|
Related Topics |
|
We take a look at a recent SENS announcement by MTN that a group called "Capital Group Companies" now own 5.13% of MTN's issued share capital. The question is who are they? And are they seeing value where most other investors aren't? MTN used to be the market darling but after being fined an obscene amount of money by the Nigerian government for not disconnecting millions of simcards MTN has fallen out of favour with the market. And once one of the Top7 biggest shares listed on the JSE in terms of market capital it is now struggling to hold on to 11th spot, with arch rival Vodacom overtaking them as the biggest listed telecoms company on the JSE.
|
So who is Capital Group Companies
Well according to their website :
"Capital Group is a privately held company and is the home of American Funds, a family of more than 40 mutual funds. Our investment philosophy is based on active portfolio management and in-house research to achieve long-term investment results.Headquarters: Los Angeles
Founded: 1931
Assets Under Management: US $1.39 trillion (December 31, 2015)
Employees: over 7,000 (July 2015)
Services: Capital Group provides a range of offerings for institutional clients and individual investors in the U.S. and globally. In addition, Capital offers private wealth management, private equity, and investment services for high net worth investors in the U.S"
To put their assets under management in perspective for South Africans. Their assets under management equates to R20.7trillion. Yes thats correct. Their assets under mangement for December 2015, amounted to R20.7trillion (using SARB's average Rand/Dollar exchange rate for December 2015). The South African economy is only valued at R4trillion (in current prices for 2015). So their assets under management is roughly 5 times the size of South Africa's economy.
"Capital Group is a privately held company and is the home of American Funds, a family of more than 40 mutual funds. Our investment philosophy is based on active portfolio management and in-house research to achieve long-term investment results.Headquarters: Los Angeles
Founded: 1931
Assets Under Management: US $1.39 trillion (December 31, 2015)
Employees: over 7,000 (July 2015)
Services: Capital Group provides a range of offerings for institutional clients and individual investors in the U.S. and globally. In addition, Capital offers private wealth management, private equity, and investment services for high net worth investors in the U.S"
To put their assets under management in perspective for South Africans. Their assets under management equates to R20.7trillion. Yes thats correct. Their assets under mangement for December 2015, amounted to R20.7trillion (using SARB's average Rand/Dollar exchange rate for December 2015). The South African economy is only valued at R4trillion (in current prices for 2015). So their assets under management is roughly 5 times the size of South Africa's economy.
Sure sounds impressive. Thats because it is. According to the World Bank the total value of all shares listed on the JSE in 2015, amounted to $735billion (or R10.9trillion). See our World Map Stats series post for more details on value of listed shares per country
What it means is this group manages assets worth almost double what all shares listed on the JSE is worth. Or put differently, their assets under mangement is 34.6 times greater than the assets under mangement aat Coronation
Now the questions investors have to ask themselves is if such a large firm sees value in buying MTN shares currently and increasing their holding in MTN, should regular investors not be taking note and following suite? Their holding in MTN is worth R11.6billion (or roughly the size of the WHOLE of Clicks Group). We still think MTN offers excellent long term value at it's current price. Their