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Robocop's got nothing on the new Receive... Polygraphs give the lie to poker-faced c... UNIT TRUSTS:Unit Trusts: Fleming Martin ... Budgeting's a bind, but it pays dividend... Making sense of the tax amnest... A will could be your shrewdest investme... Taxing times for small firms as the gove... Working from home: do pros outweigh cons... |
UNIT TRUSTS: Fleming Martin Acorn GrowthThe portfolio is thus likely to comprise a mix of well-known, large capitalisation shares as well as lesser- known medium and small capitalisation shares identified as having superior potential. The fund is likely to be fully invested as a norm. Superior growth is the key objective, but my ongoing focus is on diversification and balance.
COMMENT: At R57-million the fund is still the smallest general equity unit trust. We encourage our fund managers to visit as many companies as possible so there is continual contact with the firms they invest in. All the directors gained their experience at Martin & Co, rated top research stockbroker on the JSE for 18 consecutive years. This background supports our stockpicking approach in preference to market timing. VIEW ON PAST PERFORMANCE: The fund performed well in the second half of 1996, outperforming the all-share index by 6%. Performance in early 1996 was impeded by strong cash flows in a volatile market, but this phase was over within weeks and occurred before the fund was launched to the public. Since then, it has achieved its objective. THE FUTURE: Although a number of negative factors have recently been at work in the market, these are likely to have already been discounted substantially in share prices. As the seeds are already being sown, 1997 should be a more rewarding year on the stock market than 1996.
INDEPENDENT ASSESSMENTIt's a pity about the fund's initial poor performance - a case of it being out of the market at the wrong time. However, performance picked up in subsequent months, making the future a lot brighter. The share selection process and the investment attitude are sound, which augur well for a much-improved future ranking. Investors should bear in mind though, that the team is new to the unit trust industry.Leigh Roberts 1/97 Top of page
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