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0.06  /  0.05%

121.63

NAV on 2019/11/18
NAV on 2019/11/15 121.57
52 week high on 2019/08/27 122.63
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 0.5% 0.5%
3 month change -0.24% 1.77%
6 month change -0.47% 3.6%
1 year change -0.06% 8.18%
5 year change 0.14% 8.25%
10 year change 0% 0%
Price data is updated once a day.
  • Sectoral allocations
Fixed Interest 90.38 59.02%
Gilts 58.11 37.95%
Liquid Assets 4.64 3.03%
  • Top five holdings
U-SLINCR 22.74 14.85%
U-SIMENYD 10.65 6.96%
U-PRUDINC 10.64 6.95%
U-NEDCSHP 10.63 6.94%
U-CORINC 10.63 6.94%
  • 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 - Sep 19

2019/10/24 00:00:00
Market commentary
It is increasingly difficult to find “green shoots” of hope when surveying the current South African economic landscape. The economy rebounded by 3.1% in 2Q2019 after the -3.1% recorded in 1Q2019. The mining and finance sectors contributed positively while manufacturing and trade detracted from economic growth in the quarter. For 2019 GDP growth of 0.6% is projected. Recent inflation updates and expectations show that inflation is at or near the midpoint of the 3%-6% target range despite fuel prices having risen 14.5% year-to-date and administered prices being hiked. Headline inflation of 4.2% is forecast for 2019. At their July meeting, the SARB elected to lower the bank rate by 0.25% to 6.5% while the prime rate was lowered to 10%. Effectively, the SARB returned to the SA consumer what it took away in November 2018. Business confidence (SA Chamber of Commerce and Industry Index) continued to drop in August to levels not seen in 34 years. The NHI Bill was released, setting out the architecture for an NHI fund. This has raised questions over the future of private healthcare and the cost and funding implications on government revenue. Prevailing policy uncertainty, the Eskom debt burden, an increasing budget deficit, and worsening debt-to-GDP ratio make a Moody’s rating downgrade ever more likely in the foreseeable future.
Credit must be given to Finance Minister Mboweni for publishing a paper offering a detailed examination of the structural reforms needed to reverse the downward trend in South Africa’s growth potential and competitiveness. Sadly, it was met with much resistance from alliance partners and some members in the ruling party. We hope that consensus could be reached sooner rather than later by all major role-players on implementing much needed economic and job growth initiatives as a matter of urgency.
Internationally, two interest rate cuts of 25 basis points each were announced by the United States Federal Reserve. Further import tariffs on Chinese goods were extended by the Trump administration until after the end-of-year festive season as trade negotiations between the world’s two largest economies continue with no clear solution in sight. The United States Treasury bond yield curve inverted at the two-year and ten-year maturities which caused some investors to speculate that a recession could be looming. The last time the yield curve inverted at these maturities was in 2007. In July, Boris Johnson was elected as the new Prime Minister of the United Kingdom. Johnson promised to deliver on the withdrawal of the United Kingdom from the European Union even if it comes at the cost of having no trade agreement (a socalled Hard Brexit). Early indications are that Johnson will struggle to win the necessary parliamentary support to deliver on his promise (as was the case with his predecessor).
Portfolio commentary
With risk assets like equities and listed property experiencing a tough quarter, fixed interest investments were the asset class that offered investors positive returns. The Autus Prime Income Plus Fund returned 2.15% for the quarter which was above its Stefi benchmark of 1.79%. Investors dependent on regular income realise the benefit of holding income funds as part of their financial planning given the lower volatility and stable returns these funds offer. Investors like certainty and there has been a district lack hereof in investment markets of late. With local economic direction lacking and a global economic slowdown, it is more difficult to predict the course that local interest rates may take in coming months. More than 30 central banks around the world, including the SARB, have cut interest rates this year in order to bolster their flailing economies as concerns of slowing global growth, escalating trade conflicts and a possible messy Brexit take hold. In SA, the outlook for inflation as well as the level of the currency relative to our trading partners will be closely watched by the SARB before deciding on its next move. The consensus view is that there will be no further cuts in SA interest rates for this year.
Portfolio changes in the direct portion of the Fund include the addition of 1- and 4-year floating rate corporate bonds while we added the Fairtree Flexible Income Plus Fund, Investec High Income Fund and the Prescient Income Provider Fund to the Collective Investment Schemes held in the portfolio. The Coronation shares held in the fund were sold. Although we remain positive on the dividend paying ability of the company, we are cautious on the outlook for equities for the coming months. In these highly uncertain times, our focus remains on delivering sustainable above average returns with lower volatility while protecting capital.
  • 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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