NAV on 2021/02/26
|NAV on 2021/02/25
|52 week high on 2020/04/15
|52 week low on 2020/03/24
|Total Expense Ratio on 2020/12/31
|Total Expense Ratio (performance fee) on 2020/12/31
Bridge Fund Managers (Pty) Ltd.
US Consumer Price Index +3% measured over rolling three-year periods in ZAR
Ian joined Grindrod Asset Management as Chief Investment Officer in September 2009. Prior to that, he ran his own consultancy where his clients included Marriott Asset Management, Fortress Asset Managers (part of the Resilient group of companies) and the Property Loan Stock Association of South Africa. Ian was the Investment Director at Marriott Asset Management from 2002 to 2007, having joined the firm as an Investment Analyst in 1996. Ian has been involved in the management of specialist listed property portfolios for the past 15 years.
Andrew joined Grindrod Asset Management in early 2013 and is currently a Portfolio Manager. Andrew has worked as a Product Development Analyst at Symmetry within the Old Mutual Group and then in the offshore hedge fund division at Maitland. Prior to joining Grindrod Asset Management, Andrew worked at Insinger de Beaufort BNP Paribas, a boutique asset manager and family wealth office. The company’s head office is in Amsterdam and the parent company BNP Paribas is based in Paris. As a member of the investment committee Andrew was responsible for global fund research, analysing all investment products including the more exotic asset classes of hedge funds and structured products. He was also responsible for much of the reporting and analysis of client portfolios including attribution reports and compliance with GIPS reporting standards. He also traded and balanced all offshore and local private client investment mandates and was actively involved in the management of the South African Fund of Funds within the firm.
Richard has over 12 years of investment experience which he gained in both the UK and South Africa. He spent 9 years in London working for global investment manager Schroders Investment Management, and hedge funds Trafalgar Asset Managers and CapeView Capital LLP. There he gained valuable insight into various investment strategies including long-only, event-driven, credit, private equity and long-short equity. He returned to South Africa in 2013 and worked for Atlas Trading (Grindrod) before joining Bridge Fund Managers (formerly Grindrod Asset Management) in 2014.
Bridge Global Managed Growth Feeder fund - Dec 19
2019 finished on a positive note for global financial markets. The United States and China announced a preliminary trade deal and the Conservative Party in the United Kingdom won a landslide majority in the general election and in so doing secured a mandate to ensure the UK leaves the European Union (Brexit) on 31 January 2020. The US-China trade war has weighed on business sentiment since the middle of 2018 and been a major contributor to the general slowdown in global economic activity throughout 2019. China’s economy was particularly hard-hit by the threat and counter-threat of increased tariffs across a range of products and the first phase of a trade deal, due to be signed on 15 January 2020, is likely to lead to increased business investment and higher levels of global economic growth in 2020.
Prime Minister Boris Johnson’s gamble to call an early election in the UK paid off handsomely as the Conservative Party secured a further 48 seats in parliament, while Jeremy Corbyn’s Labour Party lost 60 seats. The path to Brexit has now been cleared and the UK is expected to leave the European Union as scheduled on 31 January 2020, although a transition period extending to the end of 2020 is envisaged, after which time the real negotiating is expected to start in earnest. The pound strengthened to US$1.35/GBP in the immediate aftermath of the election result but has since drifted back towards US$1.30/GBP.
Against a more favourable economic and political backdrop, global bond yields rose appreciably, with the yield on 10-year US Treasuries rising to 1.92% from 1.77% at the end of November. In Europe, the yield on 10-year German bunds rose 17 basis points. Global bond yields have been rising since the end of August but remain well below the average levels of 2018 as global growth stalled in 2019 on heightened political risk, business investment stalled and central banks turned more dovish to support the global economy.
Global equity markets were the biggest beneficiaries of the positive political developments in December. The month’s rally was more broad-based, although the S&P 500 was once again a standout performer, bringing the total return for 2019 to a staggering 31.5%. The UK equity market responded positively to the outcome of the general election and rose 2.7% in December but lagged the US for the year, returning “just” 12.1%. There was also a strong bounce in Hong Kong where protests against the government eased during December and life returned to normal. The Hang Seng Index gained 7% in December and accounted for the lion’s share of 2019’s 10.5% total return.
Global real estate markets continued to struggle in the face of rising bond yields during December. The GPR 250 REIT Index in US dollars declined by 0.7% in December but was still up more than 24% during the year. In 2019, global REITs had their best year since 2012, amid a broad-based rally fuelled by sharply lower government bond yields, tighter corporate credit spreads and an improving earnings outlook relative to other sectors of the market. For REITs, the earnings outlook has not changed much, while other sectors have seen earnings downgrades as global economic growth continued to slow in the face of the US-China trade war. At the same time, sentiment towards mall landlords outside the UK improved and prices started rising again.
The Bridge Global Managed Growth Feeder Fund declined by 2.6% in December as the rand strengthened against the US dollar. The Fund allocates 65% of the portfolio to high quality businesses that are expected to deliver inflation-beating earnings growth over the medium and long term and reward shareholders with above-average dividend yields. The Fund also allocates 25% of the portfolio to listed property companies that offer the highest possible combination of income yield and income growth, while at the same time providing an acceptable level of property-type and geographic diversification. The balance of the portfolio comprises short and medium-dated government and corporate debt.
This portfolio is a feeder fund. The primary objective of this feeder fund is to provide the investor with a balanced consistent income and capital appreciation over the long term. To achieve its investment objective the portfolio will, apart from assets in liquid form, consist solely of participatory interests in the Bridge Global Managed Growth Fund (the underlying Fund) which is the sub-fund of Sanlam Universal Funds Plc. The underlying fund is US Dollar-denominated and domiciled in Ireland and it aims to achieve a return in excess of 3% of the US Consumer Price Index measured over rolling three year period. The underlying fund will invest in equity securities (including common stocks, preference shares and other securities with equity characteristics or conferring the right to acquire equity securities), bonds (fixed and/or floating, government and/ or corporate) and money market instruments (including, but not limited to commercial paper, certificates of deposit, banker's acceptance, notice deposits, debentures and treasury bills all of which have a maturity of less than one year).
This fund is available to be used within our Tax Free Savings Plan, by virtue of S12T of the Income Tax Act.