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0.09  /  0.09%

104.75

NAV on 2019/11/20
NAV on 2019/11/19 104.657
52 week high on 2019/05/06 106.2861
52 week low on 2018/11/22 100.5471
Total Expense Ratio on 2019/06/30 1.11
Total Expense Ratio (performance fee) on 2019/06/30 0.02
NAV Incl Dividends
1 month change 1.47% 1.47%
3 month change 1.74% 3.69%
6 month change 1.45% 3.39%
1 year change 3.93% 7.57%
5 year change 0% 0%
10 year change 0% 0%
Price data is updated once a day.
  • Sectoral allocations
Bonds 10.19 13.52%
Fixed Interest 21.02 27.89%
General Equity 23.51 31.19%
Industrials 0.47 0.63%
Liquid Assets 3.82 5.07%
Spec Equity 5.35 7.10%
Offshore 11.00 14.59%
  • Top five holdings
U-SIMENYD 8.32 11.04%
U-SLINCR 7.43 9.85%
U-INVEQU 5.61 7.45%
U-MARDIVI 5.35 7.1%
U-COREQU 5.32 7.06%
  • Performance against peers
  • Fund data  
Management company:
Prime Collective Investment Schemes
Formation date:
2018/09/25
ISIN code:
ZAE000261905
Short name:
U-AUTUSDI
Risk:
Unknown
Sector:
South African--Multi Asset--High Equity
Benchmark:
Average of the South African Multi Asset High Equity category
Contact details

Email
info@primeinvestments.co.za

Website
www.PRIMEinvestments.co.za

Telephone
010-594-2100

  • Fund management  
Autus Fund Managers


  • Fund manager's comment

Autus Prime Diversified comment - Sep 19

2019/10/24 00:00:00
Market commentary
It is increasingly difficult to find “green shoots” of hope when surveying the current South African economic landscape. The economy rebounded by 3.1% in 2Q2019 after the -3.1% recorded in 1Q2019. The mining and finance sectors contributed positively while manufacturing and trade detracted from economic growth in the quarter. For 2019 GDP growth of 0.6% is projected. Recent inflation updates and expectations show that inflation is at or near the midpoint of the 3%-6% target range despite fuel prices having risen 14.5% year-to-date and administered prices being hiked. Headline inflation of 4.2% is forecast for 2019. At their July meeting, the SARB elected to lower the bank rate by 0.25% to 6.5% while the prime rate was lowered to 10%. Effectively, the SARB returned to the SA consumer what it took away in November 2018. Business confidence (SA Chamber of Commerce and Industry Index) continued to drop in August to levels not seen in 34 years. The NHI Bill was released, setting out the architecture for an NHI fund. This has raised questions over the future of private healthcare and the cost and funding implications on government revenue. Prevailing policy uncertainty, the Eskom debt burden, an increasing budget deficit, and worsening debt-to-GDP ratio make a Moody’s rating downgrade ever more likely in the foreseeable future.
Credit must be given to Finance Minister Mboweni for publishing a paper offering a detailed examination of the structural reforms needed to reverse the downward trend in South Africa’s growth potential and competitiveness. Sadly, it was met with much resistance from alliance partners and some members in the ruling party. We hope that consensus could be reached sooner rather than later by all major role-players on implementing much needed economic and job growth initiatives as a matter of urgency.
Internationally, two interest rate cuts of 25 basis points each were announced by the United States Federal Reserve. Further import tariffs on Chinese goods were extended by the Trump administration until after the end-of-year festive season as trade negotiations between the world’s two largest economies continue with no clear solution in sight. The United States Treasury bond yield curve inverted at the two-year and ten-year maturities which caused some investors to speculate that a recession could be looming. The last time the yield curve inverted at these maturities was in 2007. In July, Boris Johnson was elected as the new Prime Minister of the United Kingdom. Johnson promised to deliver on the withdrawal of the United Kingdom from the European Union even if it comes at the cost of having no trade agreement (a so-called Hard Brexit). Early indications are that Johnson will struggle to win the necessary parliamentary support to deliver on his promise (as was the case with his predecessor).
Portfolio commentary
The Fund is focussed on delivering consistent above average capital growth over the medium to long-term. It may be that in the short term, returns are volatile due to the high equity mandate of the Fund. During this quarter, the ongoing trade war between the US and China and the global economic slowdown dominated headlines, while a drone attack on Saudi Arabian oil fields, causing oil supply disruptions, sent the oil price spiralling higher adding to prevailing investor nervousness. In an uncertain global and local economic environment where downside risks are elevated, it is prudent to place a greater emphasis in capital protection. For the quarter under review the Fund’s return was flat (-0.05%) against its benchmark of 0.15%. The JSE All Share Index returned -4.57% and listed property stocks reporting a similar -4.44%. Cash returned 1.83% and the All Bond Index a positive 0.78%. It is worth noting that foreigners have continued to be significant net sellers of SA equities in the period under review. A below benchmark weighting to equities and higher fixed interest weighting helped to preserve capital. Poor fundamentals for listed property caused the Fund to reduce to zero its direct property exposure by exiting the Sesfikile Property Fund. This is an asset allocation decision despite us liking the Sesfikile management team and investment process. The offshore diversification in the Fund is obtained through shares held directly in global listed stocks. Berskshire Hathaway and Fedex shares were sold while shares in Coca Cola were added. The offshore component of the Fund returned 5.2% in the quarter. The specialist managers selected for the Fund have remained mostly unchanged over the quarter apart from selling the Mazi Capital Prime Equity Fund and lowering exposure to the other equity managers as the Fund’s equity exposure was pared back in favour of fixed interest assets. The Prescient Money Market Fund was sold and holdings in the Stanlib Income Fund and Nedgroup Investments Core Income Fund added. Caution remains our default stance until signs of a turnaround in local economic fortunes emerge.
  • Fund focus and objective  
In order to achieve its objective, the portfolio will at all times invest a minimum of 75% of its net asset value in portfolios of collective investment schemes which are not managed by the same investment manager and which are consistent with the portfolio's investment policy. The composition of the fund shall reflect the investment structure of retirement fund with an aggressive risk profile and is compliant with the prudential guidelines to the extent allowed by the Act.
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