ACCORN INVESTMENT MANAGEMENT
Accorn is a multi-asset and long-only equity fund manager, following a top-down and bottom-up investment process that ensures a diversified selection of investments.
The Accorn BCI Balanced Fund maintained its exposure to South African nominal bonds over the quarter while the effective duration of the fund was shortened relative to the JSE All Bond Index (ALBI), we still believe local bonds offer real attractive yields, even at current levels, with an expected forward yield greater than our CPI + 4% benchmark.
During the quarter, we increased our foreign equity and foreign cash exposure in the fund to 34% and deceased our exposure to SA shares to derisk the fund.
The fund ended the quarter overweight industrials and resources while remaining underweight financials relative to the FTSE/JSE Capped All Share Index. Our weight to the listed property sector for both the Stable and Balanced Funds was maintained at 2% and 4% respectively.
| MULTI-ASSET STRATEGIC ASSET ALLOCATION | BALANCED FUND |
|---|---|
| Cash | Underweight |
| Bonds | Neutral |
| Property | Neutral |
| Local Equity | Positive |
| Foreign Equity | Neutral |
Accorn BCI Equity Fund, following its top-down and bottom-up investment process, we increased our foreign equity and foreign cash allocation to 34%, while decreasing our exposure to SA shares to derisk the fund during the heightened geopolitical tensions in the Middle East.
The local equity allocation was overweight industrials and resources, while remaining underweight financials relative to the FTSE/JSE Capped All Share Index.
Accorn BCI International Fund of Funds follows a top-down investment process and in line with our house view, we reduced our foreign equities to approximately 80% while maintaining our exposure to developed market fixed income instruments and increasing our ZAR and US Dollar cash. We maintained our shorter duration relative to our fixed income benchmark.
Our geographic allocation favours an overweight exposure to developed market equities while we remain neutral weight to equities domiciled in the US relative to their MSCI World benchmark weights. Global equity valuations remain attractive when compared to foreign fixed income instruments despite the US Fed continuing to pause their cutting cycle like most other developed market central banks around the world.
To find out more about the asset management capabilities of Accorn, please click on the logo for a link to its website.
The below FSCA regulated companies, who conduct asset management and investment services, are owned by Orion Investment Managers (OIM). These subsidiary companies operate in a number of different jurisdictions, and each provides investment management and products to their clients. Orion Investment Managers, is, in turn, owned by Spirit Invest International, which owns a portfolio of companies in the investment sector...
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