The companies in our locally managed stock portfolios collectively earn more than 60% of their profits abroad and in this way provide hedging against the Rand. The majority of the shares in our managed portfolios are concentrated abroad, but listed locally on the JSE.
We also manage international portfolios. Foreign listed international multinational companies provide further diversification and currently provide good value. We invest in companies like Berkshire Hathaway, Coca-Cola and Johnson & Johnson to name a few.
On a cost basis over the long-term (10 years plus), shares outperforms other asset classes in South Africa. World-wide, shares represent the asset class most favoured as investment option relative to other asset classes.
Kruger International manages stock portfolios to reach the full investment potential of the asset class over the long-term. We do not trade pointlessly and follow a buy-and-hold approach. Our active management includes certain restructurings from time to time, only when it makes sense in terms of cost and is beneficial to the investor. We invest in blue blood companies that add value for investors over the long-term. Dividends and proceeds are reinvested to ensure exponential growth of the portfolio.
Kruger International continually negotiates lower trading/broker fees on behalf of our clients without sharing in this fee. Our interests are aligned with that of our clients because we are not motivated to trade needlessly.
Kruger International follows a share committee driven process with the management of our direct stock portfolios. Our share committee consists of Hein Kruger (Chief Executive), Charl Bester (Chief Operating Officer, Wealth and Portfolio Manager), Mia Kruger, CFA (Director, Equity Analyst and Portfolio Manager) en Chris Nel (Analyst).
Our share committee meets formally on a weekly basis and communicate daily about research and decision making. We follow a rigorous process of continual research and management. Our process involves ongoing qualitative and quantitative research about the companies already in our portfolio, but also about the new opportunities available in the market.