Weekly Thoughts 25 January 2014

Looking at local and global equities for last year, there have been some great returns with figures of around 14 to 18% in US Dollar terms for some global funds, which is very good. Then the Orbis Global Equity Fund really shot the lights out with a return of more than double that in dollars!!! They had held on to certain assets they owned, staying with their conviction until the returns came through for them. But it took courage to hold on when a number of months ago saw them asking us to be patient. An investor has to be able to tolerate volatility in order to get returns like this, understanding that price can fluctuate hugely but profits will be far more stable.

This coming week brings the first round of asset manager presentations for the year. I will be listening to fund managers from seven different houses and will be looking for a consensus opinion of the current preferred asset class and region/s for investor money going in and how, at this stage, they see the current prices of asset classes and income streams for the year ahead.