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0  /  0%

100

NAV on 2021/02/25
NAV on 2021/02/24 100
52 week high on 2020/02/28 100
52 week low on 2020/02/28 100
Total Expense Ratio on 2018/12/31 0.19
Total Expense Ratio (performance fee) on 2018/12/31 0
NAV
Incl Dividends
1 month change 0% 0.28%
3 month change 0% 0.85%
6 month change 0% 1.8%
1 year change 0% 4.62%
5 year change 0% 6.44%
10 year change 0% 0%
Price data is updated once a day.
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  • Sectoral allocations
Liquid Assets 104.85 100.00%
  • Top five holdings
TOTDOMMONMKT 51.71 49.32%
CORPDBTCONVRT 15.06 14.36%
FINANCEINSTIT 11.91 11.36%
PUBLENTISSPAP 3.05 2.91%
  • Performance against peers
  • Fund data  
Management company:
Prescient Management Company Ltd. (PIM)
Formation date:
2014/10/28
ISIN code:
ZAE000189106
Short name:
U-AFEMONE
Risk:
Unknown
Sector:
South African--Interest Bearing--Money Market
Benchmark:
Alexander Forbes 3 month STeFI Call Index
Email
info@prescient.co.za

Website
http://www.prescient.co.za

Telephone
+27-21-700-3600

  • Fund management  
Bongani Ngwanya
Zahira Osman


  • Fund manager's comment

Afena Money Market Prescient comment - Dec 19

2020/02/24 00:00:00
Following a disappointing Medium-Term Budget Policy Statement (MTBPS), Moody’s sovereign rating committee finally had seen enough and revised South Africa’s (SA) outlook from stable to negative and affirmed the rating level Baa3. There are no hard and fast rules regarding when an issuer will be downgraded after an outlook change, but Moody’s history shows they take about 18 to 24 months. In SA’s case, they have stressed they would like to see decisive actions to rein in fiscal spending, show growth initiatives, improve tax compliance and other efforts to stabilise the debt ratios in the February 2020 Budget.
A downgrade from Moody’s would mean that all three of the world’s most prestigious credit rating agencies deem SA’s sovereign debt as sub-investment grade or junk. Such a scenario would result in SA’s bonds being excluded from Financial Times Stock Exchange’s (FTSE) World Government Bond Index (WGBI). In other words, the $2.18 trillion (tn) in passive funds that track the WGBI would not be allowed to hold SA bonds. SA bond weight is currently 0.41% of the index or $19.2 billion (bn) which equates R279bn. The funds that hold SA bonds would be forced to sell them resulting in bond yields rising (bond prices falling). The Rand would also be severely impacted as foreign bond holders, who hedge the currency, would unwind Rand contracts which would entail selling the currency too. Although a downgrade from Moody’s may seem like the worst-case scenario, we’d like you to be cognisant that a downgrade in March is not a forgone conclusion. Moody’s placed the rating on negative outlook not negative watch. As we have mentioned earlier, negative outlooks take 18 to 24 months to be resolved whereas a negative watch gets resolved quickly. Given Moody’s affection towards SA, we are of the opinion they will give SA a bit more time.
If one takes a look at SA’s Credit Default Swap spread and credit risk score, you could make a strong argument that the financial markets have already fully priced the impact of a Moody’s downgrade and not much will happen when we eventually get downgraded. There are plenty of funds who don’t track the WGBI and many more who don’t want to join the $11tn invested in negative yielding debt. SA’s high real rates will continue to be a favoured destination for many funds and all this doom and gloom about a Moody’s downgrade could just be another Y2K story.
On the performance front for the quarter, the Fund returned 1.77%, bettering the benchmark, Alexander Forbes Short-term Fixed Interest Composite Index (STEFI), by 2 basis points. We are actively looking for longer dated maturities (6 – 12 months).
  • Fund focus and objective  
The Afena Money Market Prescient Fund is a money market portfolio. The fund will aim to obtain high levels of interest income over time whilst maintaining capital preservation and liquidity. In order to achieve this objective the Manager will invest in high quality and diversified money market instruments, including a transaction for the swap of interest rates as defined from time to time, that will generate competitive yields whilst maintaining high liquidity and capital protection. The portfolio is permitted to invest in listed and unlisted financial instruments in line with the conditions as determined by legislation from time to time.
The portfolio will be subject to the Prudential Investment Guidelines for South African Retirement Funds, being Regulation 28 of the Pension Funds Act, or such other legislation published from time to time.
Nothing in the supplemental deed shall preclude the manager from varying the ratios of securities, to maximise capital growth and investment potential in changing economic environments or market conditions or to meet the requirements, if applicable, of any exchange formally recognised in terms of legislation and from retaining cash or placing cash on deposit in terms of the Deed and any Supplemental Deeds thereto; provided that the manager shall ensure that the aggregate value of the assets comprising the portfolio shall consist of securities of the aggregate value required from time to time by the Act.
The Trustee shall ensure that the investment policy set out in this supplemental deed, the Deed and in all Supplemental Deeds thereto is carried out.
For the purpose of this portfolio, the manager in consultation with the Investment Manager, shall reserve the right to close the portfolio to new investors on a date determined by the manager. This will be done in order to be able to manage the portfolio in accordance with its mandate. The manager may, once a portfolio has been closed, open that portfolio again to new investors on a date determined by the manager.
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