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-0.14  /  -0.06%

235.82

NAV on 2019/11/11
NAV on 2019/11/08 235.96
52 week high on 2019/03/19 244.42
52 week low on 2019/05/28 224.19
Total Expense Ratio on 2019/09/30 0.91
Total Expense Ratio (performance fee) on 2019/09/30 0
NAV Incl Dividends
1 month change 0.95% 0.95%
3 month change 2.49% 2.49%
6 month change 3.38% 3.38%
1 year change 1.28% 9.57%
5 year change -1% 5.45%
10 year change 0.99% 6.09%
Price data is updated once a day.
  • Sectoral allocations
Derivatives 241.29 35.41%
Financials 24.54 3.60%
Fixed Interest 263.51 38.67%
Gilts 128.73 18.89%
Liquid Assets -213.94 -31.40%
Money Market 81.29 11.93%
Other Sec 79.05 11.60%
Real Estate 42.03 6.17%
Offshore 34.91 5.12%
  • Top five holdings
DERIVATIV 214.49 31.48%
U-PFLEXFI 127.61 18.73%
U-PRESTAB 120.64 17.7%
U-PSCPROP 42.03 6.17%
PECEIDFTRUST 34.91 5.12%
  • Performance against peers
  • Fund data  
Management company:
Prescient Management Company Ltd. (PIM)
Formation date:
2004/05/01
ISIN code:
ZAE000063442
Short name:
U-PSCPRT
Risk:
Unknown
Sector:
South African--Multi Asset--Medium Equity
Benchmark:
Headline CPI + 3%
Contact details

Email
info@prescient.co.za

Website
http://www.prescient.co.za

Telephone
+27-21-700-3600

  • Fund management  
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
Bastian Teichgreeber
Prescient Balanced Team


  • Fund manager's comment

Prescient Positive Return Quant + Comment - Sep 19

2019/10/24 00:00:00
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.
The Fund went through a quarterly options close-out, which led to the expiry of the sold upside exposure. Besides this, further upside exposure was sold at an average level of 53500 on the FTSE/JSE Top 40 Index, with the aim of mitigating the cost of protection. Effective equity exposure in the Fund was around 25% whilst volatility remains low at a time when equity valuations are approaching fair levels. The portfolio holds a range of other asset classes including preference shares, listed property and bonds, given the attractive real yields on offer.
Contributors to performance: The Fund’s local bond and preference share allocation contributed positively, while equity and property were marginally up too. Sold September upside exposure either expired or was cheaply repurchased in the weeks leading up to option expiry and thus contributed positively.
Detractors from performance: Cost of protection detracted from the portfolio.
  • Fund focus and objective  
INVESTMENT AND RETURN OBJECTIVE
The Fund aims to return CPI + 4% per annum over the medium term by generating consistent positive returns while protecting capital over rolling 12-month periods.
INVESTMENT PROCESS
The Fund invests in cash, capital market instruments and equities with an active asset allocation overlay. The equity component of the Fund is protected to reduce the risk of capital loss. The Fund is thus structured to optimise returns in positive market cycles and to protect capital during negative periods/cycles.

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