The fund aims to outperform the FTSE/JSE Capped All Share Index over the long term, with lower risk of loss.
FOR SOUTH AFRICAN INVESTORS
- With a higher risk profile
- Seeking long-term growth over periods exceeding five years
- From a portfolio of JSE-listed equity, commodity and property stocks
- And able to withstand investment volatility in the short to medium term.
|Year||Fund Return %||Benchmark Return %||SA Inflation %|
|2002 (from 01/Sep)||5.3||-2.9||3.1|
|2020 (to 31/Jul)||-10.2||-2.4||1.4|
Total return of the FTSE/JSE Capped All Share Index.
Longer than five years.
1 September 2002
R50 000 lump sum or R1 000 per month
SA equity exposure between 80% and 100%, with balance invested in cash and oither JSE listed securities.
End-February and end-August each year.
Low gross yield, similar to FTSE/JSE All Share Index dividend yield. Income distributions are reduced by the annual service charge, which varies with the relative performance of the fund against its benchmark.
A portfolio of quality JSE shares that present compelling long-term investment value.
|Risk of loss||
High in periods shorter than one year. Lower in periods greater than three years.
|Security description||Asset class||Market||Portfolio weight %|
|British American Tobacco||Equity||ZA||4.2|
|Capital & Counties||Property||ZA||3.0|
Monthly Commentary – July 2020
- Global equities (+5.3% in US dollars) rose on decent earnings, pharmaceutical companies reporting promising early COVID-19 vaccine trial results and further massive fiscal stimulus announcements in the US and EU—emerging markets (+8.9%) outperformed on dollar weakness while the US (+5.9%) and Europe (+3.9%) also rose despite rising second wave pandemic infection rates clouding the economic outlook
- Most commodities including copper (+6.8%) and oil (+5.2%) gained, supported by the US and European stimulus announcements—the US dollar index (-4.4%) had its worst month since 2010 prompting technical break-outs in gold (+9.5%) and silver (+34.9%)
- The FTSE/JSE Capped All Share Index (+2.9% in rands) was led higher by resources (+9.0%) with financials (+0.4%) flat and industrials (-1.3%) weaker—despite more attractive valuations, the dire economy continues to weigh heavily on South African companies
- No holdings in the gold (+23.2%) and platinum (+20.1%) miners detracted as the sectors rallied on commodity price gains, despite the multitude of risks facing the SA mining sector—but the fund’s holdings of NewGold (+9.1%) and non-resource rand hedge Anheuser-Busch Inbev (+10.3%) gained
- The rand (+1.6%) appreciated on positive emerging market sentiment and dollar weakness but has declined 17.9% against the greenback this year—the fund maintains the bias to non-resource rand hedges given South Africa’s structural economic weaknesses and vulnerable currency in the long-term
- The high cash position due to the defensive fund structure detracted—good diversification, optionality and high levels of liquidity position the portfolio exceptionally well for the current environment
The fee is a performance based fee that varies around the at-benchmark fee rate as disclosed on the fact sheet. The daily fee rate is adjusted up or down based on the portfolio’s one-year rolling return relative to that of its benchmark. Minimum fee rates apply.