ARE THE BRICS FALLING OUT OF FASHION?

Posted · Add Comment

While BRICS have been dominating the headlines lately, investment returns have not been too impressive over the last year or so. There might be a sector switch out of BRICS into developed markets. In South Africa’s case this could be prompted by an unsustainable current account deficit. One of our portfolio managers, Rob Spanjaard, joins […]

Why gold is no good

Posted · Add Comment

Investors who are looking towards the recent slump in commodity prices – which has seen many resource stocks plunge on the Johannesburg Stock Exchange (JSE) – as a good buying opportunity, are likely to be severely disappointed. Featured on justmoney.co.za, 03 July, 2012 Read the full article here…

Key Investment Themes for 2012

Posted · Add Comment

After completing a strong year in 2011, the fund has started 2012 on a very buoyant note. Current Fund Structure The Rezco Value Trend fund is classified in the Domestic Asset Allocation Flexible sector. As at 27 January 2012 the fund was near its maximum allowable exposure to foreign equities and foreign cash holdings which […]

Europe Going Forward

Posted · Add Comment

We believe that the Joint ECB, FED action of last week was extremely significant. It amounted to stealth Quantitative Easing for Europe. This should continue to drive the market higher but expect volatility. The market result is the probability that the end of this year and the first quarter of 2012 will look similar to […]

Update on the Euro Crisis

Posted · Add Comment

Summary In this note we recap the background to this crisis. We go on to make the point that the European Central Bank (ECB) can solve the problem and we believe will do so. The ECB however needs to keep the sense of crisis to motivate the politicians to make well needed reforms and adjustments. […]

Unpacking the European Crisis

Posted · Add Comment

The September quarter was very trying on investors’ nerves. This commentary will seek to unpack what has happened since the end of the last quarter when the outlook for stocks and the world economy was decidedly rosy. In our last report we warned that icebergs were lurking in the form of sovereign debt issues in […]

Who has been swimming naked?

Posted · Add Comment

A time of market turmoil is always a great opportunity to assess a fund’s true performance. What investors want to know is how much return was generated per unit of risk. The essence of the wisdom contained in the above quote is that in a rising market all things ride with the tide, it is […]

Finding True Value

Posted · Add Comment

Consistency in volatility Rezco’s decision to maintain cash at the high level of 60% turned out to be correct. The All Share index shed another 8.2% over July with the fund also realizing a dip in performance. Declines in the resource sector and a strong Rand which adversely affected our offshore exposure combined to bring […]

The Tale of Two Markets

Posted · Add Comment

Prudent Performer Despite our more prudent approach which results in us being on average 75% invested in equities the Value Trend fund is remains top of its class over both one and three years to June 08. Over three years it is in the top 3.5% of all 427 Unit Trusts. Equally important to us […]

Growing out of Extinction

Posted · Add Comment

Despite our more prudent approach which results in us being on average 75% invested in equities was are currently the number one fund on the Domestic Flexible Allocation Section and number thirteen out of all funds rendering a 32.4% annualised return over a 3 year period (University of Pretoria Unit Trust Survey). The share selection […]

Sifting for Gems whilst avoiding the Value Mirage

Posted · Add Comment

Despite our more prudent approach which results in us being on average 75% invested in equities was are currently the number one fund on the Domestic Flexible Allocation Section and number thirteen out of all funds rendering a 32.4% annualised return over a 3 year period (University of Pretoria Unit Trust Survey). The share selection […]

Managing Risk in Times of Turbulence

Posted · Add Comment

A feature of world financial markets over the past 5 years has been to reward excessive risk taking. Risk premiums between classes of assets and within classes of assets declined to unrealistic levels. Strongly increasing asset prices made many strategies look good. To mix some metaphors and throw in some Buffet: “A rising tide lifts […]

How did the Sub Prime Crisis affect Rezco?

Posted · Add Comment

Rezco Value Trend Goes 5 Star Rezco Value Trend fund recently celebrated its 3-year anniversary in style by receiving a 5-star rating from Morningstar/Standard &Poor’s. This is an exceptional milestone and one that is not easily achieved. As an investor you may ask, “What exactly does this mean to me?” The Star Rating was devised […]

Will Increasing Interest Rates Kill the Party?

Posted · Add Comment

The world economy continues to surge ahead, firing on all cylinders. The American market remains resilient, Europe is strong, Japan has woken up out of its Coma and India, Russia, Brazil and China have dumped their various forms of socialism. A lot of lesser economies are also following this new trend. The dramatic conversion from […]