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Investec Cautious Managed

Elite Rated by FundCalibre

This fund is managed by the affable Alastair Mundy of Investec UK Special Situations fame. Alastair uses his distinctive contrarian equity investment process, and combines it with primarily bonds but also gold and cash. The intention is for the equity portion to drive the long-term performance, while the fixed income portion reduces volatility.

Company Description

Investec Asset Management was established in 1991 and is jointly owned by Investec (85%), a South African financial services conglomerate, and a consortium of 40 senior employees (15%).

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Fund Manager

Alastair is head of the value team at Investec Asset Management, having joined in 2000 from Morley Fund Management. He runs this fund as well as the Investec UK Special Situations. Alastair graduated from City University in 1988 with a BSc degree in actuarial science.

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We like to look in other people's dustbins for ideas. Every now and then we will find something of value that has been discarded.

Alastair Mundy - Fund Manager

The Investment Process

The equity portion (35-60%) is managed in a similar fashion to Elite Rated Investec UK Special Situations. Initially, Alastair screens for stocks that have fallen 50% over the previous two years, but the peak from which they have fallen from must not be in that period. From this pool he seeks companies with strong balance sheets and little debt. The thesis is that these stocks are suffering due to excessive negative sentiment. The fixed income portion, which is managed by Investec’s specialist fixed income team, is employed to dampen the volatility of the portfolio.

Risk

This fund reduces its risk through diversification and the use of lower risk holdings such as cash, gold and bonds. This plays into the multi-asset nature of the fund and makes it about half as volatile as the UK stock market.

Our Opinion

Alastair’s tried and tested contrarian approach to managing equities drives the long-term performance of this fund. Because of his very distinct style, the fund may underperform at times, but over the very long term, it has an exceptional track record.

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©2014 FundCalibre Limited. All Rights Reserved. The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not ,guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund or of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating.