NAV on 2019/07/23
|NAV on 2019/07/22
|52 week high on 2018/09/04
|52 week low on 2019/01/07
|Total Expense Ratio on 2019/06/30
|Total Expense Ratio (performance fee) on 2019/06/30
Prudential Portfolio Managers Unit Trusts Ltd.
South African--Multi Asset--Low Equity
CPI + 5% over a rolling 3 year period
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.
Michael is Head of Real Return at Prudential Investment Managers, with 19 years’ experience. He is co-Portfolio Manager of four Prudential unit trust funds, and has won several Raging Bull & Morningstar Awards. Michael is primarily responsible for helping determine asset allocation in our multi-asset funds and institutional mandates.
Johny, a qualified actuary, has worked in the In vestment industry since 1997. He joined Prudential in 2013 as Portfolio Manager and Equity Analyst, focusing on Insurance and Financial Services companies.
With eleven years’ experience, Duncan is co-manager of two other Prudential funds. He is also responsible for equity analysis of the listed property companies and credit analysis of property company debt issuers.
Prudential Inflation Plus comment - Mar 19
Global equity and bond markets were broadly positive in March, buoyed by the US Federal Reserve’s easier interest rate stance - the Fed left the benchmark interest rate within the 2.25% - 2.5% range, indicating that no further rate hikes were likely for the remainder of 2019, while forecasting just one rate hike in 2020. Developed markets outperformed emerging markets, shrugging off concerns over a contraction in global growth and political uncertainty in Europe. In the US, Fed Chair Jerome Powell noted that a slowdown in the European and Chinese economies could have a positive but lagged effect on US growth through downward pressure on future inflation. In the UK, Prime Minister Theresa May had a third vote on her Brexit proposal rejected by Parliament. Parliament also voted down eight separate proposals on the structure for exit, creating even more uncertainty. The EU has given Britain until 12 April 2019 to formalise its exit strategy. In Europe, political turmoil in Turkey and uncertainty around Brexit dominated headlines; however, news that the European Central bank would implement a new cheap loan programme for banks to stimulate economic activity within the region helped bolster investor sentiment.
In South Africa, the South African Reserve Bank (SARB) announced that it would keep interest rates unchanged at 6.75%, in line with market expectations. GDP for 2018 came in at 0.8% (y/y), slightly higher than expected; however the SARB indicated that this may be revised down to 0.7% (y/y). The SARB also lowered its growth forecast for 2019 from 1.7% to 1.3% and from 2.0% to 1.8% for 2020. In March, the FTSE/JSE All Share Index returned 1.6%, the BEASSA All Bond Index produced 1.3%, inflation-linked bonds (the Composite ILB Index) delivered -0.8%, and cash as measured by the STeFI Composite Index returned 0.6%.
Looking at global market returns (all in US$), the MSCI All Country World Index returned 1.3%, the Bloomberg Barclays Global Aggregate Bond Index also delivered 1.3%, while the EPRA/NAREIT Global Property Index produced 3.1%. The rand depreciated 3.3% against the US dollar, 1.9% against the euro and 1.0% against the pound sterling.
Contributing the most to absolute performance for the month was the fund’s exposure to foreign and SA equities (excluding property), while exposure to SA listed property detracted the most from value.
The primary objective of this Fund is to outperform CPI by 5% (before fees) over a rolling 3-year period. The secondary objective is to reduce the risk of capital loss over any rolling 12-month period. The Fund invests in an actively managed, diversified combination of domestic and international assets where the asset allocation is tactically managed. The intended maximum limits are Equity 40%, Listed Property 25%, Offshore 25%, plus additional 5% Africa (excl. SA). The Fund is managed to comply with regulations governing retirement fund investments (Regulation 28).
Who should Invest?
Individuals looking for a low-to medium-risk multi-asset fund. Individuals and retirees who want to protect their investment from the detrimental effects of inflation over time. The recommended investment horizon is 3 years or longer.