NAV on 2019/01/18
|NAV on 2019/01/17
|52 week high on 2018/09/05
|52 week low on 2018/03/27
|Total Expense Ratio on 2018/09/30
|Total Expense Ratio (performance fee) on 2018/09/30
Sanlam Collective Investments
MSCI World Index
No email address listed.
No website listed.
Steve has a B.Sc. (Engineering), B.Com (Hons.) and an MBA degree, all from UCT.
He began his career in 1988 as small cap portfolio manager at Old Mutual. He moved to Investec Asset Management as head of equity portfolio management in 1991 and in 1992 moved to Norwich Investments as their chief investment officer.
In 1995 he became MD of Brait Asset Management (then Capital Alliance Asset Management). In 1997 he became the CIO of Fleming Martin Asset Management, and he moved over to Mercury Specialised Fund Managers in the same role in 1999.
He joined SIM in November 2001 and is currently head of portfolio management. He is also head of alternative investments and collective investment portfolios.
Counterpoint SCI* Global Equity FF
The third quarter of 2018, saw a continuation of the 'risk-off' trend of previous quarters. The US Equity market bucked the trend, led by the Tech heavy Nasdaq which maintained strong positive momentum.
The MSCI World Index appreciated by 5.1% compared to the MSCI Emerging Market Index which declined by 0.9% over the quarter.
The growing disparity across markets and economies intensified over the quarter even though trade war rhetoric and related actions waned slightly. The Fed maintained their commitment to quantitative tightening, which bouyed the US Dollar and maintained pressure on Emerging Markets.
The CBOE Volatility Index (VIX) held steady, with a slight downward bias from the spike in February. Volatility has been relatively stable since the significant turbulence in early 2018. Heightened investor complacency and apparent lack of fear remain a worry - a repeat of the VIX spike in February will lead to sudden and deep drawdowns in risk assets.
Another feature of the quarter was the stability of higher risk-premia across various asset classes. Securities prices have not rebounded quickly, as was the case in previous cycles. Emerging market securities are declining at slower rate but the synchronized global narrative no longer provides support.
Global Bond yields rose across the board. Emerging market bonds were the hardest hit, with a 10.4% decline in dollars. US Bonds were once gain the most resilient. Turkish bonds declining by 21.6% and Brazilian bonds by 15.7%.
For the quarter, most major asset classes declined with relatively few safe havens. Gold declined by 8.3%. The US Dollar strengthened based on relative yield considerations and an underlying growth narrative.
Global property, as measured by the iShares Developed Market Property Yield ETF which tracks the FTSE EPRA / NAREIT Developed Index had an uneventful quarter with slight decline of 0.15%
The fund lagged the World index for the quarter, with a satisfactory positive performance of 0.96% (NAV to NAV; after all costs). The MSCI World appreciated by 5.0%
Global equities have been surprisingly resilient in 2018, with sporadic downside volatility. The extent of the lag in the third quarter has placed the fund behind the MSCI World on a year to date basis. Stock selection has been a solid contributor while sector selection has been a significant detractor.
Stock selection remains solid, with a diversified list of strong performers over the quarter. Dollar strength continued and provided a mild headwind to non-US listed stocks. The fund has lower direct EM exposure, which added value in Q3, as the MSCI EM fell by 0.9% in USD.
At the sector level, lower exposure to Materials contributed strongly. Higher exposure to selected Financials and Media stocks also made a significant contribution. On the other hand, our significant underweight position in Technology was the biggest detractor and primary explanation for the significant lag in the quarter.
The Fund has maintained above-average liquidity, since mid-year 2017. As a consequence, cash drag has been a perennial feature of our return profile, in a market that has mostly advanced and been less suited to our premature positioning. Cash drag was particularly acute in Q3, as the US equity market led the market higher.
The sell-off in EM equities has provided increased opportunities for us to deploy cash.
We are patient and the Fund positioning remains virtually unchanged. We continue to hold high quality businesses, with resilient earnings prospects and reasonable valuations. We remain ready to swiftly deploy liquidity, as and when market opportunities unfold
The portfolio will apart from assets in liquid form, invest solely in the participatory interests of the Counterpoint Global Equity Fund established under the Sanlam Global Funds PLC scheme. This portfolio invests in participatory interests of underlying portfolios that provide exposure to investments across a broad range of asset classes, currencies and market sectors, operated in territories with a regulatory environment which is to the satisfaction of the Manager and Trustee of a sufficient standard to provide investor protection at least equivalent to that in South Africa.