Fund Manager Q&A

Fund Manager Q&A

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What stocks would you buy with R5 000? I would buy unit trusts rather than stocks to achieve portfolio diversification without individual stock research.

R50 000? It is time-effective to research stocks and sectors. Concentrate on a 70-30 asset allocation mix, with 70% going into domestic blue chips and 30% into mid-caps.

R1 million? I would develop the blue-chip core strategy. Wealth can be created by applying a relatively simple strategy — buy into blue-chip companies on the market dips and hold to avoid the long-term effect of transaction costs.

I would invest in a core holding of blue chips supported by mid-caps while including some riskier stocks with high growth potential. The higher the risk, the longer the time needed for research.

What are you keeping an eye on?
China and Asia demand continued attention. But I also keep a close eye on developed markets like the US.

What are your goals when investing?

To buy into good value companies with strong fundamentals. Over time, value will come through. The aim is sustained wealth generation through long-term accumulation of total returns, including dividends.

Which stocks/market do you regret not investing in? China and Asia stocks immediately after the 2008 financial crisis. Since then, Chinese equities are up between 85% and 90%.

Your best investment decision? A big commitment to the major mining houses. Since 2000 investments in companies such as Billiton have done well. More recently, a company like Exxaro has performed strongly. We’re strategic, long-term investors and the strategy of buying into the commodities super-cycle via resource counters has worked well.

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