The Worldwide Fund distributed 4.41 cpu in September. Based on current valuations it is possible to invest in a portfolio of some of the largest and most recognizable companies in the world, listed on first world markets, who pay reliable dividends on a yield well in excess of the current yield of the South African All Share Index. In addition to more attractive valuations, both the US and the UK are showing signs of a sustainable economic recovery whilst emerging market economic growth rates continue to decline. Consequently, the fund's offshore developed market exposure remains maximised at approximately 70%. This exposure has produced good capital returns for investors during the year as well as a relatively high level of income.

Domestic equities exposure is low at 15% as valuations remain demanding. Data continues to suggest that South Africa's economic prospects remain subdued and with dividend yields remaining well below historic averages an increase in local equity exposure is not yet warranted.

The equities (both offshore and local) included in the portfolio tend to focus on basic necessities, enjoy country wide distribution and have strong balance sheets. By the nature of their business, they will be largely unaffected by political decisions and macro-economic events. They tend to fare well in both recessionary and growth phases of the economic cycle and are seldom at the mercy of a new idea, trend or fashion. Their products are generally everyday household items, with market dominance a function of their brands. Consequently, these companies are able to produce reliable and growing dividends regardless of challenging economic conditions.

As a result of income growth from the portfolio's underlying securities the Worldwide Fund increased its June distribution by 5%. The cumulative increase in distributions over the last 12 months has been 10% which has more than offset the impact of inflation over the period.

Based on current valuations it is possible to invest in a portfolio of some of the largest and most recognizable companies in the world, listed on first world markets, who pay reliable dividends on a yield well in excess of the current yield of the South African All Share Index. Consequently, the fund's offshore exposure remains maximised at approximately 70%. Domestic equities exposure is relatively low at 15% as valuations remain demanding. The securities (both offshore and local) included in the portfolio tend to focus on basic necessities, enjoy country wide distribution and have strong balance sheets. By the nature of their business, they will be largely unaffected by political decisions and macro-economic events. They tend to fare well in both recessionary and growth phases of the economic cycle and are seldom at the mercy of a new idea, trend or fashion. Their products are generally everyday household items, with market dominance a function of their brands. Consequently, these companies are able to produce reliable and growing dividends regardless of challenging economic conditions.

The type of companies an investor chooses to use in the construction of an investment portfolio requires careful consideration. Marriott is of the view that choosing companies with predictable profitability are likely to serve investors best. Not only do these companies pay out reliable dividends which can be used to fund a lifestyle or reinvest, history has shown that they also tend to outperform over the long term. Hence, it is possible for investors to reduce the overall risk of an investment portfolio without sacrificing performance through their choice of companies.

The Worldwide Fund distributed 4.2 cpu in March. Based on current valuations it is possible to invest in a portfolio of some of the largest and most recognizable companies in the world, listed on first world markets who pay reliable dividends on a yield well in excess of the current yield of the South African All Share Index. Consequently, the fund's offshore exposure remains maximised at approximately 70%. Domestic equities exposure is relatively low at 15% as valuations remain demanding.

The securities (both offshore and local) included in the portfolio tend to focus on basic necessities, enjoy country wide distribution and have strong balance sheets. By the nature of their business, they will be largely unaffected by political decisions and macro-economic events. They tend to fare well in both recessionary and growth phases of the economic cycle and are seldom at the mercy of a new idea, trend or fashion. Their products are generally everyday household items, with market dominance a function of their brands. Consequently, these companies are able to produce reliable and growing dividends regardless of challenging economic conditions.

The type of companies an investor chooses to use in the construction of an investment portfolio requires careful consideration. Marriott is of the view that choosing companies with predictable profitability are likely to serve investors best. Not only do these companies pay out reliable dividends which can be used to fund a lifestyle or reinvest, history has shown that they also tend to outperform over the long term. Hence, it is possible for investors to reduce the overall risk of an investment portfolio without sacrificing performance through their choice of companies.