Managers fear the bear

General-equity fund mangers go on the defensive.

The JSE is currently in its second-biggest bull market in history, with an increase of more than 200% in the last four years. But we have some way to go to match the boom seen between 1976 and 1980 when the All Share Index rose nearly 400%.

Cautious investors are taking profits and diversifying into assets deemed less risky such as bonds, preference shares, cash, etc. Pity then the nervous general-equity fund manager, who has no choice but to keep clients' funds fully invested in shares, despite any misgivings about the market.

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