Brave investors can reap reward

IF investors can stomach short-term volatility and losses they can be rewarded with some serious long-term capital growth.

Asset management company Allan Gray has in recent years outperformed the Johannesburg Stock Exchange All Bond Index on average by 9.5%, with most clients who invested for 2½ years and longer getting positive returns.

At an annual client investment seminar at the Boardwalk Convention Centre in Port Elizabeth on Monday, Allan Gray distribution and client services director Jeanette Marais said the company – founded by East London-born Allan Gray in 1973 – was not passive, but longterm investment in action.

Allan Gray associate portfolio manager Leonard Kruger said while potential investors were often afraid of losing their hard-earned money on the stock market, the company invested conservatively to avoid losses and to protect clients against risks.

Sharing some of the secrets to the company's investment success, Kruger said the company looked at performing businesses with a good long-term track record and went through a rigorous due diligence process before buying shares.

Some of the top-performing onshore shares that Allan Gray invested in included British American Tobacco, Standard Bank and Sasol.

The company also offered off-shore investment through Orbis Investment Management, a global investment company founded by Allan Gray.

Seema Dala, Orbis client services head in South Africa, said the firm was focused on companies in the oil and gas, technology and consumer services sectors. - Cindy Preller