NAV on 2019/03/20
|NAV on 2019/03/19
|52 week high on 2018/08/29
|52 week low on 2018/10/23
|Total Expense Ratio on 2018/12/31
|Total Expense Ratio (performance fee) on 2018/12/31
Sanlam Collective Investments
South African--Multi Asset--Flexible
FSTE/JSE Capped Shareholder Weighted All
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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 Flexible 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 Aug 2017. Since the fund’s inception the FTSE/JSE Capped All Share Index delivered 0%, domestic property (represented by the FTSE/JSE SA listed property index) declined 17.9% and SA cash paid 10.5% in rand. Marginal rand weakness (since inception) - the rand/dollar exchange rate deteriorated from R13.20 to R14.35, representing a decline of 8.7% - assisted the performance of offshore assets. The S&P500 in rand closed 10.0% higher while the MSCI EM lagged closing 1.9% lower. Since inception the Denker SCI Flexible fund delivered -6.8% (A-class, net of fees).
Over the last quarter of 2018, only bonds and cash assets – onshore and offshore – delivered positive returns to the rand investor.
For now, markets seem focussed on the potential impact of global events on the domestic economy. Little, if no credit is being given to the potential benefits of the reforms being pursued by the Ramaphosa administration. SA Inc listed equities continue to trade at valuations that we believe underestimate the domestic economy. JSE listed equities continue to comprise the bulk of the fund’s assets (~87%).
Following the sell-off in emerging markets we have again increased our exposure from just over 5% to 7.6%.
Global events will continue to dominate news flow and market performance in the shortterm. We see value in emerging market and South Africa equities.
The portfolio will invest in a combination of both local and international asset classes, including assets in liquid form, money market instruments, bonds, debentures, corporate debt, equity securities, property securities, preference shares, convertible equities, derivatives, non-equity securities and any other 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 Manager shall be permitted to invest on behalf of the portfolio in offshore investments as legislation permits.