-0.93 /
-0.59%
157.63
NAV on 2020/02/24
| NAV on 2020/02/21 |
158.56 |
| 52 week high on 2020/02/20 |
158.7 |
| 52 week low on 2019/08/16 |
151.72 |
| Total Expense Ratio on 2019/09/30 |
1.67 |
| Total Expense Ratio (performance fee) on 2019/09/30 |
0 |
| Bonds |
478.00 |
17.31% |
| Fixed Interest |
399.55 |
14.47% |
| General Equity |
228.57 |
8.28% |
| Managed |
1374.08 |
49.76% |
| Real Estate |
74.96 |
2.72% |
| Spec Equity |
114.38 |
4.14% |
| Offshore |
91.65 |
3.32% |
|
U-PPMLEQ |
915.12 |
33.14% |
|
U-PPSINBD |
478.00 |
17.31% |
|
U-DEFPPSF |
458.96 |
16.62% |
|
U-PPSENHC |
399.55 |
14.47% |
|
U-PPSEQUI |
212.50 |
7.7% |
Management company:
Professional Provident Society Management Company |
Formation date:
2007/05/14 |
ISIN code:
ZAE000089884 |
Short name:
U-PPSCONS |
Risk:
Low - Medium |
Sector:
South African--Multi Asset--Low Equity |
Benchmark:
CPI for all urban areas + 2% |
PPS Multi-Managers Proprietary Ltd
PPS Conservative Fund of Fund - Sep 19
2019/12/13 00:00:00
This FoF targets CPI+2% p.a. over rolling three years. Diversification is achieved both on an asset class and manager level. Approximately half the FoF is invested according to our house-view allocation (that aims to achieve CPI+3% p.a. over rolling three years at the lowest possible risk) while the remainder is invested with multi-asset class managers that follow their own strategies (and help mitigate our internal model risk).
Over the three-year investment horizon of the FoF, SA equities (up 1.0% p.a.) have materially underperformed foreign equities (up 13.3% p.a.) and our expectation for this asset class, while SA nominal bonds (up 8.9% p.a.) and SA cash (up 7.0% p.a.) have both delivered returns that comfortably exceeded CPI (up 4.7% p.a.). In contrast, SA inflationlinked bonds (up 1.9% p.a.) and foreign bonds (up 4.5% p.a.) both gave negative real returns (i.e. after SA inflation). The FoF over this three-year period has benefited from our house-view being overweight foreign equities relative to SA equities, and overweight SA nominal bonds relative to SA inflation-linked bonds. At the same time, over the past three years, the FoF has benefited from its allocation to the multi-asset manager, Investec, whose quality strategy has delivered strong peer-relative returns.
Year-to-date, foreign equities (up 22.5%) have substantially outperformed SA equities (up 1.4%), while SA nominal bonds (up 8.4%) have outperformed both SA cash (up 5.2%) and SA inflation-linked bonds (up 3.5%). Within SA equities, both SA Industrials (up 11.1%) and SA resources (up 10.5%) delivered double digit returns. These returns have been front-ended as the most recent quarter saw drawdowns across all SA equity sectors. However, the strong recent performance in global equities in particular has contributed to the FoF achieving its inflation objective year-to-date, as well as over its three-year investment horizon.
Over the quarter, we made two changes to our house-view asset allocation. The domestic bond allocation was increased from neutral to overweight given the favourable yield backdrop and the domestic property allocation was reduced from neutral to underweight on the back of macroeconomic concerns within the sector. No changes were made to the multi-asset component of the FoF this quarter. All three of these managers continue to perform as expected, and bring diversification qualities to the overall portfolio.
Investment objective
The PPS Conservative Fund of Funds aims to outperform inflation by 2% per year over periods longer than 36 months. It is also a suitable vehicle for retirement savings.
Investment mandate
This fund of funds is well diversified across managers and asset classes, with limited equity exposure which will not exceed 40% and a maximum effective property exposure of 25% . It may invest in listed and unlisted financial instruments. It solely holds units in local or foreign collective investment schemes or other similar schemes.
