NAV on 2021/03/01
|NAV on 2021/02/26
|52 week high on 2020/04/23
|52 week low on 2021/02/15
|Total Expense Ratio on 2020/09/30
|Total Expense Ratio (performance fee) on 2020/09/30
Alexander Forbes Investments Unit Trusts Limited
Regional--Interest Bearing--Short Term
US 3-Month Treasury Bill
Investment Solutions Investment Team
The team comprises of 17 investment professionals and is headed by Glenn Silverman, the Chief Investment Officer of Investment Solutions. Portfolio decisions are also ratified by an investment committee. Investment Solutions is the largest provider of multi-manager investment portfolios in South Africa, with total assets under management exceeding R80bn.
Alexander Forbes Investments
Investment Solutions US$Cash feeder comment-Sep 08
The portfolio, which invests in the Russell US Dollar Cash Fund, performed in line with its benchmark for the quarter.
The quarter was one of the most turbulent in history. The market turmoil and news of struggling money-market funds led to very difficult trading conditions in commercial paper. In September, the fund had around 5% exposure to the now bankrupt Lehman Brothers. Russell's parent company, Northwestern Mutual, committed to guaranteeing any Lehman exposure in the fund to prevent the fund's unit price falling below 1.
The fund also had exposure to other financial institutions such as Merrill Lynch, Wachovia, Morgan Stanley and Goldman Sachs. The fund diversifies its exposure across banks but there is balance between risk and over-diversification. Some of the biggest and highest-ranked banks have come under scrutiny and the effect on smaller institutions might still be felt.
As liquidity becomes available, the fund will invest in more attractive classes of short-term paper.
In September, Investment Solutions met the portfolio manager of the Russell cash funds, Gerard Fitzpatrick, and was satisfied that risks to the fund were limited. Northwestern Mutual is not implicitly backing other financial exposures, but might do so if the situation requires it. The reason it backed the Lehman exposure was to protect the fund and Russell's reputation and one can assume (and this seemed the opinion of the Russell portfolio manager) it will consider backing other exposures if required.
The fund offers an attractive yield against the benchmark and is defensively positioned with holdings in well-capitalised banks. Its majority allocation is to floating-rate notes and commercial paper, with small allocations to certificates of deposit. The average credit rating of the underlying instruments is A1 (highest rating), and the average duration of the portfolio 29 days.
The investment managers selected for this portfolio may invest in short-term US Dollar-based money-market instruments. Money-market instruments are liquid financial instruments that simulate cash, but may give a higher return than cash. The average maturity dates of the money-market instruments in the portfolio will not exceed 90 days. The portfolio is aimed at investors pursuing exposure to US money markets. Investment Solutions expects: ! A low probability of capital loss in Dollar terms (however, any appreciation of the Rand against the Dollar may result in capital loss over the short to medium term) ! Investment returns in Rand terms to be more volatile due to movements in the exchange rate of the currencies