Newsletter:

Subject:	Against the backdrop of market turmoil
Date:	06 Nov 08

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Disagreement between fund mangers is a good thing. Against the backdrop of ongoing market turmoil, we currently have some fund managers saying they can see value beginning to emerge, while others are advising investors to wait before re-entering the markets as further downside is possible.

Likewise, we have Duncan Artus of the Allan Gray Equity Fund telling us why he likes certain stocks, (SAB Miller and MTN are top stock picks and he says that Sasol is beginning to reflect fair value) and yet on the other hand Cadiz African Harvest Management have sent us an opinion piece explaining why they do not like these shares.

Equinox is pleased to report the end of October performances of the Equinox Managed Portfolios which have just been calculated. You can see the full reports by clicking on each fund fact sheet on our site, listed under ‘Docs and Fund Manager Reports.’

The Equinox Top Managers Portfolio, a fund with a similar mandate to funds in the Domestic AA Flexible category has turned in a rolling 12 month performance of -1.84%, the Equinox Maximiser Portfolio, a fund with a benchmark aligned with the All Share, but mandated to be managed in line with funds in the Domestic AA Flexible category has had a 12 month performance of -2.64%, and the Equinox Prudential Fund which has a similar mandate to funds in the Domestic AA Prudential Variable Equity category which has turned in a 12 month performance of -1.59%.

All of these funds, which currently have ‘wrap fund’ status, would compare favourably with registered unit trusts over 12 month periods. We would like to congratulate fund manager Barry Shamley on his reading of the current difficult market. He has written his monthly review of the markets. To read the latest edition, click here: Current Market View

Despite the turmoil, life goes on. Equinox/ Intervest is pleased to announce the appointment of two new staff members. Some of our clients will remember Celeste van Loggerenberg / Richardson, who rejoins us as Head of Administration and Human Resources. We are all delighted to have her back. She was formerly the Chief Operating Officer of Equinox, and prior to that a Client Relationship Manager at m Cubed Capital and the Lisp Operations Manager of Silica Financial Administration.

Our second hearty welcome is extended to Cobus du Plessis, who has joined our Business Development team. He worked for Sanlam for 23 years in Product Development, Sales and Marketing. He helped to set up Sanlam Personal Portfolios, now known as Glacier, where he was the Head of Sales and Marketing.

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Bank of England cuts interest rates by 150 basis points
Kevin Lings, economist at Standard Bank writes that the Bank of England decided to cut rates by a massive 150bps today (Nov 6th). He says that the market was expecting only a 50bps, although a few analysts had forecast a 100bps reduction.

More at http://www.equinox.co.za/article_2087.html

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The Cadiz Mastermind Fund: Why we don't like MTN, Sasol and SAB Miller
Paul Hutchinson, Head of Cadiz Collective Investments writes that Cadiz fund mangers firmly believe that share prices do not always reflect fundamental value over the shorter term as a result of the irrational behaviour of investors, market sentiment or neglect.

More at http://www.equinox.co.za/article_2086.html

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A peek inside Allan Gray's sin bin with Duncan Artus
At a presentation this week, Allan Gray fund manager Duncan Artus spoke about the underlying holdings of the Allan Gray Equity Fund. Sin bin stocks SAB Miller and British American Tobacco rank first and third. But as usual, what the fund did not invest in is more telling than what it did invest in.

More at http://www.equinox.co.za/article_2084.html

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Advice for Rich and Poor: Decrease your Expenses
Mark Cliff of Alphen Asset Management says that the affluent need to decrease their expenses too. He writes that right now, many people are taking home less each month than they did over the past few years. This is either because their income has decreased, or their expenses have increased, or both.

More at http://www.equinox.co.za/article_2085.html

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The new era banking order that has to come: Arno Lawrenz
Arno Lawrenz, the Chief Investment Officer of Atlantic Asset Management, a specialist Fixed Income asset management house which currently manages R2.4bn in various fixed income mandates. He writes that it would seem as if the Central Banks around the world have been so suitably frightened by the latest Halloween movie - Nightmare on Wall Street - that they have opted to dish out the treats in a big way!

More at http://www.equinox.co.za/article_2082.html

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Best Regards
The Equinox Team

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