WHY WOULD CONSIDER ADDING IT
The f und i s skewed towards stocks with a strong cash flow and a number of them earn their revenue offshore. As the rand i s still weak, and may carry on devaluating in l i ght of a potential i ncrease i n US i nterest rates, this f und offers protection against l ocal currency weakness. The f und’s l arge allocation to cash may be a drag on returns, but gives it the flexibility to move in and out of positions quite quickly.
editorial@ finweek.co. za