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143.18

NAV on 2019/07/23
NAV on 2019/07/22 143.16
52 week high on 2019/06/13 146.35
52 week low on 2019/01/07 132.15
Total Expense Ratio on 2019/03/31 1.66
Total Expense Ratio (performance fee) on 2019/03/31 0
NAV Incl Dividends
1 month change -1.76% -0.52%
3 month change -1.61% -0.37%
6 month change 5.85% 7.18%
1 year change 4.59% 7.12%
5 year change 2.91% 5.17%
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 76.34 20.24%
O-COGLOEQ 65.40 17.34%
U-NEWGOLD 15.20 4.03%
 BATS 8.93 2.37%
 REMGRO 8.56 2.27%
  • 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 - Mar 19

2019/06/06 00:00:00
The first quarter of 2019 reversed the negative trend of the previous quarter. The US Equity market rebounded strongly and emerging markets continued the recovery that had started in late 2018.
Global risk markets surged upward in a synchronised and correlated fashion as the US Fed surprised the markets with an abrupt reversal in policy stance. The Fed’s pivot ushered in a ‘risk-on’ rally and a return to a regime of favouring the search for yield. The US Fed has since, confirmed their pause in tightening and now appear to be on course to reducing interest rates in the future. The abrupt turnaround from Quantitative Tightening to a potential resumption of Quantitative Easing is truly unprecedented and financial markets are currently in the throes of navigating this change in regime. As a consequence, the CBOE Volatility Index (VIX) declined significantly.
Volatility has returned to the relatively stable pattern of 2017. The spike in volatility and deep drawdown in December 2018, is now a distant memory. Investor complacency and related euphoria has returned. Developed market equities have rebounded so strongly that we are close to all-time highs.
An additional feature of the quarter was the continued recovery in emerging market securities. The combination of low valuations, high yields and a supportive Fed policy has buoyed EM financial markets.
Global Bonds advanced by 1.9% as market participants started to price in the Fed’s change in policy stance. Emerging market bonds advanced in line with the rally in US Bond yields. It remains unclear whether US Bonds are signalling a return to QE or an upcoming recession.
For the quarter, most major asset classes advanced, with relatively few laggards. Gold was surprisingly resilient the US Dollar remained stable based despite worsening yield considerations and declining growth prospects. The MSCI World Index advanced by 12.6%.
MSCI Emerging Market Index appreciated by 10.0% over the quarter.
Global property, as measured by the iShares Developed Market Property Yield ETF which tracks the FTSE EPRA / NAREIT Developed Index advanced by 14.6% over the quarter. Global Property was relatively resilient during the market drawdown and has held it’s own in the recent rebound.
On the domestic front, global market action had a positive knock-on effect. Political and economic issues abound but this had more of an impact at the equity sector level.
Domestic fixed income securities were surprisingly resilient over the quarter. The All Bond Index managed a positive return of 3.8% and inflation-linked bonds, as measured by the JSE CILI Index followed suit with a 0.9% return. Cash, as measured by the STeFI index, returned a steady 1.7%. The JSE Preference Share Index had a solid quarter with a positive return of 6.25%. Listed Property had a welcome positive return of 1.5% for the quarter.
The listed property sector is struggling to recover, with a 9.2% rally in January being gradually eroded by persistent selling over the remaining months of the quarter. The All Share Index advanced by 8.0% to reverse the impact of the previous quarter's losses. The advance was not uniform and in terms of broad sectors, SA Financials lagged the most with a modest decline of 0.4%. Small-Caps fell by 3.4% while Mid-Caps bucked the trend with a positive 2.8% over the quarter.
In terms of Equity sectors, the top performers were Platinum +49.7%, Tobacco +29.5% and General Mining +22.4%. The worst performers were Pharma -12.7% and Industrials -3.9%.
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.
At the end of the quarter, Moody’s provided the country with somewhat of a reprieve, when they held the sovereign rating stable, despite well founded fears of a downgrade. The decline in domestic oriented equities, has resulted in very cheap 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 have recovered to previous highs but remain extremely vulnerable to either a recession or a sudden increase in risk aversion.
For that reason, we continue to advocate caution and conservatism, with adequate diversification across portfolios.
Portfolio overview
The Fund advanced by 8.13% and remains well ahead of the average fund. Performance was more than satisfactory in a quarter when most asset classes advanced and our fund positioning remained inherently conservative. The fund navigated the quarter incredibly well. Equity stock selection was the biggest contributor on both the domestic and global front. Our intentional bias towards diversification and conservatism continued as preference shares, cash and bonds generated positive returns and cushioned the potential 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 3 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 Financials and selected industrials added value. In equities, our very low exposure to the domestic retailers added significant value. Our overweight in Tobacco and Platinum 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 allocation to global equities had an excellent quarter and provided both diversification and a currency tailwind. Our overweight allocation to Global Equities more than compensated for the lower domestic equity weighing.
Our above-average cash position, was a relative detractor 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 valuations on the domestic front.
We re-configured our domestic equity exposure during the quarter as value re-emerged after an extended sell-off. We increased our exposure to domestically oriented stocks.
Our Fixed Income exposure is inherently conservative, lower duration and adequately diversified. We increased our government bond exposure during the previous quarter but we remain underweight relative to the average fund, based on fiscal considerations. We have no parastatal or SOE debt exposure.
Cash is a residual outcome of our investment process. Cash balances increased marginally over the quarter as we rebalanced the currency and sector exposure after significant advances. 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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