NAV on 2019/05/20
|NAV on 2019/05/17
|52 week high on 2019/04/30
|52 week low on 2018/07/02
|Total Expense Ratio on 2018/12/31
|Total Expense Ratio (performance fee) on 2018/12/31
Sanlam Collective Investments
South African--Multi Asset--Income
Stefi + 1% per annum
No email address listed.
No website listed.
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 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.
Counterpoint SCI Enhanced Income Fund - Dec 18
In Q4 2018, doubts about the sustained pace of global economic growth started to surface. The trade war rhetoric between the United States and China intensified after having gone quiet for a few months. PMI readings across a few major economies started to soften, and despite the global economy still being forecast to grow at a steady pace (above 3%), financial markets started to discount lower growth and steady low inflation over the next year. The US Federal Reserve, which is out of its quantitative easing phase, put up interest rates in its December meeting despite attempted suasion to the contrary from US president Donald Trump. US risk markets reacted negatively to the news, and money rotated into the relative safety of US treasuries, which pushed down the US 10y treasury yield from a high of 3.24% in November to close the year 55b.p. lower at 2.69%, albeit under poor liquidity conditions. The market has since lowered its expectations for further US interest rate cuts; US treasury researchers we follow have cut their expectations of further Fed Rate hikes to two at most during 2019.
This would be rand, emerging market and equity positive over the short term. In South Africa, the SARB tightened monetary policy in a split 4-3 decision in its 22rd November MPC meeting while arguing that monetary policy is still loose. This supported both the domestic currency and bond markets, which, when added to the run in the treasury market towards year end, caused South African bonds as measured by the All Bond index (7.74%) to outperform Cash (Stefi index 7.29%) over 2018. Inflation-linked bonds did not follow suit though, the CILI returning a barely positive 0.34%. The other notable non-equity South Africa asset class, listed property, had a bad year with some notable casualties. The JSE Listed property index fell -25.3% over 2018. Preference shares in contrast had a good year, returning 14.99% despite the equity market falling 8.53%.
Inflation-beating returns from the South African cash and bond markets over 2018 notwithstanding, a few troubling features of the market continue to stand out. It should be noted that most of the compression in South African yields towards the end of the year was a result of the drop in US treasury yields, as the spread to treasuries remained static at around 650 b.p at the 10y point. This means that the domestic market is still pricing in an unchanged set of fundamental drivers. These include (i) the worsening debt metrics of the sovereign – the debt/GDP ratios continue to deteriorate (ii) the economy’s poor growth prospects should put corporate earnings under pressure, thereby putting pressure on debtcoverage ratios and (iii) a first half of 2019 in which political heat is set to rise with the impending elections. In addition, a dearth of corporate issuance continued to drive down corporate bond spreads, which was further intensified by the market’s avoidance of parastatal paper, given especially Eskom’s parlous financial position. This all calls for a continued cautious stance on bond yields and corporate spreads.
The Counterpoint Enhanced Income fund managed to navigate rather tricky waters to post a pleasing 8.99% after costs in what proved a volatile year. It is encouraging to us that the fund continues to find traction in the marketplace, having grown by 62% over 2018 to an AuM of R692million by year-end. We are aware that some of these flows were due to a general market asset allocation in favour of income funds given the dismal performance of the equity market. We would however like to think that a large part of the flows was secured through our prudent approach to the fixed interest market. In what should prove another difficult year for bonds given the slowing global economy and the potential widening of credit spreads, the fund will continue to exercise vigilance in its exposure to risky assets, taking opportunities in the market as they present themselves
Investments to be included in the portfolio will, apart from assets in liquid form, consist of non-equity securities, fixed interest instruments (including, but not limited to, bonds, cash deposits and money market instruments), preference shares of an income nature and listed property securities as well as any other income enhancing securities which are considered consistent with the portfolio's primary objective and that the Act or Registrar may allow from time to time. In order to achieve the portfolio objective, the portfolio's asset allocation and instrument selection will be actively managed and will continually reflect the portfolio Manager's view of the relative attractiveness of the property shares, property related securities, loan stock listed on exchanges, non-equity securities, bonds, money market instruments and preference share markets. Apart from achieving the primary objective of generating high income, the portfolio will actively invest in bonds and/or property securities in order to achieve the secondary objective of long term capital growth. The portfolio's property exposure will be aligned with that of the Asisa Multi Asset Income portfolios category. The portfolio may also invest in listed and unlisted financial instruments in accordance with the Act as well as in offshore investments as permitted by legislation. The Manager may also include participatory interests and other forms of participation of local and global collective investment schemes, or other similar schemes operated in territories with a regulatory environment which is to the satisfaction of the Manager and Trustee of a sufficient standard to provide investor protection at least equivalent to that in South Africa and which is consistent with the portfolio's primary objective.