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. However, the effective duration of the funds was lengthened relative to the JSE All Bond Index (ALBI) 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 maintained 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 SWIX. We increased our weight to the listed property sector for both the Stable, up to 3.5% and the Balanced Fund up to 6.5% on improving property metrics.
| MULTI-ASSET STRATEGIC ASSET ALLOCATION | BALANCED FUND |
|---|---|
| Cash | Underweight |
| Bonds | Neutral |
| Property | Positive |
| Local Equity | Neutral |
| Foreign Equity | Positive |
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 maintaining 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 SWIX benchmark.
Accorn BCI International Fund of Funds follows a top-down investment process, and in line with our house view, we increased foreign equities to approximately 82%, while decreasing our exposure to developed market fixed income instruments and 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 restarting their rate cutting cycle while most developed market central banks around the world, excluding Japan, have paused their rate cuts.
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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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