NAV on 2021/02/25
|NAV on 2021/02/24
|52 week high on 2021/02/16
|52 week low on 2020/03/23
|Total Expense Ratio on 2020/12/31
|Total Expense Ratio (performance fee) on 2020/12/31
Prescient Management Company Ltd. (PIM)
South African--Multi Asset--High Equity
Guy is Prescient's Chief Investment Strategist and one of its co-founders. After graduation, Guy worked as a bond analyst and manager, and as derivatives specialist at asset management houses including Colonial Mutual, Cape Gilt Investments and Southern Life. At Investec, Guy worked as a bond manager and was responsible for all derivative exposure in the pension funds. He then joined District Securities Bank where he was later appointed a Bank Director, before leaving to establish Prescient Investment Management with Herman Steyn
Prescient Balanced Team
Prescient Absolute Balanced Fund Comment - Sep 19
The wave of global central bank policy easing remained intact over the month of September. The US Federal Reserve (Fed) cut the Fed Fund rate by a quarter of a percentage point as markets expected, while the European Central Bank (ECB) delivered a package of easing measures, including a 10 basis point deposit rate cut and 'open-ended' quantitative easing. Indeed, the downturn in global PMI's had monetary policymakers scurrying in a bid to arrest the downward trend.
Separately, supply/demand imbalances in the US repo market led to a spike in the overnight rate (to 8% - 10%) on the 17th of September. Market pundits posit that several technical factors may have affected short-term rates, such as the deadline for quarterly corporate tax payments coinciding with the settlement date for a Treasury auction, resulting in an estimated decrease of $100 billion in cash available for short-term financing. As such, the Fed responded by injecting liquidity into fed funds market to the tune of $128 billion over two days in a bid to calm the market down.
Geopolitically, the Sino-US trade tensions continued to dominate headlines and Iran has been accused of being behind the attacks on two major oil facilities in Saudi Arabia. The latter triggered a 14% rally in the Brent crude price before it receded back to pre-strike levels as the US pledged to release strategic oil reserves to alleviate supply-side pressures.
On the local front, members of the South African Reserve Bank's Monetary Policy Committee (MPC) unanimously left the repo rate unchanged even though local inflation dynamics remain benign. SA's deteriorating fiscus appears to be limiting the MPC's appetite for lowering borrowing costs as SA needs to maintain healthy interest rate differentials to attract the capital needed to fund a wider budget deficit. Moreover, National Treasury announced that the medium-term budget policy statement has been delayed by a week – leading to speculations that the parties involved in the budget process are finding it difficult to reach consensus on the most appropriate fiscal programming given the numerous factors that continue to put the sovereign balance sheet under strain.
Contributors to performance: Preference shares delivered the strongest performance amongst the asset classes, while local equities, bonds and property were marginally higher over the month of September.
Detractors from performance: The Rand ended the month a touch stronger, which resulted in marginal performance detraction from the Fund's offshore allocation.
INVESTMENT AND RETURN OBJECTIVE
The Fund aims to return CPI + 5% per annum over a full market cycle with less capital risk than the average balanced fund.
The Fund invests in a diversified portfolio including cash, capital markets, equities and property, with active asset allocation. Derivatives can be utilised to reduce downside risk when pricing warrants this. The equity selection is active. The Fund is well diversified globally and the offshore allocation and currency exposure is managed actively.