NAV on 2019/09/18
|NAV on 2019/09/17
|52 week high on 2019/07/31
|52 week low on 2018/10/02
|Total Expense Ratio on 2019/06/30
|Total Expense Ratio (performance fee) on 2019/06/30
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 - Jun 19
The second quarter of 2019 saw global bond yields continue to plummet, resulting in a strong performance in global bond indices. The Barclays Bloomberg Developed Bond market index unhedged in US dollars returned 3.3% over the quarter, whereas its emerging market equivalent returned 3.75%. The good performance was not confined to bonds. In fact, the first half of 2019 ended strongly, with most major asset classes beating their long-term annual averages in just six months. Propelling these strong bond returns were strong expectations that the Fed would start easing again and that the ECB would cut rates further into negative territory. Bonds also benefited from a flight to safety as fears for global growth stemming from a trade war intensified, as well as from strongly falling inflation expectations. The excellent performance of bond markets thus far in the year comes at a cost. The term premium on the US 10y treasury is at -0.66% in sight of its record lows of 2016, and the market value of global bonds on a negative yield is at almost 13 trillion USD, a record. Global developed market bonds are by no means cheap.
The South Africa bond market proved no exception to the rule, posting a 3.70% return in ZAR over the quarter (ALBI). Other South African non-equity asset classes also fared well. The JSE property index rebounded over the quarter by 4.52%, the inflation-linked bonds (CILI) returned 2.76% and the JSE Preference Share index was up 5.50% for the quarter. Cash delivered a 1.8% total return (Stefi). Unquestionably the main driver of South African bonds has been the international bond prices. Much steadier has been the South African credit spread, as a worsening fiscal balance is weighing on credit worthiness. Debt to GDP is now projected to breach 60% in the next fiscal year, especially if R250bn of Eskom debt is transferred to government’s balance sheet. Confidence in the domestic bond market has not been shared by foreign investors in South Africa, who sold a net USD353million of the country’s bonds in the first half of the year.
After a shocking 2019Q1 SAAR GDP figure of -3.2% against a background of low inflation, the SARB is poised to cut rates in the third quarter. The weak economy is negatively impacting profit margins and the balance sheets of South African companies, yet such is the demand for corporate paper, and the flight from investing in the SOE’s, in particular Eskom, that spreads continue to compress. This buying pressure is unlikely to abate in the near future.
The CPAM Enhanced Income fund returned 2.35% after costs over Q2 2019. This return profile continues to find favour with investors, who have continued to show confidence in the fund, growing its AuM from R805m to R870.3m over the quarter. The investing public seems to still be shying away from equity and bond asset classes in favour of Income and Money Market Funds. The fund profited from an increased exposure to bonds at levels on the 10y treasury of above 9.20%. SA 10y treasuries appear to be trading in a range of between 8.80% and 9.25%. The fund will stick to its cautious approach to the South African fixed interest landscape, availing itself of 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.