NAV on 2019/07/23
|NAV on 2019/07/22
|52 week high on 2019/05/03
|52 week low on 2018/11/23
|Total Expense Ratio on
|Total Expense Ratio (performance fee) on
Sanlam Collective Investments
FTSE/JSE All Share Index
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* 1998: Completed articles at Grant Thornton Kessel Feinstein
* Joined Franklin Asset Management (senior research analyst)
* Joined SIM in 1999 on the industrial team as an equity analyst
* 2002 - 2006: Head of small caps at Sanlam Investment Management
* Current: Head of unconstrained equities
Claude van Cuyck
Claude completed his B.Com degree at Rhodes University and B.Com Honours degree from UNISA. He is also a CFA. He joined Karlein Independent Investment Consultancy (KIIC) in 1993 as a trainee portfolio manager. He subsequently joined SIM (then Gensec Asset Management) as senior analyst: equities.
* Joined Sanlam Asset Management in 1994 as an equity analyst.
* In 1998 joined Gryphon Asset Management as a portfolio manager and analyst (running unit trusts and pension fund portfolios as well as retaining research responsibilities).
* Returned to SIM in 2002.
* Head of equities at Sanlam Investment Management.
* Has researched a number of sectors across the JSE in the 14 years that he has been an analyst/ portfolio manager.
* Currently runs the Sanlam General Equity unit trust, after managing the Industrial unit trust for a number of years.
* Member of SIM's model portfolio group that sets the equity house view and the asset allocation house view.
Sanlam Namibia Value Fund - Mar 19
Market review Global equity markets recovered strongly from the sell off at the end of last year. The S&P 500 in dollars gained 13.1% the MSCI World gained 11.9% and the MSCI EM lagging slightly gained 9.6%. The most surprising development in markets was the sharp rally in long dated developed market government bonds; the yields on US 10yr maturity bonds declined from 2.69% at year end to 2.41%. The yield on 10yr German bonds declined from 0.24% to -0.07%.
The US Congress and President Trump ended the longest government shutdown in American history on 25 January 2019 without reaching consensus over the funding amount for an expansion of the US Mexico border wall. In the UK Prime Minister May failed to gain sufficient support for her Brexit deal, but did manage to persuade European leaders to postpone the Brexit deadline until mid-April. In the last week of March the UK parliament voted on no less than eight options and has yet to find majority support for any proposal. As things stand it looks like the UK might leave the EU on 12 April without a deal.
South African markets lagged behind global equities gaining 6.8% in rand (marginal rand weakness detracted 0.9% for the US dollar based investor). SA bonds delivered surprisingly strong performance gaining 3.4% over the quarter.
Mr Mboweni delivered the Medium Term Expenditure Framework (MTEF) in February. Government revised growth forecasts lower, made no adjustment to tax brackets despite inflation and promised R23bn a year to Eskom to help it restructure its operations. The sustainability of government finances depends on the ability of the economy to achieve projected growth rates. The Eskom load shedding experienced in the first quarter makes it that much harder to achieve. Already, in March government revenue statistics showed much larger than expected shortfalls. Moody’s, despite the obvious challenges, did not downgrade SA government debt to junk.
Strong equity markets in the first quarter of 2019 can be attributed largely to the performance of rand hedge stocks including gold, platinum and resource shares. This performance was not driven by a weaker currency (the R/$ closed largely unchanged for the quarter), but by the prospect of lower for longer global interest rates and higher commodity prices.
For the quarter, our portfolios outperformed their benchmark. Despite holding no gold shares, our investments in Anglo American (+22%), BHP Billiton (+23%) added positively to performance. Other significant contributors included British American tobacco (+29.5%) and Quilter (+25%).
Domestic stocks (in particular the retailers) were heavily sold off and our limited exposure to certain overpriced domestic stocks assisted relative performance.
Finally, investing is in many respects a negative art. Avoid losses is as important as the desire to make a profit. In this regard, many of our best decisions were to avoid many poor investments which have come under significant scrutiny the past quarter. These include Aspen (-31%), Blue Label (-31%), EOH (-66%), Omnia (-40%) and Tongaat (-61%).
This has undoubtedly been one of the more anxious periods for South Africans. In addition to having to deal with electricity outages, corporates are under pressure to cut costs in order to protect profits and returns. Consumers are having to deal with higher VAT, fuel and administered prices (such as electricity) and this is impacting on discretionary spend. We remain cautious on domestic South Africa and do not see a dramatic improvement in economic growth in the shorter term.
In this environment we continue to seek out mispriced opportunities where we have above average conviction. Our objectives are to ensure we focus on constantly improving the quality of the portfolio while reducing the role of chance which unknown macroeconomic events may have.
In this regard, the heightened uncertainty has created some good opportunities. New positions in the portfolio include AVI, ABInbev and Dis- Chem. We reduced our investments in Altron, Adcorp and Tiger Brands.
The primary objective of the fund is growth of capital for unit holders. The Management Company shall seek to achieve an investment medium with a reasonalble 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 comprises a mix of equities, fixed interest securities and liquid assets.