On the money Making
On the money Making waves this quarter Focus on: The technology sector TECH SECTOR ONE OF A FEW TO SEE POSITIVE EARNINGS GROWTH The technology sector has been one of the major beneficiaries of the current pandemic. Technology, staples and pharmaceuticals were the only three sectors to record positive earnings growth in the second quarter of 2020 in the US, while overall US earnings growth was down 33% year on year. Covid-19 has fast-tracked some of the structural trends that were already playing out, as entire populations have had to embrace e-tail and working from home for the first time. While some of this shift will be permanent, there will be parts of tech spend that were merely a pull-forward of demand, and as such are not sustainable going forward. Careful analysis is required to distinguish and quantify these shorter-term effects and reflect them in valuations. As the economic growth starts to recover, we are likely to see a recovery in cyclical and leisure stocks. This rotation may be funded by tech stocks as they have been the clear winners to date. However, underlying tech fundamentals remain extremely strong and in fact many structural trends have been further entrenched. • By Nicole Agar, Senior Portfolio Manager & Lead Tech Analyst, Truffle Asset Management “Underlying tech fundamentals remain extremely strong and in fact many structural trends have been further entrenched.” – Nicole Agar Emigrant retirement 3-year capture South Africans who have emigrated or plan to permanently leave South Africa have until 28 February 2021 to effect financial emigration. National Treasury has laid down the new law: the consequence otherwise is your retirement money will be locked in for three years, you are not allowed to touch it, and best apply it to your personal circumstances. The time is now South Africans leaving South Africa have little over four months to financially emigrate under the current dispensation, and thereafter to withdraw their retirement funds, before it is locked in for a period of threeyears minimum. • Jonty Leon, Legal Manager for Expatriate Tax Compliance at Tax Consulting South Africa 8 www.bluechipdigital.co.za Satrix hosts first virtual JSE listing It is Satrix’s 20th-anniversary year and we had plenty of celebratory plans to fill up everyone’s diaries. Then Covid-19 hit, and holding happy gatherings became a thing of the past. Adapting quickly to the new normal, the Satrix team changed direction to still make things happen. The result was another first for Satrix, introducing the industry to virtual listing events for ETFs on the JSE. Our first event was held earlier in May this year when we listed the Satrix SA Bond ETF. We then took it up a notch in July by listing the Satrix MSCI China ETF, along with an initial public offering (IPO). This digital listing event meant that the entire Satrix team, all stakeholders and partners as well as every single client who had participated in the IPO on our digital platform, SatrixNOW, could be invited to attend the event. In total, we had over 500 attendees who enjoyed a digital walkthrough of how the trading screens operate by the JSE’s Martin Koch as well as experiencing the blowing of the iconic kudu horn. At Satrix, we are constantly innovating for our clients. We have a few more ETF listings planned for this year. Please look out for them.
