ACCORN INVESTMENT MANAGEMENT

Accorn is a multi-asset and long-only equity fund manager, following a meticulous top-down and bottom-up investment process that ensures a diversified selection of investments.

The Accorn Balanced Fund maintained its neutral exposure to South African nominal bonds, while lengthening duration relative to the ALBI, taking advantage of the strengthening bond yields, while still benefitting from the attractive yields on offer.

During the quarter we maintained our foreign equity exposure at 32% while we increased our exposure to SA Inc shares, capturing the positive market sentiment after the SA elections and the formation of the Government of National Unity.

During the quarter, the Balanced Fund took profits from its listed property exposure and reduced the property weight to 6%.

Accorn Equity Fund, following its top-down and bottom-up investment process, we maintained foreign equity allocation at approximately 32% and increased our exposure to SA Inc shares, capturing the positive market sentiment after the SA elections and the formation of the Government of National Unity.

The local equity allocation was overweight industrials, while marginally underweight resources and financials.

Accorn International Fund of Funds is a top-down managed fund and in line with our house view, increased our position in foreign equities to approximately 73.23%. During the quarter we decreased our exposure to developed market fixed income instruments and cash, while maintaining our shorter duration. 

Our geographic allocation favours an overweight exposure to the US over Europe and UK equities. 

Foreign equities still look more attractive than foreign fixed income instruments for now, but this dynamic will slowly change as central banks around the world continue to cut interest rates.