45-850: Old Mutual Limited is a pan-African investment , savings , insurance, and banking group. It is listed on the Johannesburg Stock Exchange , the Zimbabwe Stock Exchange , the Namibian Stock Exchange and the Botswana Stock Exchange . It was founded in South Africa by John Fairbairn in 1845 and was demutualised and listed on the London Stock Exchange and other stock exchanges in 1999. It introduced
90-414: A "commitment of money to receive more money later". From a broader viewpoint, an investment can be defined as "to tailor the pattern of expenditure and receipt of resources to optimise the desirable patterns of these flows". When expenditures and receipts are defined in terms of money, then the net monetary receipt in a time period is termed cash flow , while money received in a series of several time periods
135-483: A P/E higher than others in its industry. According to Investopedia author Troy Segal and U.S. Department of State Fulbright fintech research awardee Julius Mansa, growth investing is best suited for investors who prefer relatively shorter investment horizons, higher risks, and are not seeking immediate cash flow through dividends. Some investors attribute the introduction of the growth investing strategy to investment banker Thomas Rowe Price Jr., who tested and popularized
180-578: A company's earnings , free cash flow, and ultimately the returns to its investors, riskier or volatile . Investors compare a company's debt-to-equity ratio with those of other companies in the same industry, and examine trends in debt-to-equity ratios and free cashflow. Patrick O%27Sullivan (businessman) Patrick Henry Pierce O'Sullivan (born April 1949) is an Irish businessman and public servant, who had executive roles at Zurich Financial Services and went on to hold non-executive positions at Old Mutual , Bank of Ireland and Saga plc . O'Sullivan
225-400: A greater level of uncertainty. Industry to industry volatility is more or less of a risk depending. In biotechnology , for example, investors look for big profits on companies that have small market capitalizations but can be worth hundreds of millions quite quickly. The risk is high because approximately 90% of biotechnology products researched do not make it to market due to regulations and
270-649: A large and diverse US-based asset manager. Among the holdings of UAM were the PBHG Funds of Pilgrim Baxter & Associates . In 2003, PBA was one of many companies who faced charges related to market timing brought by the U.S. Securities and Exchange Commission (SEC) and the Attorney General of New York . Ultimately, the PBHG Funds (renamed Liberty Ridge) were absorbed into the Old Mutual Funds group. In 2005, Mike Levett retired as chairman and
315-510: A low-risk investment is made, the return is also generally low. Similarly, high risk comes with a chance of high losses. Investors, particularly novices, are often advised to diversify their portfolio . Diversification has the statistical effect of reducing overall risk. In modern economies, traditional investments include: Alternative investments include: An investor may bear a risk of loss of some or all of their capital invested. Investment differs from arbitrage , in which profit
360-416: A month for the next 3 years, regardless of the share price of their preferred stock(s), mutual funds , or exchange-traded funds . Many investors believe that dollar-cost averaging helps minimize short-term volatility by spreading risk out across time intervals and avoiding market timing. Research also shows that DCA can help reduce the total average cost per share in an investment because the method enables
405-640: A new strategy, called 'managed separation', that entailed the separation of its four businesses – Old Mutual Emerging Markets, Nedbank, UK -based Old Mutual Wealth and Boston-based Old Mutual Asset Management (OMAM) – into standalone entities in 2018. This led to the demerger of Quilter plc (formerly 'Old Mutual Wealth') and the unbundling of its shareholding in Nedbank. The business, which is now largely based in South Africa, provides sponsorship and supports bursaries at South African universities. The company
450-468: A number of individual end investors into funds such as investment trusts , unit trusts , and SICAVs to make large-scale investments. Each individual investor holds an indirect or direct claim on the assets purchased, subject to charges levied by the intermediary, which may be large and varied. Approaches to investment sometimes referred to in marketing of collective investments include dollar cost averaging and market timing . Free cash flow measures
495-480: A previously settled portion of the profit, though the agent was not liable for any losses. Many will notice that the qirad is similar to the institution of the commenda later used in western Europe, though whether the qirad transformed into the commenda or the two institutions evolved independently cannot be stated with certainty. In the early 1900s, purchasers of stocks, bonds, and other securities were described in media, academia, and commerce as speculators. Since
SECTION 10
#1732790537459540-477: A satisfactory overall price for all [their] holdings." Micro-investing is a type of investment strategy that is designed to make investing regular, accessible and affordable, especially for those who may not have a lot of money to invest or who are new to investing. Investments are often made indirectly through intermediary financial institutions. These intermediaries include pension funds , banks , and insurance companies. They may pool money received from
585-514: A short-term uptrend, and they usually sell them once this momentum starts to decrease. Stocks or securities purchased for momentum investing are often characterized by demonstrating consistently high returns for the past three to twelve months. However, in a bear market , momentum investing also involves short-selling securities of stocks that are experiencing a downward trend, because it is believed that these stocks will continue to decrease in value. Essentially, momentum investing generally relies on
630-463: A value investor uses analysis of the financial reports of the issuer to evaluate the security. Value investors employ accounting ratios, such as earnings per share and sales growth, to identify securities trading at prices below their worth. Warren Buffett and Benjamin Graham are notable examples of value investors. Graham and Dodd's seminal work, Security Analysis , was written in the wake of
675-407: Is generated without investing capital or bearing risk. Savings bear the (normally remote) risk that the financial provider may default. Foreign currency savings also bear foreign exchange risk : if the currency of a savings account differs from the account holder's home currency, then there is the risk that the exchange rate between the two currencies will move unfavourably so that the value of
720-546: Is reasonable for a telecommunications stock to show a P/E in the low teens, in the case of hi-tech stock, a P/E in the 40s range is not unusual. When making comparisons, the P/E ratio can give you a refined view of a particular stock valuation. For investors paying for each dollar of a company's earnings, the P/E ratio is a significant indicator, but the price-to-book ratio (P/B) is also a reliable indication of how much investors are willing to spend on each dollar of company assets. In
765-559: Is termed cash flow stream. In finance , the purpose of investing is to generate a return on the invested asset . The return may consist of a capital gain (profit) or loss, realised if the investment is sold, unrealised capital appreciation (or depreciation) if yet unsold. It may also consist of periodic income such as dividends , interest , or rental income. The return may also include currency gains or losses due to changes in foreign currency exchange rates . Investors generally expect higher returns from riskier investments. When
810-709: The ERGO Group for €278 million. A significant strategic milestone was reached during the first half of 2017 with the announcement of a series of transactions that would reduce Old Mutual plc's stake in OM Asset Management (OMAM) to 5.5%. OMAM is now independent from Old Mutual plc. Additionally, in 2017 Old Mutual completed the sale of Indian-based Kotak Mahindra Old Mutual Life Insurance Ltd. The company announced in November 2017 that Old Mutual Wealth would be demerged as Quilter plc in 2018. In June 2018
855-606: The Mutual Building ('Mutualgebou' in Afrikaans) which has since been converted to residential use and known as "Mutual Heights". In 1956, Old Mutual relocated its head office to Mutualpark in Pinelands , at that time the largest office block in the southern hemisphere. Old Mutual acquired a major shareholding in the newly formed Mutual & Federal in 1970, acquiring the remaining shares in 2009. Mutual & Federal
900-673: The United Nations Global Compact (UNGC), as well as the Carbon Disclosure Project . Old Mutual Amazing Voices is a pan-African music competition reality television series produced by Destiny TV and launched by Old Mutual for DStv and M-Net 's various local interest channels across Africa in their respective regions. Investment Investment is traditionally defined as the "commitment of resources to achieve later benefits". If an investment involves money, then it can be defined as
945-503: The Wall Street Crash of 1929 . The price to earnings ratio (P/E), or earnings multiple, is a particularly significant and recognized fundamental ratio, with a function of dividing the share price of the stock, by its earnings per share. This will provide the value representing the sum investors are prepared to expend for each dollar of company earnings. This ratio is an important aspect, due to its capacity as measurement for
SECTION 20
#1732790537459990-624: The Wall Street crash of 1929 , and particularly by the 1950s, the term "investment" had come to denote the more conservative end of the securities spectrum, while " speculation " was applied by financial brokers and their advertising agencies to higher risk securities much in vogue at that time. Since the last half of the 20th century, the terms "speculation" and "speculator" have specifically referred to higher risk ventures. A value investor buys assets that they believe to be undervalued (and sells overvalued ones). To identify undervalued securities,
1035-592: The Fairheads Trust individuals and families with whom it has built relationships over the past 90 years. However, Old Mutual did not acquire Fairheads Benefit Services. As of January 2014, with the additions of attorney Adiba Ighodaro, daughter of Nigeria 's 3rd Secretary-General of the Commonwealth of Nations , Chief Emeka Anyaoku , and former Wall Street powerhouse Zoe Cruz , Old Mutual's Board became 30% female represented. In 2014 Skandia Colombia
1080-763: The acquisition of Provident Life Assurance in Ghana and Oceanic Life in Nigeria. Also in 2013, Old Mutual acquired the Fairheads Trust Company, one of the oldest trust companies in South Africa, and established the Old Mutual Wealth Trust Company. Old Mutual Wealth Trust Company has two divisions: Old Mutual Wealth Fiduciary and the Old Mutual Wealth Family Office, that continues to work closely with
1125-616: The board". Iain Williamson, previous COO, was appointed as acting CEO. The structure of the business is as follows: Old Mutual and its subsidiaries are involved in a number of sponsorships worldwide: Old Mutual South Africa awards a number of bursaries every year for exceptional matriculants and actuarial students at South African universities. It also offers partly qualified actuarial employees study leave before actuarial exams. Actuarial students are also typically awarded salary increases following exam passes. Old Mutual participates in
1170-411: The cash a company generates which is available to its debt and equity investors, after allowing for reinvestment in working capital and capital expenditure . High and rising free cash flow, therefore, tend to make a company more attractive to investors. The debt-to-equity ratio is an indicator of capital structure . A high proportion of debt , reflected in a high debt-to-equity ratio, tends to make
1215-474: The company executed the 'managed separation' strategy. Old Mutual plc shares were de-listed and Old Mutual Limited and Quilter plc, now independent businesses, listed on the Johannesburg, Zimbabwe, Malawi, Namibian and London Stock Exchanges. On 15 October 2018, Old Mutual unbundled their majority shareholding in Nedbank, marking a distribution worth approximately R43.2 billion to Old Mutual shareholders, and
1260-827: The company listed on the London , Johannesburg , Zimbabwe , Malawi and Namibian Stock Exchanges as Old Mutual . Old Mutual also established a head office in London. In 2000, it bought the Gerrard Group , a financial services concern, for $ 857 million. Capel-Cure Sharp subsequently merged with Greig Middleton, Gerrard Group's private client business. Old Mutual sold Gerrard to Barclays Bank plc in 2003. Later in 2000, Old Mutual purchased United Asset Management , based in Boston , for US$ 1.46 billion in cash and assumed ownership of UAM net debt of around US$ 769 million, thus acquiring
1305-423: The comparison of valuations of various companies. A stock with a lower P/E ratio will cost less per share than one with a higher P/E, taking into account the same level of financial performance; therefore, it essentially means a low P/E is the preferred option. An instance in which the price to earnings ratio has a lesser significance is when companies in different industries are compared. For example, although it
1350-532: The completion of Old Mutual Group's managed separation. Old Mutual's head office moved to No 1 Mutual Place, Sandton in the same year. In April 2019 the company sold its Latin American businesses to Lily Bermuda Capital, a wholly owned subsidiary of Singapore-based CMIG International Holding. This was followed in May by Peter Moyo being suspended as CEO due to "a material breakdown in trust and confidence between him and
1395-404: The complex demands within pharmacology as the average prescription drug takes 10 years and US$ 2.5 billion worth of capital. In the medieval Islamic world , the qirad was a major financial instrument. This was an arrangement between one or more investors and an agent where the investors entrusted capital to an agent who then traded with it in hopes of making a profit. Both parties then received
Old Mutual - Misplaced Pages Continue
1440-479: The existence and strength of trends. Dollar cost averaging (DCA), also known in the UK as pound-cost averaging, is the process of consistently investing a certain amount of money across regular increments of time, and the method can be used in conjunction with value investing, growth investing, momentum investing, or other strategies. For example, an investor who practices dollar-cost averaging could choose to invest $ 200
1485-423: The future. To identify such stocks , growth investors often evaluate measures of current stock value as well as predictions of future financial performance. Growth investors seek profits through capital appreciation – the gains earned when a stock is sold at a higher price than what it was purchased for. The price-to-earnings (P/E) multiple is also used for this type of investment; growth stock are likely to have
1530-491: The management board. O'Sullivan took up non-executive director positions in 2007 at Man Group and Collins Stewart, and concentrated on non-executive roles after retiring from Zurich in 2009. He joined Bank of Ireland in 2009 and was appointed deputy governor there in 2011, working one day a week until 2015. He was chair of the Shareholder Executive , which oversees the UK government's financial interests in
1575-555: The method in 1950 by introducing his mutual fund , the T. Rowe Price Growth Stock Fund. Price asserted that investors could reap high returns by "investing in companies that are well-managed in fertile fields." A new form of investing that seems to have caught the attention of investors is Venture Capital. Venture Capital is independently managed dedicated pools of capital that focus on equity or equity-linked investments in privately held, high growth companies. Momentum investors generally seek to buy stocks that are currently experiencing
1620-524: The principle that a consistently up-trending stock will continue to grow, while a consistently down-trending stock will continue to fall. Economists and financial analysts have not reached a consensus on the effectiveness of using the momentum investing strategy. Rather than evaluating a company's operational performance, momentum investors instead utilize trend lines, moving averages, and the Average Directional Index (ADX) to determine
1665-546: The process of the P/B ratio, the share price of a stock is divided by its net assets; any intangibles, such as goodwill, are not taken into account. It is a crucial factor of the price-to-book ratio, due to it indicating the actual payment for tangible assets and not the more difficult valuation of intangibles. Accordingly, the P/B could be considered a comparatively conservative metric. Growth investors seek investments they believe are likely to have higher earnings or greater value in
1710-471: The purchase of more shares when their price is lower, and less shares when the price is higher. However, dollar-cost averaging is also generally characterized by more brokerage fees, which could decrease an investor's overall returns. The term "dollar-cost averaging" is believed to have first been coined in 1949 by economist and author Benjamin Graham in his book, The Intelligent Investor . Graham asserted that investors that use DCA are "likely to end up with
1755-421: The savings account decreases, measured in the account holder's home currency. Even investing in tangible assets like property has its risk. And similar to most risks, property buyers can seek to mitigate any potential risk by taking out mortgage and by borrowing at a lower loan to security ratio. In contrast with savings, investments tend to carry more risk, in the form of both a wider variety of risk factors and
1800-519: The separation of its four businesses – Old Mutual Emerging Markets, Nedbank, UK-based Old Mutual Wealth and Boston-based Old Mutual Asset Management (OMAM) – into standalone entities. In August 2016, Old Mutual Investment Group signed a deal with the Nigeria Sovereign Investment Authority to invest $ 700 million in hospitality, retail, commercial sectors, and food security, and sold its Italian wealth management arm to
1845-803: Was born in April 1949. He has a bachelor's degree in business studies from Trinity College, Dublin , and a master's degree in accounting and finance from the London School of Economics (LSE). He is a fellow of the Institute of Chartered Accountants in Ireland . Early in his career, he worked for financial institutions including Bank of America, Goldman Sachs and Barclays. He then spent 12 years at Zurich Financial Services Group, where his roles included CEO of Eagle Star , CEO of UK General Insurance, group chief financial officer, and (from 2007) vice-chair of
Old Mutual - Misplaced Pages Continue
1890-576: Was founded in 1845 as a mutual insurance company by John Fairbairn , together with several other prominent Cape Town figures, such as the liberal politician Saul Solomon . The original name The Mutual Life Assurance Society of the Cape of Good Hope was changed to The South Africa Mutual Life Assurance Society in 1885. In 1939, the Old Mutual art deco office opened in Darling Street as
1935-607: Was renamed as Old Mutual Insure on 5 June 2017, and is now a part of the Old Mutual Emerging Markets business. In 1973, Old Mutual acquired shareholding in Nedcor Bank (renamed the Nedbank Group in 2005). In 1997 and 1998, the company acquired UK stockbrokers Capel-Cure Myers and Albert E. Sharp respectively, which then merged to form Capel-Cure Sharp. By 1999, it was demutualised and
1980-522: Was renamed to Old Mutual Colombia, Provident Life Assurance to Old Mutual Ghana and Skandia UK became Old Mutual Wealth. Later in 2014, Old Mutual Wealth sold Skandia Germany, Skandia Austria and Skandia Poland. May 2015 saw Old Mutual celebrating 170 years of operations and Bruce Hemphill becoming group chief executive in November. In March 2016, Old Mutual plc announced a new strategy for the group, called 'managed separation', that sought to unlock and create value for shareholders. The strategy would entail
2025-1315: Was succeeded by Christopher Collins. In the same year a Black Economic Empowerment deal was introduced at Old Mutual South Africa , Nedbank and Mutual & Federal . In 2006, Old Mutual acquired the Swedish insurer, Skandia , in a $ 6.5billion deal, bringing additional business in the United Kingdom, several other countries in Europe, Latin America, the Far East and Australia (that Old Mutual has since exited). Old Mutual also announced its Black Economic Empowerment deal in Namibia. Patrick O'Sullivan became chairman of Old Mutual in 2010, succeeding Christopher Collins. The same year HSBC backed away from its plan to acquire 70% of Nedbank, including Old Mutual's 53% share. In 2011, Old Mutual sold US Life to Harbinger Group Inc. for $ 350 million. Old Mutual sold its Nordic operations to Skandia Liv for £2.1 billion in 2012. In 2013, Old Mutual strengthened operations in Africa with
#458541