NAV on 2020/06/02
|NAV on 2020/06/01
|52 week high on 2020/02/17
|52 week low on 2020/03/23
|Total Expense Ratio on 2019/12/31
|Total Expense Ratio (performance fee) on 2019/12/31
Sanlam Collective Investments
South African--Multi Asset--Medium Equity
South African - Multi Asset - Medium Equity Sector Average
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Graviton SCI Medium Equity Comment - Dec 19
December was a risk-on month for global markets. The primary reasons were positive outcomes in global politics. In the UK, Boris Johnson’s Conservative Party won a parliamentary majority that provided him with free rein to take Britain out of the European Union. This brought more certainty to the prolonged separation and increased the likelihood that some sort of deal will be reached at the end of January. More importantly, the United States and China managed to reach a phase 1 deal in their trade war that slowed global trade in 2019. The exact nature of the deal is not known, but the agreement did avert the 15% tariffs that were to be put on a broad range of consumer goods by the US on Chinese imports. Despite some trade uncertainty going forward, the positive political outcomes resulted in the MSCI World and MSCI Emerging Market (EM) delivering 2.89% and 7.17% respectively (both in USD). On the back of the risk-on sentiment global bonds were up only 0.52% (in USD), while EM bonds delivered 2.52% (in USD). Global property fared slightly better than global bonds, delivering 0.62% (in USD).
Locally, any positivity that resulted from SAA being placed under business rescue was short-lived when heavy rains in the north of the country and potential foul play led to rolling blackouts. In spite of this, the local market followed the global risk-on trend. Local equities were up 3.30% (in rands), driven primarily by the rally in the resources sector, which was up 6.85% (in rands). The blackouts did weigh on the property sector, which was down 2.07% (in rands). The global risk-on sentiment and search for yield benefitted local bonds – which gained 1.86% (in rands). Local cash was up 0.58% and inflation-linked bonds gained 0.89% (both in rands).
The objective of this portfolio is to provide investors with steady capital growth and to offer a return of at least inflation plus 4% over a rolling three year period. The portfolio will aim never to have a negative return over any one year period.
The Manager shall seek to obtain this objective through active management of a portfolio of assets which comprises a combination of equities, fixed interest, bonds and money market instruments and property. The portfolio may also invest in collective investment schemes in property as well as any other securities that the Act may allow from time to time. When investing in derivatives, the manager will adhere to prevailing derivative regulations. The portfolio will be managed in accordance with regulations governing pension funds.
Apart from the above, the portfolio may also invest in participatory interests of portfolios of collective investment schemes registered in the Republic of South Africa or of participatory interests in collective investment schemes or other similar schemes operated in territories with a regulatory environment which is to the satisfaction of the manager and the trustee of a sufficient standard to provide investor protection which is at least equivalent to that in South Africa.
The Trustee shall ensure that the investment policy set out in the preceding clauses are adhered to; provided that nothing contained in this clause shall preclude the Manager from varying the proportions of securities in terms of changing economic factors or market conditions or from retaining cash in the portfolio and/or placing cash on deposit.
The Manager will be permitted to invest on behalf of the Graviton Sanlam Collective Investments Capital Growth Fund in offshore investments as legislation permits.
For the purpose of this portfolio, the manager shall reserve the right to close the portfolio to new investors on a date determined by the manager. This will be done in order to be able to manage the portfolio in accordance with its mandate. The manager may, once a portfolio has been closed, open that portfolio again to new investors on a date determined by the manager.