A good, steady performer
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.