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. The effective duration of the funds was lengthened relative to the JSE All Bond Index (ALBI), however, due to local bonds still offering real attractive yields at current levels with an expected forward yield greater than our CPI + 4% benchmark.
During the quarter, we maintained our foreign equity exposure in the fund at 32%, upweighted our resources exposure and increased our exposure to SA shares as they remain attractive on a relative basis.
The fund ended the quarter overweight industrials and resources while remaining underweight financials relative to the FTSE/JSE Capped All Share Index. We took profits and decreased our weight to the listed property sector for both the Stable, down to 2% and the Balanced Fund down to 4%.
| 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 maintained our foreign equity allocation at 32%, upweighted our resources exposure while increasing our exposure to SA Inc shares to benefit from the relative attractiveness of the local market.
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 retained our foreign equities at approximately 82% and our exposure to developed market fixed income instruments and cash was unchanged. 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 maintaining their rate cutting cycle with most other developed market central banks around the world, excluding Japan, potentially cutting their rates further.
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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