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111.11

NAV on 2021/03/01
NAV on 2021/02/26 111.107
52 week high on 2020/03/09 111.785
52 week low on 2020/07/01 108.289
Total Expense Ratio on 2020/12/31 1.16
Total Expense Ratio (performance fee) on 0
NAV
Incl Dividends
1 month change 0.62% 0.62%
3 month change 0.43% 1.75%
6 month change 0.79% 3.61%
1 year change -0.47% 6.27%
5 year change 0.14% 8.66%
10 year change 0.4% 8.3%
Price data is updated once a day.
Click and drag to zoom in on timeline.
  • Sectoral allocations
Derivatives -152.73 -1.43%
Liquid Assets 70.20 0.66%
Money Market 1520.58 14.27%
Other Sec 62.85 0.59%
SA Bonds 9151.45 85.90%
Offshore 1.26 0.01%
  • Top five holdings
MONEYMARK 277.64 2.61%
MM-21MONTH 220.29 2.07%
MM-07MONTH 207.75 1.95%
MM-12MONTH 110.17 1.03%
MM-06MONTH 93.25 0.88%
  • Performance against peers
  • Fund data  
Management company:
Momentum Collective Investments Limited
Formation date:
2005/07/01
ISIN code:
ZAE000068789
Short name:
U-RMBINPL
Risk:
Unknown
Sector:
South African--Multi Asset--Income
Benchmark:
STeFI (Alexander Forbes Short Term Fixed Interest index)
Email
ci.Clientservice@momentum.co.za

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

Telephone
0860-111-899 (Client Services)

  • Fund management  
Conrad Wood
Conrad joined Momentum Asset Management in 1994 (then RMB Asset Management) and has been involved in the management of fixed-income portfolios from the start of his career. He was appointed as head of fixed income in October 2007, also taking that role in the new merged entity in February 2011. Conrad and his team currently oversee the management of R80 billion across various fixed income mandates, including for a number of institutional portfolios. He and his team have managed the Momentum Money Market Fund, the Momentum Maximum Income Fund and Momentum Diversified Yield Fund since their inception.


  • Fund manager's comment

Momentum Income Plus comment - Sept 18

2018/12/03 00:00:00
Economic overview
Q3 of 2018 has seen an intensification of the headwinds that had begun building for the economy and the market earlier in the year. The local challenges of an underperforming economy with an elevated debt burden have been exacerbated by a global environment that has become increasingly challenging for emerging markets, especially those that are over reliant on global capital to fund domestic imbalances. Interest rates continue to rise in the U.S., the Dollar remains strong and the threat of a global trade war persists. As capital exits emerging markets, the resulting currency weakness places upward pressure on inflation and central banks are forced to raise interest rates despite the fact that economic growth is benign, which in turn suppresses the economy further resulting in increased capital outflows. This is the classic emerging market death loop. South Africa falls directly into the eye of this storm with its large twin deficits and high foreign ownership of domestic bonds. As expected, fixed income asset classes reacted negatively to the deterioration in the macro backdrop and yields continued their rise for the second consecutive quarter. Bond yields were up 20 basis points and real yields rose 18 basis points across the curve. This led to impaired returns, with bonds (ALBI) delivering 0.81%, Inflation-linked Bond's (IGOV) returned 0.46% and cash (STeFI) was king at 1.76% for the quarter.
The local credit market remains the only asset class that seems to consistently buck the risk-off trend. Spreads continue to compress across most sectors, despite the tough macro environment and the widening of risk premia in global credit markets. There continues to be meaningful liquidity looking for a home and a competitive yield while issuance is running at very benign levels due to the lack of investment in the economy. There are definitely some sectors to avoid due to a sharp deterioration in fundamentals and we remain concerned about a more general repricing of credit risk if global uncertainty persists.
Portfolio overview
The portfolio performed very well this quarter, comfortably outperforming all other fixed income asset classes as bond yields rise significantly. The macro environment remains challenging for credit and an increase in volatility and risk premia was evident over the quarter. However, we have not seen this manifest in valuations, with credit spreads remaining stable to slightly tighter. The running yield of the portfolio is stable, but the additional performance from capital gains generated by credit spread compression continues to taper off. We ended the quarter with above cash returns and matched the internal benchmark of STeFI+3% p.a. (gross of fees).
Portfolio positioning
Duration - the interest rate risk in the portfolio is very low as per mandate and currently is at 0.50 years. Thus, the portfolio does not have high sensitivity to moves in interest rates, other than the secondary effect that any move in rates may have on credit spreads. This really becomes evident in a quarter like the one just passed where the portfolio generates good return in an environment where fixed income assets (with duration risk) underperform sharply. Credit spreads - we are somewhat concerned about how spreads have indiscriminately compressed with little regard for the macro environment and we are much more circumspect in allocating capital, preferring shorter maturities and higher credit quality. This does however mean that the running yield of the portfolio is likely to decline over the next quarter. The weighted average credit rating of the portfolio remains at A-, with the running yield increased slightly to around Money Market + 2.89%.
  • Fund focus and objective  
The Momentum Income Plus Fund aims to maximize yield with the flexibility to invest in a diverse range of securities. The dominant strategy is exposure to credit including structured credit assets. Duration risk is low and low volatility of returns can be expected barring credit defaults or substantial widening in credit spreads Its low correlation to other asset classes makes it an excellent building block for other funds.
The fund holds offshore credit but currency hedges offset the impact of currency volatility.
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