Ashburton has been granted approval to promote its money market funds in South Africa. The company i...
Ashburton has been granted approval to promote its money market funds in South Africa. The company is aiming to market the funds to South African investors hesitant to invest in stock markets at present but wishing to obtain exposure to international currencies, particularly following the recent rally of the rand.
Peter Lucas is manager of the funds. The portfolios launched in October 2002 and the funds have grown to over $67m and have returned 3.41%, 0.56% and 1.54% in sterling, dollar and euro respectively in the last 12 months.
Trevor Falle, managing director of Ashburton, said: 'The funds are in a portfolio exclusively exposed to cash or cash equivalent instruments traded on the global capital markets. Private investors are able to obtain similar levels of return to those available to institutional investors, with the same level of capital security. With interest rates at such depressed levels and with the extreme volatility in the markets, there will be many private clients seeking alternative investment schemes.'
For South African clients in particular, there remains the added attraction of the rand/ dollar exchange rate. According to Falle, investing internationally is to some extent a life-style decision, given that it can help to limit portfolio risk and thereby bestow peace of mind.
'As a result, there is never really a bad time to consider investing abroad. However, the reality is that the South African rand had become so undervalued by December 2001 that many South African investors were dissuaded from pursuing this line of action. Two years down the line the picture has changed considerably.
'Thanks to a combination of currency strength and high inflation, the real value of the rand has risen. South Africans are rediscovering their appetite for global investments,' said Falle.
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From 6 April 2019