WHY WOULD CONSIDER ADDING IT
The fund took advantage of the rise in yields last year when inflation appeared set to move out of the bands imposed by the Reserve Bank. “There was an expectation that interest rates would rise quickly, but we didn’t think so. We didn’t think our economy was strong enough to justify the rapid increase in interest rates,” says Botha.
The fund prudently used the opportunity to lock in higher yields. Investors would have no doubt appreciated this if the performance of the fund relative to its benchmark over the last year is anything to go by.