NAV on 2020/02/25
|NAV on 2020/02/24
|52 week high on 2020/02/17
|52 week low on 2019/02/27
|Total Expense Ratio on 2019/09/30
|Total Expense Ratio (performance fee) on 2019/09/30
Sanlam Collective Investments
South African--Multi Asset--High Equity
CPI for all urban areas plus 5% pa over a 2 year rolling period
No email address listed.
No website listed.
Northstar SCI Managed Fund - Sep 19
Three characteristics defined the quarter.
The first being the ongoing trend of domestic assets underperforming global assets, particularly in $ terms. In Q3, the MSCI World Index gained 1.4% (US$) whilst the MSCI SA Index fell 12.4%. The ALBI dropped 6.3% ($) in the third quarter whereas the FTSE World Gov. Bond Index gained 1.1%. In rand terms, the ALBI gained 0.7% and the MSCI SA Index declined 5.8%.
The second being the outperformance of precious metals and defensive equities. Gold and platinum had a phenomenal quarter – gaining 12% and 26% respectively. Beverages and Tobacco, both defensive investments, returned about 13% for Q3. As indicated above, this must be compared to the All Share Index’s quarter of -4.6%.
Finally, the strong relative returns on fixed income assets versus equities. Diminishing growth prospects globally has sustained bond returns relative to equities. This trend perpetuated into Q3. The ALBI produced a return of 0.7% in Q3, after gains of over 3% in Q1 and Q2, year-to-date the ALBI has risen 8.4%, significantly outperforming most major equity indices. The Northstar SCI Managed Fund had an excellent relative performance against peers in Q3, this can be ascribed to sound stock selection and notable large exposures to outperforming asset classes, in particular, domestic fixed income and offshore assets. Stock selection was impactful with meaningful investments in beverage and tobacco stocks as well as very specific company outperformance from Wilson Bayly Holmes and Woolworths. With large dislocations in asset valuations occurring across and within markets, the management team of the Northstar SCI Managed Fund have been making adjustments to the asset allocation of the fund. Most notable of these has been to reduce offshore exposure and importantly foreign equity levels based on lower potential returns. Lately, we have also added to SA equities as the local market has sold off and concomitantly, return expectations for domestic companies are now significantly improved off a lower base.
We appreciate that these changes face some risks in that SA could be on the receivingend of a Moody’s outlook change in November, but our modeling shows that much of this is already incorporated in the prices of domestic assets.
The primary objective of the Northstar Sanlam Collective Investments Managed Fund is to offer investors moderate to high long term total returns. The portfolio will be managed in compliance with prudential investment guidelines for retirement funds in South Africa. In order to achieve its objective, the investments normally to be included in the portfolio may comprise a combination of assets in liquid form, money market instruments, bonds, debentures, corporate debt, equity securities, property securities, preference shares, convertible equities, derivatives, non-equity securities and any other securities which are considered to be consistent with the portfolio's primary objective and the Act or the Registrar may allow from time to time, all to be acquired at fair market value. The portfolio may from time to time invest in financial instruments, in accordance with the provisions of the Act, and the Regulations thereto, as amended from time to time, in order to achieve the portfolio's investment objective. The manager may also include unlisted forward currency. The portfolio may also include participatory interests or any other form of participation in portfolios of collective investment schemes or other similar schemes in the Republic of South Africa. Where the aforementioned schemes are operating in territories other than South Africa, participatory interests or any other form of participation in these schemes will be included in the portfolio only where the regulatory environment is to the satisfaction of the manager and trustee as being 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. The portfolio will be actively managed with exposure to various asset classes being varied to reflect changing economic and market circumstances, in order to maximize returns for investors.