Over the last 4 years, balanced fund investors have not enjoyed the level of real returns that these funds have historically delivered. The ability to actively allocate between asset classes and position the portfolios to take advantage of attractively valued underlying securities, has served these funds well over time. Over the last year, the ClucasGray Equilibrium Fund has gained 2.6%, ahead of the peer group. Since inception in January 2015, the fund has returned 7.5% per annum, cmpared to inflation of around 5% and the peer group of 4.4%.

The performance of global equity and fixed income assets has benefited the portfolio returns. Whilst we remain well exposed to those asset classes, we have increasingly positioned the portfolio to benefit from the significant opportunity set we have identified in local listed companies. During the quarter, we took advantage of numerous opportunities where good comapnies were sold off into a void of liquidity, reaching valuations we deemed to be very attractive.

Please read the Clucusgray Asset Management September 2019 quarterly at www.cgam.co.za for more insights into our views and portfolio positioning.