Fixed Income

    Desk

Lefika Securities fixed income desk was set up over nine years ago. The desk is manned by two highly experienced traders with a combined market experience of over thirty years. With the years of experience accumulated comes the extensive network of relationships and knowledge which allows the team to provide good execution.

 

In addition the firm provides trading strategies on all government and corporate instruments. Some of the trading strategies are underpinned by technical analysis. The desk trades on agency only basis to avoid conflict of interest.

    Equity

    Desk

The total combined experience on the desk is over 40 years. To add to the diversity of the desk fifty percent of the team is comprised of females. The desk offers care orders, DMA orders, basket trades and all types of trading methodologies in the markets and that also includes Algorithmic trading.

 

The desk in addition offers diverse sources of liquidity on the Listed Property Shares where the desk has over 27 years of experience in that sector. The team offers market updates, trading insights and strategies backed by technical research from a top rated technical analyst.

    Equity

    Analysis

Quest® is Canaccord Genuity’s proprietary offering of online analytical tools, valuation models and market commentary for use by international equity fund managers. The Quest® platform allows for analysis of any number of companies and in fact covers 95% of total global market capitalization

The platform provides clients with the ability to combine contemporary equity analytical techniques with more conventional financial analysis. Quest® supports both idea generation – through the numerous screening tools; and idea validation – through individual company analysis and peer group comparison.

 

Quest® was developed with three key principles in mind:

 

  • Analyse corporate wealth creation by looking at returns, key value drivers and capital allocation decisions.
  • Provide a robust valuation framework including cash flow modelling and more conventional approaches.
  • Help investors to think like owners, willing to bring management to account.

 

The Quest® approach to corporate analysis and valuation is based on two simple notions: the first is that a company can create value for shareholders by earning a cash flow return on capital in excess of its cost of capital while growing its capital base. The second is that in a competitive world no company can maintain returns above its cost of capital forever Central to the Quest® analysis is the CFROC (Cash Flow Return on Capital) calculation. While CFROC is more complex that other return on capital ratios such as ROCE or ROIC, it has the significant advantage of being able to take asset life and asset mix into account. While two companies may have the same ROIC, the one that has to renew its assets faster will have lower cash flows and therefore a lower CFROC. Quest® provides the platform for Lefika’s fundamental research offering including ad hoc reports on topical company or market events, regular presentations to clients examining market trends and analysing topical sectors and companies using the Quest® approach to corporate analysis.

 

Bespoke services include portfolio analysis using the different Quest® tools available. Screens and reports are designed to meet portfolio managers’ specific needs. The Quest® team provides local support and training to all South African clients.

    Political

    Research

Lefika’s political research is generated by two highly rated independent analysts Aubrey Matshiqi and Justice Malala. The team generates monthly research notes and ad hoc reports based on what is prevailing at the point in time.

 

Political conditions affect financial markets all the time and in big ways. Therefore to keep abreast with these conditions, the team hosts presentations to impart their findings on the research conducted.

    Corporate

    Access

Lefika Securities regularly arranges Management luncheons whereby the clients get to interact with thought leaders in the country and can be drawn from political sphere, financial markets, government and state owned enterprises. Now lately the firm organises Breakfast debates where the focus is primarily the value chain in the financial markets and its challenges. Various role players in the value chain are invited to enrich the quality of the debates.

– Technical Research

    Inter-Market

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    Analysis

The purpose here is to chart the correlations between the four major asset classes: stocks, bonds, commodities and currencies. This research approach or top down analysis is important in identifying rotational themes between the various asset classes, and the impact it will have on industry groups.

    Trend

    Analysis

The purpose here is to identify changes to the longer-term primary trend, either up or down and alert fund managers to this and thus enabling them to assess their investment holdings given this information.

    Relative Strength

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    Analysis

The use of relative strength analysis is to compare the performance of an individual stock to its industry group or industry group relative to the overall market. This makes it possible to determine whether an individual stock or industry group is either outperforming or underperforming relative to the overall market