NAV on 2021/02/26
|NAV on 2021/02/25
|52 week high on 2021/01/11
|52 week low on 2020/03/24
|Total Expense Ratio on 2020/12/31
|Total Expense Ratio (performance fee) on 2020/12/31
Ninety One Fund Managers SA (RF) (Pty) Ltd.
Global--Multi Asset--High Equity
60% MSCI AC World NR index & 40% CITI World Government Bond Index
Philip is co-head of Multi-Asset at Investec Asset Management. After a period managing retail marketing and sales, he assumed responsibility for establishing Investec Asset Management's multi-manager business which is now combined with the firm's global multi-asset activity. In 1987, he became a founding director of Guinness Flight Global Asset Management (which was acquired by Investec Asset Management in 1998) and led its successful Global Fixed Income team. Prior to that, Philip trained as an investment analyst at Guinness Mahon & Co Limited assuming responsibility for the company's managed currency funds in 1984. He graduated from Cambridge University with a degree in History in 1980.
Investec Glbl Strat Man Feeder comment - Jun 13
Market review Equity markets continued to rise in April and the first half of May, but then retreated before rallying at the end of June. The MSCI AC World NR Index returned -0.4% in dollars over the quarter. The MSCI Emerging Markets NR Index lost 8.1% and the MSCI Asia ex Japan NR Index shed 5.3%. Yields on 10-year government bonds rose to 2.49% in the US, to 2.45% in the UK, 1.73% in Germany and 0.86% in Japan. Spreads of government 10-year bonds relative to Germany fell to 3.04% in Spain and 3.47% in Italy, despite rising in June. Spreads on investment-grade and on high-yield corporate bonds relative to government issues rose while yields on local emerging market debt increased sharply. The dollar gained 0.1% against sterling and 5.1% against the yen, but lost 1.2% against the euro. The return on the Citigroup World Government Bond Index (All Maturities) was -3%.
Portfolio review The allocation to the Investec global equity funds contributed to portfolio returns over the quarter. Non-core Investec and other equity allocations detracted from relative performance, while non-core bond allocations added value. Asset allocation and currency hedging also contributed to performance.
Portfolio positioning The turbulence across financial markets came as something of a shock to bond investors, but it was only a modest correction to equity markets by historical standards. We have been expecting the end of the 30-year-long bull market in bonds for some time and have positioned the portfolio for it. The bond market sell-off represents the start of 'normalisation', a return of bond yields to historical levels as economic growth picks up. In the medium to longer term, this is good news for economies and markets, but investors have focused on the shorter-term impact. It would be naive to expect equity markets to move in the opposite direction to bonds, but a better outlook for growth is good for corporate revenues and earnings. As soon as bond yields stabilise, we expect equities to rally strongly. Value is improving, revenue growth is solid and earnings growth is strong, with consensus forecasts pointing to double-digit growth in 2013 and 2014. The downgrade momentum of these estimates has almost stopped and looks likely to swing to net upgrades. In many years, second quarter market turbulence has been followed by a strong second half. We believe this year should follow the same pattern.
The Global Strategic Managed Feeder Fund aims to grow capital and income over the long-term. The fund's objective is to outperform its benchmark (60% MSCI World index and 40% CITI World Government Bond index), measured over three year periods.
This rand-denominated fund invests in international fixed income assets, cash, convertible securities and equities. Exposure to international assets is obtained by investing directly into our top performing Investec GSF Global Strategic Managed Fund. This balanced fund aims to be fully invested offshore, with a maximum equity exposure of 75%. The investment team utilises Investec's proprietary 4Factor process to assist in screening and selection of companies. The emphasis is on valuation, strategy, earnings dynamics and technical analysis.
* The fund invests directly into our top performing Ninety One GSF Global Strategic Managed Fund.
* This balanced fund aims to be fully invested offshore, with a maximum equity exposure of 75%.
* Utilisation of Investec's proprietary 4Factor process to assist in screening and selection of companies.
* Diversification across asset classes minimises the portfolio's overall volatility and offers the potential to generate good long-term returns.