultate geen noemenswaardige verband tussen opbrengs en fonds konsentrasie nie. Die intuitiewe resultaat geld dus steeds, aangesien verhoogde fonds konsentrasie nie noodwendig tot beter opbrengste lei rue, maar dat dit wei hoer volatiliteit tot gevolg het. Ten slotte maak die skrywer 'n aantal aanbevelings vir verdere navorsing wat sal bydrae tot die begrip van die invloed van fonds konsentrasie.

Thesis (MDF)--Stellenbosch University, 2012. / The study was carried out to find out the effect of credit risk and portfolio loan management on profitability of microfinance Banks (MFBs) in Lagos, Nigeria. To achieve the objective of the study, an econometric model was developed. A sample size of 14 microfinance banks was randomly selected, comprising four national, five state and five unit microfinance banks respectively. Five year annual financial statements of these 14 selected microfinance banks were obtained for this analysis using panel data that produce 70 observations for the period 2006 to 2010 The result reveals that the current value of all independent variables follow an expected relationship with the profitability of microfinance banks. That is, the net interest margin, asset mix proxied by ratio of loan to total asset, and ratio of equity to total assets have a positive relationship with the profitability of microfinance banks (MFBs) in Lagos state, Nigeria. Asset quality (ratio of non-performing loan to total loan) and the interest earnings to total assets ratio have a negative relationship with profitability of microfinance banks. However, the result reveals that of the five immediate past value of these independent variables, only net interest margin and interest earnings to total assets ratio maintained expected relationship with the performance (profitability) of microfinance banks. From the hypothesis test, it was found that credit risk management has a significant effect on the profitability of microfinance banks in Lagos state, Nigeria The study is set against the background and realisation that many MFBs in Lagos seem to continue to seek growth and profit without much attention to addressing credit risk issues – a necessity for their survival on a sustainable basis. The results indicated that the credit evaluation process was positively and significantly related to the quality of the loan portfolio in MFBs. The study also found out that internal rather than external to the MFB’s are more likely to provide the main explanation for MFBs’ profitability. To enhance their profitability, loan products which seem to have various defects which make loans even more risky need to be reviewed. The defects include: long loan processing procedures, absence of training to clients on proper utilisation of loans, lack of mechanisms to assess the suitability and viability of the business proposal for which loans were applied, inappropriate mechanism for assessing character for loan applicants, absence of moratorium periods between taking of a loan and repayment of a first instalment as clients were requested to repay their first instalment within the first month. The study recommended that MFBs should have a broad outlook in its credit risk and portfolio management strategy and this calls for radical reforms within the MFB’s operations and policies as well as more aggressive approaches most especially before availing credit and in its loan recovery as it had a direct impact on profitability.

Purpose: The purpose of this thesis is to address the, by scholars and managers alike, expressed need of development in the project portfolio selection. The research will aim to investigate how the selection of innovation projects portfolios could change if flexibility, and with it uncertainty, were added to the project portfolio selection. The aim is further to investigate how options value can be incorporated as additional value to a portfolio selection decision, with the goal to choose projects that maximize the goal function of the firm. Method: This thesis takes a qualitative approach as such approach is favourable when studying social science. The empirical research is carried out at a large international company conducting in an extensive amount of R&D as well working with innovation projects. The data is collected by unstructured and semi structured interviews with management at the company subjected to the study. Results: The results show, that by adapting the real options framework to a static way of selecting projects, the incorporation of flexibility to the selection process can add economic value by accounting for options value and handle uncertainty. The real options framework will substantiate a dynamic approach to the selection process of innovation projects, as flexibility is changing the selection process from individual project selection to the selection of portfolios. / Syfte: Syftet med följande uppsats är belysa och utveckla det, av forskare och chefer, uttryckta behov av utveckling av projektportföljval. Uppsatsen syftar till att undersöka hur valet av innovationsprojekt genom portföljvalsmodeller kan förändras om flexibilitet och osäkerhet adderas till beslutsprocessen. Syftet är vidare att undersöka hur ytterligare värde kan inkorporeras i ett beslut, med målet att välja den portfölj som maximerar företagets målfunktion. Metod: Denna uppsats tar en kvalitativ metodansats då ett sådant tillvägagångssätt är fördelaktigt i studier av samhällsvetenskap. Den empiriska undersökningen har bedrivits på ett stort internationellt företag vilket deltar i ett omfattande FoU arbete, samt i stor skala arbetar med innovationsprojekt. Data har samlats in genom ostrukturerade samt semistrukturerade intervjuer med ledningen på företaget. Slutsatser: Resultaten visar att genom att inkorporera reella optioner, i en statisk beslutsprocess, så kan ett bättre beslutsunderlag genereras genom inkluderandet av osäkerhet och värdet av optioner. Ett sådant beslutsunderlag genereras genom att real options adderar flexibilitet till urvalsprocessen. Genom att inkorporera flexibilitet kommer en statisk metod att välja individuella projekt på, skifta till fördel för en dynamisk metod att välja portföljer.

PhD / Thesis (PhD (Business Management))--Stellenbosch University, 2008. / The objective of this study is to provide a new approach to assessing fund management and to establish whether there is empirical support for this approach. The new approach will improve investors’ decision making with respect to the management and investment of their assets. We construct equity-only funds from quarterly equity holdings of unit trusts. The funds are ranked each quarter using various performance measures and segmented into winners and losers; firstly according to the median of the ranks and secondly according to quintile rankings. The funds’ rankings are examined for evidence of persistence. Secondly, a performance attribution method is introduced that identifies the static (“buy-and-hold”) portion and the trading portion of a fund. The funds are examined in terms of characteristics that distinguish between funds according to how the manager has chosen to organise (or construct) the fund. These characteristics are the static portion, the trading portion, the size of the static portion and the extent of the overlap between funds’ holdings and the large, mid and small capitalisation indices. Relationships between winners and losers (based on quartiles) and the fund characteristics are examined. Finally, the trading activities of investment managers, for their funds, are examined. This examination begins with the use of traditional measures that focus on a holistic approach to evaluating trading ability. The examination is enhanced with the introduction of a new reductionism approach, where the success of individual trades is examined. The results of the earlier performance attribution are included in the evaluation of investment managers’ abilities to add value to investors’ assets via trading activities.

published_or_final_version / Business Administration / Master / Master of Business Administration

published_or_final_version / Business Administration / Master / Master of Business Administration

La gestion de la relation client a représenté la préoccupation majeure des entreprises et des chercheurs ces dernières années. Selon les auteurs marketing, la notion de CRM (customer relationship management) se retrouve être la solution efficace pour la gestion de la relation client. Néanmoins, plusieurs publications et études relatives à la performance de ces logiciels ont donné des résultats contradictoires. C'est dans ce contexte de résultats paradoxaux que nous avons entrepris cette recherche afin d'évaluer l'impact de l'utilisation de ces logiciels sur l'entreprise. En essayant de dépasser certaines lacunes et manquement constatés dans la littérature aussi bien académique que managériale, un modèle conceptuel de type causal a été élaboré. Ce modèle est basé sur différentes théories relatives d'une part, à l'utilisation des capacités des logiciels CRM et d'autre part, à l'approche marketing du CRM. Après avoir contrôlé les effets du secteur d'activité, de la taille et de l'expérience des entreprises en matière d'utilisation des logiciels CRM, nous avons testé ce modèle sur un échantillon 82 entreprises ayant développés toutes les fonctionnalités des logiciels CRM. Les résultats ont montré la pertinence du modèle proposé avec 74 % de la variance totale de la performance du cycle de vie du client. La recherche a montré que l'utilisation des logiciels CRM sur cette population d'entreprises est centrée d'une part sur la valorisation des données analytiques et d'autre part sur la collaboration entre services de l'entreprise dans l'utilisation de ces données. La prise en compte de la notion du cycle de vie du client peut constituer une limite pour cette recherche mais elle montre la voie pour de futures recherches.