NAV on 2019/07/18
|NAV on 2019/07/17
|52 week high on 2019/04/25
|52 week low on 2019/01/02
|Total Expense Ratio on 2019/03/31
|Total Expense Ratio (performance fee) on 2019/03/31
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 - Mar 19
The Element Balanced SCI Fund realised a total return of 5.0% for the quarter to the end March 2019, underperforming its benchmark (Average of the ASISA Multi-Asset High Equity funds) return of 5.6% over this period. The March 2019 quarterly performance brings the rolling one year total performance of the Fund to 9.0% (net of fees) – outperforming its benchmark return of 5.6% over the same period. It should be noted that the Fund is outperforming its benchmark over a rolling two year, three year as well as five year period.
The quarter saw a significant recovery across the majority of the asset classes, clawing back some of the negative performance experienced during 2018. The largest moves were across the higher risk asset classes, with global equities (MSCI All World Index) up 13.7% in ZAR, local equities (JSE All Share Index) up 8%, and the Preference Share Index up 6%. The offshore assets further benefitted from the weakening of the Rand over the 12 months ending 31 March 2019 (from R11.84 to R14.49 per US$), although the Rand was flat over the quarter. And not to be outdone, the income markets saw a rally late in the quarter after Moody’s kept South Africa’s credit rating constant.
On a relative basis, our domestic equity holdings underperformed their benchmark (ALSI) over the quarter - largely due to our underweight position in Naspers (the ALSI’s largest constituent) and our overweight position in Afrox. Naspers rebounded due to the strong improvement in Tencent’s share price since its low point in October 2018. Tencent, a Chinese tech giant and Naspers’ most material listed investment, rallied +41% from its low in October 2018 to the end of March 2019, pulling the Naspers share price along with it.
Our exposure to Preference Shares (the JSE Preference Share Index was up 6%), as well as our exposure to offshore assets, added to the Fund’s performance. The Fund’s performance was positively impacted by some property stock specific recoveries over the quarter, specifically Hammerson, Capital & Counties and Hospitality Property Fund. One of the largest detractors however was Delta Property Fund, which saw significant selling pressure on the back of delays from the Department of Public Works to renew the majority of their leases before their self-imposed target date of end of February 2019.
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.