NAV on 2020/05/29
|NAV on 2020/05/28
|52 week high on 2020/04/28
|52 week low on 2020/03/17
|Total Expense Ratio on 2019/12/31
|Total Expense Ratio (performance fee) on 2019/12/31
Sanlam Collective Investments
MSCI Europe index
No email address listed.
No website listed.
Sanlam International Investments
Sanlam Pan-Europe comment - Mar 17
The first quarter of 2017 contained a lot of news (as well as noise) around Donald Trump and how he is faring as a president. Markets continued in a positive manner on the back of his campaign rhetoric regarding tax reforms and deregulation. However, towards the end of the quarter doubts started to form amongst investors - relating to the efficacy which Trump will be able to deliver on his promises. Very little has in fact been implemented to date and the jury is still out. As a result the reflation trade lost momentum towards the end of the quarter, specifically in Europe. Economic data from across the globe has been improving over the quarter; ''soft data'' has seen significant improvements whereas the hard data has been lagging and is much more moderate in magnitude. Going into the second quarter investors are eagerly waiting for the hard data to confirm the recovery. While it is widely acknowledged that the economy is showing signs of improvements, risks to the global economy have not disappeared. One of these risks for equity markets going forward is a significant increase in inflation without the accompanying earnings growth. Going forward the French elections could be a massive shock to markets specifically if Le Pen comes to power. However, market participants are ascribing a very low probability to such an event. On the other hand, it seems that the recent perceived market shocks, those events which were perceived as a negative at the time, namely Brexit and the Trump victory, have sent equities to all-time highs while volatility has descended to all-time lows. That being said, the bond markets have not agreed with the rosy picture that equities have painted in the first quarter of 2017, but also advanced over the quarter.
For the quarter European equity markets, as measured by the MSCI Europe Index, rose 7.44% . The region has been plagued with concerns regarding the continuity of the European Union with several elections over the time period as mentioned above. Notwithstanding those, returns were positive over all three calendar months whilst March stood out as the main contributor for the quarter. This could be attributed to the softening of expectations and the accompanying fears of a Le Pen victory. Brexit talks have largely continued as expected albeit with only some minor challenges coming from Scotland on another referendum vote. There is talk in the market that the European Central Bank might want to raise interest rates back to zero to normalise the financial industry as the negative rate policy has not been effective. Over the quarter the index returned 2.08%, 1.19% and 4.02% respectively.
The fund invests primarily in equities listed on developed Pan-European stock markets (UK and the Continent). The investment objective of the Fund is to provide long term capital growth by investing in a medium with a reasonable level of current income and relative stability of capital.
In selecting securities for the Sanlam Pan Europe Fund, which will be a specialist portfolio, having the primary objective of growth of capital for investors, the Manager shall seek to achieve an investment medium with a reasonably level of current income and relative stability for capital invested to obtain long term wealth accumulation through active management of a portfolio of assets which comprise a mix of securities, fixed interest securities and assets in liquid form.
The Manager will focus on achieving this objective where, the securities normally to be included in the portfolio will consist mainly of financially sound ordinary shares and, when appropriate, other securities of Europe and the United Kingdom (including inter alia, fixed income securities, assets in liquid form, loan stock, preference shares, debenture stock, debenture bonds and unsecured notes) listed on recognised stock exchanges of Europe and the United Kingdom, as defined in the Act and the regulations thereto. Investments in selected foreign markets will be subject to any Exchange Control Regulations applicable in South Africa from time to time and any surplus cash received over and above any limitation laid down by such Regulations, may be invested in South African listed shares from companies which are directly or indirectly connected to the exchange rate e.g. companies which are engaged in the export business or benefit from investments or derive their income mainly from outside the Republic of South Africa, as well as any other securities which are considered to be consistent with the portfolio's investment objectives, cash, any other securities, fixed interest securities and assets in liquid form that the Act may from time to time allow, all to be acquired at fair market prices.