Springbok Posted May 10, 2007 Report Share Posted May 10, 2007 This is where I will most likely invest my funds for retirement in Australia:www.orbisfunds.com.auOn 1 January 2006 Orbis launched an Australia Equity Fund.The Fund is managed using the techniques developed at Allan Gray Limited and the Orbis Group over the past 30 years, applied to the Australian stock market. Units in the Orbis/SM Australia Equity Fund are now offered to both Wholesale and Retail Clients. The benchmark is the S&P ASX 300 Accumulation Index. Past performance is not necessarily indicative of future performance. Fund share prices will fluctuate and are not guaranteed. Returns for periods of more than one year are annualised. Return Statistics as at 8 May 2007: % Fund Return % Benchmark Return 1 Month 2.92 3.83 3 Month 6.58 8.12 1 Year 21.92 23.63 Inception 27.09 28.38 Latest quarterly report attached below.CheersCharl Quote Link to comment Share on other sites More sharing options...
woodag Posted May 10, 2007 Report Share Posted May 10, 2007 . . .The benchmark is the S&P ASX 300 Accumulation Index. Past performance is not necessarily indicative of future performance. Fund share prices will fluctuate and are not guaranteed. Returns for periods of more than one year are annualised. Return Statistics as at 8 May 2007: % Fund Return % Benchmark Return 1 Month 2.92 3.83 3 Month 6.58 8.12 1 Year 21.92 23.63 Inception 27.09 28.38Given that so far they have not kept up with their benchmark, should we hope that past performance is really not going to be indicative of future performance? Quote Link to comment Share on other sites More sharing options...
Springbok Posted May 11, 2007 Author Report Share Posted May 11, 2007 Given that so far they have not kept up with their benchmark, should we hope that past performance is really not going to be indicative of future performance?Exactly. Not that they have massively underperformed since inception.Take note from the Quarterly Report that "The Investment Manager seeks long-term returns for investors that are higher than those of the S&P/ASX 300 Accumulation Index... without assuming any greater risk of loss than that of an investment in the securities represented on the S&P/ASX 300 Accumulation Index."It is not unheard of for Allan Gray / Orbis to underperform over shorter time horizons. But they invest with a longer timeframe in mind and it is for periods longer than 5 years where they really start to excel. Remember they started this fund in January 2006 when the overall stockmarket was already at historically high levels. The Fund is therefore positioned cautiously, as Orbis believes a correction will happen at some point. Of course no has the ability to predict when or how this will happen. Investment is not only about growth of capital - protection of capital is just as important. And given the risks that have been building for years, Orbis would at this stage adopt a less aggressive stance than the Fund’s benchmark does, as they believe it is in the clients' best interest over the longer term. Quote Link to comment Share on other sites More sharing options...
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