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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.

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