Thesis (MBA)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: The purpose of this report is to determine how much international diversification a
South African investor should practice in order to minimise his portfolio risk and to
maximise his portfolio return. The most recent budget allows the South African
investor to invest up to R500 000 in overseas investments.
The analysis was performed over the period December 1993 to May 2000 for an
investor investing in Investec Guinness Flight unit trusts. Unit trusts were used
instead of general indices, because it is a well-known investment vehicle for the
layman and is already a well-diversified representation of a specific focus sector.
The Markowitz Portfolio Selection Theory was used to perform the analysis and to
determine the optimal internationally diversified portfolios composed of the
following markets: South Africa, the United States of America, Europe, the United
Kingdom, and Japan.
It was found that International Diversification does hold great potential benefits for
the South African investor investing from an emerging market. It was also found
that the South African Equity market carries the highest risk compared against the
other markets investigated, however the South African Bond and Money Market
showed good risk return features compared to other markets.
Optimal portfolios were generated for the 'conservative' or most risk-averse
investor, the 'balanced' investor, and the 'aggressive' investor or the risk-loving
investor. The portfolio combinations looked like this respectively: 4% USA Equity, 5% EU Equity, 3% SA Bond, and 88% Money Market for the conservative investor;
33% USA Equity, 25% EU Equity, 18% SA Bond, and 24% SA Money Market for
the balanced investor; 51% USA Equity, 48% EU Equity and 1% SA Bond for the
aggressive investor. / AFRIKAANSE OPSOMMING: Die doel van hierdie verslag is om vas te stel hoeveel internasionale diversifikasie
'n Suid-Afrikaanse investeerder moet aangaan ten einde die risiko's rondom sy
portefeulje enersyds te minimaliseer en andersyds maksimum opbrengste te
lewer.
Die analise is oor die tydperk Desember 1993 tot Mei 2000 uitgevoer vir 'n
investeerder wat in Investec Guinness Flight effektetrust sou investeer. Instede
van algemene aandeleindekse, is van effektetrusts gebruik gemaak omdat dit 'n
welbekende investeringsvoertuig onder Jan Publiek is en reeds 'n
goedgediversifiseerde verteenwoordiging van 'n spesifieke fokussektor is. Daar is
van die Markowitz Portefeulje Seleksie Teorie gebruik gemaak vir die analise en
dáárdeur is ook vasgestel wat die optimaal-internationaal gediversifiseerde
portefeulje uit die volgende market sou wees: Suid-Afrika, Die Verenigde State
van Amerika, Europa, Brittanje en Japan.
Daar is gevind dat, Internationale Diversifikasie potentiëel-goeie opbrengste vir die
Suid-Afrikaanse investeerder in 'n opkomende mark lewer. Daar is ook gevind dat
die Suid-Afrikaanse Algemene Ekwiteitmark die hoogste risiko dra vergeleke met
ander markte tydens die ondersoek periode, alhoewel die Suid-Afrikaanse
Kapitaalmark en Geldmark goeie lae risiko opbrengste oplewer teenoor ander
markte.
Optimale portefeuljes is gegenereer vir die konserwatiewe of mees risiko-gekante
investeerder, die gebalanseerde investeerder en die aggressiewe investeerder.
Die portefeuljekombinasies is onderskeidelik as volg:. 4% VSA Ekwiteit, 5%
Europese Unie Ekwiteit, 3% SA Kapitaalmark, en 88% SA Geldmark vir die konserwatiewe investeerder; 33% VSA Ekwiteit, 25% Europese Unie Ekwiteit,
18% SA Kapitaalmark, en 24% SA Geldmark vir die gebalanseerde investeerder;
51% VSA Ekwiteit, 48% Europese Unie Ekwiteit en 1% SA Kapitaalmark vir die
aggressiewe investeerder.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/51993 |
| Date | 12 1900 |
| Creators | Smit, Barend |
| Contributors | V. d. M. Smit, E., SteStellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 36 p. : ill. |
| Rights | Stellenbosch University |
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