NAV on 2019/01/18
|NAV on 2019/01/17
|52 week high on 2018/01/23
|52 week low on 2018/01/23
|Total Expense Ratio on 2018/09/30
|Total Expense Ratio (performance fee) on 2018/09/30
Sanlam Collective Investments
South African--Multi Asset--Income
After tax return on the Sanlam MMF (tax rate of 40%)
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Sanlam Alternative Income Fund comment - Sep 18
The Monetary Policy Committee left the repo rat eunchanged again and as a result, the fund's return remained fairly stable. The fund closed on a higher level at period end, however on average over the term. gross exposureto preference share assets was maintained at a fairly similar level compared to the previous quarter, and accordingly, the interest as a componenet of distributions did not vary significantly.
As we head into the final quarter of 2018, the fund has started building up cash reserves in anticipation of finalising negotiations on new investments. As a results of this subtle shift in cash holdings, we expect a slightly reduced outperformance of benchmearks over the short-term.
The objective of the Sanlam Alternative Income Fund (SAIF or the fund) is to offer a liquid, mainly dividend-yielding investment that will track the South African short-term interest rate cycle. Income distributed to investors will aim to exceed the average after tax yield normally received from money market portfolios.
The credit risk is diversified in credit-rated investments of a high credit quality. Investments are in rand-denominated, redeemable, cumulative preference shares and liquid instruments.
The fund has a conservative investment mandate that will follow a risk profile focused on capital preservation subject to strict criteria, in accordance with the requirements of the Collective Investments Schemes Control Act (CISCA).
Why Choose This Fund?
* An ideal core cash holding for investors who have a high marginal tax rate.
* SAIF is the first 'new generation' dividend fund in the industry, structured essentially as a preference share conduit fund.
* The portfolio will invest only in redeemable cumulative preference shares and in liquid instruments, and will not invest in non-redeemable (perpetual) preference shares, or preference shares that offer a fixed rate of return.
* A proven market demand exists for an investment product that offers:
- Enhanced yields mainly in the form of tax-free dividends.
- Capital stability in the form of a constant unit price to be maintained.
- No capital gains tax implications.
- Low capital risk.
- No market or interest rate risk.
- Distributions on a monthly basis.
- Investor protection within the highly regulated CIS arena.
Additional Fund Information
* A constant unit price of 100c will be maintained.
* The fund may be closed for new investments.
* The fund has a credit rating of za.AAi from CA-Ratings.
* The return will be in the form of tax free dividends and a portion of taxable interest income.
* The fund offers 48 hour liquidity, subject to the provisions of the deed.