The ClucasGray Equilibrium Fund is our Multi-Asset High Equity Regulation 28 Fund. As alluded to above, 2016 was a year in which Fixed Income and Property outperformed other asset classes, with the All Share index gaining 3%, and the Rand strengthening over 11% against the US Dollar. The Equilibrium Fund gained 4.6% in 2016, which compares favourably to the Multi-Asset High Equity Peer group, which gained 0.1%. The fund has now returned an annualised return of 8.7%since inception, with the peer group average being 4% over the same period.

During 2016, the portfolio benefitted from an active approach to asset allocation, taking advantage of attractive real yields on offer in the fixed income markets, reducing exposure to relatively expensive rand hedge industrial companies in favour of mispriced domestic companies, and out of favour commodity companies.

For a more detailed understanding of our views and fund positioning, please find our ClucasGray Asset Management Quarterly on www.clucasgray.co.za.