Finweek English Edition - - FUND IN FOCUS -

A flex­i­ble fund can in­vest as much of its port­fo­lio in cash as it elects, as op­posed to a gen­eral eq­uity fund that can only have a small pro­por­tion in cash.

The level of cash in a flex­i­ble fund is of­ten a de­fault in­di­ca­tor of the amount of op­por­tu­ni­ties the fund manager thinks ex­ist in the mar­ket. At the mo­ment, 30% of the port­fo­lio is in­vested in cash vs its long-term av­er­age of 15%. So it ap­pears that Wil­liams will have to re­main pa­tient un­til he sees the value that has driven im­pres­sive re­turns which in­vestors in the fund have got­ten used to en­joy­ing.

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