Fund man­ager

Finweek English Edition - - FUND IN FOCUS - I n pro­vid­ing rea­sons

f or the fund’s stel­lar per­for­mance in 2014, fund man­ager Sean Ash­ton be­gins with what wasn’t in the port­fo­lio. The fund’s min­i­mal ex­po­sure to re­sources meant that it missed the dis­mal re­turns from the sec­tor that weighed down many of its peers.

“From a re­sources point of view, we were con­cerned about China re­bal­anc­ing its econ­omy to a more con­sumer-led econ­omy, a model that is a lot less steel in­ten­sive than growth over the past 10 years. With most of the large gen­eral min­ers on the JSE hav­ing a mas­sive com­po­nent of in­come com­ing from iron ore, we didn’t think their earn­ings were go­ing to be sus­tain­able.”

This aver­sion in­cluded get­ting out of Sa­sol as the oil price be­gan to fall. “We don’t think prices will move back to $80/ bar­rel that quickly given that a world of abun­dant oil means that the mar­ginal bar­rel is less im­por­tant in set­ting prices,

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