NAV on 2019/03/22
|NAV on 2019/03/21
|52 week high on 2018/09/03
|52 week low on 2019/01/02
|Total Expense Ratio on 2018/12/31
|Total Expense Ratio (performance fee) on 2018/12/31
Sanlam Collective Investments
South African--Multi Asset--High Equity
60% ALSI CAPI; 15% SteFI; 15% MSCI World; 10% US 10yr Treasury
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Jan has nine years investment experience. He qualified as a chartered accountant at Coopers & Lybrand and holds a chartered financial analyst charter. His field of expertise in terms of investments extends over a wide range of equity sectors, as well as the fixed income market. Jan is responsible for alternative investment strategies, as well as managing fixed income portfolios at Gryphon Asset Management. Jan has also been a director of the Gryphon Group since 1999.
Denker SCI Balanced Fund - Dec 18
In US dollars, equity markets had a tough quarter. Unfortunately South Africa continued to lag; outperforming only a handful of emerging market equity indices. The MSCI All Country World equity index closed lower. Surprisingly, emerging markets performed relatively better.
Finance Minister, Nhlanhla Nene resigned and was replaced by previous central bank governor Tito Mboweni. The markets responded with some enthusiasm to the appointment. Mr Mboweni then delivered the Medium Term Budget Policy Statement (MTBPS) a few short weeks later. Salient features include downwardly revised growth forecasts, slippage on projected deficit and debt targets over the medium term – a result of lower revenue projections and a reprioritisation of public spending (while maintaining the expenditure ceiling).
The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) raised the repo rate by 0.25% highlighting rand depreciation, electricity price increases and higher international oil prices. Markets expect the MPC to raise the repo rate to 7.5% over the next 18-24 months. S&P maintained a stable outlook and affirmed South Africa’s local currency debt rating.
International trade tensions remained elevated and data releases indicated that Chinese growth might be slowing.
The fund was launched on 2 May 2017. Since the fund’s inception the FTSE/JSE Capped All Share Index delivered 2.0%, domestic property (represented by the FTSE/JSE SA listed property index) declined 14.6% and SA cash paid 12.5% in rand. Marginal rand weakness (since inception) - the rand/dollar exchange rate deteriorated from R13.34 to R14.35, representing a decline of 7.6% - assisted the performance of offshore assets. The S&P500 in rand closed 12.8% higher while the MSCI EM lagged modestly gaining 5.1%.
Over the last quarter of 2018, only bonds and cash assets – onshore and offshore – delivered positive returns to the rand investor.
As we wrote at the end of the previous quarter, markets have provided little opportunity for outsized returns.
Owning assets exposed to different macro-economic risks and rewards is how one achieves diversification. This means that not all assets held by the fund can deliver returns in the same environment. A diversified portfolio means reduced volatility and capital stability; one of the main aims of the fund.
-We remain committed to maintaining the 25% offshore allocation. -We have no intention of acquiring long dated developed market debt. We prefer to roll shorter dated cash investments which offer lower returns, but reduce the risk of capital losses. -We have again reduced our underweight equity allocation domestically. We continue to buy exposure to SA Inc and emerging markets following recent poor performance.
In the absence of major regulatory reform, South Africa will follow where global markets lead.
The portfolio will invest in a combination of assets classes both locally and internationally, including assets in liquid form, money market instruments, bonds, debentures, corporate debt, equity securities, property securities, preference shares, convertible equities, non-equity securities and any other listed and unlisted securities which are considered to be consistent with the portfolio's primary objective and the Act or the Registrar may allow all to be acquired at fair value. The manager may also include unlisted forward currency, interest rate and exchange rate swap transactions for efficient portfolio purposes. The portfolio will be actively managed with exposure to various asset classes being varied to reflect changing economic and market circumstances, in order to maximise returns for the investors. The portfolio shall adhere to the multi asset: high equity classification requirements as set out by the ASISA Standard: Fund classification for South African regulated collective investment portfolios.