Chief Investment Officer, Andrew Dittberner explains how effective capital allocation can ensure a company’s survival and success. He points out that in an environment where the average company lifespan has declined to just 18 years, it is crucial to understand how effectively a business allocates its capital and resources. Andrew then outlines various capital allocation options, highlighting our preferences for how the businesses we invest in should allocate capital.

In the fast-paced tech world, Microsoft stands out for its innovative prowess and strategic capital allocation. Research Analyst, Nadine Chetty-Khan examines how Microsoft’s capital allocation decisions have steered the business through evolving market conditions. She explains how, from its humble beginnings in 1975 to its status as a global leader, Microsoft's focus on research and development investment and strategic acquisitions has been key in laying the foundation for its suite of globally integral products and has positioned the business to continue to create shareholder value.

The vastly divergent performances of South African food retailers over the past two decades best highlight the impact of management decisions on long-term success. In 2004, Pick n Pay was the largest food retailer on the JSE with a market value of R11.2bn — 60% larger than its closest competitor, Shoprite (R7.1bn). Today, Shoprite is worth around R152.5bn — twelve times larger than Pick n Pay, whose value has barely changed. In “Shoprite: Winning Where It Matters”, Head of Research, Victor Mupunga delves into why Shoprite and Pick n Pay’s fortunes have been so different. He makes the point that while economic conditions affect companies, especially over the shorter term, management decisions on where to invest capital matter more in the long run, with Shoprite excelling in this regard.

Fiduciary Specialist, Godwin Magosha points out that inheriting a foreign property can be both a blessing and a challenge for SA residents and highlights the practical considerations and available estate planning options.

Sarette van den Heever and Wayne Sorour, Wealth Directors, share their insights into global wealth management. They discuss how the concept of global citizenship has gained momentum over the past few years, presenting unique challenges, in terms of not only preserving wealth, but also successfully enabling the next generation to look after the family’s wealth and determine its new purpose.