The fund is overweight Financials and Industrials, thus the outperformance of its benchmark during June. The fund manager expects investment flows to be more towards non-resources equity in the future.

South African equities went against the global trend in May, gaining 4.6% against a decline of 1.6% in the MSCI All Country benchmark. Resources once again advanced strongly, leaving the fund, again, trailing badly. However, against the more appropriate JSE Findi Index, the fund did better than hold its ground. The fund saw only limited change in composition during the month. Aveng was introduced and Reunert’s weighting was increased. African Bank and MIH were eliminated from the portfolio. The fund’s cash holding does not reflect a negative view on the SA equity market going forward. Rather, it is a short-term tactical move whilst the current pause in the global reflation rally runs its course.