“How do investors find sustainable protection as well as sutainable growth within a world that lurches from crisis to crisis”
Rezco is strongly committed to enhancing its track record of delivering a secure balance between risk and growth for investors entrusting the care of their capital to us. Rezco’s main focus is to deliver good returns across the cycle with low volatility. We feel this is best measured by 5 year performance.
Conditions in 2011 are different from 2008, when Rezco timeously created liquidity to insulate investors from the financial & economic melt down at that time. This is clearly visible from our Performance Chart above. Growth has been re-established.
The challenge now is sustainability & risk management in a very different environment. There are opportunities locally & internationally. The values of well run companies are increasing, yet companies with high borrowings need to be avoided because unusually low interest rates will rise some time in the future. Markets have appreciated substantially from the low points, many countries are experiencing debt & cash flow problems, there will probably be more natural disasters, politics in many regions are incredibly fluid, and technology is changing rapidly.
“How does Rezco find sustainable growth in these conditions?”
Our focus is on:
- A diversified portfolio structured by balanced asset allocation locally & internationally.
- screening out unattractive industry sectors
- Investing in companies capable of delivering sustainable earnings growth, based on good product demand with sustainable profit margins.
- companies with price-earnings (PE) multiples, based on projected earnings, of 15 or less;
- net debt to equity of less than 50 per cent. This reflects Rezco’s view that interest rates, currently at exceptionally low levels, will inevitably rise, and hence highly geared companies are avoided.
- reasonable share price to book value multiples
Rezco uses an extensive data base available on markets and companies globally with a quantitative screening system which makes the process manageable and effective.
By identifying companies which combine these features, Rezco is able to undertake the in-depth research required to select newcomers to the portfolio which can achieve a secure balance between risk and growth.
Rezco funds are: