A good time to start
STEPHEN CRANSTON: Unpacking the Absa Global Value feeder fund
The fund looks for shares with low profits based on cyclically adjusted expectations as well as low price to assets
As the adage goes, the best time to plant a tree was 20 years ago; the second-best time is now. If you haven’t yet invested in offshore products, now is as good a time as ever to start. It strikes me that investing in the Absa Global Value feeder fund (or the somewhat duller Global Core fund) is a convenient way to do so. There is no need to apply to the Reserve Bank for foreign exchange. Unlike an exchange traded fund, there is no need to get a stockbroker involved to fleece you with that hidden charge known as the bid/offer spread. Best of all, the minimum debit order is just R200/month. Plenty of literature shows that rand (or dollar) cost averaging works — it means you can buy more units when markets are depressed. I was fortunate to meet Kevin Murphy, Schroder Global Recovery fund co-manager, at an investment conference last week. Absa Global Value is fully invested in this fund. Murphy says the fund looks for shares with low profits based on cyclically adjusted expectations as...
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