NAV on 2019/07/22
|NAV on 2019/07/19
|52 week high on 2019/05/03
|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
South African Multi Asset High Equity Category
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GraySwan SCI Aggressive Fund of Funds - Mar 19
Global equity markets made gains in the first quarter of 2019, rebounding from weak performance numbers in the last quarter of 2018. The rebound stemmed from a more dovish monetary policy stance, by both the Federal Reserve and the European Central Bank. Concerns over US-China trade dispute also eased. Despite ongoing Brexit-related uncertainty, United Kingdom equities also performed well over the quarter.
As a result, the MSCI World Index returned 13.6% in Rand terms for the first quarter of 2019, with the US outperforming marginally and Japan lagging significantly. The US dollar also appreciated by 2.2% against the euro and by 1.0% against the Rand.
Emerging market equities registered a strong return for the first quarter, led by China. Optimism over a trade agreement with the US and ongoing government support for the Chinese domestic economy were beneficial. China A-shares were particularly strong as MSCI announced plans to quadruple their weight in the index between May and November. Emerging markets marginally underperformed their developed market peers, with the MSCI Emerging Market Index gaining 11.0% in Rand terms.
The S&P Goldman Sachs Commodity Index posted a robust return in first quarter. Energy led the way as crude oil prices rebounded from a sell-off in the last quarter of 2018. Production cuts from OPEC and other oil producers, together with the implementation of US sanctions on Venezuela, served to tighten supply. The industrial metals component also moved higher amid positive signs emanating from US-China trade talks. By contrast, precious metals recorded a modest gain, supported by a small rise in gold prices.
Locally the effects of a weak economic backdrop showed in the recent financial results reported by the banks and insurers. The financial sector experienced a challenging quarter and ended the period down 0.5%. Within the financial sector, banks (-0.8%) and the property sector (+1.5%) outperformed the life insurance sector (-5.5%).
The industrial sector had a good quarter, returning 7.4%. Stocks exposed to the domestic economy came under significant pressure during the first quarter as the realities of operating in a ‘no-growth’ economic environment filtered through into corporate earnings. The quarter started off with a string of profit warnings from the domestic retailers and the likes of Mr Price, Massmart Truworths and Dischem all ended the quarter materially lower.
In contrast, the resources sector had a very strong quarter and was up 17.8% - bringing the 1-year total return up to 41.6%. These results were characterised by strong performances from the industrial metals.
The listed property sector delivered a total return of 1.5% for the quarter, following a strong performance in January but subsequent reversal in February and March. This return lagged that of the FTSE/JSE ALSI (8.0%) and the ALBI (3.8%). The SA 10-year government bond yield compressed to 9.0% from 9.2% a quarter earlier
The portfolio will consist of a mix of collective investment scheme portfolios investing in equity, bond and property markets and money market instruments.
Investments to be included in the portfolios will, apart from assets in liquid form, consist solely of participatory interests in portfolios of collective investment schemes registered in the Republic of South Africa or of participatory interest in collective investment schemes or other similar schemes operated in territories with a regulatory environment which is to the satisfaction of the manager and trustee of a sufficient standard to provide investor protection at least equivalent to that in South Africa. The Manager shall be permitted to invest on behalf of the three portfolios in offshore investments as legislation permits.
The portfolios will also be allowed to invest in listed and unlisted financial instruments (derivatives) as allowed by the Act from time to time.