COVID-19 information: SA Corona Virus

Is the strategy diversified and what sectors?

The strategy looks at the TOP 140 most Liquid Stocks on the JSE and out of those stocks picks a balanced portfolio between the following three types of shares:

  1. 50% Momentum/Growth – Stocks selected quantitatively based on momentum (buy high, sell high) and earnings/dividend growth criteria;
  2. 30% High Dividend and/or Earnings yield stocks selected quantitatively (EPS/DPS averaged over a 2-5 year period); and
  3. 20% Blue Chip companies using a handicap system with the handicaps determined partly quantitatively (14 criteria) and partly subjectively. 


There is also a strong cash underpin, as the CFD portfolios historic margining has been 20% of the funds under management with 80% of the funds being retained in cash earning a SAFEY rate which is detailed in your m2m statements daily.


A balanced sector exposure is maintained, using 9 broad sectors (Consumers, Food & Health, Industrials, Financials, Property, Services, Telecom/Media/Technology, Resources and Gold/Platinum), with overweight exposure in those sectors with high momentum and underweight exposure in those sectors with low momentum.

Did you find it helpful? Yes No

Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.