Fund man­ager

Finweek English Edition - - FUND IN FOCUS - THE FUND PREFERS

to in­vest in shares that of­fer a good re­turn and div­i­dend and shies away from those that don’t re­turn cash to in­vestors, ac­cord­ing to Uys Meyer, CEO of Blue Al­pha In­vest­ment Man­age­ment and man­ager of the fund.

“We do not fol­low a dog­matic ap­proach to share se­lec­tion and have an ap­proach to cap­i­tal preser­va­tion that will max­imise re­turns over the long term for in­vestors,” he says. “This is ev­i­dent in our long-term rank­ing against both the mar­ket and our peer group.”

The fund cur­rently has no ex­po­sure to re­sources and has been un­der­weight in this sec­tor since at least 2011, ac­cord­ing to him.

“The only thing that mat­ters to an in­vestor is the re­turn on what they’ve in­vested,” Meyer says. Div­i­dends, for ex­am­ple, are im­por­tant in terms of man­age­ment dis­ci­pline as the com­pany’s re­turn on in­vest­ment is shared with share­hold­ers, he says.

One of the largest sin­gle lo­cal hold­ings in the fund is Wool­worths Hold­ings. Ian Moir, CEO of the re­tailer, is do­ing well in terms of cap­i­tal al­lo­ca­tion, ac­cord­ing to Meyer. The com­pany also boasts the po­ten­tial of en­ter­ing the food re­tail mar­ket in its two Aus­tralian units – Coun­try Road and David Jones – of which Wool­worths now has full op­er­a­tional con­trol, he says. Lo­cally, the re­tailer’s tar­get mar­ket, namely high-end con­sumers, is more re­silient to the cur­rent eco­nomic down­swing than those of com­peti­tors at the lower end of the spec­trum, such as Shoprite, he says.

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