BY LEON KOK
“By t he same token, i f a stock shows great value, accompanied with considerable positive sentiment, it may give us more conviction for inclusion in the portfolio,” he explains.
The portfolio currently retains a cyclical sector bias, specifically towards non-mining companies linked to the global cycle. “Opportunities among the South African focused businesses are limited in our view, given unappealing valuations,” says Linley.
“We’ve had a very consistent hedge against the weaker rand for some years and that hasn’t really changed. We have a big exposure to stocks such as Naspers*, SABMiller, British American Tobacco, Steinhoff, Datatec, Netcare, Old Mutual and Mediclinic,” he says.
In short, the Investors’ Fund is great for those investors seeking good longterm gains, attractive dividends and who are wary about losing big money. While it is an equity fund, and subject to market volatility, it’s certainly not one geared to aggressive short-term capital appreciation and prone to harsh short-term setbacks.
*Finweek is a publication of Media24, which is a subsidiary of Naspers.