ACCORN INVESTMENT MANAGEMENT
Accorn is a multi-asset and long-only equity manager that combines top-down asset allocation with bottom-up company analysis. By integrating macroeconomic insights with rigorous fundamental research, the investment team seeks to identify attractive opportunities across asset classes while maintaining a strong focus on diversification, risk management and long-term capital growth.
The Accorn Balanced Fund maintained its allocation to South African nominal bonds throughout the quarter while increasing the portfolio’s effective duration to a neutral position relative to the JSE All Bond Index (ALBI). We continue to view South African bonds favourably, as current yield levels remain attractive and are expected to exceed the fund’s CPI + 4% return objective over the medium term.
During the quarter, we increased the fund’s exposure to global equities and global cash, with offshore exposure reaching 32.5%, while maintaining our allocation to local equities. These positioning changes were implemented to enhance portfolio diversification and reduce overall risk, while retaining exposure to asset classes that we believe offer attractive long-term return potential.
By quarter-end, the fund was positioned with an overweight allocation to industrial shares, a marginal underweight position in financials, and an underweight exposure to resource shares relative to the FTSE/JSE Capped All Share Index. Exposure to the listed property sector was also increased during the quarter, ending the period at 5.50% of the portfolio.
Attractive bond yields together with increased offshore diversification and a higher allocation to listed property supported portfolio resilience during the quarter. The fund remains positioned to achieve sustainable long-term growth through disciplined asset allocation and a diversified exposure to South African and global markets.
| ASSET CLASS | VIEW |
|---|---|
| Cash | Underweight |
| Bonds | Neutral |
| Property | Neutral |
| Local Equity | Positive |
| Global Equity | Positive |
The Accorn Equity Fund follows a disciplined top-down and bottom-up investment process that combines strategic asset allocation with detailed company analysis to identify attractive long-term investment opportunities. During the quarter, the fund increased its allocation to global equities and global cash to 32.5%, while maintaining its exposure to local equities. These positioning changes were implemented to enhance diversification and reduce portfolio risk amid heightened geopolitical tensions in the Middle East, while preserving exposure to attractively valued domestic investment opportunities.
By quarter-end, the fund was positioned with an overweight allocation to industrial shares, a marginal underweight position in financials, and an underweight exposure to resource shares relative to the FTSE/JSE Capped All Share Index.
Increased offshore exposure enhanced diversification while preserving meaningful exposure to attractively valued South African equities. The portfolio remains focused on delivering long-term capital growth through active asset allocation and disciplined company selection.
The Accorn International Fund of Funds follows a top-down investment process that reflects our long-term strategic asset allocation views. In line with our house view, we increased the fund’s allocation to global equities to approximately 82%, while reducing exposure to developed-market fixed income instruments as well as ZAR and U.S. dollar cash holdings. This positioning reflects our continued preference for equities as the primary driver of long-term capital growth.
Within the fixed income component of the portfolio, we maintained a shorter duration relative to the benchmark, reflecting a cautious approach to interest-rate risk in an environment where inflation remains elevated and monetary policy uncertainty persists.
From a geographic perspective, the portfolio continues to favour developed market equities, while maintaining a neutral allocation to U.S.-domiciled equities relative to their weighting in the MSCI World Index. We believe global equities remain more attractive than fixed income assets on a relative valuation basis, supported by resilient corporate earnings, stronger economic growth prospects, and the expectation that major central banks will remain data-dependent in their policy decisions.
The fund maintained a growth-orientated positioning during the quarter, increasing exposure to global equities while reducing allocations to fixed income and cash. Our preference for developed market equities reflects our view that they continue to offer superior long-term return potential relative to bonds, despite ongoing uncertainty surrounding the global interest-rate outlook. By maintaining a diversified global portfolio with disciplined risk management, the fund remains well positioned to capture opportunities across international markets while navigating evolving economic and geopolitical conditions.
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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