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Wayne McCurrie
UNIT TRUSTS:RMB Balanced Fun... A spurt of growth upon retiremen... Has Wall Street succumbed to "mad bull" ... Betting on a bottle of the best bubbl... Taking on the role of trustee ... |
UNIT TRUSTS:RMB Balanced Fundof R184-million. Launched in February 1995, it is managed by Wayne McCurrie for Rand Merchant Bank.TECHNICAL INFORMATION OBJECTIVE: To achieve capital growth over the longer term along with a moderate level of income. The portfolio is invested in a balanced spread of investments across four key investment categories - equities, gilts, listed property and cash. TARGET MARKET: Individual investors seeking a conservatively managed equity portfolio which aims to beat inflation within a lower risk framework than that typical of general equity funds, and pension and provident fund trustees who are looking for solid, inflation-beating performance over the longer term. CHARGES (incl. VAT): Compulsory: 0.7%. Initial: 5.46% (on a sliding scale). Annual service fee: 0.75%. MINIMUM INVESTMENT: Lump sum: R5 000; monthly: R250. PAST PERFORMANCE (per Micropal): 30 MONTHS Fund: 53.8% Inflation: 21.3% JSE all-share index: 46.4% Sector average: 60.8% Performance is calculated on a buy-to-sell basis with income reinvested. PAST TWO INCOME DISTRIBUTIONS: December 1996: 3.91c (79% interest; 21% dividends). June 1997: 3.94c (79% interest; 21% dividends). TOP 10 HOLDINGS: ABSA; Anglo American; De Beers; First National Bank; Imperial; Liberty Life; Richemont; SA Breweries; Sasol; Southern Life TOLL-FREE: 0800 119 557 ABOUT THE FUND MANAGER: AGE: 38 QUALIFICATIONS: CA (SA) EXPERIENCE: Has been in investment management since 1991. Has managed the fund since inception. INVESTMENT ATTITUDE: This fund has a lower risk profile than many other "managed" unit trusts. The investment approach is essentially "top down"(meaning it centres on asset allocation) and is enhanced by stock selection decisions. This approach is dependent on the investment cycle, and requires indepth forecasting and analysis of interest rate patterns and the core economic cycle. The equity focus tends to be on value shares. VIEW ON PAST PERFORMANCE: Despite its conservative investment mandate, this fund has returned over 20% per annum over a two year period, representing strong growth for unitholders from a fund with a low risk profile. In addition, this performance has been achieved with a high level of consistency. THE FUTURE: This fund will continue to offer investors consistently steady long term growth from a low risk equity portfolio. The mandate of the fund will remain unchanged, and so this fund will continue to appeal to trustees of pension and provident funds for longer term investments, and conservative individuals requiring a low-risk growth investment.
INDEPENDENT ASSESSMENTBecause this fund is in the managed prudential sector, the equity content will never exceed 75% and at least 25% of the fund's value will always be invested in gilts and/or cash. This fund is well suited to the conservative investor who does not have a serious tax problem. Investing in balanced funds has tax implications because of the high cash element which earns the investor interest (amounts above R2 000 are taxable). Of the fund's portfolio 35% is invested in cash and gilts - for every R100 000 you invest, you will earn about R5 000 a year in taxable interest. The fund has been a sluggish performer over the past year, no doubt due to the conservative nature of the fund and its concentration on blue chip shares. Lucienne Fild 9/97 Top of page
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