NAV on 2020/05/29
|NAV on 2020/05/28
|52 week high on 2020/02/17
|52 week low on 2020/03/19
|Total Expense Ratio on 2019/12/31
|Total Expense Ratio (performance fee) on 2019/12/31
Sanlam Collective Investments
JSE All Share Index TR
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Jean-Pierre du Plessis
Stonehage Fleming SCI Equity Fund- Dec 19
A strong final quarter across the JSE helped the All Share Index to deliver a return of 12.0% for the calendar year, making it the top performing major domestic asset class. Returns were concentrated in a number of resource and heaveyweight dual listed shares. Over the 12 month period, the general resource, industrial and financial indices delivered returns of 28.5%, 8.9% and 0.6% respectively. Within the resource sector, the platinum and gold mining subsectors delivered very impressive returns of 203% and 108% respectively. Indeed 7 of top 10 performing shares in 2019 were either gold or platinum miners. It should be noted that despite the stellar returns generate by the platinum sector over the past 12 months, the sector has delivered a negative return over the past 10 years. Even the broader resource index, with a 10 year annualized return of 3.3% has failed to deliver returns in excess of cash.
The past 24 months, largely precipitated by the Steinhoff collapse, has seen a number of JSE listed (often well regarded) management teams disppoint investores. Whilest clients have managed to avoid the wors of these fallouts, it has further emphasized the need for a detailed internal understanding of a company culture, capital allocation policies and Environmental, Social and Governance (ESG) practices. It is insufficient for the market's perception of a company management team to be taken at face value (and often where disappointments arise).
There is no change to our positive views on the return outlook for the JSE which we outlined in our prior quarterly letter given attractive overall valuations combined with recent changes in client portfolios which we beloieve have enhanced the overall quality of portfolios. Key themes that shaped equity markets in 2019 such as Brexit, US China trade relations, and central bank policies on the global front and Eskom and possible sovereign rating downgrades on the local front look set to continue into 2020. As always being long-term oriented equity managers our focus is on choosing the best possible combination of companies to weather all possible business and economic challenges and ultimately drive shareholder and client returns.
The prtfolio shall invest in assets in liqid form and in servurities across all sectors of the JSE Securities Exchange of South Africa as well as international exchanges and other permissible assets allowed by the Act. the portfolio shall be allowed to invest in listed and unlisted financial instruments (derivatives) as allowed by the Act from time to time in order to achieve its investment objective, and shall be permitted to invest in offshore investments as leislation permits This portfolio will invest predominantly in equities. Apart from the above, the portfolio may also invest in participatory interests of portfolios of collective investment schemes registered in the Republic of South Africa or of participatory interests in collective investment schemes.
The fund will be manage with a high conviction approach, typically holding no more than 20 positions at any time. In line with the investment mangaer's investment philosophy and process, the holdings will be concentrated in selected JSE Top companies with the buy-to-hold management approach encouraging minimal portfolio turnover.