There was much to fret about over the last quarter: Will the West attack Syria? Will Gold Miners' strike? Will the US Fed tighten monetary policy? But none of these risks eventuated and the JSE rose 11% bolstered by an 18% rise in the JSE Resources Index. The global economy is not too hot (causing inflation and monetary tightening), nor too cold (where earnings are under pressure) and consequently equities are performing well. In the absence of tighter monetary policy or an economic shock, the stock market should hold up.

In investment circles there is often the debate between value and growth but the correct debate should be around a business's capability and business model. Winning investments mustn't be overpriced, but must also have the correct business model which allows them to grow at the expense of their peers.

I try to maintain vigilance in selecting the best portfolio in terms of risk and reward over the medium term. Your fund remains the top performing Flexible Fund over 5 years.

It has been an exceptional year for the SA equity market. Despite this I don't see major storm clouds on the horizon and I would retain a high equity content bias. SA economic growth will remain subpar at around 3% and under delivery by government will continue, however SA should perform acceptably bolstered by a strong private sector. The rand is vulnerable to heightened risk aversion in the medium-term, however short-term factors are positive for the rand and it may actually strengthen this year. SA interest rates will remain low and should underpin SA equity prices along with the global search for yield. SA money supply is only growing at 6% indicating inflation should not be a major problem. Longer-term, the twin current account and fiscal deficits are major risk factors. The election of Cyril Ramaphosa as the deputy ANC president is positive, but any tangible benefits to the economy are many years away. The apparent recovery in the US and resumption of growth in China is encouraging whilst Europe remains a concern.

The key challenge from a stock picking perspective is to find undervalued winning companies. As always we endeavour to deliver superior returns whilst protecting your capital.