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-0.13  /  -0.09%

142.22

NAV on 2019/05/24
NAV on 2019/05/23 142.35
52 week high on 2019/04/25 146.18
52 week low on 2019/01/07 132.15
Total Expense Ratio on 2018/12/31 1.69
Total Expense Ratio (performance fee) on 2018/12/31 0
NAV Incl Dividends
1 month change -2.31% -2.31%
3 month change 1.82% 1.82%
6 month change 5.9% 7.11%
1 year change 4.99% 7.77%
5 year change 3.02% 5.22%
10 year change 0% 0%
Price data is updated once a day.
  • Sectoral allocations
Basic Materials 30.21 7.93%
Consumer Goods 20.42 5.36%
Consumer Services 1.55 0.41%
Derivatives 0.20 0.05%
Financials 26.33 6.91%
Fixed Interest 54.84 14.40%
Gilt 2.08 0.55%
Gilts 74.66 19.61%
Health Care 5.25 1.38%
Industrials 7.63 2.01%
Liquid Assets 20.11 5.28%
Other Sec 5.88 1.54%
Specialist Securities 14.30 3.76%
Technology 5.89 1.55%
Telecommunications 4.41 1.16%
Offshore 106.97 28.10%
  • Top five holdings
U-NEDCSHP 54.84 14.4%
NEWGOLD 14.30 3.76%
 BATS 13.01 3.42%
 STANBANK 10.59 2.78%
 SASOL 9.48 2.49%
  • Performance against peers
  • Fund data  
Management company:
Sanlam Collective Investments
Formation date:
2012/11/01
ISIN code:
ZAE000172763
Short name:
U-BALPLUS
Risk:
Unknown
Sector:
South African--Multi Asset--High Equity
Benchmark:
68% FTSE JSE SWIX J403T, 22% ALBI and 10% STEFI over rolling 24 month period
Contact details

Email
No email address listed.

Website
No website listed.

Telephone
021-947-9111

  • Fund management  
Alex Pestana
Joined Fleming Asset Management in August 1997. Alex was previously a quantitative analyst and economist at Capital Alliance. He has specialised in fixed interest for the past two years.
Sam Houlie
Sam has been appointed head of the Unconstrained Strategies team at Momentum Asset Management and brings 16 years' of domestic and global investment experience to the firm. Sam was at Investec Asset Management until September 2011, where he held the positions of director, head of South African equities and portfolio manager in the Global Contrarian team. He started his career in the investment management industry at Allan Gray and moved to Abvest (now ABSA Asset Management), where he fulfilled the roles of portfolio manager, chief investment officer and, ultimately, chief executive officer, before leaving to join Investec Asset Management in early 2006. He headed a team of investment professionals responsible for well over R100 billion in equities across the full spectrum of portfolios, from pure equity to multiasset mandates. He was the lead portfolio manager and key decision maker for close on R40 billion in client assets, including the Investec Global Franchise Fund and Investec Cautious Managed Fund. He also managed the Discovery Equity Fund from its inception in November 2007.


  • Fund manager's comment

Fund Manager Comment - Dec 18

2019/02/22 00:00:00
Market overview
The fourth quarter of 2018 saw an escalation in the 'risk-off' trend of previous quarters. The US Equity market initially bucked the trend but December saw an abrupt and deep capitulation which led to global contagion.
The growing disparity across markets and economies intensified over the quarter as trade war rhetoric and central bank actions once again took center stage. The Fed maintained their commitment to quantitative tightening in early December, which initially supported the US Dollar and maintained pressure on Emerging Markets. Fed action and the accompanying narrative eventually led to a tantrum like sell-off in risk assets. Safe havens like Gold and Treasuries benefitted.
The CBOE Volatility Index (VIX) spiked in December. Volatility had been relatively stable since the significant turbulence in early 2018 and despite the increased risk aversion since October. The sudden and deep drawdown in risk assets has punctured the bubble of investor complacency and moderated expectations.
Another feature of the quarter the inability of security prices to rebound quickly, as was the case in previous cycles. Emerging market securities are declining at slower rate and the synchronized global growth narrative is rapidly being replaced by a fears of a global slowdown, particularly in China.
Global Bond advanced by 1.2% and resumed their customary role as a safe haven in times of distress. Emerging market bonds declined marginally by 0.18% in dollars. US Bonds were surprisingly resilient, which seems to indicate that the Fed tightening cycle may be coming to an end.
For the quarter, most major asset classes declined with relatively few safe havens. Gold advanced by 9.67%. The US Dollar remained stable based on relative yield considerations and better relative growth prospects.
The MSCI World Index experienced a large 13.3% loss over the quarter (it's worst quarterly performance since the third quarter of 2011). MSCI Emerging Market Index declined by 7.4% over the quarter. Global property, as measured by the iShares Developed Market Property Yield ETF which tracks the FTSE EPRA / NAREIT Developed Index had a difficult quarter with a decline of -5.28%
On the domestic front, a significant driver of returns was global equity contagion and EM weakness.
The performance of fixed income securities was surprisingly resilient for the quarter. The All Bond Index managed a positive return of 2.7% and inflation-linked bonds, as measured by the JSE CILI Index followed suit with a 0.2% return. Cash, as measured by the STeFI index, returned a steady 1.8%. The JSE Preference Share Index has a solid quarter with a positive return of 4.07%. Listed Property continued to struggle with a decline of 4.0% which takes the year to date decline to 25.3% and the sector is now firmly in a bear market.
The All Share Index declined by 4.9% to exacerbate the negative impact of the previous quarter's losses. All broad sectors declined. SA Industrials were the hardest hit with a decline of 6.5%. Small-Caps fell by 7.3% while Mid-Caps bucked the trend with a positive 2.7% over the quarter.
In terms of Equity sectors, the top performers were Gold Mining +38.1%, Fixed Line Telecoms +25.0% and Platinum +18.4%. The worst performers were Tobacco -27.4%, Pharma -19.3%, and General Financials -9.4%.
Emerging Market contagion persisted, albeit at lower intensity. Domestic Policymakers and leadership have demonstrated a resolve to address the structural impediments in the fiscus and critical institutions. The process is underway and will take time. The decline in domestic assets has led to less euphoric valuations and represents an opportunity for investors to participate in the recovery on a more rational basis.
The probability is high that equities, as an asset class, could continue to muddle through. Risk assets remain extremely vulnerable to either a recession or a sudden increase in bond yields.
For that reason, we continue to advocate caution and conservatism, with adequate diversification across portfolio's.
Portfolio overview
The Fund declined by 3.43%, but remains well ahead of the average fund. Performance was satisfactory in a quarter when many asset classes experienced fairly significant declines.
The fund navigated a difficult quarter incredibly well. Our intentional bias towards diversification and conservatism came to the fore as preference shares, cash and bonds generated positive returns and cushioned the downside volatility in domestic and other risk assets.
The net result was above-average performance for the quarter and builds on the excellent relative performance of the Fund since the middle of 2017. In particular, the Fund has generated first quartile performance over all periods ranging from 3 months to 2 years and was one of the few balanced funds to generated positive returns for calendar year 2018.
Our stock selection discipline and asset allocation experience enabled us to maintain our trend of avoiding or averting the worst performing securities and sectors. Our underweight in listed property and selected industrials added significant value. In equities, our reduced exposure to the domestic consumer added value. Stock selection was reasonable and enabled the fund to hold up better than the average fund. In addition, the lower allocation to domestic equities added value in terms of asset allocation.
Our global equities continued to perform well up to November and provided both diversification and a currency tailwind. In direct contrast and in an abrupt turnaround, global equities sold off in tandem over December and gave back all of the relative gains over the quarter. Our overweight allocation to Global Equities more than compensated for the lower domestic equity weighing over most of the year but did not work very well in the fourth quarter.
In mitigation, our long standing above-average cash position, was a rare positive contributor to performance over the quarter.
Portfolio positioning
The fund positioning and strategy remains virtually unchanged.
We remain marginally under-weight equities and within equities, we favour quality and global. Our foreign exposure remains high, but we have reduced foreign exposure in anticipation of less currency tailwinds and in response to attractive valuation on the domestic front.
We re-configured our domestic equity exposure during the quarter as value re-emerged after an extended sell-off. We increase our exposure to listed property and banks.
Our Fixed Income exposure is inherently conservative, lower duration and adequately diversified. We increased our government bond exposure during the sporadic over during the quarter. We have no parastatal or SOE debt exposure.
Cash is a residual outcome of our investment process. Cash balances declined marginally over the quarter as we found new opportunities to deploy capital. It is likely that cash will reduce even further. The decline in domestically oriented asset classes (particularly equities) over the quarter has led to more reasonable valuations and attractive opportunities for diversification.
  • Fund focus and objective  
In order to achieve its objective, the investments normally to be included in the portfolio may comprise a combination of domestic and international assets in liquid form, money market instruments, corporate debt, equities, bonds, property securities, preference shares, convertible equities, listed and unlisted financial instruments and non-equity securities. The equity limits will be aligned with that of the Asisa Fund Classification: SA - Multi Asset -High Equity. The manager may from time to time invest in participatory interests in portfolios of collective investment schemes registered in the Republic of South Africa and which are consistent with the portfolio's investment policy.
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