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  •  Alexander Forbes Investments Inflation Linked Bond Fund (A)

0.03  /  0.02%

130.9

NAV on 2021/03/01
NAV on 2021/02/26 130.87
52 week high on 2021/02/25 132.01
52 week low on 2020/03/26 103.44
Total Expense Ratio on 2020/09/30 1.17
Total Expense Ratio (performance fee) on 2020/09/30 0
NAV
Incl Dividends
1 month change 1.95% 1.95%
3 month change 5.22% 6.27%
6 month change 5.27% 7.57%
1 year change 2.35% 6.65%
5 year change -0.15% 2.97%
10 year change 2.19% 5.23%
Price data is updated once a day.
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  • Sectoral allocations
Fixed Interest 68.41 5.11%
Liquid Assets 46.79 3.50%
SA Bonds 1197.31 89.44%
Offshore 26.10 1.95%
  • Top five holdings
U-SIMENYD 68.41 5.11%
PECEIDFTRUST 26.10 1.95%
  • Performance against peers
  • Fund data  
Management company:
Alexander Forbes Investments Unit Trusts Limited
Formation date:
2009/06/30
ISIN code:
ZAE000137964
Short name:
U-ISINFLB
Risk:
Unknown
Sector:
South African--Multi Asset--Income
Benchmark:
90% Barclays BEESSA Inflation Linked Bond Index plus 10 SteFI Call
  • 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

IS Inflation-linked Bond comment - Mar 16

2016/06/28 00:00:00
The portfolio ended the quarter behind the benchmark, with all the managers underperforming.
The real-yield curve rallied over the quarter, with the ultra-long end finishing 5bps lower and the ultra-short end 140bp lower (on the back of R211 dropping out of the Index). SA headline inflation increased from 5.7% to 7%. Core inflation (ex-food & NAB and petrol & energy) also moved up to 5.7% from 5.2% over the quarter, with the PPI moving up to 8.1% from 4.8%.
Prescient ended the quarter behind due to short duration and being underweight the ultra-long end of the curve, which detracted from performance. However, exposure to nominal bonds contributed to performance. Sanlam and Momentum also ended behind due to stock selection on the belly of the curve. Managers are wary of upside inflation risk and are defensively positions to protect against a selloff in real yields.
Inflation-linked bonds Unit Trust
The portfolio ended the quarter behind the benchmark, with all the managers underperforming.
The real-yield curve rallied over the quarter, with the ultra-long end finishing 5bps lower and the ultra-short end 140bp lower (on the back of R211 dropping out of the Index). SA headline inflation increased from 5.7% to 7%. Core inflation (ex-food & NAB and petrol & energy) also moved up to 5.7% from 5.2% over the quarter, with the PPI moving up to 8.1% from 4.8%.
Prescient ended the quarter behind due to short duration and being underweight the ultra-long end of the curve, which detracted from performance. However, exposure to nominal bonds contributed to performance over the quarter. Sanlam and Momentum also ended behind due to stock selection on the belly of the curve. Managers are wary of upside inflation risk and are defensively positions to protect against a selloff in real yields.
  • Fund focus and objective  
The Manager shall apply a multi-manager investment management style in the management of the fund.
The fund aims to earn the inflation rate (as measured by the consumer price index (CPI)) plus a real yield over time. The fund will provide income on an inflation-adjusted capital amount. We expect the fund to experience capital gains primarily through the upward inflation adjustment of capital. The fund will generally protect investors' capital but this is only true when the inflation rate is positive and real yields are stable or falling. The fund may experience capital erosion if the rate of inflation is negative (deflation) or if real yields increase. The fund will have a flexible maturity profile.
The INVESTMENT SOLUTIONS INFLATION LINKED BOND FUND will combine inflation-linked bonds issued by government, parastatals and corporations and produce inflation-adjusted income and capital adjustments. It is an inflation-protected income fund, blending income-earning asset classes such as, money-market instruments, bonds, and inflation-linked bonds. The fund is expected to have at least 50% invested in inflation-linked bonds, subject to that market's liquidity. Derivatives may be used in accordance with the regulations promulgated in terms of the Act as may from time to time be amended. The fund may not be leveraged.
The Manager may from time to time invest in participatory interest or any other form of participation in portfolios of collective investment schemes or other similar collective investment schemes as the Act may allow from time to time. Where the aforementioned schemes are administered in territories other than South Africa, participatory interest or any other form of participation in portfolios of these schemes will be included in the fund when such funds are invested within South Africa.
The Manager will not be permitted to invest on behalf of the INVESTMENT SOLUTIONS INFLATION LINKED BOND UNIT TRUST FUND in offshore investments.
For the purpose of this fund, the Manager shall reserve the right to close the fund to new investors on a date determined by the Manager. This will be done in order to be able to manage the fund in accordance with its mandate. The Manager may, once a fund has been closed, open that fund again to new investors on a date determined by the Manager.
The investment managers selected for this portfolio invest mainly in inflationlinked
bonds issued by the South African government and corporate. Inflation
linked bonds differ from conventional bonds in that they protect the investor
against inflation as the capital amount increases with inflation and the fixed real
coupon rate is applied to the inflation adjusted capital. This causes the coupon
interest payments to move in line with the inflation index over time. At the end
of the term, the investor receives the final coupon payment and the inflationadjusted
capital.
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