Newsletter:

Subject:	The right time to invest?
Date:	13 Aug 03

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Even though the rate of new investments at EQUINOX.co.za has picked up there is still a cloud of uncertainty in the air, reflecting one of the perennial investment questions “Is this the right time to invest?” As always, there are different points of view on the subject.

A recent Business Day article “Investors warned to board equities train” quoted Kokkie Kooyman, portfolio manager at Coronation Fund Managers, saying that as high-performing periods generally follow the crisis periods, now was the time to invest. His view is backed by the latest Merrill Lynch Fund Manager Survey which shows that a net 71% of surveyed fund managers expect an improvement in global economic conditions over the next twelve months.

On the other hand we have Piet Viljoen of Regarding Capital Management urging caution and suggesting that investors should temper their expectations. See article below.

In the midst of this market uncertainty Unisa MBL student and independent financial adviser Clive MacKenzie ruffled a few feathers by accusing many fund managers of laziness, and saying that he would no longer be investing in unit trusts. In our view (See article below) there are many other aspects to the poor performance of some fund managers other than “laziness”. Whatever the outcome of this particular debate, such studies serve as a useful reminder that unit trust investments should be monitored and should not be neglected.

The close of the Marriott Property Fund to new investments has forced our investment managers into another property pick for our Managed Portfolios. Oasis' fund was chosen and an interview with Michael Swingler on just why they have done so well of late highlights why. Read the interview here -
http://www.equinox.co.za/unittrusts/Interview/default.asp? itemID=820.

Two recently launched unit trust funds, the Metropolitan Absolute Income Fund and the Sage Industrial Fund, should be available to EQUINOX.co.za investors towards the end of this week.

Stanlib have notified us that they are on course to inform their investors of the proposed mergers between Liberty and Standard Bank funds with similar mandates. EQUINOX.co.za investors in these funds should look out for e-mails from us in this regard.

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Investing with the speculators: Piet Viljoen remains cautious.
"An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative" - Benjamin Graham and David Dodd, Security Analysis, 1934

More at http://www.equinox.co.za/article_502.html

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Are fund managers lazy, terrified or greedy?
Unisa MBL student and independent financial adviser Clive MacKenzie opened the first salvo of the debate being played out on the Moneyweb site when he accused many asset managers paying too little attention to the non-quantitative aspects of companies they buy and sell on behalf of unit trust investors.

More at http://www.equinox.co.za/article_501.html

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Outflows from foreign currency-denominated unit trusts slowdown
Outflows from foreign currency denominated unit trusts slowed sharply to R1.5 billion from R2.5 billion in the June quarter, the Association of Collective investments said yesterday.

More at http://www.equinox.co.za/article_500.html

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Stanlib Merger: Short update
At EQUINOX.co.za we have received an update from Stanlib, informing us of their progress to date with the ongoing merger of the Standard Bank and Liberty unit trusts.

More at http://www.equinox.co.za/article_503.html

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Sage Launches Industrial Fund
Sage Unit Trusts has launched its 14th unit trust, the Sage Industrial Fund. The fund is the fifth industrial fund to become available to unit trust investors after the Coronation, RMB, Metropolitan and Liberty Industrial funds.

More at http://www.equinox.co.za/article_499.html

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Best Regards
The Equinox Team

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