Our Investment Approach

• Intro
• How We Differ
• Sector Allocations
• Selecting a Unit Trust

It is our objective to produce both absolute returns (ie not lose money) and good returns relative to our competitors. This means that we will not be content, in a falling market, to simply lose less money than our competitors. Bear in mind that Unit Trust investing requires a medium to long term approach, and short term fluctuations in value cannot be avoided.

Capital preservation in times of market volatility and declines is immensely important. If we believe that the JSE is in high risk territory, all of our recommended portfolios will have a higher allocation to cash or money market unit trusts. If our view is that the market will experience a substantial decline, our recommended portfolios may be invested entirely in cash or money market unit trusts. This will provide full protection against a market decline while simultaneously earning the money market interest rate.

Liquidity, in terms of the ability to easily switch in or out of a fund, is also considered. Bigger funds will generally be preferred to smaller funds. Investors following our recommendations will cause less disruption to a large fund and the limits placed on withdrawals will be bigger in absolute terms. An exception to this rule will be made for index funds and bond/money market funds as the underlying shares and bonds in which they invest are sufficiently well traded to allow easy entry and exit.

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