NAV on 2019/01/15
|NAV on 2019/01/14
|52 week high on 2018/09/05
|52 week low on 2018/03/28
|Total Expense Ratio on 2018/09/30
|Total Expense Ratio (performance fee) on 2018/09/30
Sanlam Collective Investments
South African--Multi Asset--High Equity
ASISA Category Avg: SA - Multi Asset - High Equity
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Terence joined Element Investment Managers in April 2001 and was appointed as a director and chief investment officer. He has worked in financial services since 1991. Prior to joining Element Investment Managers, Terence qualified as a chartered accountant after completing his articles with Ernst & Young and then worked at Allan Gray Ltd as an equity analyst and portfolio manager. In 1998 he became a director of Taita, a private equity house. At UCT he was awarded: Standard Bank University Scholarship, UCT Entrance Merit Scholarship, was on the Dean's Merit List in 1988 and was awarded the class medal for Business Finance (his Business Science special field) and the class medal for Applied Business Statistics II. Terence has been responsible for the investment process and investment team since joining Element Investment Managers over five years ago.
Jeleze joined Element Investment Managers in 2010 as an investment analyst. Jeleze is part of the Fixed Income and Asset Allocation teams, and she focusses predominantly on fixed income analysis and the applicable trading of related fixed income instruments. Her responsibilities further include analysis of the property sector and technical indicators. Jeleze started her career at ABSA with a focus on operational risk and strategic measures to comply with Basel II regulations. She was then employed by Standard Bank (SCMB), working on market risk methodologies and systems. She moved to London in 2005, where she was part of the Strategic Change Management team at Credit Suisse, focusing on projects that involved global integrated teams facilitating the development and implementation of a new market risk system. She ended her London journey as part of Deloitte Consultancy, engaging in various management projects and leading functional implementation teams. Jeleze returned to South Africa in 2008 and joined Allan Gray in Cape Town as the Fixed Interest Trader.
Element Balanced SCI Fund - Sep 18
The Element Balanced SCI Fund realised a total return of 2.4% for the quarter to the end September 2018, outperforming its benchmark (ASISA Multi-Asset High Equity funds) return of 1.2% over this period. The September 2018 quarterly performance brings the rolling one year total performance of the Fund to 1.9% (net of fees) – underperforming its benchmark return of 3.2% over the same period. It should be noted that the Fund is still outperforming its benchmark over a rolling two year, three year as well as five year period. Furthermore, according to Longboat Analytics data, on a relative basis the Fund is rated as the top performing Fund in its category over the past rolling three years.
The quarter saw pretty dismal performance coming from the majority of the local asset classes, with the JSE All Share Index (ALSI) down -2.2%, the JSE Property Index (SAPY) down -1.0%, and the JSE All Bond Index (ALBI) down -1.1%. Exposure to offshore assets provide some relief, as the USDZAR weakened by 3%, coupled with the S&P500 (as an indicator for developed equity markets) strengthening by 7.2% over the period.
It is notable that on a relative basis, our domestic equity holdings outperformed its benchmark (ALSI) over the quarter - it was largely due to our underweight position in Naspers and overweight position in Anglogold. Naspers’ weak share price performance of -12% over the quarter was driven by a weak performance of its large investment in Tencent Holdings, which was down -18% over the quarter. Tencent was weaker due to increased regulation in the Chinese online gaming market.
The Fund’s performance was further positively impacted by our offshore exposure, short duration (i.e. relative underweight bond position) as well as stock specific recoveries. Two examples are African Phoenix Investment Preference Shares (AXLP), which recovered 26% post a Board proposal to buy back all the outstanding preference shares at a price of R37, as well as Grit Real Estate Income Group (GTR) which also rallied by 19% post their successful listing on the LSE on 31 July 2018.
The Element Balanced Fund aims to provide investors with a steady growth of capital and income over the long term while minimising downside risk. The manager aims to do this by investing in an actively managed balanced portfolio. The portfolio complies with the legislation governing retirement funds i.e. Regulation 28 of the Pension Funds Act (Act 24 of 1956). Element Investment Managers signed the United Nations Principles for Responsible Investment (PRI) in May 2006. In signing the PRI, we have committed to adopt and implement them where consistent with our fiduciary responsibilities. We believe that this improves our ability to meet commitments to investors as well as better align our investment activities with the broader interests of society. Element Investment Managers is the first South African investment manager to sign the PRI.