NAV on 2019/09/16
|NAV on 2019/09/13
|52 week high on 2019/04/23
|52 week low on 2018/12/10
|Total Expense Ratio on 2019/06/30
|Total Expense Ratio (performance fee) on
Boutique Collective Investments (RF) (Pty) Ltd.
South African--Multi Asset--High Equity
60% JSE All Share Index, 10% MSCI World Index, 12% All Bond Index, 18% 3 month Jibar
Efficient BCI Balanced comment - Dec 13
Unlike most Decembers that are known as 'quiet' months for financial markets, the last couple of years have been marred by important announcements. This year was no different as investors eagerly awaited the US Federal Reserve's (Fed) December meeting. After numerous data releases showed an improvement to the US economy (particularly in the housing market and employment) there was always the possibility that the Fed would announce the start of 'tapering' to its bond buying program. This turned out to be the case with the announcement on 18 December that the bond buying program of $85bn per month would be reduced to $75bn, starting in January 2014.
Talk of 'tapering' has dominated the headlines during 2013 and can be considered the most important theme to underpin financial markets during the year. Since talk of tapering surfaced in May, emerging markets have been under pressure. Emerging market equities ended the year down 2.3% (in USD terms) whilst numerous emerging market currencies have come under severe pressure. The rand, for example, has depreciated by over 23.0% to the US Dollar over the year. What is however interesting is the JSE All Share Index. Since May this year, the JSE All Share Index has returned over 19.0% (in ZAR terms) to the end of December. This is in contrast to what one would have expected for an emerging market. The reason for this is that some of the largest companies making up the All Share Index perform best in a weakening rand environment (a.k.a. rand hedge companies).
As we enter 'uncharted waters' in 2014 with the retraction of quantitative easing, we expect continued volatility in financial markets. We also expect to see many investors focusing on short-term news (or 'noise') to help them make investment decisions. This in our opinion could lead to very poor long-term investment decisions. Efficient Select remains dedicated to long-term investing and our objective for 2014 will be on trying to unpack the long-term effects on asset classes as we return to a normalised world without stimulus. Our focus remains on managing risk though superior asset allocation and investing in high quality companies likely to outperform the market over the long term. For this reason, we look forward to a successful 2014 with you.
In order to achieve the above objective the investments to be included in the Select BCI Balanced Fund will, apart from assets in liquid form, cover the full spectrum of securities, and will include equities, participatory interests in collective investment schemes in property, loan stock listed on exchanges, non-equity securities and assets in liquid form may make use of derivatives to reduce risk. The portfolio may also invest in local or offshore collective investment schemes operated in territories with a regulatory environment. This fund complies with Regulation 28.