“Those investors that want our stock picking skills, and want to invest with us for our stock picking skills, can be fully invested in equities. Those investors that like to invest with us because they put a significant part of their portfolio with us, and we look after the entire portfolio, they can remain in our existing fund,” Regarding Capital Management’s (RE:CM) CEO Jan van Niekerk told CNCB Africa on Friday.
RE:CM has announced a number of changes to its fund range, which will be implemented from 1 January 2014.
“We’re not restructuring any of the underlying portfolios. What we are doing is to make sure that the names of our portfolios are appropriate, that it reflects the underlying portfolio mandate and strategy, that our fees are aligned across the range of portfolios, that the benchmarks are appropriate,” van Niekerk explained.
“What has happened over the history and the life of RE:CM is that we’ve only launched those types of funds that we would put our own money into. I think over time there’s just been a few bits that haven’t been aligned and we’re just putting that together.”
Van Niekerk added that the independent asset management company believes in a very small range of funds, and that investors prefer their equity funds to be fully invested.
“We don’t think we need a large range of outside funds to cater for the needs of most investors. If you look at the fund range, the significant change happens in our equity fund where previously, we had quite a flexible mandate. We allowed ourselves, when we can’t find enough cheap opportunities in the market, to rather hold more cash in our portfolios,” he said.
“We are absolute value investors, when we can’t find value in the market, we like to rather not invest than invest because we have to.”