NAV on 2019/05/17
|NAV on 2019/05/16
|52 week high on 2018/09/04
|52 week low on 2019/03/11
|Total Expense Ratio on 2018/12/31
|Total Expense Ratio (performance fee) on 2018/12/31
Sanlam Collective Investments
South African--Multi Asset--Flexible
CPI + 5%
No email address listed.
No website listed.
Sandy le Roux
Baobab SCI Flexible Fund - Dec 18
There has been limited activity during the quarter, besides adding to a few existing positions and introducing a small new position in Anglogold. One of the positions we added to was Yatra Online which got sold off heavily with most emerging market equities late in the year. Yatra Online is the second largest online travel agency in India with specific advantage in the corporate travel sector. Trading at less than 1 times revenue we think it offers very cheap entry into a company with an enormous growth runway ahead of it as the Indian travel industry is just getting started. Our position in Anglogold is not a large one, but we are of the view that some gold exposure is appropriate in a portfolio. The sector, and particularly the shares, are extremely unloved and underowned, and the world remains a fragile and risky place in our view. We are by no means gold bulls, but do think it has some protective characteristics, especially when sentiment towards the metal is poor and valuations attractive.
Late in the quarter Bowler Metcalf paid out a special dividend of R3, being some of the proceeds from the sale of the beverage business. After the distribution Bowler still has excess cash on its balance sheet and the remaining packaging business is still very cheap. Bowler is by no means an outstanding business, but because we bought it at the right price it has proved to be a safe investment in very tough environment.
As we enter 2019 we are encouraged by the recent increase in volatility and some of the opportunities being presented. All of the shares we own are cheap and have reasonable long-term prospects, leading us to be constructive about the long-term return potential. We maintain a full offshore weighting, not because we think that the rand will weaken, but because we are still able to find very good global companies trading at very attractive
The portfolio will adopt a flexible approach and the asset class exposure will be varied depending on opportunities in the market. The portfolio will invest in a range of asset classes including equities, bonds, money market instruments, listed property as well as international equities and fixed interest investments. Each instrument will be selected on a bottom-up basis and based on its individual risk/reward status, and ability to deliver on the long term objective of the fund.
The investment manager will also be allowed to invest in listed and unlisted financial instruments (derivatives) as allowed by the Act from time to time in order to achieve its investment objective.
The Manager shall be permitted to invest on behalf of the portfolio in offshore investments as legislation permits.
Apart from the above, the portfolio may also invest in participatory interests of portfolios of collective investment schemes registered in the Republic of South Africa or of participatory interests in collective investment schemes or other similar schemes operated in territories with a regulatory environment which is to the satisfaction of the Manager and the Trustee of a sufficient standard to provide for investor protection which is at least equivalent to that in South Africa.
For the purpose of this portfolio, the 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.
The Trustee shall ensure that the investment policy set out in the preceding clauses are adhered to; provided that nothing contained in this clause shall preclude the Manager from varying the proportions of securities in terms of changing economic factors or market conditions or from retaining cash in the portfolio and/or placing cash on deposits.