BoE Core Equity Fund Comment- Sep 11 - Fund Manager Comment22 Nov 2011
In line with global markets, the JSE All Share Index declined by 3.6% over the month. Health Care was the only industry group to post a positive return (+4.1%). The biggest losses came from Telecoms (-5.75), Basic Materials (-5.3%) Consumer Services (- 3.6%) and Financials (-2.9). Foreigners were net sellers of SA equities in the 3rd quarter to the tune of R20.1bn.
The model outperformed by 10bps for the month and is now pleasingly ahead of benchmark for the year to date due to relative outperformance for the since March.
The more defensive shares in the portfolio did their job in September, with BAT, SAB, Aspen and Discovery all contributing positively to performance. The more cyclical Mining shares (BHP and Anglo's), Richemont and Mr Price all weighed on performance.
BoE Core Equity Fund Comment- Jun 11 - Fund Manager Comment20 Sep 2011
The JSE All Share Index declined by 2.0% in June 2011. The worst performing sectors were Gold Mining (-9.5%), Media (-5.2%) and Household Goods (-5.2%). The best performing sectors were Technology, Hardware & Equipment (15.4%), Coal Mining (7.9%) and Automobiles & Parts (5.6%). Resources, Industrials and Financials declined by 3.0%, 1.4% and 2.4%, respectively. Mid Caps (0.0%) outperformed both Large Caps (-2.4%) and Small Caps (-0.2%).
In a volatile month that saw the market decline by nearly 6.80% before "recovering" to -2.0%, the Fund more or less tracked the index; underperforming its benchmark by 20bps over the month. The model holds no gold miners which offset the negative relative performance as a result of an overweight position in Naspers and an underweight position in BHP Billiton. Mr Price, along with other retailers, contributed positively to the model's performance.
BoE Core Equity Fund Comment- Mar 11 - Fund Manager Comment24 May 2011
The JSE All Share Index gained 0.52% in March 2011. The best performing sectors were Mobile Telecommunication (12.8%), Automobiles & Parts (12.7%), and Food & Drug Retailers (6.1%). The worst performers were Media (-8.6%), Construction & Materials (-5.6%) and Travel & Leisure (-5.4%).
In March, Resources (-2.2%) underperformed both Industrials (+2.6%) and Financials +3.0%). Large Caps (+0.6%) outperformed both Mid Caps (+0.2%) and Small Caps (-0.8%).
The Fund underperformed the benchmark by 22bps over the month. Overweight positions in Naspers, Bidvest and Anglos were the main contributors to the underperformance. The overweight positions in Retail and in MTN were the largest positive contributors to performance for the month.
BoE Core Equity Fund Comment- Dec 10 - Fund Manager Comment04 Mar 2011
The JSE All Share Index rose by 6.2% on a total return basis in December 2010 and 19.0% for 2010. The top sectors for 2010 were General Retailers (+61.5%), Personal Goods (+58.1%) and Food and Drug Retailers (+49.6%). Laggards for the year were Platinum (+5.7%), Construction and Materials (4.7%) and Coal Mining (-17.6%).
The Fund delivered a total return of 4.97% underperforming the ALSI's 6.20% by 1.23% in December. BAT, Spar and City Lodge all had negative returns in December and the Fund's positions in these counters resulted in the poor relative performance.
The Fund underperformed the ALSI by 1.2% over 2010. Key causes of this relative underperformance were at a stock level and include the overweight positions in Anglo, Impala, Standard Bank and MTN, and no exposure throughout the year to Massmart. The fund was also more liquid in December due to distribution requirements and this acted as a drag on performance in a strong market.