Heroics needed to avoid further slide in markets

By Eddie Botha,
Business Editor

EAST LONDON -- Most investors and roleplayers in the financial industry are aware that the last few years have been difficult ones for investors, says NFB Financial Services Group director Anthony Godwin.

Godwin, whose group was recently voted as one of the Top 20 non-listed companies in South Africa when chosen as finalists for the SA Non-Listed Company Award, said the MSCI World index was down 21 percent this year to date.

"It is going to take Spiderman-like heroics for the markets to bounce back to avoid a third consecutive year of market declines -- the first time that this will have happened since the Second World War," said Godwin.

He said many of the smaller, and even some of the larger, investment advisory companies and stock brokerages have begun to buckle under the pressure of the difficult markets, experiencing poor corporate growth and profits.

"If we were to look for positives in the current environment, however, one would be that, in conjunction with new legislative regulations being passed to more effectively regulate the financial services industry, it has helped to separate the men from the boys and proved the importance of strong investment management and advice through investment advisory companies with good research and administration back-up."

It was nevertheless pleasing to see that there were local companies excelling under very trying circumstances and setting new standards for Buffalo City businesses.

This is the third successive year that group has achieved this award.

The award, jointly sponsored by Business Day, auditors KPMG and Wits Business School, is in its seventeenth year and seeks to recognise entrepreneurial skill and innovation among companies not listed on the JSE.

Past winners include Medscheme, Delta Motor Corporation, Vodacom, Kelly Personnel Group and Airports Company of South Africa.

Finalist companies must comply with certain stringent criteria. There is a rigorous screening process and judging is based on a comprehensive entry document.