Weak rand sees massive outflows of assets

“The rand’s depreciation has led our South African institutional clients to move sizable assets abroad,” said Anthony Ginsberg, Managing Director of GinsGlobal Index Funds, on Bruce Whitfield’s The Money Show.

“The rand would be substantially weaker in our view, if it were not for remaining exchange control limitations on institutional (pension) assets.

“Unfortunately, most of the press in the US only seems to cover negative news from South Africa regarding the new visa restrictions and load shedding,” said Ginsberg.

Scroll down to listen to the audio for a discussion by Ginsberg about the rand, the current US economy and America’s take on the financial meltdowns in Greece and China.

He also touches on the nuclear deal with Iran.

US GDP growth will be much better than what we’ll get in South Africa. The US economy is picking up significantly.

Anthony Ginsberg, Managing Director of GinsGlobal Index Funds

Emerging markets and South Africa have been picked on and their currencies have all suffered.

Anthony Ginsberg, Managing Director of GinsGlobal Index Funds

My clients have in the past 12 months moved a lot of money offshore.

Anthony Ginsberg, Managing Director of GinsGlobal Index Funds

A third of SA’s bond market is owned by foreigners. If they pull out the rand will tank.

Anthony Ginsberg, Managing Director of GinsGlobal Index Funds

We have a jobs crisis in SA. Dis tyd om wakker te skrik! There are a lot of things we can do to stimulate growth.

Anthony Ginsberg, Managing Director of GinsGlobal Index Funds

People in the US want to come here to spend money. They want to tour! We shouldn’t shoot ourselves in the foot like we’re doing.

Anthony Ginsberg, Managing Director of GinsGlobal Index Funds

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