NAV on 2019/11/20
|NAV on 2019/11/19
|52 week high on 2019/06/28
|52 week low on 2019/01/02
|Total Expense Ratio on 2019/09/30
|Total Expense Ratio (performance fee) on 2019/09/30
Prudential Portfolio Managers Unit Trusts Ltd.
South African--Multi Asset--Income
SteFI Composite Index
David joined Prudential Portfolio Managers SA, as Head of Fixed Income in January 2009. Prior to Prudential, he was the senior fixed interest portfolio manager in the London office of M&G Investments. David worked at Prudential in South Africa in 1999 and 2000, and was responsible for establishing our current fixed interest process. Before joining M&G, David worked for Hill Samuel Asset Management as a fixed income fund manager, managing both life and pension funds for a variety of clients. David graduated from the London School of Economics with a BSc in Economics and from Birkbeck College with an MSc in Economics. He is an Associate of the Institute of Investment Management and Research.
Roshen Harry is a Portfolio Manager at Prudential Investment Managers, with 10 years’ experience. Having joined the group in May 2006, he is co-Portfolio Manager of Prudential’s Enhanced Income Fund, High Interest Fund and Money Market Fund.
Prudential Enhanced Income comment - Sep 19
September proved to be a relatively resilient month for global equity markets in the face of a string of negative news. Escalating trade-war tensions between the US and China, the start of efforts to impeach President Trump, Brexit uncertainty in the UK and political instability in Europe (particularly in Italy), were not enough to dampen investor sentiment as developed and emerging markets both closed the month in the black. In the US, President Trump's administration announced that it was considering delisting Chinese companies from US stock exchanges. The move formed part of a broader effort to limit US investment in Chinese companies. In keeping with market expectations, the US Federal Reserve cut interest rates by 25 bps, citing the prolonged US-China trade war and weak global economic growth as ongoing risk factors. Markets however, were disappointed as the Fed downplayed expectations of further interest rates cuts. In the UK, the Supreme Court ruled Prime Minister Johnson’s move to suspend Parliament was illegal, triggering calls from opposition parties for him to step down. In the EU, outgoing ECB president Mario Draghi announced that the central bank would cut interest rates by 10bps (below market expectations of a 20bp cut) and would continue to keep rates at accommodative levels until inflation showed signs of approaching the 2.0% target. China, meanwhile, filed a lawsuit with the World Trade Organization after the US imposed an additional 15% tariff on US$300bn worth of Chinese imports from 1 September. In retaliation to the tariff increase, China levied new duties of between 5-10% on US$75bn worth of American imports, including crude oil.
South African equities ended largely flat as gains made in the first half of the month were erased following the release of poor local economic data. The SARB, meanwhile, kept interest rates on hold and its latest quarterly projection model pointed to no interest rate changes through year-end. The growth outlook for 2020 and 2021, however, was revised down from 1.8% to 1.5%, and from 2.0% to 1.8% respectively. Preliminary results showed that GDP expanded 3.1% in the second quarter, well above market consensus of 2.5%. In September, the FTSE/JSE All Share Index delivered 0.2%, the BEASSA All Bond Index posted 0.5%, inflation-linked bonds (the Composite ILB Index) delivered 0.4%, and cash as measured by the STeFI Composite Index returned 0.6%. Looking at global markets (all in US$), the MSCI AC World Index delivered 2.2%, the Bloomberg Barclays Global Aggregate Bond Index returned -1.0%, while the EPRA/NAREIT Global Property Index REIT posted 2.7%. The rand strengthened 1.1% against the euro and 0.1% against the dollar, but weakened 1.1% against the pound sterling.
Contributing the most to absolute performance for the month was the fund’s exposure to SA cash and SA bonds (excluding inflation-linked bonds), while foreign bonds and SA listed property detracted from value.
The Prudential Enhanced Income Fund is a varied specialist fixed income portfolio.
The objective of the Prudential Enhanced Income Fund is to maximise total returns in excess of the benchmark, the BEASSA ALBI 1-3 year Total Return index, over a rolling 36-month period, whilst seeking to preserve capital and reduce volatility through active asset management.
In order to achieve the portfolio's investment objectives, the securities to be acquired for the Prudential Enhanced Income Fund will consist of a mix of high yielding securities, including equity, listed property instruments, bonds, preference shares and assets in liquid form, both locally and abroad, thereby generating both tax free and taxable income, whilst preserving capital. The portfolio may include non-equity securities where the instrument or issuer has been assigned a rating or any other form of measurement approved in terms of prevailing statutory limitations. The Portfolio may also include participatory interests or any other form of participation in portfolios of collective investment schemes or other similar schemes registered in the Republic of South Africa, or of participatory interests or any other form of participation in portfolios of collective investment schemes or other similar schemes operated in territories other than South Africa, with a regulatory environment which is to the satisfaction of the manager and the trustee of a sufficient standard to provide investors protection at least equivalent to that in South Africa and which is consistent with the portfolio's primary objective. The use of derivative strategies may be pursued and will only be limited by the prevailing statutory limitations placed on the inclusion of such financial instruments in the portfolio.
Nothing in this supplemental deed shall preclude the Manager from varying the ratios of securities, to maximise capital growth and investment potential in changing economic environments or market conditions or to meet the requirements, if applicable, of any exchange as defined in terms of legislation and from retaining cash or placing cash on deposit in terms of the deed and this supplemental deed; provided that the Manager shall ensure that the aggregate value of the assets comprising the portfolio shall consist of securities and assets in liquid form of the aggregate value required from time to time by the Act.
No direct physical property holding will be made by the portfolio.
For the purpose of this portfolio, the manager shall reserve the right to close the portfolio to new investors on a date determined by the manager. This will be done in order to manage the portfolio in accordance with its mandate. The manager may, once the portfolio has been closed, open the portfolio again to new investors on a date determined by the manager.
The portfolio will comply with regulations controlling retirement funds or such other applicable legislation as may be determined for retirement funds.
The portfolio investment in listed equity instruments will be limited to 10% of the total portfolio value,
The trustees will ensure that the portfolio meets the investment policy requirements as stated in the supplemental trust deed.