NAV on 2019/01/16
|NAV on 2019/01/15
|52 week high on 2018/01/25
|52 week low on 2018/11/23
|Total Expense Ratio on 2018/09/30
|Total Expense Ratio (performance fee) on 2018/09/30
Prescient Management Company Ltd. (PIM)
FTSE/JSE All Share TR index
Ian de Lange
Cor van Deventer
Seed Equity Fund comment - Sep 13
The Seed Equity Fund was launched on 30 April 2013. The Fund will attempt to outperform the ALSI total return index (J203T).
The Fund is composed of two smart beta building blocks, value and momentum. Through his research, Prof Paul van Rensburg of Salient Quants, has developed a process to create both value and momentum portfolios that can be managed on a rules based approach. He has focused on value and momentum, as portfolios with these characteristics have historically had the best ability of outperforming standard market cap indices (like the ALSI) over time - this is something that we expect to continue into the future.
The allocation between the two strategies will be dynamically adjusted based on prevailing market conditions. The market goes through periods where one factor is favoured over the other and, by adjusting the Fund accordingly, we believe that we will be able to enhance the returns of the Fund compared to a static allocation. Salient has an excellent long term track record managing quant portfolios.
Salient's key differentiators from traditional quant processes are: they don't operate a 'black box' process, the process is constantly refined and updated, and all research is solidly backed both on theoretical and empirical research (Paul is Professor of Finance at UCT).
The Seed Equity Fund is a low cost local equity Fund that makes use of smart beta techniques. Value and momentum investment styles have been selected as they have historically generated uncorrelated outperformance of markets. These styles are equally weighted within the Fund. The Fund aims to generate returns in excess of the JSE ALSI Total Return (J203T) over rolling 7 year periods and avoid negative returns over any 5 year period. The Fund is not regulation 28 compliant and is therefore not suitable, by itself, for investments in retirement funds. The net equity weighting will never be less than 80% of the Fund's market value.