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-1.17  /  -0.1%


NAV on 2020/01/23
NAV on 2020/01/22 1137.79
52 week high on 2019/09/12 1162.21
52 week low on 2019/02/14 1119.33
Total Expense Ratio on 2019/09/30 0.72
Total Expense Ratio (performance fee) on 2019/09/30 0.41
NAV Incl Dividends
1 month change -1.3% 0.86%
3 month change -0.87% 1.3%
6 month change -1.2% 3.21%
1 year change 1.81% 10.8%
5 year change -0.5% 8.16%
10 year change 1.07% 9.38%
Price data is updated once a day.
  • Sectoral allocations
Gilt 20.88 0.89%
Gilts 1775.87 75.41%
Liquid Assets 62.87 2.67%
Money Market 495.26 21.03%
  • Top five holdings
MM-10MONTH 300.58 12.76%
MM-12MONTH 110.06 4.67%
MM-06MONTH 38.61 1.64%
AIRNAM04 20.88 0.89%
MM-11MONTH 20.04 0.85%
  • Performance against peers
  • Fund data  
Management company:
Allan Gray Unit Trust Management (RF) Pty Limited
Formation date:
ISIN code:
Short name:
Low - Medium
South African--Interest Bearing--Variable Term
All Bond index
Contact details




  • Fund management  
Mark Dunley-Owen
Londa Nxumalo

  • Fund manager's comment

Allan Gray Bond comment - Sep 19

2019/10/14 00:00:00
US treasuries had a volatile quarter, with the benchmark 10-year yield starting at 2%, then falling to as low as 1.47% at the end of August, as a result of escalating trade concerns. Yields subsequently retraced to 1.79% as the hunt for yield resumed after dovish policy action from the Federal Reserve and other key central banks. The US treasury yield curve remains inverted – meaning that short-term yields are higher than longer-term yields. These inversions are noteworthy because they have historically preceded recessions.
In South Africa, real sovereign credit spreads ticked up during the quarter, with fiscal concerns coming under closer scrutiny. The SA government is facing a double whammy of increased spending to bail out struggling state-owned entities (SOEs) – with Eskom being the largest burden – together with revenue under-collection due to slow economic growth and rising unemployment. This will necessitate increased bond issuance if the shortfall cannot be sufficiently met by expenditure cuts elsewhere.
Despite the prevailing economic malaise, the domestic credit market has proven to be rather robust, with 2019 issuance on track to exceed last year’s R115bn. Auction activity has been dominated by banks and corporates, while SOEs have largely avoided public auctions due to negative investor sentiment around the sector. Demand for credit assets also remains robust. Therefore, credit spreads have continued to tighten, although the rate of compression is slowing down relative to prior years.
During the quarter, we switched out of short-dated Eskom bonds into longer-dated bonds (both are government guaranteed) in order to capture the term premium, as the long bonds had a higher credit spread relative to the benchmark. We took advantage of a mid-August sell-off in bonds by adding a little bit of duration to the Fund. We also added some bank AT1 paper, which is floating rate and provides attractive credit spreads relative to SOEs, corporates and bank senior paper.
The Fund remains conservatively positioned, with duration significantly shorter than the All Bond Index and sufficient liquidity to take advantage of any sell-offs in the bond market that may provide attractive entry points.
Commentary contributed by Londa Nxumalo
  • Fund focus and objective  
The Fund invests in South African interest bearing securities. Securities include national government, parastatal, municipal, corporate bonds and money market instruments. The Fund price is sensitive to interest rate movements because of the long-term nature of the Fund's investments. The duration of the Fund may differ materially from the benchmark. The Fund is managed to comply with investment limits governing retirement funds.

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