Finweek English Edition - - FUND FOCUS -

con­sid­er­able op­por­tu­nity.

“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.

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