STEPHEN CRANSTON: Hunting the magic touch, is GSM the investment fund for you?
What I like about the fund is that it has torn up the rule book that required asset allocation to be fixed
There must be quite a few disillusioned investors in the Orbis suite of funds. It could be time to move now that the guiding hand of the late Allan Gray is no longer there — however distant he appeared to be from the business in the end.Surely nobody expected that the Orbis Global Balanced Fund would give a negative US dollar return of 2.1% over the past year when its own benchmark gave 12.1%.The fund was launched in 2013 and has given investors 5.7% a year since — less than its benchmark (60% the MSCI world index and 40% JPMorgan’s global government bond index) of 6.5%.Perhaps it’s time to consider one of the other local brands: Investec Global Strategic Managed (GSM). It’s a mouthful and an unexciting name at the same time but maybe, when the business is rebranded next year after it splits from Investec Bank, this fund can be given more sex appeal.And at least it has a lot more runs on the board than Orbis, with a dollar return of 10.9% over the past year.Of course, this is just o...
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