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Unit Trust: GUARDBANK CAPITAL FOCUS FUND
Independent assessment by ipac 02/2000
This fund is in the Domestic Equity - Growth sector. It has 10 462 unitholders and assets of R289.7million. Launched in November 1995, it is managed by Carlyle Whittaker at Liberty Asset Management for GuardBank
OBJECTIVE: To achieve maximum capital appreciation through investment in growth companies.
TARGET MARKET: Investors prepared to take on higher risks, and who want a fund with a more aggressive investment philosophy.
CHARGES (incl VAT): Initial: 5.53% (on a sliding scale). Compulsory: 0.65%. Annual service fee: 1.14%.
MINIMUM INVESTMENT: Lump sum: R500; monthly: R100.
PAST PERFORMANCE (per Micropal):
THREE YEAR
Fund: 16.8%
Inflation: 16.8%
JSE All Share index: 27%
Sector average: 14.3%
Volatility: 8.3
ONE YEAR
Fund: 15.3%
Inflation: 1.5%
JSE All Share index: 46.2%
Sector average: 14.5%
Performance is calculated on a buy-to-sell basis with income reinvested.
PAST TWO INCOME DISTRIBUTIONS: December 1998: 2.15c (47% interest; 53% dividends). December 1999: 3.42c (17% interest; 83% dividends).
TOP 10 HOLDINGS: Profurn, Kroondal Platinum Mines, Richemont, Nedcor, Johnnic, FirstRand, Sappi, Nail, JD Group, Edgars
TOLL-FREE: 0800 112 300
ABOUT THE FUND MANAGER
AGE: 33
QUALIFICATIONS: BCom (Hons)
EXPERIENCE: Whittaker has seven years' investment experience. He joined Liberty Asset Management in November 1998 and immediately started managing this fund.
INVESTMENT ATTITUDE: Our fund aims to invest in companies that have the ability to generate high capital gains. These companies are chosen from our financial and industrial universe of growth shares and will typically deliver above-average and sustainable earnings growth.
THE FUTURE: Given the favourable prospects for domestic economic growth in a lower interest rate environment, our fund is well positioned in the growth-oriented financial, retail, services and information technology sectors. Well-managed small and medium-sized companies in the fund should recover in the year ahead and enhance performance.
INDEPENDENT ASSESSMENT
Since its inception this fund has outperformed the JSE All Share Index and positioned itself in the top third of its sector. The past year was disappointing, however, as the fund dropped to the bottom half of its sector for the year. Largely to blame was a high exposure to small cap stocks and the run in resource stocks. The fund's focus was greatly improved over the past year - holdings were trimmed significantly to 51. But there is room for more. Libam has also made significant changes over the past year to its investment team and process. Early indications are that these have been positive. It is important to note that the fund is being managed within a newly energised investment house. It has been consistently fully invested, and with signs of greater focus, it looks well positioned to benefit from the re-rating of growth stocks.
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