A fund for all sea­sons

In lieu of re­cent and up­com­ing eco­nomic events, it’s im­por­tant to focus on choos­ing a good man­ager with a solid track record, and give them the time and space to de­liver the re­turns.

Finweek English Edition - - MARKETPLACE -

re­cent con­ver­sa­tions with clients and prospec­tive clients have been dom­i­nated by the is­sue of the prospec­tive credit down­grade. Now that the June an­nounce­ment is behind us, and the down­grade has not hap­pened as ex­pected, the at­ten­tion has turned to the pos­si­bil­ity of a Brexit. After that I ex­pect the lo­cal elec­tions to fea­ture in con­ver­sa­tions be­fore the pos­si­bil­ity of a down­grade in December is back on the agenda.

The is­sue is not that we have th­ese events dom­i­nat­ing con­ver­sa­tions from time to time, but rather that clients ex­pect us to make changes to the in­vest­ment strat­egy based on what they think the out­come will be. Many bet­ted on the cur­rency weak­en­ing sharply post a June down­grade, and ex­pected that the off­shore ex­po­sure in their port­fo­lio would be in­creased be­fore that. In­stead the down­grade was avoided and the cur­rency has been strength­en­ing ever since.

A more pru­dent ap­proach to in­vest­ing re­quires a longer term per­spec­tive, and suit­able di­ver­si­fi­ca­tion of the port­fo­lio. It is for this rea­son that we con­tinue to shine the light on multi-as­set funds such as sta­ble, bal­anced and flex­i­ble funds. Th­ese funds are able to al­lo­cate money across a num­ber of as­set classes (eq­ui­ties, cash, bonds, prop­erty, off­shore, etc.) within cer­tain re­stric­tions and risk pa­ram­e­ters. The im­por­tant de­ci­sion for in­vestors is choos­ing a man­ager with an es­tab­lished track record of man­ag­ing multi-as­set man­dates, at a fair price, and with the right at­ti­tudes to­wards risk. A fund that we have re­cently added to our shopping list that meets th­ese cri­te­ria is the Rezco Value Trend fund (RVT).

The RVT fund is a bal­anced fund, mean­ing that it

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.