MARKETS & INVESTING
Balancing the blend For asset allocators , 2022 illustrated the risks of being all-in on a single style . Even if investors had 50 % of their portfolio in an active growth fund and 50 % in a passive fund , that portfolio suffered greatly when growth ( and increasingly growth-heavy passive ) funds fell from favour . An investor holding that mix saw a drawdown of 22 %. We believe there ’ s a better way . By blending in good active managers with different styles , investors can balance out the overall risk of their portfolio . Going back to 2022 , an investor who blended a contrarian value strategy into their portfolio could have limited their drawdown to just 8 %. Better still , blending in contrarian value into a passive and growth portfolio did not sacrifice returns over the wonderful past decade for growth – it enhanced them ( see chart opposite ).
Prepared for sunrise The Orbis Global Balanced Portfolio has changed over time , and will again as we continue to adapt to the ever-changing market environment . We are highly active investors , and we are happy to be different from our benchmark ¹ and peers ². It ’ s an approach that has served us well – since inception , the strategy has outperformed its benchmark and is ranked in the top five among its peers ³. While many investors fear the impending sunset , we are eagerly anticipating the next sunrise . For those seeking genuine diversification , we believe the Global Balanced Fund is a useful building block .
To find out more about our analysis and how you can prepare your portfolio for a new day , go to www . orbis . com / intermediaries .
¹ Benchmark – 60 % MSCI World Index and 40 % JP Morgan Global Government Bond Index hedged into Sterling (“ JPM GBI ”) ( together , “ 60 / 40 Index ”) ² Peer Group – Investment Association Mixed Investments 40-85 % Shares Category ³ Source : Morningstar as of 31 August 2023
Disclaimer . The contents of this communication have been approved for issue in the United Kingdom by Orbis Investments ( U . K .) Limited which is authorised and regulated by the Financial Conduct Authority . Orbis Investments ( U . K .) Limited and Orbis Investment Management Limited are members of the Orbis group of companies (“ Orbis ”). This communication does not constitute an offer , solicitation or recommendation to buy , sell or hold any interests , shares or other securities in the companies mentioned in it . Orbis has not considered the suitability of this investment against your individual needs and risk tolerance . You must not rely upon this communication or any part of it as investment advice and Orbis does not assume and will not accept responsibility or liability ( whether arising in contract , tort , negligence or otherwise ) for any error , omission , loss or damage ( whether direct , indirect , consequential or otherwise ) in connection with the information in this communication and disclaims any such liability to the maximum extent permitted by law . This communication represents Orbis ’ view at the date stated and may provide reasoning or rationale on why we bought or sold a particular security for a fund . We may take a different / the opposite view / position from that stated . This is because our view may change as facts or circumstances change . This communication has not been prepared in accordance with legal requirements designed to promote the independence of investment research . Entities and employees of Orbis are not subject to restrictions on dealing in relevant securities ahead of the dissemination of this review . Past performance is not a reliable indicator of future results . When investing your capital is at risk .
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