A good, steady per­former

Finweek English Edition - - UNIT TRUSTS -

12 months for unit trusts on the whole af­ter con­fi­dence re­turned to the mar­kets and a more buoy­ant mood in eq­ui­ties. Many funds have de­liv­ered more than 25% over the past 12 months, which would make most in­vestors smile. How­ever, the trick is to find funds that have not only de­liv­ered in the good times but have shown some ap­ti­tude and dis­ci­pline in the bad times.

One such fund to look at is the PSG Tan­zan­ite Flex­i­ble Fund, which has an en­vi­able track record. Data pub­lished by Morn­ingstar shows the fund had the fol­low­ing per­for­mance rank­ings as at 30 June this year:



“It gives us great plea­sure to re­port such rel­a­tive out­per­for­mance (par­tic­u­larly con­sid­er­ing we’re in­vestors in the fund our­selves!),” com­mented fund man­ager Jan Mou­ton in his most re­cent note to in­vestors.

The fund is suit­able for in­vestors with a mod­er­ate to high risk tol­er­ance and has an as­set split of 50% in South African eq­ui­ties and 20% in off­shore eq­ui­ties. The bal­ance is in cash. The top five hold­ings in the fund at the end of the past quar­ter were Capitec Bank, Berk­shire Hath­away, Stein­hoff, Sa­sol and Bri­tish Amer­i­can To­bacco.

One ob­ser­va­tion for in­vestors look­ing at the PSG Tan­zan­ite is its to­tal ex­pense ra­tio (TER) ap­pears to be quite high com­pared with some of its peers. While a high TER doesn’t nec­es­sar­ily in­di­cate healthy chunk out of any an­nual per­for­mance in a bad year and should be some­thing to bear in mind. How­ever, for in­vestors with an ap­petite for some risk, this fund may be one to con­sider.

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