INVESTEC GROWTH FUND
This fund has 4 473 unitholders and assets under management of R699-million. Launched in May 1997, it is managed by Rhett Hammond for Investec Asset Management
OBJECTIVE: To achieve capital growth through focused investment in the equity market. To identify growth opportunities in medium capitalisation companies.
TARGET MARKET: The more risk-averse investor requiring a steady capital growth with a reasonable level of income in the medium to long term.
CHARGES (incl VAT): Compulsory: 0.7%. Initial: 5.46%. Annual service fee: 1.14%.
MINIMUM INVESTMENT: Lump sum: R1 000; monthly: R200.
JSE all-share index: -7.4%
Sector average: -1.97%
Performance is calculated on a buy-to-sell basis with income reinvested.
PAST INCOME DISTRIBUTION: September 1997: 3.52c (5% interest; 95% dividends).
TOP 10 HOLDINGS: NBS Boland; Didata; Theta; RMB; Investec; M-Cell; Rentsure; Persetel Q Data; Capital Alliance; Metropolitan Life.
TOLL-FREE: 0800 222 214
ABOUT THE FUND MANAGER
EXPERIENCE: Joined the stockbroking community in 1987 and worked for both Kaplan & Stewart and Fergusson Brothers as portfolio manager and analyst. Joined Investec in 1993 as a portfolio manager and has managed this fund since inception.
INVESTMENT ATTITUDE: The fund focuses on established growth stocks in order to generate long-term performance. These stocks will have a track record of three years or more. Management is operationally aggressive and visionary, yet financially conservative. The fund has a capitalisation of between R1-billion and R10-billion and is exposed to industries which have above-average growth potential. Generally, these stocks will be less risky and more tradable than those normally found in the Investec Emerging Companies Fund, but will have far better growth prospects than the typical mature blue chip stocks found in the general equity sector. It can best be categorised as a medium-risk equity fund.
VIEW ON PAST PERFORMANCE: The short-term performance of the fund has been solid, with the fund appearing consistently in first or second place in the general equity sector since it first appeared in the October 1997 rankings.
THE FUTURE: Mid cap stocks are less risky than less established companies but are often on stable, high-growth earnings trajectories which can last many years. The best performers in the stock market over a five-year period would be the type sought by this fund.
This fund was launched in May last year as a slightly more conservative alternative to the Investec Emerging Companies fund. Having the same manager in Rhett Hammond, it immediately established itself as one of the top performing general equity trusts. It is a good vehicle for exposure to growth opportunities among medium cap companies.