The Prosperity Worldwide Flexible Fund of Funds, which I co-manage, continues to produce good investment returns. Over the last 12 months, the fund is up 17.5% and is the number one performing fund out of 73 funds in its Morningstar Worldwide Flexible section. Since inception (September 2014), the fund is up an average 9.3% per annum. Over the last 3 years to July 2019, the fund is ranked 5th out of 55 funds in its Morningstar investment category.
Central to the fund’s steady returns is its very disciplined investment strategy, which takes positions in irrationally priced asset classes with a very tight risk management overlay. We expect these solid returns to continue, making the fund well suited for the current volatile environment.
The fund’s strong performance over the last 12 months is due to its selective investments in Gold and US Dollar cash. Subsequently, the fund has disposed of its gold and US Dollar positions and increased its exposure to bonds. The fund is currently defensively positioned with a large cash holding and is poised to take advantage of opportunities where irrational prices are presented.
The fund is managed conservatively with a view to preserve capital and provide a return above inflation after tax, which is well suited for retired investors who rely on a steady income.
The graph below shows the fund’s average annual returns of 9.3% since inception and the JSE All Share Index’s and US Dollar’s average returns of 3.9% 6.7% respectively.
Please see the latest Fund fact sheet of the Prosperity Worldwide Flexible Fund of Funds