NAV on 2020/06/03
|NAV on 2020/06/02
|52 week high on 2019/10/31
|52 week low on 2020/05/04
|Total Expense Ratio on 2019/12/31
|Total Expense Ratio (performance fee) on 2019/12/31
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 19
Towards the end of the year, global economic indicators gave policymakers reason to judge that the deceleration in economic growth had troughed. After cutting the Fed Funds rate by a further 25 b.p. in October, the FOMC paused at its December 2019 meeting, assessing the US labour market to be strong and economic activity to be rising at a moderate pace. Business investment spending is the weak spot in the economy; US corporates continue to engage in share buy-back activity instead, which helped propel the S&P500 index to a total return of 31.5% over the year. Global inflationary pressures remained benign, with prints coming in well below the inflation targets of the major central banks. Given the pause in the global short rate cutting cycle, global bond yields rose steadily over the quarter, the US 10y rising from 1.66% to 1.92% with other developed market bond yields following suit. This made for a pedestrian performance in global bond markets, the Barclays Bloomberg Developed Bond market index unhedged in US dollars returning 0.49% over the quarter, with its emerging market equivalent faring better at 2.09%.
The South African economy continues to languish. Third quarter GDP came in at a shocking -0.6%, undershooting market expectations by a wide margin. Economists immediately revised down their GDP forecast for calendar 2019 to around 0.5% and below. Eskom power cuts continue to wreak havoc on business and do little to bolster confidence. The weak economy does not auger well for the country’s rapidly slipping fiscal metrics as revenue is expected to falter. In the October MTBPS, the debt-to-GDP forecast for 2022/23 was revised sharply upwards to 73.7% (including support to Eskom), up from 59.7% in the 2019 February budget speech. Moody’s, who have called for policy reforms, will be watching this fiscal situation carefully, and in absence of clear improvements might downgrade the country’s credit rating to sub-investment grade in mid-to-late 2020. This remains the key challenge facing South Africa financial markets. As for consumer prices, headline inflation continues to be very benign, printing below 4% in Q4 2019. Against the backdrop of a weak economy, this argues strongly for a rate cut in the first quarter of 2020, but it might be that the hawks on the SARB MPC will focus on the fiscal situation and its effects on the currency before relenting their stance.
South African non-equity asset classes had a wide distribution of returns. Cash, as expressed by the Stefi index, returned 7.2% over the year. On the low spectrum of returns were listed property (1.93%) and inflation-linked bonds, the CILI index returning 2.59%. The JSE All Bond index, thanks to a good December during which it rose 1.89%, returned a pleasing 10.32% in 2019, however this was trumped by the JSE Preference share index which returned 18.6%. As always, income fund managers had to maintain a judicious asset allocation mix between the higher and lower volatility classes, in accordance to their fund’s mandate.
The CPAM Enhanced Income fund returned 8.81% after costs over calendar 2019, beating its benchmark with continued low volatility. SA fixed interest funds continue to be well supported by the market, despite the superior SA equity performance over the year, especially in the fourth quarter. The fund proved no exception, raising its AuM from R964m to R1,064 billion over the quarter, pleasingly breaching one billion rand in AuM for the first time. Challenges abound in the first quarter of 2020. The biggest for investors in SA fixed interest remains the health of the national fiscus, clarity on which will be gained from the publication of national treasury’s budget speech in February. Fiscal metrics have been rapidly dropping to unsound levels, which calls for caution in bond exposure. In addition, credit spreads have continued to narrow to injudicious levels considering the deterioration in the balance sheet health of corporates. Under these circumstances, the fund will continue to be managed in a cautious manner, taking opportunities 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.