-0.05 /
-0.04%
139.07
NAV on 2019/01/16
| NAV on 2019/01/15 |
139.12 |
| 52 week high on 2018/12/31 |
139.55 |
| 52 week low on 2018/02/05 |
136.76 |
| Total Expense Ratio on 2018/09/30 |
0.89 |
| Total Expense Ratio (performance fee) on 2018/09/30 |
0 |
| Additional |
1032.69 |
4.03% |
| Financials |
655.16 |
2.56% |
| General Equity |
1993.00 |
7.78% |
| Liquid Assets |
21918.07 |
85.53% |
| Offshore |
25.93 |
0.10% |
|
FINANCEINSTIT |
16515.30 |
64.45% |
|
PUBLENTISSPAP |
2530.84 |
9.88% |
|
DOMESTICFUNDE |
1993.00 |
7.78% |
|
ADDITIONAL |
1032.69 |
4.03% |
|
DOMESTICFUNDR |
655.16 |
2.56% |
Management company:
Prescient Management Company Ltd. (PIM) |
Formation date:
2005/12/01 |
ISIN code:
ZAE000074886 |
Short name:
U-PSCINC |
Risk:
Unknown |
Sector:
South African--Multi Asset--Income |
Benchmark:
STeFI Call 110% |
Guy Toms
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
Farzana Bayat
Jean-Pierre du Plessis
Prescient Income Provider Comment - Sep 18
2018/12/14 00:00:00
With the South African 2nd Quarter GDP print confirming that the economy has entered into a recession, local markets started on the backfoot in September. The ZAR weakened by more than 5% post the print and dragged interest rates higher. The Monetary Policy Committee (MPC) remains in a difficult position with rising inflation and falling growth. This was evident in their decision to leave rates unchanged during the September MPC meeting, with a close 4 to 3 vote in favour of leaving rates unchanged. We used the move higher in interest rates to further gradually increase duration in the Fund. With local inflation expected to remain within the target band for the forecast period and growth remaining subdued, we see little risk in the MPC increasing rates by more than what the market currently expects. Local headlines continue to dampen investor appetite as uncertainty surrounding property rights are being fueled by pre-election rhetoric. Given the uncertain nature of current conditions, we are measured in our approach and will continue to look for opportunities to further add duration. The Fund earned an attractive real yield of between 3.5% and 4%. Should interest rates rise, it will benefit from the low duration profile as yield earned will rise with the market. In our view, the bigger risk is rising inflation, which will threaten the portfolios real return target. To this end, the portfolio holds an inflation swap, a dollar currency option structure and an emerging market hedge position. These will provide some performance enhancements to the portfolio should EM/rand/inflation risk materialise.
The Fund underperformed both cash and the ALBI 1-3 year index in September but remains above its benchmark for the year. The performance came from good quality credit held, which generated yield over and above the benchmark. The underperformance came from the inflation hedges as the ZAR, after initially weakening, ended the month in positive territory. The increase in duration also added return to the Fund during September as the fixed yields were entered at attractive levels.
INVESTMENT AND RETURN OBJECTIVE
The Fund aims to return CPI + 3% per annum through a full interest rate cycle while providing stability by
aiming never to lose capital over any rolling 3 month period.
INVESTMENT PROCESS
This Fund invests in local and offshore money market, bonds, property, preference shares, inflation-linked
bonds and derivatives to meet the investment objectives. Fund performance can be generated from taking interest rate views or duration, yield enhancement via credit instruments, asset allocation between income producing asset classes, offshore exposure and also via the use of derivatives.
Insider GOLD
