NAV on 2020/10/23
|NAV on 2020/10/22
|52 week high on 2020/08/18
|52 week low on 2020/03/19
|Total Expense Ratio on 2020/06/30
|Total Expense Ratio (performance fee) on 2020/06/30
Sanlam Collective Investments
South African--Multi Asset--Low Equity
CPI + 4% p.a.
No email address listed.
No website listed.
* 1998: Completed articles at Grant Thornton Kessel Feinstein* Joined Franklin Asset Management (senior research analyst)* Joined SIM in 1999 on the industrial team as an equity analyst* 2002 - 2006: Head of small caps at Sanlam Investment Management* Current: Head of unconstrained equities
Claude van Cuyck
Claude completed his B.Com degree at Rhodes University and B.Com Honours degree from UNISA. He is also a CFA. He joined Karlein Independent Investment Consultancy (KIIC) in 1993 as a trainee portfolio manager. He subsequently joined SIM (then Gensec Asset Management) as senior analyst: equities. * Joined Sanlam Asset Management in 1994 as an equity analyst.* In 1998 joined Gryphon Asset Management as a portfolio manager and analyst (running unit trusts and pension fund portfolios as well as retaining research responsibilities).* Returned to SIM in 2002. * Head of equities at Sanlam Investment Management. * Has researched a number of sectors across the JSE in the 14 years that he has been an analyst/ portfolio manager. * Currently runs the Sanlam General Equity unit trust, after managing the Industrial unit trust for a number of years. * Member of SIM's model portfolio group that sets the equity house view and the asset allocation house view.
Denker SCI Stable Fund - Dec 19
Global markets Global equity markets performed well over the quarter. On a total US dollar return basis - the S&P 500 Index gained 9.0%, the MSCI World Index 8.6% and the MSCI Emerging Markets Index 11.8%. The surprising decline in long dated developed market bond yields that started in Q1 reversed in the final quarter of the year. Yield on US 10 year maturity government bonds increased from 1.7% at the end of Q3 to 1.9% at the end of Q4. The yield on 10 year German bonds, which had fallen to -0.6% at the end of Q3, closed the year at -0.2%.
In December President Trump became the third president since America’s founding to be impeached. Nearly all Democrats voted in support of the two articles of impeachment - abuse of power and obstruction of Congress – but they failed to attract Republican support. As Republicans control the Senate and a two-thirds majority would be required to remove Trump from office, a conviction seems unlikely.
In the UK election in December, the Conservative Party secured the biggest majority since 1987 - an unexpected landslide after relentless campaigning on the promise to “Get Brexit Done”. The majority will give Prime Minister Boris Johnson greater leeway to steer future trade talks.
South African markets
SA markets outperformed emerging market peers. The FTSE/JSE Capped Swix Index delivered a total return of 5.3% in rand. US dollar investors gained an additional 7.5% as the rand strengthened from R15.13 at the end of Q3 to R13.99 at the end of Q4. SA bonds delivered 1.9% in rand to investors during the quarter.
In October, the Medium Term Budget Policy Statement (MTBPS) projected a large and sustained increase in government’s debt to GDP ratio as large fiscal deficits remained. This reflected a material deterioration relative to the projections published by National Treasury in February. Treasury warned, “…final adjustments will be announced in the 2020 Budget. These measures require difficult decisions that will affect the economy and the distribution of public resources. The short-term costs, however, are outweighed by the need to ensure sustainable public finances”. Following the release of the MTBPS, Moody’s downgraded SA’s credit outlook to negative (but did not cut the rating to junk). Moody’s said that the change “…reflects the material risk that the government will not succeed in arresting the deterioration of its finances through a revival in economic growth and fiscal consolidation measures. The challenges the government faces are evident in the continued deterioration in SA’s trend in growth and public debt burden”.
Since the fund’s inception in June 2017 the FTSE/JSE Capped SWIX Index delivered 5.3%, the FTSE/JSE SA Listed Property Index declined 12.5% and the STeFI Composite Index paid 20.0% in rand. The rand/US dollar exchange rate deteriorated from R13.10 to R13.99, representing a decline of 6.8%, which added to the performance of offshore assets. In rand terms, the S&P 500 Index closed 43.1% higher while the MSCI Emerging Markets Index lagged, closing 18.4% higher.
We remain committed to maintaining the fund’s 25% offshore allocation. Although we had not expected the rand to appreciate as it did, during the course of the year we introduced a strategy to protect investor capital against the risk of an appreciation in the rand/dollar exchange rate. This protection paid off handsomely in the final quarter of 2019 as the rand strengthened.
The return prospects for long dated developed market government bonds remain unattractive. We prefer shorter dated cash investments offshore that offer a similar level of returns but without the asymmetric downside risk posed by developed market debt instruments. This cautious allocation in offshore money markets caused a modest drag on performance. We remain off the view that shorter dated assets will result in superior risk adjusted returns than the alternative of committing capital to a low return asset for an extended length of time.
Our asset allocation is relatively risk averse. This risk averse allocation has been a persistent drag on performance in 2019, but asset market valuations remain elevated and the ability to reduce capital volatility has been limited.
We find it prudent to focus on capital preservation, so while we continue to look for ways to enhance returns we aim to do so without incurring any unnecessary risk.
The portfolio will invest in a combination of asset 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: low equity classification requirements as set out by the Asisa standard: fund classification for South African regulated collective investment scheme portfolios.