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  •  Alexander Forbes Investments Balanced Fund of Funds (A)

2.1  /  0.44%

476.79

NAV on 2021/02/25
NAV on 2021/02/24 474.69
52 week high on 2021/02/22 477.81
52 week low on 2020/03/19 333.8
Total Expense Ratio on 2020/09/30 1.84
Total Expense Ratio (performance fee) on 2020/09/30 0
NAV
Incl Dividends
1 month change 2.21% 2.21%
3 month change 9.46% 9.46%
6 month change 11.78% 13.31%
1 year change 12.89% 16.08%
5 year change 4.4% 6.79%
10 year change 7.65% 9.75%
Price data is updated once a day.
Click and drag to zoom in on timeline.
  • Sectoral allocations
General Equity 49.34 5.01%
Liquid Assets 0.63 0.06%
Managed 934.75 94.92%
  • Top five holdings
U-CORBALP 328.16 33.33%
U-FRDBALA 309.39 31.42%
U-AGBAL 247.38 25.12%
U-APPMANF 49.82 5.06%
U-OBSBALA 49.34 5.01%
  • Performance against peers
  • Fund data  
Management company:
Alexander Forbes Investments Unit Trusts Limited
Formation date:
2002/05/22
ISIN code:
ZAE000039285
Short name:
U-ISMMBAL
Risk:
Unknown
Sector:
South African--Multi Asset--High Equity
Benchmark:
South African Multi Asset High Equity sector average
  • Fund management  
Glenn T Silverman
Glenn qualified as a chartered accountant in 1990 after completing his articles with firm Kessel Feinstein. He then spent two years in commerce before joining a major asset management company where he gained two and a half years practical experience in research and fund management. He worked for the RMB Asset Management team before joining Investment Solutions
Alexander Forbes Investments


  • Fund manager's comment

AF Investments Balanced FoF Comment - Sep 19

2019/10/29 00:00:00
The fund ended ahead for the quarter with all managers outperforming except for PSG and Obsidian.
The third quarter of 2019 was a tumultuous period in global markets, mainly due to the continuation of the trade tensions between the United States (US) and China in the month of August. President Donald Trump announced tariffs of 10% on an additional $300 billion of Chinese goods. Shortly after, Chinese policymakers allowed the Yuan to sink below 7 against the US dollar, the lowest level since April 2008. Tensions continued to build with China adding more tariffs on US goods. The trade developments coupled with enduring global growth concerns triggered a ‘risk-off’ reaction across markets. Global stocks (MSCI World) fell by 2%, credit spreads widened, inflation expectations dropped considerably and 30-year sovereign bond yields of the US, the UK and Germany fell by 30–60 basis points. There was some relief late in the quarter as the US and China announced that thery would be resuming talks in early October. This resulted in some retracement in the month of September.
The United States Federal Reserve (US Fed) acted as expected, cutting rates by 25 basis points in July and September but stopped short of outlining further easing. Global policy ‘tone’ is generally dovish as shown by the 22 central banks that cut their policy rate at least once during the third quarter. In contrast, South Africa (SA) did not follow the trend as the South African Reserve Bank (SARB) held the repo rate unchanged at 6.5%. The SARB has allowed the US interest rate gap to widen so that SA remains as an attractive destination for investment. The SA money markets are currently pricing-in one interest cut through the next year. The 3-month Johannesburg Interbank Average Rate is currently at the same level as the 3-year swap rate.
Locally, cash was the best performing asset class over the quarter, returning 1.8% to be comfortably ahead of nominal bonds and inflation-linked bonds which returned 0.74% and 0.12%, respectively. Local equities and property also came under pressure over the quarter returning -5.11 and 4.4%, respectively.The rand was also 7.5% lower than the dollar over the quarter, which contributed to the global equity and bonds returns of 8% and 8.4%, respectively.
Foord provided the higest return over the quarter mainly by exposure to global (the fund has about 30% offshore exposure) on the back of the rand weakening to the dollar by 7.5% and 5.5% over the third quarter and year to date. Stock selection in equities also contributed to performance, with exposure to Mesoblast, Capital and Counties, and Vipshop contributing to performance for the quarter. Exposure to gold ETF also contributed to performance. Coronation outperformed its benchmark for the quarter and year to date driven by the stock selection on the local and global equities. The performance can be attributed to Northam Platinum and Impala Platinum (Implats) being up 40% and 37%, respectively.Exposure to local bonds (corporate and government, about 18%) also contributed for the quarter.
PSG has about 72% exposure to equities, 46% locally and 26% globally. Exposure to small caps stocks such as EOH holdings and Taste holdings returned, -32% and -25% for the quarter, which detracted from performance locally. Globally, exposure to Value stocks detracted from performance as value is out of favor. The theme is similar over the year to date, where exposure to equities (locally and globally) detracted from performance, driven by value as a style being out of favour.
Obsedian was let down by an exposure to local equities (about 43%), particularly banks, through ABSA and Standard bank returning -10% and -9%, respectively over the quarter . Exposure to gold and bonds contributed to performance but was not enough to offset the losses. The fund exposure to global equities, property and bonds also contributed to performance.
  • Fund focus and objective  
The Alexander Forbes Balanced Fund of Funds will seek to provide returns above benchmark. The portfolio will compete directly with other Funds of Funds in the South African market. The fund will invest solely in a rage of participatory interests of portfolios of collective investments schemes that have exposure to equities, bonds, listed property, cash and financial instruments as permitted by the Collective Investment Schemes Control Act No. 45 of 2002 ('CISCA') and subordinate legislation promulgated thereunder. The portfolio's strategy will focus on maximising long term capital growth and will have a varying equity exposure of between 0% and 75%. Where the Portfolio is invested in portfolios administered in territories other than South Africa, the Manager and the Trustee shall ensure that the regulatory environment of that territory is of a sufficient standard to provide investor protection at least equivalent to that in South Africa or complies with any conditions which the Registrar may from time to time determine. The portfolio will invest solely in a range of participatory interests of portfolios of collective investments schemes that have exposure to equities, bonds, listed property, cash and financial instruments, as permitted by the Collective Investment Schemes Control Act no. 45 of 2002 (“CISCA”) and subordinate legislation promulgated thereunder. The portfolio's strategy will focus on maximising long-term capital growth and will have a varying equity exposure of between 0% and 75%. Where the portfolio is invested in portfolios administered in territories other than South Africa, the manager and the trustee shall ensure that the regulatory environment of that territory is of a sufficient standard to provide investor protection, at least equivalent to that in South Africa, or complies with any conditions which the Registrar may from time to time determine. There are no additional mandate investment limitations.
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