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A spotlight on Sanlam's private client performance
Markets
by Annabelle Williams on Nov 21, 2012 at 12:23
Give up on UK property funds and back Stratton Street and Ruffer for decent returns, says Chris Nevile, senior investment manager at Sanlam Private Investments.
Positioning
Nevile’s Capital Creation portfolio has been running with its lowest weighting to equities for two years, at just 35%. The manager expects to increase his exposure in the near future, however, as he believes equities look reasonably valued and that the recent US election has added certainty to the markets.
‘The US looks a little bit cheap and Japan looks absurdly cheap,’ he says. ‘I think we will be allocating more to America and more into emerging markets, possibly into Japan. Europe also looks incredibly good value.
‘We take a very scientific point of view and once you look at the fundamentals, you see there are a great deal of attractive, high-quality investment opportunities to exploit.’
Nevile often uses exchange-traded funds (ETFs) to access equities and likes to spread exposure across the most commonly used ETFs, such as Vanguard, iShares and db x-trackers to reduce individual stock risk.
The portfolio also has 13% in commodities, 11% in property, 7% in cash, an 11% weighting to alternatives and 23% in fixed interest.
Performance
The portfolio has returned 7.13% in the year to 11 October, ahead of the fund’s targeted 7% annualised return. Nevile describes Stratton Street’s New Capital Wealthy Nations Bond fund as his ‘star performer’ this year.
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2 comments so far. Why not have your say?
PCIAM
Nov 21, 2012 at 15:24
Ouch. Lucky old Border Asset Management clients!
Hasn't Jonathan Ruffer recently written to all of his clients apologising for the poor return of Ruffer Investment Company? My figures would seem to indicate that it has underperformed the APCIMS indices by between 5 and 6% this year alone.
What's that mantra again, Mr Nevile? Past performance is no guide to the future?
report thisCoeurDeLion87
Nov 21, 2012 at 16:31
There's a flaw in them there strategies ol' boy! Has anyone spotted that if all wealth managers simply opt out from taking direct equity risk, and focus exclusively on ETF commodities, property, alternative, cash and fixed then there will be no-one really driving equity valuations? Supposed cheap stocks will get just cheaper. Taking equity off the table across the whole wealth zone will only damage UK mid and micro-caps. It's hard enough out there already as UK institutions are hardly supporting the acorn stocks anyway. Roll on RDR. But I do agree that Stratton and Ruffer are the creme de la creme but the lack of vision elsewhere doesn't say much for the rest. The New Capital Wealthy Nations Bond fund is a no brainer. It's never too late to safeguard income with Stratton on this regardless of how close markets are to the proverbial cliff face. The question is are we looking up or looking down?
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