Finweek English Edition - - FUND IN FOCUS -

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.

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