Die langtermynaard van 'n investering noop die voornemende investeerder om meer omsigtig te beplan as in die geval van 'n belegging wat gewoonlik oor 'n korter termyn strek. Die voornemende investeerder moet besef dat 'n investeringsbesluit nie in isolasie van eksterne faktore geneem kan word nie. Dit is daarom raadsaam dat die voornemende investeerder hom deeglik van die makro- en mikro ekonomiese milieu waarbinne die investering beoog word, sal vergewis. Ten einde die kompleksiteit van investeringsbesluitneming op te helder, word daareerstens in hoofstuk 1 op die begrip van investering gekonsentreer. Voorts word die beginsel dat die investeringsbesluit nie in isolasie geneem kan word nie, beklemtoon. In hierdie opsig word daar veral na die determinante van investering gekyk. In makro-ekonomiese verband word die gedagte sterk beklemtoon dat investering nodig is om kapitaalvorming te laat plaasvind wat op sy beurt een van die vereistes is om ontwikkeling te bevorder. As gevolg van meningsverskille ten opsigte van die invloed van investering in ontwikkelde teenoor ontwikkelende lande is daar gevolglik aandag aan enkele ekonomiese groeimodelle gegee. Gesien uit die oogpunt van die daarstelling van 'n konsessiepakket om streeksekonomiese ontwikkeling te stimuleer, is die huidige konsessiepakket met die determinante van investering vergelyk. Daardeur word die kwessie aangeraak of die konsessiepakket weI die teoretiese determinante van investering in ag geneem het. Die belangrike vraag of die nyweraars self met die konsessiepakket tevrede is, word in die empiriese studie behandel. Die langtermynaard van 'n investering sal die weldeurdagte investeerder dwing om 'n verdere determinant, naamlik die land as risikofaktor deeglik in ag te neem. Met hierdie veronderstelling word daar in hoofstuk 2 na die land waar die investering oorweeg sal word, naamlik Suid-Afrika gekyk. Daar word veral aan die ekonomiese ontwikkeling van Suid-Afrika aandag gegee. In hierdie opsig word die ongelyke verdeling van inkome wat gedurende die jare al hoe meer beklemtoon is, bespreek en word daar na owerheidspogings gekyk om die probleem op streeksvlak teen te werk. Hierdie owerheidspogings konsentreer helaas op die daarstelling van 'n streeksekonomiese beleid wat moes meehelp om die geografiese verskille in die verdeling van inkome teen te werk. Die streeksekonomiese beleid het gestalte gekry in die vorm van 'n konsessiepakket wat dan ook in hierdie hoofstuk bespreek word. Aangesien die konsessiepakket daarop ingestel was om nyweraars na gedesentraliseerde gebiede te lok, is dit 'n voorwaarde vir die sukses van streeksekonomiese beleid dat nyweraars wat gedesentraliseer het met die konsessiepakket tevrede moet wees. Die navorsingsmetodiek wat gevolg is om hierdie vraag te probeer beantwoord word in hoofstuk 3 bespreek. Daar word in hierdie hoofstuk na die onderwerp, die hipotese, die vraelys en die beantwoordingsmetode gekyk. Hierdie hoofstuk dien dus as 'n skakel tussen die eerste twee hoofstukke wat hoofsaaklik oor die normatiewe en teoretiese aspekte van investering gehandel het en hoofstuk 4 wat die navorsingsresultate oftewel die werklikheid verteenwoordig. Die hipotese dat gedesentraliseerde nywerhede nie met die konsessiepakket tevrede is nie, word in hoofstuk 4 met die navorsingsresultate vergelyk en daar word ook na die verskille wat tussen die Grens, Ciskei en Transkei voorgekom het, gekyk. Die beleidsimplikasies van die navorsingsresultate sowel as In samevatting van die verhandeling word in hoofstuk 5 behandel terwyl daar ook na die implikasies ten opsigte van die huidige debat in die ontwikkelingsekonomie gekyk word (Introduction, p. ix-xi)

M.Com. (Investment Management) / Please refer to full text to view abstract

<p>Investor confidence is a concept many investors are constantly trying to gauge. In practice however these concepts are usually not easy to measure. This study attempts to capture the total sum of investor perception in South Africa by examining market behaviour. Data from the JSE/FTSE (1995-2009) will be used to determine an Equity Risk Premium. Bond Yield Spreads will also be calculated from data provided by I-NET BRIDGE. An amalgamation of these components will produce the proposed Investment Confidence Index. Similar indices currently on the South African Market are based on subjective surveys and might therefore be biased. The proposed index which is a first in SA will prove invaluable to practitioners in the financial sector.</p>

<p>Investor confidence is a concept many investors are constantly trying to gauge. In practice however these concepts are usually not easy to measure. This study attempts to capture the total sum of investor perception in South Africa by examining market behaviour. Data from the JSE/FTSE (1995-2009) will be used to determine an Equity Risk Premium. Bond Yield Spreads will also be calculated from data provided by I-NET BRIDGE. An amalgamation of these components will produce the proposed Investment Confidence Index. Similar indices currently on the South African Market are based on subjective surveys and might therefore be biased. The proposed index which is a first in SA will prove invaluable to practitioners in the financial sector.</p>

M.Com. (Financial Management) / In this study, the extent to which performance persistence exists within the scope of South African collective investment schemes was analysed. In addition, the current practices of financial planners were investigated to establish whether or not financial planners use past performance as a criterion for recommending specific investment funds to investors. In other words, the extent to which financial planners are justified in using past performance as a criterion for fund selection was investigated. The study is exploratory in nature and is comprised of two phases, both of a quantitative nature. During Phase A, secondary data relating to the historical returns of South African collective investment schemes was collected to determine the extent of performance persistence over a one- and three-year period respectively. During Phase B, a cross-sectional survey was conducted to determine the practices of financial planners when advising investors on fund selection decisions. The findings revealed that performance persistence does not exist to the extent that past performance is an indicator of future performance. Financial planners, however, tend to utilise past performance as the main criterion for recommending specific collective investment schemes to investors.

Thesis (M.M. (Finance & Investment)--University of the Witwatersrand, Faculty of Commerce, Law and Management, Wits Business School, 2017 / The world has and is still witnessing a tremendous growth in various categories of mutual funds. Active fund managers continue to grow globally with many asking for exorbitant fees for their research and investment services. Equally, passive funds in the form of Exchange Traded Funds (ETF's) and index trackers have also continued to grow. This massive growth does not preclude funds domiciled in South Africa. Passive investments have grown by about 51 percent a year in the last 10 years in South Africa. As at 2016, there are over 3000 mutual funds domiciled in South Africa. Amidst these growing funds is the ongoing debate relating to the question of which fund management style yields the best outcome. The global debate relating to passive versus active fund management has raged for decades with no clear winner. The extant literature provides mixed evidence on the competitive advantage to either investment strategies. Surprisingly, the evidence for South Africa remains scanty, with a handful of authors addressing the issue. This study therefore, sets out to examine the comparative performance of all equity-only active mutual and passive funds domiciled in South Africa. In addition, it analyses the performance persistence of active and passive funds in different business cycles. A major contribution of this study is that it examines, for the first time, the applicability of the Fama-French five factor model on South African mutual funds. It also employs a battery of econometric methods to address the issue at hand. Relying on data from 2003 to 2016, the study presents evidence that both active and passively managed mutual funds do not earn abnormal returns but rather underperform the benchmark. However, the active portfolio performs relatively better than the passive portfolio, although both underperform the market. The study also documents evidence of time-varying performance; both active and passive funds record their worst underperformance during periods of financial crisis. The study also shows that passive portfolios tend to track the market performance more than active portfolios and that both fund categories tend to be sensitive to global market movements, suggesting that global factors matter for the riskiness of these funds. Finally, it is shown that in terms of driving factors, both active and passive fund managers generally give more preference to small cap returns than large cap returns. In addition, they are more growth oriented, as indicated by the negative coefficients for the HML factor. / MT2017

This study investigates the capital structure practices of companies listed on the JSE by analysing their operating performance before and after significant leverage events defined as increases or decreases of more than 30% in a year. We develop a performance scorecard that acts as a complete synopsis of firm performance on aspects relating to leverage. We use a fixed effects regression on unbalanced panel data to test the relationship between the leverage change and 12 concurrent performance variables selected on the basis of their pre-established impact on firm leverage according to prior studies. We also test the relationship between the leverage change and the same set of performance variables five years before and five years after the event. We run a multiple discriminant analysis to test the predictive ability of our model. A 20% hold-out sample achieves a 48% correct classification rate.

A research report submitted in partial fulfilment of the requirements for a Master of Arts degree in the Faculty of Arts, University of the Witwatersrand, Johannesburg. / This report is an exploratory discussion of the prospects for private sector investment in development initiatives. Based on a set of structured and unstructured interviews, a press review and a survey of the relevant literature, the report paints to a growth in the areas of commonality between the worlds of investment and development, in that there is increasing recogniticm of the need to direct resources to South Africa's poor at the same time as market forces are starting to play an enlarged role in development. The report argues however, that the social context in which investors are 'embedded' is very different from that of development practitioners, leading to a situation in which development projects are seen as risky investments. The difficulty experienced by private investors in understanding the world of development is identified by the report as the single largest obstacle to private sector investment in development. The report draws the conclusion that mediating institutions are required to structure relationships between development agents and investors. / Andrew Chakane 2018

The effect of FDI on economic growth is not a straight jacket. Literature has shown that the effect of FDI on economic growth can be either positive or negative. The positive effects of FDI can be caused by increase in output stimulated by new technological innovations and increase in capital flows. The negative effects could result in a ‘crowding out’ effect on domestic investments, external vulnerability and dependence, destructive competition of foreign affiliates with domestic firms, and market stealing effect due to poor absorptive capacity.This treatise will attempt to shed light on the effect foreign direct investment has on economic growth in South Africa in order to ascertain whether a positive or negative relationship exists between these two variables. This study thus aims to investigate, analyse and estimate the extent to which FDI impacts economic growth in South Africa. The findings of this research will provide policymakers, commercial businesses and scholars with relevant updated theoretical and empirical results that will assist relevant government policy makers in generating effective measures of attracting FDI if it proves to be beneficial for the host country. If the results of the study prove that FDIs do not generate positive spill over effects then the policymakers are thus obliged to formulate policies that will discourage FDIs from penetrating the host country’s economy.

To thrive, developing countries depend on high levels of protection being given to key industries such as manufacturing; specifically the automotive and textile industries. South Africa, as a developing country and especially under the emergence of globalisation, has followed suit in terms of developing policies and structures to protect certain critical industries. During an era (1980 to 1989) of high political instability, South Africa experienced isolation from the rest of the world, which resulted in declines in industrial revenues as well as the country’s automotive industry undergoing a stage of perilous stagnation. It was through a protection regime that the automotive industry realised growth, a regime which started slowly in 1989 and accelerated in 1995 with the introduction of the Motor Industry Development Programme (MIDP) (Black, 2001). Through this regime the South African government sought to integrate the South African automotive industry into the global market by improving the competitiveness of this industry (The DTI, 2010). This led to the automotive industry becoming one of the most successful export sectors in South African manufacturing and a large net consumer of foreign currency, totalling R20 billion and R10 billion in imports and exports respectively by 1998 (Damoense and Simon, 2004). Reviews of the government legislation called the MIDP were held in year 1999 and 2002 and in 2008, a successor to the MIDP was named, the Automotive Production Development Programme (APDP) and is set to commence in year 2013 until 2020. Unlike its predecessor, the APDP policy promises to bring greater and more inclusive benefits to the automotive industry as a whole, provided organisations have prepared well to receive it. This study investigated whether organisations have prepared for the upcoming 2013 - 2020 APDP, with specific reference to capital investment in equipment. It determined whether automotive organisations have spent and are going to spend resources in securing equipment and technology in preparation for the introduction of the APDP.