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 30/Sep)||-10.4||-3.7||2.6|
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||4.5|
Monthly Commentary – September 2020
- Global equities (-3.2% in US dollars) fell for the first time in six months, weighed down by benchmark-heavy tech stocks—a wave of IPOs, M&A and stock splits typically evident of excessive liquidity characterised the month
- The US dollar strengthened against most majors, weighing on emerging markets and commodities—gold (-4.1%) retraced some of its recent gains and oil (-9.6%) tumbled after Saudi Arabia cut prices for major customers
- The FTSE/JSE Capped All Share Index (-1.2% in rands) was led lower by resources stocks (-3.4%) on lower commodity prices— while financial counters (+2.3%) rallied
- The fund’s low weight to resources was beneficial in the main given the slump in the gold miners (-11.0%)—but top holding BHP Group (-3.2%) and the NewGold ETF (-4.8%) detracted
- Financial counters led the bourse with the banks index (+8.8%) rallying from oversold levels (it is down 34.6% for the year)—fund positions in FirstRand (+9.0%) gained while Standard Bank (+2.4%) lagged
- The SA listed property sector (-3.0%) fell on deteriorating fundamentals, but investments in Fortress A (+5.5%) and niche player Stor-Age (+2.0%) were positive—although UK property counter Capco (-12.8%) was a big detractor
- The rand (+1.1% vs the US dollar) gained materially against the dollar but lost ground latterly—on risk off sentiment as fears of renewed European COVID-19 lockdowns mounted
- The managers see some enticing opportunities at current valuations, especially in the mid-cap sector—restaurant franchise Spur is dealing with the challenges of COVID-19 lockdowns but it and companies like Omnia, Metair, Hudaco, Afrox and others trade on price-earnings multiples of less than eight-times earnings with good prospects in all but the most catastrophic scenarios for South Africa
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.