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  •  Sage Sanlam Collective Investments Protection Solution FoF (A2)
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2.27  /  0.15%

1535.59

NAV on 2019/07/19
NAV on 2019/07/18 1533.32
52 week high on 2018/09/04 1573.22
52 week low on 2018/12/20 1461.8
Total Expense Ratio on 2019/03/31 1.82
Total Expense Ratio (performance fee) on 2019/03/31 0
NAV Incl Dividends
1 month change -0.08% 0.12%
3 month change -0.15% 0.05%
6 month change 3.55% 4.97%
1 year change 1.55% 4.63%
5 year change 2.79% 5.92%
10 year change 0% 0%
Price data is updated once a day.
  • Sectoral allocations
Liquid Assets 2.23 1.18%
Managed 187.41 98.82%
Offshore 0.00 0.00%
  • Top five holdings
U-DEFPPSF 37.67 19.86%
U-SMMILOQ 37.61 19.83%
U-INVCAUM 37.41 19.73%
U-PRUINFL 37.41 19.73%
U-AGSTABL 37.30 19.67%
  • Performance against peers
  • Fund data  
Management company:
Sanlam Collective Investments
Formation date:
2006/11/01
ISIN code:
ZAE000153375
Short name:
U-SMMPTS3
Risk:
Unknown
Sector:
South African--Multi Asset--Low Equity
Benchmark:
CPI for all urban areas plus 3% over 36 month rolling period
Contact details

Email
No email address listed.

Website
No website listed.

Telephone
021-947-9111

  • Fund management  
Sage Wealth Management Proprietary Limited


  • Fund manager's comment

Sage SCI Protection Solution FoF - Mar 19

2019/05/29 00:00:00
The FoF is a combination of underlying managers all of whom have proven track records and the ability to generate significant outperformance over time. The FoF was successfully restructured last quarter to consist solely of underlying managers in the same ASISA category as the Sage Protection FoF.
The combination of managers strikes a balance between the CPI+3% target of the FoF, and its objective not to lose money over 12 months. Managers focused on capital growth include Allan Gray and Prudential, while the more recent appointments of Investec, Matrix, and Sasfin all have an explicit capital protection focus.
The FoF has enjoyed a strong start to the year, and we remain optimistic for the FoF's prospects. The introduction of capital protection focused managers has reduced the look through equity allocation of the FoF to just of 30% at quarter-end, and the FoF is no longer as dependent on the performance of the (SA) equity market as it was in the past, given SA fixed interest assets are highly attractive to these managers on current yields.
SA equities (up 3.9%) had a reasonable quarter, but only modestly outperformed nominal bonds (up 3.8%) and materially underperformed both emerging (up 10.2%) and developed (up 12.8%) market equities. Our assessment of the upside to SA equities has been reduced despite attractive valuations given the likelihood that economic growth could continue to disappoint.
SA property (up 1.5%) and SA inflation-linked bonds (up 0.5%) both underperformed SA cash (up 1.7%) with global property (up 14.5%) the standout performer and significantly ahead of foreign bonds (up 2%). The subdued performance of SA inflation-linked bonds has been on the back of an improving inflation outlook in SA, while the strong performance of global property has partly been fuelled by an increasingly dovish US Federal Reserve.
The US Federal Reserve left short-term rates unchanged at both their January and March meetings, and signalled their intention for no further interest rate increases in 2019. The pause in their tightening cycle reflects a softening of economic growth and subdued inflation in the US, and gave emerging markets some breathing room with the South African Reserve Bank (SARB) being able to leave interest rates unchanged at both its January and March meetings.
South African economic growth continues to disappoint with the SARB now expecting just 1.3% growth in 2019 (materially less the 1.9% the SARB expected for 2019 as recently as last November) while National Treasury (under slightly more optimistic growth assumptions) only expects SA government debt to stabilise in 2023/4 at 60.2%.
SA government debt is priced as if it was already sub-investment grade, and offer an attractive yield given contained inflation forecasts despite market concern around contingent State-Owned Enterprises (SOE) liabilities and potentially optimistic economic growth forecasts.
The Sage Protection FoF is well diversified across managers and strategies and suitably positioned to take advantage of market opportunities as they materialise.
  • Fund focus and objective  
The objective of the Sage Sanlam Collective Investments Protection Solution Fund of Funds is to protect capital and to offer a return of at least CPI plus 3% over a rolling three year period. The portfolio will aim never to have a negative return over a one year period.
The investment manager, Sage Wealth Management (Pty) Ltd follows the multi manager style of investing and will invest the portfolio in the participatory interests of various collective investment schemes managed by different specialist investment managers. The target of CPI plus 3% will be achieved through the construction of a portfolio with a strategic asset allocation appropriate for a CPI plus 3% return objective.
The objective will be achieved by investing in assets in liquid form, and participatory interests or any other form of participation in collective investment scheme portfolios or other similar collective investment schemes the Act may allow from time to time, managed by specialist investment managers. In line with the multi manager investment philosophy, the portfolio will be constructed to achieve diversification across different asset classes as well as different investment managers and investment processes. The philosophy therefore categorically excludes the possibility of the portfolio only investing in underlying collective investment schemes of just one manager. Key value proportions are the selection of multiple specialist investment managers as well as the combination of these managers into optimal portfolio structures in order to achieve the investment objective.
The strategic asset allocation will be achieved by combining participatory interests of collective investment scheme portfolios managed by specialist investment managers who use different and uncorrelated investment strategies.
The portfolio will be investing in participatory interests of portfolios which provide exposure to a flexible combination of equity, bonds, money market instruments, non-equity and property, as well as to various absolute return investment strategies.
The asset allocation will be actively managed by the multi-manager to reflect its view of the changing economic and market conditions. The portfolio will have an equity exposure of maximum 40% at all times, depending on the investment manager's investment strategy for a CPI plus 3% return objective at the time. This portfolio is part of a range of risk profiled, multi managed fund of funds portfolios and the SMMI house view tactical asset allocation given specific market conditions will be applied uniformly to the range of portfolios. Therefore, should the house view be bullish on equities, the tactical allocation to equities will increase across the range of portfolios in line with their respective maximum equity exposure limitations, whilst equities exposure will decrease uniformly across all three portfolios should the house view be bearish on equities. Given the application of the SMMI house view exposure approach it is highly unlikely that these portfolios will ever have similar effective equity exposures.
The portfolio will obtain offshore exposure through investment in participatory interests of collective investment schemes approved in terms of the Act.
This portfolio will comply with regulations governing pension funds.
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