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  •  Northstar Sanlam Collective Investments Equity Fund (A)

10.23  /  1.08%


NAV on 2019/09/16
NAV on 2019/09/13 940.98
52 week high on 2018/09/21 1025.08
52 week low on 2019/08/27 875.51
Total Expense Ratio on 2019/06/30 1.12
Total Expense Ratio (performance fee) on 2019/06/30 0.14
NAV Incl Dividends
1 month change 7.86% 7.86%
3 month change -1.87% -0.31%
6 month change -2.86% -1.31%
1 year change -6.4% -3.4%
5 year change 0% 0%
10 year change 0% 0%
Price data is updated once a day.
  • Sectoral allocations
Basic Materials 0.61 7.96%
Consumer Goods 1.34 17.57%
Consumer Services 0.65 8.48%
Financials 2.38 31.25%
Health Care 0.32 4.25%
Industrials 1.10 14.40%
Liquid Assets 0.36 4.68%
Specialist Securities 0.08 1.06%
Technology 0.74 9.69%
Telecommunications 0.05 0.67%
  • Top five holdings
 NASPERS-N 0.74 9.69%
 REMGRO 0.55 7.21%
 OMUTUAL 0.48 6.28%
 STANBANK 0.39 5.17%
 INVPLC 0.37 4.8%
  • Performance against peers
  • Fund data  
Management company:
Sanlam Collective Investments
Formation date:
ISIN code:
Short name:
South African--Equity--General
ASISA Category Average
Contact details

No email address listed.

No website listed.


  • Fund management  
Adrian Clayton

  • Fund manager's comment

Northstar SCI Equity Fund - Jun 19

2019/09/04 00:00:00
It's an interesting environment with tail events (both to the upside and downside) taking place in various areas of the market - this offers opportunity, but also results in extreme manager relative performance differences. There are effectively two camps of managers, those participating in the 'trend' or momentum area of the market, which means heavy resource exposure and then those less exposed to resources due to concerns around capital preservation. The unique market structure in South Africa (where 21% of the JSE All Share index is constituted by commodity exposure) lends itself to binary outcomes and tail events for market participants. What is also worth noting is that the center of the market - good businesses that are non-resource based has been in limbo.
South African equities have been a mixed bag in 2019, outperformance (albeit with extreme volatility) of commodity companies has dominated (resources are 21% higher year to date) the market while domestically focused companies have underperform both in terms of share price performance (the local financial index has gained 5% year to date and the industrial index is down 5.8%) and with respect to their earnings trajectory. Certain local stocks look cheap - although not many, there are a grouping of SA companies where free cash flow yields are elevated and ratings are no longer high, but earnings projections are dismal as underlying economic growth in the system is vacant. Contrast this to commodity businesses where ratings are high when applying normalized earnings but profitability levels are also elevated as spot prices for certain commodities have exceeded market expectations. It is also true that capacity is being well managed amongst the mining giants, helping to control supply in tight markets caused by supply disruptions.
The resource story and the level of bullishness by managers invested within that space becomes more questionable when the demand side of the equation is thoroughly interrogated. Chinese investment spending growth peaked in 2003 and has been falling ever since, year on year growth is now under 8%, having been closer to 20% between 2003 and 2013. Air pollution regulations and Chinese interventions to stimulate the economy have certainly played a meaningful role in buoying commodities, but the extent of appreciation of share prices, driven by spikes in physical metal prices to levels significantly higher than the marginal cost of production, makes for vulnerability. We remain underweight commodities which is consistent with our quality at a reasonable price philosophy. This is hurting performance from an allocation perspective - we are not exposed to a sector of the market going parabolic, but we are redeeming ourselves by continued positive selection effects - our stock picking within the rest of the market is adding value.
We feel comfortable that the businesses within our portfolio have sustainable and enduring franchises that are best equipped to survive the ongoing economic malaise occurring in South Africa. Our work has focused on margins of safety with financial and operational robustness. Until the underlying fundamentals within the economy change, conservatism will remain our approach.
  • Fund focus and objective  
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