Corion Capital’s CIO David Bacher on asset classes and fund performances for May

Corion Capital chief investment officer David Bacher formed part of last night’s BizNews Power Hour, unpacking the firms monthly asset class and fund performance report for the month of May (attached below for ease of reference). The report is an informative summary of the best and worst performing asset classes and funds and is a great high-level synopsis for any investor. David shares his views on equity market strategies, many of which go through lengthy cycles, highlighted over the last decade with growth funds mighty outperformance relative to their value peers. This makes like for like comparison difficult and underpins the importance of diversification. – Justin Rowe-Roberts

David Bacher on his family heritage: 

Ali Bacher (former Protea captain) is my father. Adam Bacher (former Protea) is my cousin. The first 20 years of my life I was Ali’s son, the next 15 years I was Adam’s brother. Hopefully I’m starting to get a bit of my own identity!

Magnus Heystek on the Corion Report: 

I look at it all the time – we subscribe to the Corion Capital monthly report. I got mine this morning and I was reading through the trends and the movements. You have to stay abreast of what is happening in the market place.

David Bacher on whether past performance is a gauge for future performance: 

That’s a tough question. It depends on the length of time – if I look back at the unit trust industry, I strongly believe that over the long-term there are cycles. When I started in the industry, no one wanted to be a growth manager and on the back of Allan Gray’s performance, everyone was a value manager. Growth was like a swear word in the industry. That cycle played out until around 2008 and on the back of low interest rates, fiscal stimulus and low inflation, growth has outperformed for a very long period till around September or October last year. If I was going to be a ‘mean-revisionist’ over that period, my clients (and myself) would be a very poor person. I do believe that over the long-term there are cycles and that is what we base our investment philosophy on.

On why Corion Capital started this high-level asset class and fund performance report: 

At Corion we try to make the world of investing simpler. There are so many funds, with over 1600 collective investment schemes (CIS). It was an interaction with a financial advisor, I went to his office about five years ago and he was highlighting all the unit trusts and trying to get a feel for the industry. On the back of that, we thought there is a need for the market to highlight the important parts of the industry. We try get the report out on the second business day of every month and I think the market appreciates that.

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