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122.05

NAV on 2019/08/22
NAV on 2019/08/21 122.04
52 week high on 2018/08/30 122.55
52 week low on 2019/01/29 119.29
Total Expense Ratio on 2019/06/30 0.8
Total Expense Ratio (performance fee) on 0
NAV Incl Dividends
1 month change 0.36% 0.36%
3 month change -0.14% 1.89%
6 month change 1.73% 4.33%
1 year change -0.2% 7.88%
5 year change 0.29% 8.17%
10 year change 0% 0%
Price data is updated once a day.
  • Sectoral allocations
Financials 0.98 0.84%
Fixed Interest 52.14 44.73%
Gilts 52.75 45.26%
Liquid Assets 6.62 5.68%
Money Market 4.07 3.49%
  • Top five holdings
U-SLINCR 10.44 8.96%
U-SIMENYD 10.43 8.95%
U-PRUDINC 10.43 8.95%
U-CORINC 10.42 8.94%
U-NEDCSHP 10.42 8.94%
  • Performance against peers
  • Fund data  
Management company:
Prime Collective Investment Schemes
Formation date:
2006/01/01
ISIN code:
ZAE000075750
Short name:
U-4IABSRT
Risk:
Unknown
Sector:
South African--Multi Asset--Income
Benchmark:
STeFi Composite Index
Contact details

Email
info@primeinvestments.co.za

Website
www.PRIMEinvestments.co.za

Telephone
010-594-2100

  • Fund management  
Christo Malan
Christo has more than 29 years experience in the financial industry including positions at the Reserve Bank, The Development Bank of Southern Africa, The University of Stellenbosch and Sanlam Asset Management. Christo serves on the board of 4i Group and 4i Asset Management.
Autus Fund Managers


  • Fund manager's comment

Autus Prime Income Plus comment - Mar 19

2019/05/28 00:00:00
Macroeconomic overview
The Autus Investment Team customarily begins the year with a strategic investment workshop to consider the economic and investment factors likely to influence the markets in coming year. This year the mood was less sanguine because members identified several risks to keep an eye on in the coming months. These include the dire state of the government finances and its ever-increasing debt exacerbated by the perilous state of the SOE’s -especially Eskom, credit downgrade potential, the looming national election and a slowing global economy amongst others.
During the quarter the national budget, read by Finance Minister Tito Mboweni, confirmed government’s desperation to raise additional revenue, cut rising expenditure and reduce financial demands from poorly functioning SOE’s. Eskom’s crisis deepened and the intermittent load-shedding is retarding national productivity and economic growth. SA GDP grew by 0.8% in 2018 and is forecast to grow by 1.5% in 2019. Goldman Sachs recently predicted that the electricity crisis could subtract 0.3% from Q1 GDP growth. The RMB/BER Business Confidence Index slumped to a low of 28 index points in the first quarter of 2019. Seven out of ten business people polled expressed dissatisfaction with the current business environment. Particularly concerning is that the declining confidence cuts across all sectors of the economy including the building, retail and manufacturing sectors. The consumer remains constrained and with rising petrol costs, hikes in electricity tariffs and a weaker rand, inflation may begin to tick up. For February 2019, a consumer price inflation rate of 4.1% was recorded. This was comparatively benign mainly because food costs remained relatively constant. Inflation for 2019 is expected to remain within the 3-6% SARB target range. With a frail local economy, slowing global growth and moderate inflation the SARB is not expected to raise interest rates in 2019. At their March review, Moody’s left their rating unchanged. Internationally, global growth is beginning to slow. Interest rate hikes in the US are looking less likely this year as consumer spending weakens. Talks of a US recession are beginning to emerge. Interest rates in China were lowered during the quarter to support flagging growth there. The lack of consensus in the UK on an acceptable Brexit and the concomitant uncertainty is harming new investment and the prospect of growth in the UK. European economies are forecast to remain stable in 2019. The Brent crude oil price has risen by 27% to end the quarter at US$69.00. The global inflationary impact of these higher prices, if sustained, will be closely monitored. These factors combined with the ongoing trade negotiations between China and the US have fuelled investor jitters. We expect more of this jostling to occur in the markets until these major issues are resolved.
Portfolio commentary After hiking interest rates in the last quarter of 2018, the SARB kept its repo rate unchanged at 6.75% at their March 2019 MPC meeting. The level and changes to South African interest rates are major determinants of returns for this fund. It is therefore imperative to secure good yields without taking excessive risk. In the quarter under review the SA 10-year bond yields closed the previous quarter at 8.89% and ended this quarter 8.5%. Shorter-dated bonds with maturities of between 1-to-3-years returned 1.83% over the quarter. Foreigners were net buyers of more than R7bn worth of SA bonds, reversing the trend of significant net bond sales experienced last year. The current real yields on offer (interest rates above inflation) are still attractive specifically for bonds in the 8 to 10-year part of the yield curve.
The Fund returned 2.1% over the quarter against its STeFI Composite index benchmark of 1.8%. Capital preservation is an overarching objective in the way we manage the risk in the fund. The prevailing weak economic environment as well as the politically charged pre-election mood will continue to add to market volatility. We remain cautious and will look for opportunities to lengthen the portfolio’s duration without taking on undue risk. The Fund’s only equity holding is its exposure to Coronation shares. Over the quarter the share price increased by 14.9% and its current dividend yield is still an attractive 8.6%. We may use continued share strength to lighten the Fund’s exposure. The CIS funds held in the Fund have remained relatively unchanged over the quarter.
  • Fund focus and objective  
The Fund is now Regulation 28 compliant and is required to have a minimum exposure of 25% to government bonds and a maximum exposure of 25% to property securities.
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