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SOUTH AFRICA

4 Defensive long term investment stocks listed

Challenged economy, but home to very well developed companies with international reach and investments.

South Africa: Accessibility Policy

REMGRO

Industry: Investment Holding Company

Defensiveness: Very defensive, diversified by sectors, leading companies

Accessible listing: Frankfurt

Concentration Risk: High, most of the profit comes from south Africa, except for Mediclinic which has hospitals in Switzerland.

Growth:  Good track record, linked to SA economy

Link: remgro.com

Quick note: Good defensive stock, excellent management taking an active role in investments. the holding has roughly an equal exposure to Finance, Healthcare, Consumer goods, Infrastructure, and Industrials.

South Africa: Text

MTN GROUP

Industry: Telecom operator

Defensiveness: Defensive

Accessible listing: Frankfurt

Concentration Risk: Low, large business with 280 million subscribers across Africa, mostly Nigeria and SA.

Growth:  Organic growth in Data traffic, subscribers, and services

Link: https://www.mtn.com/

Quick note: Risks with regulators offset by local shareholder bases in biggest countries, large growth and massive scale and brand. Develops Mobile Money app with 40 million customers. Low quality management, divestments at the bottom of the cycle.

South Africa: Text

SANLAM

Industry: Insurance

Defensiveness: Defensive due to large capital reserves and prudent management

Accessible listing: Frankfurt

Concentration Risk: High, 2/3rd of the business in SA, but present in the whole of Africa+India

Growth:  Good organic track record, linked to SA economy.

Link: https://www.sanlam.com/investorrelations/

Quick note: Good defensive stock, excellent management with a long term approach.

South Africa: Text

SHOPRITE

Industry: Food retail

Defensiveness: Very, apart from some minor furniture retailing segment.

Accessible listing: Frankfurt

Concentration Risk: High, 2/3rd of the business in SA, but present in Angola and Southern Africa.

Growth:  Good organic track record, expands with new stores

Link: https://www.shopriteholdings.co.za/

Quick note: Often called the best retailer in Africa. Good Management, develops private label and delivery app.

South Africa: Text
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