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GLACIER INVEST - SFP Advice · The SMMI Investment Committee Framework offers intermediaries input...
Transcript of GLACIER INVEST - SFP Advice · The SMMI Investment Committee Framework offers intermediaries input...
GLACIER INVEST Leaders in Discretionary Fund Management
Succession Financial Planning
Investment Committee Pack
Q2 | 2020
AGENDA
1. Matters Arising
2. Investment Committee – Investment Policy Statement
3. Economic Review
4. Investment Education – Fixed Income Hedge Fund and Smoothing Solutions in lowering
volatility and correlation
a. Fixed Income Hedge Strategies
b. Asset Managers in the Fixed Income Hedge Fund Arena
c. Some Volatility & Correlation Statistics
d. Smoothing Mechanism & Methodology
5. Asset Manager Views
6. Portfolio Review
7. Appendices
a. Underlying Peer Comparisons
b. Total Expense Ratio Buy List
8. Disclaimer
Investment Committee Investment Policy Statement Summary Document The SMMI Investment Committee Framework offers intermediaries input in the process of multi management. This framework provides investment committee members a platform to share their research and views while adhering to the fundamental principles of investing stipulated in this investment policy document.
Investment Philosophy The Investment Committee’s (here on referred to as the “committee”) Investment Philosophy is built around the belief
that markets are generally inefficient over the short term and can be exploited through different strategies over the
longer term.
These strategies include the following:
• Selection of skilful managers (Manager selection)
• Combination of complementary managers (Portfolio construction via optimisation methods)
• Successful tactical asset allocation and/or risk management
The committee believes that this can only be accomplished successfully through rigorous research. The committee
believes that a long term investment horizon improves the likelihood of achieving superior investment returns. The
committee however accepts that maintaining a long term horizon could detract from returns in the shorter term based
on prevailing market conditions, but is necessary to achieving long term superior returns.
The committee believes that risk should be managed by holding a diversified portfolio of asset class and investment style, but is cognisant of the risks associated with over diversification in achieving its long term superior
returns.
Investable Universe The objectives of investment portfolios will be achieved by investing in collective investment schemes, managed by
specialist investment managers. While the investment universe consists of the total universe of collective investment
schemes across asset class, sector and region, the committee understands that not all asset managers or funds may
qualify as the committee believes that skill is rare. Therefore, only a subset of the universe of funds are able to be
invested in based on the asset managers ability to outperform and the use or purpose the fund serves in the overall
portfolio.
Criteria and selection of underlying managers
The manager selection process aims to identify managers with superior skill relative to their peers. Any fund for
consideration must have been researched both qualitatively and quantitatively, and must be rated via the SMMI buy-list or Glacier Shopping List.
The investment committee may put forward a request for a new strategy or fund to be analysed for placement onto the
Buy-List. In doing so the committee firstly provides research showing that the fund adheres to the adequate asset size
or percentage allocation, has a sufficiently long enough track record and has the ability to offer superior long term
performance. The committee will then have to substantiate why it believes this manager has skill in this specific
category/strategy.
Important is that the committee would not terminate a manager due to shorter term underperformance; given the
prevailing market conditions aren’t suitable to the manager’s investment philosophy and process, as these
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occurrences would be expected. The incumbent buy-list managers will therefore not automatically be terminated
within the portfolios and/or the buy-list in the event of explainable short term poor performance. Given the committee
anticipates managers to underperform in different market cycles; the portfolio will tactically be adjusted to take into
account the prevailing market conditions and the committee’s expectation for the incumbent managers within each
portfolio. A fund may be removed from the buy-list if there are any material changes to the investment team, or if any
quantitative or qualitative concerns arise.
Tactical changes and decision making process While the Investment Committee believes in a long term approach to managing portfolios to produce long term
superior returns, should compelling and robust research be presented by committee member/s that suggest a tactical
manager change (be it additions, omissions, up-weighting or down-weighting of a fund/manager), underlying
funds/managers may be tweaked so as to benefit from the prevailing market conditions.
Market and Manager Research will form the cornerstone of the any tactical movements within the Investment
Committee Framework. Additionally individuals within the committee may offer their views on the markets and
substantiate their view with research highlighting what direction (overweight/underweight) they would prefer for the
asset class in question.
These tactical changes will be tabled at the quarterly Investment Committee meetings and a decision will be made by
the close of the meeting. This decision will be defined in terms of direction, as well as weighting per asset class and
will adhere to the investment guidelines. The over-riding view within tactical asset allocation however vests with the
asset manager (SMMI) and in cases where opposing views are tabled at the investment committee, the appointed asset manager reserves the right to veto changes tabled.
The committee will refute any recommendations which aren’t within mandate and if the current view breaches
mandate parameters, the committee will also request the portfolio be rebalanced closest to strategy but within
mandate. Intra quarter requests will also be tabled at the next Investment Committee meeting.
Trading and rebalancing The committee agrees that tactical changes proposed intra quarter or at the Investment Committee meetings will be
implemented within an agreed period after the Investment Committee meeting. In addition to the quarterly Investment
Committee meeting, the committee will make provision for ad hoc meetings/interactions if major exogenous changes
are experienced in financial markets. These exogenous factors include, but are not exclusive to, potential market
crashes based on contagion, any large factors that could have dire consequences on the market, as well as key
changes which will influence the buy-list.
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MARK ET UPD AT E & AS SET A LLO CAT I ON – J ULY 2020
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AGENDA
• A Review of Markets YTD
• Macroeconomic Megatrends
• Is There a Gap – Economics & Valuations?
• Economic Data
• Monetary & Fiscal Stimulus
• Valuations
• What is Your Investment Horizon?
• TAA Recommendations
• Closing
AGENDA
• A Review of Markets YTD
• Macroeconomic Megatrends
• Is There a Gap – Economics & Valuations?
• Economic Data
• Monetary & Fiscal Stimulus
• Valuations
• What is Your Investment Horizon?
• TAA Recommendations
• Closing
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A CRAZY RIDE FOR T HE JSE
Down 3.16% YTD
BIGGEST QUARTERLY RETURN FOR THE JSE IN 19 YEARS
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BEST QUARTERLY GAIN FOR T HE S&P 500 S INCE 1998
GLOBAL CAPITAL MARKET RET URNS - END JUNE
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AGENDA
• A Review of Markets YTD
• Macroeconomic Megatrends
• Is There a Gap – Economics & Valuations?
• Economic Data
• Monetary & Fiscal Stimulus
• Valuations
• What is Your Investment Horizon?
• TAA Recommendations
• Closing
SECULAR MEGA T RENDS – TECH BOOM
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ECONOMIC GROWT H IN SA FROM DIGIT ISATION
SECULAR MEGA T RENDS – GROWTH OF GLOBAL MIDDLE CLASS
Think About The Increase in Global Consumption = GDP
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AGENDA
• A Review of Markets YTD
• Macroeconomic Megatrends
• Is There a Gap – Economics & Valuations?
• Economic Data
• Monetary & Fiscal Stimulus
• Valuations
• What is Your Investment Horizon?
• TAA Recommendations
• Closing
BUT T HE ECONOMIC DATA SHOW T HE OPPOSITE
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BUT T HE ECONOMIC DATA SHOW T HE OPPOSITE
D O E S T H E S P E E D O F T H E R E C O V E RY ME A N MA R K E T S A R E D I S C O N N E C T E D F R O M T H E U N D E R LY I N G F U N D A ME N TA L S ?
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AGENDA
• A Review of Markets YTD
• Macroeconomic Megatrends
• Is There a Gap – Economics & Valuations?
• Economic Data
• Monetary & Fiscal Stimulus
• Valuations
• What is Your Investment Horizon?
• TAA Recommendations
• Closing
IT IS NORMAL FOR T HE STOCK MARKET TO IMPROVE BEFORE THE ECONOMY DOES
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ARE THE ECONOMIC RECOVERY PREDICTIONS REAL IST IC?Economic indicators can give us a view of the economy and where it is headed
The metrics are divided into:
• High Frequency Economic Indicators (Noisy But Timely)
• Leading Economic Indicators (Monthly –Turn Before Economy Does)
• Lagging Economic Indicators (Turn After The Economy)
HIGH FREQUENCY DATA – US PETROLEUM SUPPL IED
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T HE BENEFITS OF A FLEXIBLE LABOUR POLICY
US RETAIL VEHICLE SALES & PART S RECOVERING
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BEATING EXPECTATIONS ON T HE DATA FRONT IN GENERAL
BLOOMBERG GDP GLOBAL TRACKER
-10
-8
-6
-4
-2
0
2
4
6
8
Jan
-20
05
Jul-
200
5
Jan
-20
06
Jul-
200
6
Jan
-20
07
Jul-
200
7
Jan
-20
08
Jul-
200
8
Jan
-20
09
Jul-
200
9
Jan
-20
10
Jul-
201
0
Jan
-20
11
Jul-
201
1
Jan
-20
12
Jul-
201
2
Jan
-20
13
Jul-
201
3
Jan
-20
14
Jul-
201
4
Jan
-20
15
Jul-
201
5
Jan
-20
16
Jul-
201
6
Jan
-20
17
Jul-
201
7
Jan
-20
18
Jul-
201
8
Jan
-20
19
Jul-
201
9
Jan
-20
20
Jul-
202
0
BE GDP Growth Tracker QoQ
Source: Bloomberg Economics (2020)
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PMI COMPOSITE INDICES
Source: Bloomberg Economics (2020)
AGENDA
• A Review of Markets YTD
• Macroeconomic Megatrends
• Is There a Gap – Economics & Valuations?
• Economic Data
• Monetary & Fiscal Stimulus
• Valuations
• What is Your Investment Horizon?
• TAA Recommendations
• Closing
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SO WHY ARE STOCKS GOING UP? – THE LENDER OF LAST RESORT
T HE LENDER OF LAST RESORT
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GLOBAL MONETARY POL ICY RESPONSE HAS MAT CHED IT
GLOBAL F ISCAL ST IMULUS RESPONSE HAS BEEN IMMENSE
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QE CAUSES F INANCIAL REPRESSION
MONETARY POL ICY
Long Term Inflation @ Circa 2%
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DUT CH SAVINGS ACCOUNT INTEREST RAT ES
MONEY MARKET RAT ES NOT ENOUGH TO COVER INFLATION
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MONEY PRINTING (FED’S B /S EXPECT ED TO GROW TO ABOVE $10 T RILL ION
All this money looking for a home = asset price inflation
FED’S B /S VS . S&P 500 2008 - 2014
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FED’S B /S VS . S&P 500 2009 – TO DATE
ECB BALANCE SHEET
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AGENDA
• A Review of Markets YTD
• Macroeconomic Megatrends
• Is There a Gap – Economics & Valuations?
• Economic Data
• Monetary & Fiscal Stimulus
• Valuations
• What is Your Investment Horizon?
• TAA Recommendations
• Closing
SO WHAT ARE T HE EFFECTS OF F INANCIAL REPRESSION?• Central Banks Are Creating Money & Buying Financial Assets
• Governments Around The World Are Spending Money Through Fiscal Support Programs
• Cash Interest Rates Are At Record Lows
• Investors Are Moving Capital Into Higher Yielding Asset Classes
• Bonds
• Credit
• Equities
• Leading To Asset Price Inflation
• But Are Asset Prices Detached From Their Underlying Fundamentals?
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ARE TRAIL ING PE’S A FAIR REFLECTION OF VALUATIONSS&P 500 PE RATIO 22.39EARNINGS YIELD ~ 4.5%100/22.39 = 4.46
T RAIL ING PE RAT IO - JSE
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QUARTERLY EARNINGS GROWTH RAT ES –S&P 500
HOW IS US GDP GROWTH EXPECTED TO RECOVER?
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T RAIL ING PE’S UP VS FORWARD PE’S DOWN
SA GDP PATH
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WHAT ’S T HE DIFFERENCE IN YIELD?
WHAT ARE CORPORATE DEBT YIELDS?
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CORPORATES RAISING DEBT F INANCE AT RECORD LOW RAT ES
W H AT ’ S FA I R VA L U E F O R T H E S & P 5 0 0 U S I N G C U R R E N T C O R P O R AT E Y I E L D S A S T H E D I S C O U N T R AT E ?
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JSE FUNDAMENTALS
HOW EXPOSED IS T HE JSE TO T HE SA ECONOMY?
Weight in JSE
Anglogold Ashanti 1.09% 74.00% 0.81%
Aspen Pharmacare Holdings 1.84% 78.60% 1.45%
Barclays Africa Group Ltd 1.10% 22.80% 0.25%
BHP Billiton 8.17% 100.00% 8.17%
BidCorp Ltd 1.64% 100.00% 1.64%
Bidvest Group 0.97% 48.50% 0.47%
British American Tobacco PLC 4.34% 97.00% 4.21%
Compagnie Financiere Richemont AG
9.93% 91.20% 9.05%
Discovery Ltd 0.77% 34.30% 0.27%
Firstrand Limited * 2.63% 1.00% 0.03%
Fortress Income Fund Ltd. (A) * 0.36% 42.30% 0.15%
Fortress Income Fund Ltd. (B) * 0.46% 42.30% 0.20%
Gold Fields 0.72% 87.00% 0.62%
Growthpoint Prop Ltd 1.31% 20.90% 0.27%
Impala Platinum Hlds 0.57% 74.50% 0.43%
Intu Properties Plc 0.83% 100.00% 0.83%
Investec Ltd 0.46% 58.20% 0.27%
Investec PLC 1.08% 58.20% 0.63%
% of Earnings Offshore
Weighted % Offhore Earnings
Contribution to JSE
Life Healthcare Group Holdings 0.73% 7.20% 0.05%
Mediclinic International plc 0.82% 69.20% 0.57%
Mondi Ltd 0.71% 93.90% 0.67%
Mondi Plc 2.21% 93.90% 2.07%
Mr Price Group 0.70% 7.00% 0.05%
MTN Group 4.08% 70.50% 2.88%
Naspers 18.56% 53.70% 9.96%
Nedbank Group 0.97% 3.40% 0.03%
Netcare 0.70% 49.80% 0.35%
Old Mutual * 2.98% 50.00% 1.49%
Redefine Properties 1.00% 52.10% 0.52%
Reinet Investments * 0.80% 97.02% 0.78%
Remgro 2.04% 21.47% 0.44%
RMB Holdings 0.73% 0.00% 0.00%
Sanlam 2.21% 15.50% 0.34%
Sappi 0.95% 76.80% 0.73%
Sasol 4.03% 52.70% 2.13%
Shoprite 1.57% 18.80% 0.29%
Standard Bank Group 3.23% 28.70% 0.93%
Tiger Brands 1.21% 17.00% 0.20%
Truworths International 0.71% 23.80% 0.17%
Vodacom Group 1.44% 22.60% 0.32%
Woolworths Holdings 1.24% 40.80% 0.50%
FTSE/JSE Top40 100% 62.00%
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ALSI VALUAT ION MATRIXCurrent P/E: Total Return Matrix - SA Equities (Alsi)
17.21 FTSE/JSE Valuation Matrix - Consensus vs Top-Down EarningsExpected Earnings Growth %
13.5 14.0 14.5 15.0 15.5 16.0 16.5 17.0 17.5 18.0 18.5 19.0
6.0 -13.1 -10.1 -7.0 -3.9 -0.8 2.3 5.4 8.4 11.5 14.6 17.7 20.86.5 -12.7 -9.6 -6.5 -3.5 -0.4 2.7 5.8 8.9 12.0 15.1 18.2 21.37.0 -12.3 -9.2 -6.1 -3.0 0.1 3.2 6.3 9.4 12.5 15.6 18.7 21.9 I-Net Consensus Rolling 2-Yr
7.5 -12.0 -8.8 -5.7 -2.6 0.5 3.7 6.8 9.9 13.0 16.2 19.3 22.48.0 -11.6 -8.4 -5.3 -2.1 1.0 4.1 7.3 10.4 13.5 16.7 19.8 23.08.5 -11.2 -8.0 -4.9 -1.7 1.4 4.6 7.7 10.9 14.1 17.2 20.4 23.59.0 -10.8 -7.6 -4.4 -1.3 1.9 5.1 8.2 11.4 14.6 17.7 20.9 24.19.5 -10.4 -7.2 -4.0 -0.8 2.3 5.5 8.7 11.9 15.1 18.3 21.4 24.610.0 -10.0 -6.8 -3.6 -0.4 2.8 6.0 9.2 12.4 15.6 18.8 22.0 25.210.5 -9.6 -6.4 -3.2 0.0 3.2 6.5 9.7 12.9 16.1 19.3 22.5 25.7
11.0 -9.2 -6.0 -2.8 0.5 3.7 6.9 10.1 13.4 16.6 19.8 23.0 26.3 I-Net Consensus Rolling 2-Yr Avg11.5 -8.8 -5.6 -2.3 0.9 4.1 7.4 10.6 13.9 17.1 20.3 23.6 26.812.0 -8.4 -5.2 -1.9 1.3 4.6 7.8 11.1 14.4 17.6 20.9 24.1 27.412.5 -8.0 -4.8 -1.5 1.8 5.0 8.3 11.6 14.9 18.1 21.4 24.7 27.913.0 -7.6 -4.4 -1.1 2.2 5.5 8.8 12.1 15.3 18.6 21.9 25.2 28.5
13.5 -7.2 -3.9 -0.7 2.6 5.9 9.2 12.5 15.8 19.1 22.4 25.7 29.014.0 -6.9 -3.5 -0.2 3.1 6.4 9.7 13.0 16.3 19.6 23.0 26.3 29.614.5 -6.5 -3.1 0.2 3.5 6.8 10.2 13.5 16.8 20.2 23.5 26.8 30.1 I-Net Consensus Rolling 1-Yr
15.0 -6.1 -2.7 0.6 4.0 7.3 10.6 14.0 17.3 20.7 24.0 27.3 30.715.5 -5.7 -2.3 1.0 4.4 7.7 11.1 14.5 17.8 21.2 24.5 27.9 31.216.0 -5.3 -1.9 1.5 4.8 8.2 11.6 14.9 18.3 21.7 25.1 28.4 31.816.5 -4.9 -1.5 1.9 5.3 8.6 12.0 15.4 18.8 22.2 25.6 29.0 32.3
Exit P/E
Source: IRESS (2020)
ALSI CAPE RATIO
Source: Bloomberg, IRESS (2020)
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MSCI WORLD VALUATION MATRIXCurrent P/E Total Return Matrix - MSCI World
21.6 MSCI Valuation Matrix - Consensus vs Top-Down EarningsExpected Earnings Growth % 10-Yr Exit P/E LT Exit P/E
15.5 16.0 16.5 17.0 17.5 18.0 18.5 19.0 19.5 20.0 20.5 21.0 21.5 22.0-7.0 -31.0 -28.8 -26.7 -24.5 -22.4 -20.2 -15.9 -13.8 -11.6 -9.5 -7.3 -5.1 -3.0
-6.0 -30.3 -28.1 -25.9 -23.7 -21.6 -19.4 -17.2 -15.0 -12.9 -10.7 -8.5 -6.3 -4.2 -2.0 Bloomberg Consensus 12 months
-5.0 -29.6 -27.4 -25.2 -23.0 -20.8 -18.6 -16.4 -14.2 -12.0 -9.8 -7.6 -5.4 -3.2 -1.0-4.0 -28.8 -26.6 -24.4 -22.2 -19.9 -17.7 -15.5 -13.3 -11.1 -8.8 -6.6 -4.4 -2.2 0.119.0 -12.3 -9.6 -6.8 -4.1 -1.3 1.4 4.2 7.0 9.7 12.5 15.2 18.0 20.7 23.519.5 -12.0 -9.2 -6.4 -3.7 -0.9 1.9 4.6 7.4 10.2 12.9 15.7 18.5 21.2 24.020.0 -11.6 -8.8 -6.1 -3.3 -0.5 2.3 5.1 7.8 10.6 13.4 16.2 19.0 21.7 24.520.5 -11.2 -8.5 -5.7 -2.9 -0.1 2.7 5.5 8.3 11.1 13.9 16.6 19.4 22.2 25.021.0 -10.9 -8.1 -5.3 -2.5 0.3 3.1 5.9 8.7 11.5 14.3 17.1 19.9 22.7 25.521.5 -10.5 -7.7 -4.9 -2.1 0.7 3.5 6.3 9.2 12.0 14.8 17.6 20.4 23.2 26.022.0 -10.2 -7.3 -4.5 -1.7 1.1 3.9 6.8 9.6 12.4 15.2 18.1 20.9 23.7 26.5
22.5 -9.8 -7.0 -4.1 -1.3 1.5 4.4 7.2 10.0 12.9 15.7 18.5 21.4 24.2 27.1 Bloomberg Consensus 2-year avg23.0 -9.5 -6.6 -3.8 -0.9 1.9 4.8 7.6 10.5 13.3 16.2 19.0 21.9 24.7 27.623.5 -9.1 -6.2 -3.4 -0.5 2.3 5.2 8.1 10.9 13.8 16.6 19.5 22.4 25.2 28.1
Source: IRESS (2020)
MSCI WORLD CAPE RAT IO
Source: Bloomberg, IRESS (2020)
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MSCI EM VALUATION MATRIXCurrent P/E Total Return Matrix - MSCI EM
16.39 MSCI EM's Valuation Matrix - Consensus vs Top-Down EarningsExpected Earnings Growth %
11.5 12.0 12.5 13.0 13.5 14.0 14.5 15.0 15.5 16.0 16.5 17.0 17.5 18.0
0.0 -27.2 -24.1 -21.1 -18.0 -15.0 -11.9 -8.9 -5.8 -2.8 0.3 3.3 6.4 9.4 12.50.5 -26.8 -23.8 -20.7 -17.6 -14.6 -11.5 -8.4 -5.4 -2.3 0.8 3.8 6.9 10.0 13.01.0 -26.5 -23.4 -20.3 -17.2 -14.1 -11.1 -8.0 -4.9 -1.8 1.3 4.3 7.4 10.5 13.6 Bloomberg Consensus 12m Avg
1.5 -26.1 -23.0 -19.9 -16.8 -13.7 -10.6 -7.5 -4.4 -1.3 1.8 4.9 7.9 11.0 14.12.0 -25.8 -22.7 -19.5 -16.4 -13.3 -10.2 -7.1 -4.0 -0.9 2.2 5.4 8.5 11.6 14.72.5 -25.4 -22.3 -19.2 -16.0 -12.9 -9.8 -6.7 -3.5 -0.4 2.7 5.9 9.0 12.1 15.23.0 -25.1 -21.9 -18.8 -15.6 -12.5 -9.4 -6.2 -3.1 0.1 3.2 6.4 9.5 12.6 15.83.5 -24.7 -21.6 -18.4 -15.2 -12.1 -8.9 -5.8 -2.6 0.5 3.7 6.9 10.0 13.2 16.34.0 -24.4 -21.2 -18.0 -14.8 -11.7 -8.5 -5.3 -2.2 1.0 4.2 7.4 10.5 13.7 16.920.5 -12.8 -9.1 -5.4 -1.8 1.9 5.6 9.3 13.0 16.6 20.3 24.0 27.7 31.3 35.021.0 -12.4 -8.7 -5.0 -1.4 2.3 6.0 9.7 13.4 17.1 20.8 24.5 28.2 31.9 35.621.5 -12.1 -8.4 -4.7 -1.0 2.7 6.5 10.2 13.9 17.6 21.3 25.0 28.7 32.4 36.122.0 -11.7 -8.0 -4.3 -0.6 3.2 6.9 10.6 14.3 18.0 21.8 25.5 29.2 32.9 36.722.5 -11.4 -7.6 -3.9 -0.2 3.6 7.3 11.0 14.8 18.5 22.3 26.0 29.7 33.5 37.223.0 -11.0 -7.3 -3.5 0.2 4.0 7.7 11.5 15.2 19.0 22.7 26.5 30.3 34.0 37.8 Bloomberg Consensus 2-Year Avg
23.5 -10.7 -6.9 -3.1 0.6 4.4 8.2 11.9 15.7 19.5 23.2 27.0 30.8 34.5 38.324.0 -10.3 -6.5 -2.8 1.0 4.8 8.6 12.4 16.2 19.9 23.7 27.5 31.3 35.1 38.9
10-Yr Exit P/E LT Exit P/E
Source: IRESS (2020)
MSCI EM CAPE RAT IO
Source: Bloomberg, IRESS (2020)
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SA L ISTED PROPERTY
Source: IRESS (2020)
SA L ISTED PROPERTY: VALUATION MATRIX
Bond Yields Unchanged
1.58 Prop / Bond Rel Yield 0.98 1.08 1.18 1.28 1.38 1.58 1.60 1.63 1.65 1.68 1.70 1.73 1.75 1.789.53 10 Year Bond Yield 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53
15.03 Prop Yield 9.31 10.26 11.22 12.17 13.12 15.03 15.27 15.51 15.75 15.98 16.22 16.46 16.70 16.94
-40.0 5.9 -3.1 -10.6 -16.9 -22.3 -31.0 -31.9 -32.8 -33.7 -34.6 -35.4 -36.2 -37.0 -37.7-30.0 23.5 13.0 4.3 -3.0 -9.3 -19.5 -20.6 -21.6 -22.7 -23.7 -24.6 -25.6 -26.5 -27.4-20.0 41.2 29.2 19.2 10.8 3.6 -8.0 -9.2 -10.4 -11.6 -12.7 -13.9 -14.9 -16.0 -17.0-10.0 58.8 45.3 34.1 24.7 16.6 3.5 2.1 0.8 -0.6 -1.8 -3.1 -4.3 -5.5 -6.6
0.9 0.0 76.5 61.5 49.0 38.5 29.6 15.0 13.5 12.0 10.5 9.1 7.7 6.3 5.0 3.8
1.0 78.2 63.1 50.5 39.9 30.9 16.2 14.6 13.1 11.6 10.2 8.8 7.4 6.1 4.82.0 80.0 64.7 52.0 41.3 32.2 17.3 15.7 14.2 12.7 11.2 9.8 8.5 7.1 5.83.0 81.8 66.3 53.5 42.7 33.4 18.5 16.9 15.3 13.8 12.3 10.9 9.5 8.2 6.94.0 83.5 67.9 55.0 44.1 34.7 19.6 18.0 16.4 14.9 13.4 12.0 10.6 9.2 7.95.0 85.3 69.6 56.5 45.5 36.0 20.8 19.1 17.6 16.0 14.5 13.1 11.7 10.3 9.06.0 87.1 71.2 58.0 46.8 37.3 21.9 20.3 18.7 17.1 15.6 14.1 12.7 11.3 10.07.0 88.8 72.8 59.5 48.2 38.6 23.1 21.4 19.8 18.2 16.7 15.2 13.8 12.4 11.08.0 90.6 74.4 61.0 49.6 39.9 24.2 22.5 20.9 19.3 17.8 16.3 14.8 13.4 12.19.0 92.4 76.0 62.4 51.0 41.2 25.4 23.7 22.0 20.4 18.9 17.4 15.9 14.5 13.110.0 94.1 77.6 63.9 52.4 42.5 26.5 24.8 23.2 21.5 20.0 18.5 17.0 15.5 14.1
Current Yields
Target Yield Rel
Total Return Matrix - SA Property (FTSE/JSE SA Listed Property)Exit Yield
Expected Dividend Growth %
Source: IRESS (2020)
32
EM BOND VALUATIONS
Source: IRESS (2020)
NOMINAL BONDSH I S T O R I C A L LY H I G H R E A L Y I E L D S
33
BONDSR E A L Y I E L D S V S 1 Y E A R P E R F O R M A N C EReal Yields Subsequent 12 Month Return Subsequent 12 Month Real Return
When Real Yields above 3.4% 9.4% 4.8%
When Real Yields below 3.4% 8.2% 1.8%
When Real Yields above 4.4% 10.6% 6.4%
When Real Yields below 4.4% 8.1% 2.1%
When Real Yields above 5.4% 14.2% 11.1%
When Real Yields below 5.4% 8.3% 2.5%
When Real Yields above 6.4% 16.2% 13.0%
When Real Yields below 6.4% 8.3% 2.7%
SA FRA’S
Source: IRESS (2020)
34
AGENDA
• A Review of Markets YTD
• Macroeconomic Megatrends
• Is There a Gap – Economics & Valuations?
• Economic Data
• Monetary & Fiscal Stimulus
• Valuations
• What is Your Investment Horizon?
• TAA Recommendations
• Closing
FOCUS ON T HE CORRECT INVESTMENT T IME HORIZON
35
FOCUS ON T HE CORRECT INVESTMENT T IME HORIZON
HOW DOES THAT LONG TERM RET URN GET DEL IVERED
36
HOW DOES THAT LONG TERM RET URN GET DEL IVERED
AGENDA
• A Review of Markets YTD
• Macroeconomic Megatrends
• Is There a Gap – Economics & Valuations?
• Economic Data
• Monetary & Fiscal Stimulus
• Valuations
• What is Your Investment Horizon?
• TAA Recommendations
• Closing
37
TACTICAL ASSET ALLOCATION V IEW
Legend: 0 = neutral+/-1 = 1% to 2% over/underweight+/- 2 = 2% to 4% over/underweight
0
1
2
3
4
5
6
7
8
9
1 0
1 1
1 2
1 3
-2% -1% 0% 1% 2%
Current ST 0-3 MonthsLT 6-12 Months
SA Equity
SA Bonds
SA ILBs
SA Property
SA Cash
DM Equity
EM Equity
DM Bonds
Global ILBs
DM Property
DM Cash
EM Bonds
CurrentST 0-3 Months
LT 6-12 Months
SA Equity 1% 1% 1%SA Bonds 1% 1% 0%SA ILBs 0% 0% 1%SA Property 0% 1% 1%SA Cash -2% -2% -2%DM Equity 2% 2% 2%EM Equity 1% 2% 2%DM Bonds -2% -2% -2%EM Bonds 0% 0% 0%Global ILBs -1% -1% -1%Global Property 0% 0% 0%Global Cash 0% -2% -2%
Domestic 0% 1% 1%
International 0% -1% -1%
Balancing item 0% 0% 0%
38
39
FIXED INCOME HEDGE FUNDS AND SMOOTHING IN LOWERING VOLAT IL ITY &
CORRELATION
40
T RADING ST RATEGIES• FRA Curve shape trades
• Swap Curve shape trades
• Bond-Swap arbitrages
• Arbitrages (Money market vs. FRAs)
• Theta trades
• Directional
• Options
FUND CONSTRUCT
Acumen 25% Relative Value
Matrix 25% Short End FRA Specialists
Terebinth Macro 25% Macro Thematic
Marblerock 25% Relative Value
25%
25%25%
25%
Acumen Matrix Terebinth Marblerock
41
HEDGE FUNDS | F IXED INCOME F O U R D I V E R S E S T R AT E G I E S
Existing name Sanlam Alternative Zeta Sanlam Alternative Rho Sanlam Alternative Vega Sanlam Alternative Veta
Strategy Moderate Aggressive Fixed Income Stable Fixed Income Assertive Fixed Income Cautious Moderate Fixed Income
AUM R750 million R283 million R3.2 billion R810 million
Strategy inception date
Aug-09 Feb-15 Oct-08 Aug-13
Risk rating Moderate to Aggressive Cautious to Moderate Aggressive Moderate to Aggressive
Strategy aim
Provide positive returns over the long term, regardless of the direction of interest rates, and capitalise on inefficiencies that occur as a result of supply and demand.
Provide uncorrelated and superior, risk-adjusted returns through the dynamic implementation of investment strategies across a variety of underlying asset classes, primarily fixed-income securities.
Provide net annualised returns of cash + 8% over rolling three-year periods by pursuing opportunistic, directional, relative value and correlation strategies. The investment objective is pursued irrespective of the performance of the financial markets or any particular asset class.
Provide returns in excess of 5% over benchmark on an average annual basis over rolling 36-month periods with a low degree of volatility. Macro focused strategy with a strong focus on risk management.
Investable universe
Primarily South African government bonds and interest rate derivatives such as swaps and forward rate agreements (FRAs).
Fixed income securities including listed and unlisted financial instruments (derivatives), and may invest offshore.
South African fixed-income and related derivative markets.
Primarily concentrated in the most liquid areas of the broader income spectrum.
Fund manager Acumen Capital Marble Rock Asset Management Matrix Fund Managers Terebinth Capital
Note: All investments in the above strategies are subject to the provisions and limitations of Board Notice 52 of 2015
Acumen Capital Marble Rock Asset Management Matrix Fund Managers Terebinth Capital
Manager description
Owner-managed | Focus on the South African interest rate environment | 60 years’ collective market experience | Philosophy: Fixed-income markets are misunderstood and, as such, there are several inefficiencies which they can take advantage of across the yield curve
Owner managed | Established in 2014 by Flip du Plessis and includes experienced team of multi-strategy portfolio managers | Pursues uncorrelated returns within a wide universe of markets
Owner managed | Highly qualified, multi-skilled investment managers boasting more than 140 years’ collective experience | Absolute return mindset | Pragmatic and opportunity-driven | Consistent investment process across | Disciplined risk management drawing on central research and idea generation.
Owner managed | Specialist fixed-income asset manager with multiple hedge fund awards | Application of quantitative and qualitative methodologies across three disciplines: structural/strategic, technical and tactical analysis.Designed to provide investors with a high degree of confidence regarding liquidity.
Portfolio Managers
Stuart Conway Barry Ross Lourens Pretorius Erik Nel
Mark O’Brien Flip du Plessis Konstantin Egorov Johan Kurtz
Greg Kamstra Sollie vd Linde
Investment process
Determine the macroeconomic factors affecting the shape of the curve and take advantage of short- and medium-term opportunities and pricing anomalies. The various yield curves are analysed with the manager operating on the middle to the long end of the curve.
Employs a broad macro investment style across various asset classes. The majority of this fund is typically made up of domestic fixed-income strategies, complemented by building blocks across global fixed-income, currency and select commodity opportunities.
Identify hedge fund investment opportunities through macroeconomic forecasting and rigorous analysis of the term structure of interest rates. This fund’s investment strategies invest independently, without a house view approach.
A macroeconomic description of the current and expected investment environment is formulated, and within this macro context the team produces expected asset class return projections from their quantitative modelling framework..
Competitive edge
Fundamental relative value fixed income manager with extensive experience.
Able to generate alpha across the short and long end of the yield curve. The manager is one of the few that plays in the 30year swa.
Experienced team that have seen many macro cycles.
A good grasp on South African politics and is the one manager that navigates domestic politics well.
Focused approach not getting caught up in the prevailing trends and “noise”
Has a degree of foreign exposure which gives it a lower volatility return signature.
Well defined strategy buckets that operate over the whole yield curve.
One of few managers in the country with a broad macro-economic understanding
The team have a good chemistry and get the best out of each other.
Experienced manager wo used to run one of the first hedge fund strategies in SA.
Manager tactically trades the portfolio more frequently compared to peers which allows for more alpha to be generated.
Skilled in trading inflation linked bonds.
HE DGE FU NDS | F IX E D I NCO ME M A N A G E R I N S I G H T S
42
Fund NameStrategymanager
Strategyinception date
Cumulative performance (%) Annualised performance (%) Calendar performance (%)
1 Month 3 Months 6 Months Year-to-Date 1 Year 3 YearsSince
inception 2017 2018 2019
Sanlam Alternative Zeta Retail Hedge Fund
Acumen Capital
September 2010
2.08 -1.25 4.42 2.31 15.49 12.62 19.10 14.72 10.36 17.29
Sanlam Alternative Rho Retail Hedge Fund
Marble RockAsset Management
August 2016
3.25 3.00 9.25 6.30 9.03 9.61 9.50 13.07 8.91 4.86
Sanlam Alternative Vega Retail Hedge Fund
Matrix Fund Managers
October 2008 1.90 21.42 26.89 20.21 29.55 14.52 16.75 15.3 6.0 11.9
Sanlam Alternative VetaRetail Hedge Fund
TerebinthCapital
April 2013
-6.91 -2.96 7.15 7.56 14.25 16.96 12.25 20.46 14.91 12.95
Blended portfolio 0.08 5.05 11.93 9.10 17.08 13.43 14.40* 15.89 10.05 11.75
FTSE/JSE All Share 0.31 0.47 -7.15 -10.11 -5.95 1.33 - 20.95 -8.53 12.05
FTSE/JSE SWIX -0.96 -3.02 -10.14 -13.33 -10.40 -1.89 - 12.92 -8.88 9.32
ALBI 7.01 0.37 3.40 1.51 6.39 8.18 - 10.24 7.69 10.32
STFCAD | STeFI Call Deposit 0.36 1.41 3.00 2.45 6.35 6.57 - 7.54 7.25 7.31
(ASISA) South African MA Income 1.46 0.46 2.19 1.33 5.71 7.14 - 8.18 7.51 8.24
(ASISA) South African MA Low Equity 1.14 0.08 -0.29 -0.89 2.92 4.45 - 8.30 1.34 8.43
(ASISA) South African MA Medium 0.94 0.03 -1.63 -2.49 1.53 3.26 - 9.24 -1.83 9.52
(ASISA) South African MA High Equity 0.45 -0.94 -3.72 -4.80 -0.71 1.97 - 10.05 -3.56 9.60
(ASISA) South African MA Flexible -0.13 --3.04 -4.38 -5.44 -1.96 0.77 - 9.07 -4.01 8.33
(ASISA) South African EQ General -0.22 -3.89 -10.88 -13.08 -10.08 -2.57 - 12.92 -8.87 8.32
HEDGE FUNDS | PERFORMANCE AT GLANCEA S AT E N D M AY 2 0 2 0
Source: Morningstar as at end May 2020 | *August 2019
RISK RETURN SCATTER PLOT
ALSI
ALBI
Terebinth
Matrix
Marblerock
Acumen
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00%
Risk/Return
Source - Manager MDDs. Note: 2020 performance number based on estimate of June 2020 return.
43
RISK RETURN SCATTER PLOT
HF Portfolio
(ASISA) South African MA Low Equity
90% MA Low Equity + 10% HF Portfolio
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00%
Risk/Return
HF Portfolio ALSI ALBI(ASISA) South African MA Medium Equity (ASISA) South African MA Low Equity (ASISA) South African MA High Equity(ASISA) South African MA Flexible 90% MA Medium Equity + 10% HF Portfolio 90% MA Low Equity + 10% HF Portfolio90% MA High Equity + 10% HF Portfolio 90% MA Flexible Equity + 10% HF Portfolio
Source - Source - Manager MDDs. Note: 2020 performance number based on estimate of June 2020 return. ASISA Category Performance from MorningStart MDDs. Note: 2020 performance number based on estimate of June 2020 return.
CORRELATIONS
Source - Manager MDDs. Note: 2020 performance number based on estimate of June 2020 return. ASISA Category Performance from MorningStart
44
SMOOTH BONUS• If you invest money in a Balanced Fund, you will receive exactly the investment return earned on the
underlying assets after fees. In a Smooth Bonus fund you will not receive all the return earned by the underlying assets after fees however you will receive the monthly bonus declared by the Insurer net of fees. The declaration of the bonus “smoothes” the investment returns earned on the underlying assets over time. Parts of the investment return arising from exceptional years will be held back and then released in the years when markets are performing poorly.
An example :
• If a return on an underlying asset is 30% per annum, the insurer may only declare a bonus rate of 15% per annum with the other 15% kept in a Bonus smoothing account. If the following year resembles what we have seen so far in 2020 (a financial crisis) and returns less than or equal to zero for the year, the Insurer may declare a bonus of 7% per annum, drawing on the Bonus Smoothing Account.
SMOOTH BONUS –HOW IT WORKS
45
SMOOTH BONUS –HOW IT WORKS
SMOOTH BONUS –HOW IT WORKS
46
SMM SMOOTH BONUS FUND
- 5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
20
08/
06
/30
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12
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20
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20
20/
06
/30
Rolling 3 year return
SMM Smooth Bonus (ASISA) South African MA High Equity
SMM SMOOTH BONUS FUND
- 5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
0.0 2.0 4.0 6.0 8.0 10.0 12.0
Rolling 3 year Risk/Reward
SMM Smooth Bonus (Return) (ASISA) South African MA High Equity (Return)
47
SMM SMOOTH BONUS FUND
- 25.0
- 20.0
- 15.0
- 10.0
- 5.0
0.0
20
05/
07
/01
20
05/
10
/31
20
06/
02
/28
20
06/
06
/30
20
06/
10
/31
20
07/
02
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20
07/
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10
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20
08/
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/29
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20
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20
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20
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Drawdowns
SMM Smooth Bonus (ASISA) South African MA High Equity
48
Asset Manager Views
Local Negative Neutral Neutral Neutral Neutral
Cas
h
While cash offers no risk of capital loss, better
opportunities exist in domestic bonds and equities
where valuations have become extremely attractive
with better real return prospects.
Abax see cash rates materially lower, and they no longer provide a real return. They feel though,
that it still provides optionality.
They are holding more cash than usual - to be deployed when opportunities arise.
Their cash buffer has served them well as they have
reduced cash into the sell down but given broad macro risks, they continue to hold a
reasonable cash buffer to protect the portfolio.
Cash returns are poor given lower rates, however
Laurium hold more cash than usual as look to take
advantage of further market dislocations.
Neutral Neutral Neutral Neutral Positive
Bon
ds
At 9.7%, the benchmark 10-year bond offers
attractive real value given the benign inflation outlook
and potential for further monetary policy easing.
However, a larger fiscal risk premium is justified given
the serial increases in government issuance and
risk for a higher debt trajectory in the absence of fiscal and macroeconomic
reforms.
Bonds look fairly valued to cheap, even after revising RSA’s required Country
Risk Premium higher. They are wary of longer maturities
though, as SA's fiscal position has become more
precarious.
Truffle see that real yields are generous relative to
history and other international bond markets
but the domestic fiscal situation remains a
significant risk. They prefer shorter dated credit bonds where the risk of default is
acceptably low.
Bateleur have no bond weighting, but see real yields as attractive in
absolute terms. The asset class is firmly on their watch list, however the
increasing size of issuance and deteriorating fiscal
metrics keep them on the side-lines.
Laurium are overweight relative to their SAA, where they believe that there are
attractive yields available in both government bonds and
bank credit.
Positive Positive Neutral Neutral Negative
Prop
erty
Their base case returns for this asset class look
attractive relative to other asset classes, even with
their assumption of a 10% decline in distributions,
however near term potential catalysts remain negative
and this tempers any overweight allocation to the
sectors. The already pressured rental escalations
and vacancies will face more pronounced strain due to the COVID-19 lockdown
and non-payment, with negative reversions and rising vacancies in the
medium term.
Although the industry faces structural challenges, Abax sees compelling value on offer. In that regard, it is
important to be selective, as many counters are highly
leveraged and have asset/liability mis-matches.
The outlook for property is challenging but this is
starting to be discounted into the valuations of some
of the counters.
Fundamentals in the property sector remain weak, the impact of the
coronavirus disruptions has still to fully play out. The valuations Bateleur see
have adjusted meaningfully, with select opportunities
beginning to emerge.
Laurium are underweight relative to their SAA as they
believe property will be a tough place to be, in
particular retail but office too. Laurium do though like
exposure to storage and warehousing.
Negative Positive Neutral Positive Negative
Equi
ty
SA Equity screens attractive relative to offshore equity
and cash, but wide tails and near-term uncertainty make
the asset class less compelling versus bonds,
despite the relatively low PE valuation on ‘SA Inc.’
counters.
Abax see the market as attractively priced, although they maintain a preference
for quality/resilient counters. Global liquidity and low
interest rates combined with reasonable valuations
should be supportive to the view.
Truffle are positive on non-domestic companies and some miners, but they are negative on average, on
domestically exposed companies. The impact of the Covid-19 virus will be extremely challenging for
the SA economy. The government has limited
fiscal room to help support business and consumers.
There a large number of attractively valued
opportunities, where their preference is for strong
balance sheets, predictable cash flows and resilient
business models - positioned better to
withstand disruption from the coronavirus. Currently, significant upside potential in domestic facing holdings is somewhat dependent on
an economic recovery.
Laurium are slightly underweight relative to their
SAA, with most of the exposure taken to non “SA Inc.” assets in the space.
49
Asset Manager Views
Global Neutral Neutral Positive Negative Negative
Cas
h
The rand is looking more attractively valued (base-
case fair-value R16/$), but domestic risks remain high both on government’s debt
trajectory as well as COVID-19 risks to the local economy, which are
compounded by lack of capacity for SA to revive the
economy through fiscal policy.
There is a store of value and optionally in this asset class and they hold it, to wait to buy other assets.
Yields are inadequate but a lack of value in equity markets and sovereign
bonds means that by default they would hold more cash
than usual.
Cash offers no yield pick-up, and they have a low to no
foreign cash weighting.
Cash returns are poor given lower rates, however they hold more cash than usual
as look to take advantage of further market dislocations.
Negative Negative Negative Negative Neutral
Bon
ds
The US nominal yields are fairly valued versus TIPS,
but are vulnerable to larger issuance if the Fed does not
reaccelerate the pace of QE. With the rand still
moderately undervalued, the risk/reward makes them
negative on offshore bonds. While the base case is that US yields will remain very low for a prolonged period
given Fed QE, the high duration (9 years) on the US 10-year bond skews the risk
to the downside from an asset allocation perspective.
Bonds are priced to produce ultra-low to negative returns and they are especially wary
of longer maturities.
Yields in the developed world are at record lows with
some in negative territory. Truffle do own some credit
where the returns are compelling.
Bateluer have no foreign bond exposure, as yields
make for unfavourable risk reward payoff.
In general, Laurium are negative on this asset class given a long run outlook for
lower rates. There have been some corporate credit
opportunities, which they have taken advantage of.
Neutral Neutral Negative Neutral
Prop
erty
Not covered.
While many sectors in this space face structural challenges, there is
selective value on offer. Abax emphasize being
selective, as many counters are highly leveraged and
face material property devaluations.
In selection, this asset class would be sector dependent as Truffle expect continued underperformance in retail
and outperformance in logistics as structural shifts
intensify.
Bateleur have limited exposure given LTV
uncertainty.
Laurium are underweight relative to their base case.
Negative Positive Negative Positive Positive
Equi
ty
Global stocks have re-rated sharply, looking through the pending slump in earnings,
yet elevated uncertainty and the "second wave" of
infections in the US pose downside risk to valuations. There will be more pressure on offshore earnings (-15%) compared to SA earnings (-3%) given the higher impact on DM employment relative to SA, which will counter a
stronger re-rating in the post-COVID rebound.
Most markets (ex US) are attractively priced, although,
but Abax maintain a preference for
quality/resilient counters. Global liquidity and low
interest rates combined with reasonable valuations
should be supportive for the asset class.
US is at best fair value. Most other regions are in fair value territory. US is a substantial portion of the
world market and hence, on average, the global market is on the wrong side of fair
value.
The select exposures Bateluer have maintains a
preference to positions centred around two key themes: (1) defensive,
stable cash generators & (2) companies exposed to
growth industries.
Laurium have adjusted their strategic asset allocation to have a higher weighting to offshore relative to South African exposure. In doing that Laurium believe that it
will take South Africa longer to emerge from the CoVid-19 crisis than developed
markets, given the fiscal fire power difference between
South Africa and the industrialised nations.
50
Asset Manager Views
Local Negative Negative Negative Neutral Negative
Cas
h
Over the past quarter, the SARB lowered interest rates by a
further 1.5% to the current repo rate of 3.75%. Duly, Allan Grays
expectations of future money market returns have changed
from their views coming into this year and these expectations are
lower in line with those of national interest rates.
Coronation expect local cash to generate less than a 1% real return over the following year.
The real yields have declined on the back of significant repo rate
cuts. Ninety One see better alternative return prospects from
other asset classes over the medium term.
SIM have a neutral to underweight position in local cash as yields on cash have
fallen and may well fall further. Even so, cash is still offering
decent real returns, given that inflation is also expected to
surprise on the low side.
Prudential remain underweight cash where their cash allocation
has been used to fund more attractive investment
opportunities. The prospective real returns from this asset class are now negative and no longer
even beating inflation.
Positive Positive Positive Positive Positive
Bon
ds
Allan Gray increased their exposure to long-dated nominal government bonds and added medium-term inflation-linked government bonds to their
portfolio, as they believe these provide a more attractive return than credit. Allan Gray believe the investment in government bonds and bonds of SOEs is a conservative positioning, which is warranted given heightened
risks in the credit space.
Given the aggressive repricing of SAGB’s over the last quarter, Coronation believe that from a valuation perspective, they are very attractive. They trade at
multiples of the cash rates, well above EM peers.
While the front end of the bond yield curve has been anchored by significant interest rate cuts,
Ninety One continue to see opportunities along the steep
curve, without understating the fact that their assessment of fair value (the appropriate yield to compensate lenders for risk) is now substantially higher given
the heightened credit risk.
SA bonds are offering astounding real returns and under normal circumstances
bonds at current yields would be expected to give returns in
excess of equities. However, the SA economy is taking strain and
the Corona pandemic will contribute to a very large budget
deficit and government debt/GDP is set to continue
rising to alarming levels.
During the quarter Prudential moved further overweight in SA nominal bonds, buying mostly
long-dated bonds with maturities of 20+ years. The yields of
20+year bonds rose to exceptionally attractive levels of
over 13% in March, subsequently recovering to trade at over 11% in April and through the rest of the second quarter. This is still cheap compared to their pre-Coronavirus yield of
10%.
Neutral Neutral Negative Neutral Negative
Prop
erty
Property stocks have sold off massively – even prior to the recent period. Many of these
companies are now trading on dividend yields in the double digits. A high dividend yield however means little if the actual dividends are not
sustainable, a risk that remains in numerous cases in their view.
Coronation expect distribution growth for domestic property
stocks to be under pressure as a result of tenant pressures caused by the COVID-19
induced lock down which has resulted in tenant failures (higher vacancies) or non-
payment of rent during this period.
Ninety One’s allocation to the sector remains limited.
The domestic property sector has suffered from a number of
setbacks over the last few years, including deteriorating
fundamentals, governance and reporting-related concerns,
rebasing of earnings and the introduction of pay-out ratios. Although valuations remain attractive, they believe there are no obvious catalysts in
their view.
Property was up during Q2 on the back of the first signs of a recovery in (global) economic
data after most economies started moving into exit
strategies and the increased prices more than account for the
positive news. So it would be fair to say that our propensity to invest in this asset class at the end of Q2 is slightly lower than
at the end of Q1.
Prudential were already substantially underweight SA
listed property in Q1 2020 as the sector continued to sell off sharply, and they remained
underweight in Q2. This positioning reflects the
significant macroeconomic uncertainty exacerbated by the pandemic in South Africa, and
surrounding the outlook for distributions, as well as the
relatively high debt levels in the sector.
Positive Positive Neutral Neutral Positive
Equi
ty
Prior to the recent market sell-off, Allan Gray were of the view that many South African equities
were already trading on very attractive valuations. However,
despite its lower starting valuations, the South African
equity market has been impacted along with global
equity markets and has, in fact, underperformed other developed markets.
In terms of asset allocation, equities remain their preferred
asset class for producing inflation-beating returns.
The local equity composition is diversified, with some capital
invested in global cyclical companies exhibiting
favourable earnings revisions profiles such as well as platinum
group metals (PGM) investments, alongside more
defensive positions. Exposure to select ‘SA Inc.’ plays with decent
relative earnings revisions profiles, reasonable valuations
and where they have high conviction in terms of balance
sheet quality.
In real terms SA FINDI shares excluding NPN has seen a material decline in real EPS over the last few years, even
before the Corona pandemic hit. SA's already pedestrian
economic growth will take a huge step backward due to the
Corona lockdown and a significant earnings contraction might follow. SA's poor fiscal
position could hamper the state's ability to support SA
companies through the pandemic.
Prudentials best investment view portfolios continue to be
overweight in SA equities, having added some exposure to
their positions during the quarter. After falling to an
exceptionally low price-book value ratio of around 1.0X during
March, SA equity valuations rose over the quarter to trade at around 1.3X by the end of April and 1.4X by the end of June, a still-attractive level compared to the market’s long-term average
of around 2.2×.
51
Asset Manager Views
Global Negative Negative Neutral Negative Neutral
Cas
h
The Fed has cut policy rates by a cumulative 150 basis points,
returning rates to the post-global financial crisis (GFC) low of 0% to 0.25%. Given that US rates are now close to zero and the US dollar has outperformed nearly all other currencies,
Allan Gray think risk is probably to the downside.
In Coronations view, the real returns from international cash are likely to be poor over the
long term.
Ninety One have deployed some offshore cash to other
asset classes with better return prospects over the medium term
in their view. The remaining allocation is a buffer that
provides them with optionality, which can also acts as a shock absorber when market volatility
is high.
SIM have a strongly negative view on offshore cash which is just about guaranteed to give
negative real returns.
The global cash they have is at a neutral exposure due to profits
taken on offshore equities.
Negative Negative Negative Negative Negative
Bon
ds
Allan Gray continue to believe that global government bonds look very expensive, and see
these as a very poor long-term source of value particularly against the backdrop of the
unprecedented level of quantitative easing (and
consequent fiscal burden) that developed world governments are committing to take on to
restore public confidence and support their local economies.
In Coronations view, the real returns from international
developed market bonds are likely to be poor over the long
term. However, given the repricing in credit, they believe there is selective value in both
Investment Grade and High Yield credit markets.
Ninety One prefer cash and high-quality investment grade
credit over global bonds. Global bond yields are at low levels as
they have witnessed synchronized policy easing from central banks in the face of the COVID-19-related economic
downturn.
SIM have a strongly negative view on offshore bonds which is
also just about guaranteed to give negative real returns.
Prudential continue to avoid these assets given the negative real yields prevailing, and their
unattractiveness relative to global equities. They instead
hold US and European investment-grade corporate
bonds and selected emerging-market government bonds which offer very attractive real yields.
Neutral Neutral Negative Positive Negative
Prop
erty
Global listed property has sold off notably over the year-to-date. The Fed’s cut of interest rates to zero may provide some relief to
the property sector given the current financial crisis. Listed
property companies with highly geared balance sheets and the reliance on growing dividends for investors may not fare well
given current market conditions.
Similar to their view on domestic property, Coronation expect
distribution growth for offshore property stocks to be under
pressure as a result of tenant pressures caused by the
COVID-19 induced lock down. Coronation remain a neutral
stance on global property given the above concerns, especially
relative to equities that they believe to offer better value on a
risk-adjusted basis.
There is reasonable yield, but little growth and large regional
divergence.
SIM have a mildly positive view on foreign growth assets,
including global property, but in the near future concerned about
the impact that the Global Economic Lockdown will have on earnings and that it could
lead to earnings disappointments and further
contractions. They wish to retain decent growth asset exposure, but with more of it channelled to
asymmetric exposure.
Prudential prefer equity offshore where valuations are more attractive relative to listed
property.
Positive Positive Positive Positive Neutral
Equi
ty
In DMs, there exists exceptional discounts, some of which Orbis
has not seen since the bottom of the global financial crisis. The gap between the cheapest and
most expensive stocks has reached new extremes and
while they can’t predict how it will play out in the current crisis, they know that valuation gaps of
this magnitude cannot persist forever. In EMs, Orbis continues
to find more opportunities in select emerging markets and has retained its overweight to
this area of the market.
In terms of asset allocation, equities remain their preferred
asset class for producing inflation-beating returns.
Coronation have a more positive outlook on Emerging Market
Equity than Developed Market Equity at these levels.
Ninety One's offshore allocation remains favourably disposed to equities, wherein the exposure is skewed towards Asian and European investments as well as corporates that they believe
are most likely to provide returns commensurate with the
prevalent level of risk over the medium term.
SIM have a mildly positive view on foreign growth assets,
including global equity, but in the near future concerned about
the impact that the Global Economic Lockdown will have on earnings and that it could
lead to earnings disappointments and further
contractions. They wish to retain decent growth asset exposure, but with more of it channelled to
asymmetric exposure.
During the quarter Prudential reduced global equities from an overweight to a neutral position,
in favour of buying more SA nominal bonds and SA equities
due to their relatively more attractive valuations. Within their
global equity positioning, their portfolios have been
underweight the more expensive US market in favour
of selected European and emerging market equities.
52
Succession Income Plus - STeFI +1%
Strategy (%) Fund TER (%) Wrap TER (%)Amplify SCI Strategic Income 10.00 0.60 0.06Coronation Money Market 5.00 0.18 0.01Coronation Strategic Income 25.00 0.54 0.14Nedgroup Investments Flexible Income 12.00 0.61 0.07Prescient Income Provider 20.00 0.49 0.10SIM Active Income 15.00 0.70 0.11SIM Enhanced Yield 13.00 0.49 0.06TOTAL Underlying Manager Fee (%) 0.54Wrap Fee (incl VAT) (%) 0.29Portfolio TER (%) 0.83
Q2 2020 Q1 2020 Q4 2019 Q3 2019Fund Size (Million) R 277 R 256 R 234 R 189
Manager Selection (%) Q2 2020 Q1 2020 Q4 2019 Q3 2019Amplify SCI Strategic Income 10.00 10.00 10.00 10.00Coronation Money Market 5.00 5.00 5.00 5.00Coronation Strategic Income 25.00 25.00 25.00 25.00Nedgroup Investments Flexible Income 12.00 12.00 12.00 12.00Prescient Income Provider 20.00 20.00 20.00 20.00SIM Active Income 15.00 15.00 15.00 15.00SIM Enhanced Yield 13.00 13.00 13.00 13.00
Mandated Maximum Limits Equity Property Cash Bonds Foreign20% 25% 100% 75% 15%
53
PLEASE NOTE: Attribution of portfolio returns is calculated using the average holding of an underlying fund over the quarter and year-to-date. No attribution of an underlying fund (#N/A) will reflect if a switch occurred during the quarter or in the year even if a fund class has been switched. Contribution of returns takes into account the performance of the underlying fund, its weight and holding period in the portfolio.
Succession Income Plus - STeFI +1%
54
Benchmark STeFI +1%
Peer Group SA Multi Asset Income
Inception Date 2014/08/01
Objective High level of income
Risk Objective Absolute and real capital protection
A
B
2019 2018 2017 2016
8.41 6.52 9.27 8.69
8.29 8.25 8.54 8.39
3m 6m YTD 1 Year 2 Years 3 Years 5 Years
● Succession Income Plus 4.07 2.16 2.16 6.10 7.39 7.33 7.77
■ STeFI +1% 1.70 3.67 3.67 7.86 8.08 8.17 8.20
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Source: Morningstar Direct
FUND BENCHMARK
Max Drawdown -2.81
Max DD # Periods 1.00
Max DD Valley Date 2020/03/31
Up Period Percent 95.83 100.00
Down Period Percent 4.17 0.00
Best Quarter 4.07 2.04
Worst Quarter -1.84 1.70
Std Dev 2.76 0.14
Sharpe Ratio 0.11 7.33
Succession Income Plus ROLLING 1 YEAR RETURNS As of 2020/06/30
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
DRAWDOWNS As of 2020/06/30RISK STATISTICS 2018/07/01 to 2020/06/30
INVESTMENT GROWTH 2018/07/01 to 2020/06/30ABSOLUTE RISK REWARD 2018/07/01 to 2020/06/30
55
Succession Stable - Avg SA Multi Asset Low Equity
Strategy (%) Fund TER (%) Wrap TER (%)Amplify SCI Defensive Balanced 16.00 0.82 0.13Amplify SCI Wealth Protector 9.00 0.94 0.08Coronation Balanced Defensive 15.00 1.11 0.17Coronation Money Market 5.00 0.18 0.01Nedgroup Global Equity Feeder 3.00 1.17 0.04Prescient Income Provider 10.00 0.49 0.05Prudential Inflation Plus 7.00 0.93 0.07Satrix Low Equity Balanced 18.00 0.36 0.06SIM Inflation Plus 17.00 0.78 0.13TOTAL Underlying Manager Fee (%) 0.74Wrap Fee (incl VAT) (%) 0.29Portfolio TER (%) 1.03
Q2 2020 Q1 2020 Q4 2019 Q3 2019Fund Size (Million) R 66 R 55 R 57 R 49
Manager Selection (%) Q2 2020 Q1 2020 Q4 2019 Q3 2019ABSA Property Equity 0.00 3.00 3.00 3.00Amplify SCI Defensive Balanced 16.00 16.00 16.00 16.00Amplify SCI Wealth Protector 9.00 0.00 0.00 0.00Coronation Balanced Defensive 15.00 15.00 15.00 15.00Coronation Money Market 5.00 5.00 5.00 5.00Nedgroup Global Equity Feeder 3.00 3.00 3.00 3.00Prescient Income Provider 10.00 10.00 10.00 10.00Prudential Inflation Plus 7.00 13.00 13.00 13.00Satrix Low Equity Balanced 18.00 18.00 18.00 18.00SIM Inflation Plus 17.00 17.00 17.00 17.00
Mandated Maximum Limits Equity Property Cash Bonds Foreign40% 25% 70% 70% 30%
56
PLEASE NOTE: Attribution of portfolio returns is calculated using the average holding of an underlying fund over the quarter and year-to-date. No attribution of an underlying fund (#N/A) will reflect if a switch occurred during the quarter or in the year even if a fund class has been switched. Contribution of returns takes into account the performance of the underlying fund, its weight and holding period in the portfolio.
Succession Stable - Avg SA Multi Asset Low Equity
57
Benchmark Avg SA Multi Asset Low Equity
Peer Group SA Multi Asset Low Equity
Inception Date 2014/08/01
Objective Stable income and capital growth
Risk Objective Capital protection
A
B
2019 2018 2017 2016
9.55 1.72 8.22 3.30
8.58 1.24 8.39 3.59
3m 6m YTD 1 Year 2 Years 3 Years 5 Years
● Succession Stable 9.13 -0.17 -0.17 2.65 4.59 5.22 5.53
■ Avg SA Multi Asset Low Equity 8.34 0.56 0.56 3.23 4.36 5.20 5.18
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Source: Morningstar Direct
FUND BENCHMARK
Max Drawdown -9.56 -8.12
Max DD # Periods 2.00 2.00
Max DD Valley Date 2020/03/31 2020/03/31
Up Period Percent 70.83 66.67
Down Period Percent 29.17 33.33
Best Quarter 9.13 8.34
Worst Quarter -8.53 -7.18
Std Dev 8.51 7.24
Sharpe Ratio -0.29 -0.38
Succession Stable ROLLING 1 YEAR RETURNS As of 2020/06/30
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
DRAWDOWNS As of 2020/06/30RISK STATISTICS 2018/07/01 to 2020/06/30
INVESTMENT GROWTH 2018/07/01 to 2020/06/30ABSOLUTE RISK REWARD 2018/07/01 to 2020/06/30
58
Succession Stable Growth - Avg SA Multi Asset Medium Equity
Strategy (%) Fund TER (%) Wrap TER (%)Amplify SCI Absolute 10.00 0.99 0.10Centaur BCI Flexible 8.00 1.53 0.12Coronation Balanced Plus 11.00 1.16 0.13Nedgroup Global Equity Feeder 3.00 1.17 0.04Nedgroup Opportunity 9.00 1.14 0.10Prescient Income Provider 14.00 0.49 0.07Prudential Inflation Plus 7.00 0.93 0.07PSG Flexible 8.00 0.92 0.07Satrix Balanced Index 10.00 0.37 0.04SIM Inflation Plus 12.00 0.78 0.09Truffle SCI Flexible 8.00 0.73 0.06TOTAL Underlying Manager Fee (%) 0.88Wrap Fee (incl VAT) (%) 0.29Portfolio TER (%) 1.17
Q2 2020 Q1 2020 Q4 2019 Q3 2019Fund Size (Million) R 153 R 130 R 149 R 142
Manager Selection (%) Q2 2020 Q1 2020 Q4 2019 Q3 2019ABSA Property Equity 0.00 2.00 2.00 2.00Amplify SCI Absolute 10.00 0.00 0.00 0.00Centaur BCI Flexible 8.00 9.00 9.00 9.00Coronation Balanced Plus 11.00 13.00 13.00 13.00Nedgroup Global Equity Feeder 3.00 3.00 3.00 3.00Nedgroup Opportunity 9.00 10.00 10.00 10.00Prescient Income Provider 14.00 15.00 15.00 15.00Prudential Inflation Plus 7.00 8.00 8.00 8.00PSG Flexible 8.00 10.00 10.00 10.00Satrix Balanced Index 10.00 10.00 10.00 10.00SIM Inflation Plus 12.00 12.00 12.00 12.00Truffle SCI Flexible 8.00 8.00 8.00 8.00
Mandated Maximum Limits Equity Property Cash Bonds Foreign60% 25% 50% 50% 30%
59
PLEASE NOTE: Attribution of portfolio returns is calculated using the average holding of an underlying fund over the quarter and year-to-date. No attribution of an underlying fund (#N/A) will reflect if a switch occurred during the quarter or in the year even if a fund class has been switched. Contribution of returns takes into account the performance of the underlying fund, its weight and holding period in the portfolio.
Succession Stable Growth - Avg SA Multi Asset Medium Equity
60
Benchmark Avg SA Multi Asset Medium Equity
Peer Group SA Multi Asset Medium Equity
Inception Date 2015/01/01
Objective Moderate growth and low Income
Risk Objective Capital preservation
A
B
2019 2018 2017 2016
11.11 -3.00 10.07 1.75
9.47 -1.77 9.28 1.54
3m 6m YTD 1 Year 2 Years 3 Years 5 Years
● Succession Stable Growth 11.50 -3.92 -3.92 -0.21 2.19 3.13 3.90
■ Avg SA Multi Asset Medium Equity 11.32 -0.31 -0.31 2.16 3.27 4.47 4.19
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Source: Morningstar Direct
FUND BENCHMARK
Max Drawdown -14.30 -11.29
Max DD # Periods 2.00 2.00
Max DD Valley Date 2020/03/31 2020/03/31
Up Period Percent 62.50 66.67
Down Period Percent 37.50 33.33
Best Quarter 11.50 11.32
Worst Quarter -13.83 -10.45
Std Dev 11.71 10.17
Sharpe Ratio -0.42 -0.37
Succession Stable Growth ROLLING 1 YEAR RETURNS As of 2020/06/30
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
DRAWDOWNS As of 2020/06/30RISK STATISTICS 2018/07/01 to 2020/06/30
INVESTMENT GROWTH 2018/07/01 to 2020/06/30ABSOLUTE RISK REWARD 2018/07/01 to 2020/06/30
61
Succession Balanced - Avg SA Multi Asset High Equity
Strategy (%) Fund TER (%) Wrap TER (%)Amplify SCI Balanced 11.00 0.93 0.10Amplify SCI Flexible Equity 15.00 0.99 0.15Coronation Balanced Plus 11.00 1.16 0.13Fairtree Equity Prescient 8.00 0.79 0.06Nedgroup Global Equity Feeder 7.00 1.17 0.08PSG Flexible 12.00 0.92 0.11Satrix Balanced Index 15.00 0.37 0.06SIM Inflation Plus 11.00 0.78 0.09Truffle SCI Flexible 10.00 0.73 0.07TOTAL Underlying Manager Fee (%) 0.85Wrap Fee (incl VAT) (%) 0.29Portfolio TER (%) 1.14
Q2 2020 Q1 2020 Q4 2019 Q3 2019Fund Size (Million) R 271 R 233 R 272 R 252
Manager Selection (%) Q2 2020 Q1 2020 Q4 2019 Q3 2019ABSA Property Equity 0.00 5.00 5.00 5.00Amplify SCI Balanced 11.00 0.00 0.00 0.00Amplify SCI Flexible Equity 15.00 15.00 15.00 15.00Coronation Balanced Plus 11.00 10.00 10.00 10.00Fairtree Equity Prescient 8.00 10.00 10.00 10.00Nedgroup Global Equity Feeder 7.00 8.00 8.00 8.00PSG Flexible 12.00 15.00 15.00 15.00Satrix Balanced Index 15.00 15.00 15.00 15.00SIM Inflation Plus 11.00 12.00 12.00 12.00Truffle SCI Flexible 10.00 10.00 10.00 10.00
Mandated Maximum Limits Equity Property Cash Bonds Foreign75% 25% 40% 40% 30%
62
PLEASE NOTE: Attribution of portfolio returns is calculated using the average holding of an underlying fund over the quarter and year-to-date. No attribution of an underlying fund (#N/A) will reflect if a switch occurred during the quarter or in the year even if a fund class has been switched. Contribution of returns takes into account the performance of the underlying fund, its weight and holding period in the portfolio.
Succession Balanced - Avg SA Multi Asset High Equity
63
Benchmark Avg SA Multi Asset High Equity
Peer Group SA Multi Asset High Equity
Inception Date 2014/08/01
Objective Capital growth
Risk Objective Mitigate capital loss
A
B
2019 2018 2017 2016
12.22 -4.29 11.08 0.95
9.52 -3.60 9.97 1.31
3m 6m YTD 1 Year 2 Years 3 Years 5 Years
● Succession Balanced 16.41 -4.74 -4.74 -0.28 2.10 3.26 3.64
■ Avg SA Multi Asset High Equity 13.42 -1.91 -1.91 0.49 1.86 3.61 3.51
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Source: Morningstar Direct
FUND BENCHMARK
Max Drawdown -18.62 -14.12
Max DD # Periods 2.00 2.00
Max DD Valley Date 2020/03/31 2020/03/31
Up Period Percent 66.67 62.50
Down Period Percent 33.33 37.50
Best Quarter 16.41 13.42
Worst Quarter -18.17 -13.52
Std Dev 15.49 12.44
Sharpe Ratio -0.32 -0.42
Succession Balanced ROLLING 1 YEAR RETURNS As of 2020/06/30
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
DRAWDOWNS As of 2020/06/30RISK STATISTICS 2018/07/01 to 2020/06/30
INVESTMENT GROWTH 2018/07/01 to 2020/06/30ABSOLUTE RISK REWARD 2018/07/01 to 2020/06/30
64
Succession Capital Growth - Avg SA Multi Asset High Equity
Strategy (%) Fund TER (%) Wrap TER (%)Amplify SCI Flexible Equity 11.00 0.99 0.11Bateleur Flexible Prescient 12.00 0.90 0.11Centaur BCI Flexible 11.00 1.53 0.17Coronation Global Emerging Markets Flexible
4.00 1.05 0.04
Coronation Market Plus 12.00 0.74 0.09Laurium Flexible Prescient 11.00 1.20 0.13Nedgroup Global Equity Feeder 7.00 1.17 0.08PSG Flexible 12.00 0.92 0.11Satrix MSCI World Equity Index Feeder 8.00 0.44 0.04Truffle SCI Flexible 12.00 0.73 0.09TOTAL Underlying Manager Fee (%) 0.96Wrap Fee (incl VAT) (%) 0.29Portfolio TER (%) 1.25
Q2 2020 Q1 2020 Q4 2019 Q3 2019Fund Size (Million) R 46 R 39 R 41 R 37
Manager Selection (%) Q2 2020 Q1 2020 Q4 2019 Q3 2019ABSA Property Equity 0.00 5.00 5.00 5.00Amplify SCI Flexible Equity 11.00 12.00 12.00 12.00Bateleur Flexible Prescient 12.00 0.00 0.00 0.00Centaur BCI Flexible 11.00 11.00 11.00 11.00Coronation Global Emerging Markets Flexible
4.00 4.00 4.00 4.00
Coronation Market Plus 12.00 15.00 15.00 15.00Laurium Flexible Prescient 11.00 11.00 11.00 11.00Nedgroup Global Equity Feeder 7.00 7.00 7.00 7.00PSG Flexible 12.00 15.00 15.00 15.00Satrix MSCI World Equity Index Feeder 8.00 8.00 8.00 8.00Truffle SCI Flexible 12.00 12.00 12.00 12.00
Mandated Maximum Limits Equity Property Cash Bonds Foreign75% 25% 40% 40% 40%
65
PLEASE NOTE: Attribution of portfolio returns is calculated using the average holding of an underlying fund over the quarter and year-to-date. No attribution of an underlying fund (#N/A) will reflect if a switch occurred during the quarter or in the year even if a fund class has been switched. Contribution of returns takes into account the performance of the underlying fund, its weight and holding period in the portfolio.
Succession Capital Growth - Avg SA Multi Asset High Equity
66
Benchmark Avg SA Multi Asset High Equity
Peer Group SA Multi Asset High Equity
Inception Date 2015/01/01
Objective Capital growth
Risk Objective Mitigate capital loss
A
B
2019 2018 2017 2016
13.76 -3.99 9.58 -1.00
9.52 -3.60 9.97 1.31
3m 6m YTD 1 Year 2 Years 3 Years 5 Years
● Succession Capital Growth 15.70 -3.31 -3.31 1.21 2.93 3.61 4.12
■ Avg SA Multi Asset High Equity 13.42 -1.91 -1.91 0.49 1.86 3.61 3.51
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Source: Morningstar Direct
FUND BENCHMARK
Max Drawdown -17.45 -14.12
Max DD # Periods 2.00 2.00
Max DD Valley Date 2020/03/31 2020/03/31
Up Period Percent 54.17 62.50
Down Period Percent 45.83 37.50
Best Quarter 15.70 13.42
Worst Quarter -16.43 -13.52
Std Dev 15.10 12.44
Sharpe Ratio -0.28 -0.42
Succession Capital Growth ROLLING 1 YEAR RETURNS As of 2020/06/30
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
DRAWDOWNS As of 2020/06/30RISK STATISTICS 2018/07/01 to 2020/06/30
INVESTMENT GROWTH 2018/07/01 to 2020/06/30ABSOLUTE RISK REWARD 2018/07/01 to 2020/06/30
67
Appendices
68
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J6.0
8.0
10.0
12.0
Nedgroup Inv Core Income C3 Prescient Yield QuantPlus B3 SIM Enhanced Yield B3FTSE/JSE ALB 1-3 Yr TR ZAR
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-2.0
0.0
2.0
4.0
6.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
8.0
10.0
12.0
Nedgroup Inv Core Income C3 Prescient Yield QuantPlus B3 SIM Enhanced Yield B3FTSE/JSE ALB 1-3 Yr TR ZAR
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Nedgroup Inv Core Income C3
Prescient Yield QuantPlus B3
SIM Enhanced Yield B3
FTSE/JSE ALB 1-3 Yr TR ZAR
1.49 3.42 3.42 7.53 7.97 7.99 7.15 8.10 8.15 8.39 8.22
1.74 3.85 3.85 8.24 8.59 8.57 7.58 8.64 8.78 8.77 8.82
3.39 3.15 3.15 7.64 8.97 9.18 9.35 9.59 10.00 10.96
6.25 7.55 7.55 10.56 9.74 9.04 8.01 7.50 9.14 9.64 10.06
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-1.8
-1.5
-1.3
-1.0
-0.8
-0.5
-0.3
0.0
Nedgroup Inv Core Income C3 Prescient Yield QuantPlus B3 SIM Enhanced Yield B3FTSE/JSE ALB 1-3 Yr TR ZAR
Since Common Inception (2011/06/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Nedgroup Inv Core Income C3
Prescient Yield QuantPlus B3
SIM Enhanced Yield B3
FTSE/JSE ALB 1-3 Yr TR ZAR
-0.14 1.00 99.08 0.92 2.43
-1.70 1.00 93.58 6.42 1.21
100.00 0.00 3.30
-1.47 1.00 88.07 11.93 0.62
Since Common Inception (2011/06/01) to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 0.5 1.0 1.5 2.0 2.5 3.00.0
2.0
4.0
6.0
8.0
10.0
12.0
Nedgroup Inv Core Income C3 Prescient Yield QuantPlus B3 SIM Enhanced Yield B3FTSE/JSE ALB 1-3 Yr TR ZAR
Ret
urn
Source: Morningstar Direct 69
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J2.0
4.0
6.0
8.0
10.0
12.0
Amplify SCI Strategic Income B2 BCI Income Plus C Coronation Strategic Income ANinety One Diversified Income Z FTSE/JSE ALB 1-3 Yr TR ZAR
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-2.0
0.0
2.0
4.0
6.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
8.0
10.0
12.0
Amplify SCI Strategic Income B2 BCI Income Plus C Coronation Strategic Income ANinety One Diversified Income Z FTSE/JSE ALB 1-3 Yr TR ZAR
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016Amplify SCI Strategic Income B2BCI Income Plus CCoronation Strategic Income ANinety One Diversified Income ZFTSE/JSE ALB 1-3 Yr TR ZAR
5.73 4.47 4.47 9.52 9.36 8.92 9.42 9.47 9.97 9.502.52 0.96 0.96 6.03 8.87 9.23 10.24 9.95 10.43 8.984.76 1.11 1.11 4.50 7.11 7.75 8.45 8.39 7.26 9.31 9.283.25 3.70 3.70 7.85 9.08 9.07 9.13 8.41 10.16 9.06 8.566.25 7.55 7.55 10.56 9.74 9.04 8.01 7.50 9.14 9.64 10.06
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-4.5
-3.8
-3.0
-2.3
-1.5
-0.8
0.0
Amplify SCI Strategic Income B2 BCI Income Plus C Coronation Strategic Income ANinety One Diversified Income Z FTSE/JSE ALB 1-3 Yr TR ZAR
2014/09/01 to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Amplify SCI Strategic Income B2
BCI Income Plus C
Coronation Strategic Income A
Ninety One Diversified Income Z
FTSE/JSE ALB 1-3 Yr TR ZAR
-2.78 1.00 92.86 7.14 0.65
-2.69 2.00 95.71 4.29 1.22
-4.23 2.00 95.71 4.29 0.21
-1.47 1.00 88.57 11.43 0.59
-0.98 1.00 98.57 1.43 1.49
2014/09/01 to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
-1.0 1.0 3.0 5.0 7.0 9.00.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Amplify SCI Strategic Income B2 BCI Income Plus C Coronation Strategic Income ANinety One Diversified Income Z FTSE/JSE ALB 1-3 Yr TR ZAR
Ret
urn
Source: Morningstar Direct 70
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J2.0
4.0
6.0
8.0
10.0
12.0
Graviton SCI Flexible Income B1 Nedgroup Inv Flexible Inc A Prescient Income Provider B3SIM Active Income B1 FTSE/JSE ALB 1-3 Yr TR ZAR
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-2.0
0.0
2.0
4.0
6.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
8.0
10.0
12.0
Graviton SCI Flexible Income B1 Nedgroup Inv Flexible Inc A Prescient Income Provider B3SIM Active Income B1 FTSE/JSE ALB 1-3 Yr TR ZAR
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Graviton SCI Flexible Income B1
Nedgroup Inv Flexible Inc A
Prescient Income Provider B3
SIM Active Income B1
FTSE/JSE ALB 1-3 Yr TR ZAR
4.04 2.26 2.26 6.28 7.69 8.16 8.53 7.94 8.81 10.08
3.94 1.77 1.77 5.81 7.58 7.96 8.19 8.72 10.31 5.98 9.86
4.14 2.04 2.04 6.40 8.30 8.90 9.43 9.04 9.30 9.37 9.65
3.77 2.30 2.30 6.30 7.96 8.50 8.35 8.82 7.96 9.69 10.83
6.25 7.55 7.55 10.56 9.74 9.04 8.01 7.50 9.14 9.64 10.06
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-3.5
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
Graviton SCI Flexible Income B1 Nedgroup Inv Flexible Inc A Prescient Income Provider B3SIM Active Income B1 FTSE/JSE ALB 1-3 Yr TR ZAR
Since Common Inception (2012/10/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Graviton SCI Flexible Income B1
Nedgroup Inv Flexible Inc A
Prescient Income Provider B3
SIM Active Income B1
FTSE/JSE ALB 1-3 Yr TR ZAR
-2.59 1.00 97.22 2.78 0.50
-3.24 1.00 95.83 4.17 0.39
-2.79 1.00 98.61 1.39 1.14
-2.27 1.00 97.22 2.78 0.79
-1.47 1.00 88.89 11.11 0.60
Since Common Inception (2012/10/01) to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
-1.0 1.0 3.0 5.0 7.0 9.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Graviton SCI Flexible Income B1 Nedgroup Inv Flexible Inc A Prescient Income Provider B3SIM Active Income B1 FTSE/JSE ALB 1-3 Yr TR ZAR
Ret
urn
Source: Morningstar Direct 71
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-16.0-14.0
-12.0-10.0
-8.0-6.0
-4.0
-2.00.0
2.04.0
6.0
8.010.0
12.014.0
16.0
18.020.0
22.024.0
Amplify SCI Wealth Protector B1 Prudential Inflation Plus A (ASISA) South African MA Low Equity
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-8.0
-6.0
-4.0
-2.0
0.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
2.0
4.0
6.0
8.0
10.0
12.0
Amplify SCI Wealth Protector B1 Prudential Inflation Plus A (ASISA) South African MA Low Equity
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Amplify SCI Wealth Protector B1
Prudential Inflation Plus A
(ASISA) South African MA Low Equity
5.96 4.34 4.34 11.22 9.18 13.49 9.31 4.43
11.04 -5.94 -5.94 -5.41 0.88 2.50 8.29 6.35 -5.00 10.29 3.61
8.34 0.56 0.56 3.23 5.20 5.18 7.65 8.58 1.24 8.39 3.59
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-17.5
-15.0
-12.5
-10.0
-7.5
-5.0
-2.5
0.0
Amplify SCI Wealth Protector B1 Prudential Inflation Plus A (ASISA) South African MA Low Equity
Since Common Inception (2016/09/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Amplify SCI Wealth Protector B1
Prudential Inflation Plus A
(ASISA) South African MA Low Equity
-4.61 4.00 69.57 30.43 0.25
-15.88 11.00 54.35 45.65 -0.63
-8.12 2.00 60.87 39.13 -0.41
Since Common Inception (2016/09/01) to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.00.0
2.0
4.0
6.0
8.0
10.0
12.0
Amplify SCI Wealth Protector B1 Prudential Inflation Plus A (ASISA) South African MA Low Equity
Ret
urn
Source: Morningstar Direct 72
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-7.5
0.0
7.5
15.0
22.5
Abax Absolute Prescient B3 Allan Gray Stable A Amplify SCI Defensive Balanced B1SIM Inflation Plus (ASISA) South African MA Low Equity
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-8.0
-6.0
-4.0
-2.0
0.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Abax Absolute Prescient B3 Allan Gray Stable A Amplify SCI Defensive Balanced B1SIM Inflation Plus (ASISA) South African MA Low Equity
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Abax Absolute Prescient B3
Allan Gray Stable A
Amplify SCI Defensive Balanced B1
SIM Inflation Plus
(ASISA) South African MA Low Equity
6.85 4.20 4.20 8.56 8.51 8.56 10.03 11.12 7.49 7.60 10.16
10.08 -0.41 -0.41 3.10 5.10 7.03 7.95 6.55 2.86 9.58 6.36
13.53 4.39 4.39 7.53 8.86 8.55 9.40 5.31 11.59 7.62
8.34 0.56 0.56 3.23 5.20 5.18 7.65 8.58 1.24 8.39 3.59
8.25 1.81 1.81 5.41 6.45 6.67 9.16 10.66 2.67 8.26 4.69
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-12.0
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
Abax Absolute Prescient B3 Allan Gray Stable A Amplify SCI Defensive Balanced B1SIM Inflation Plus (ASISA) South African MA Low Equity
2014/09/01 to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Abax Absolute Prescient B3
Allan Gray Stable A
Amplify SCI Defensive Balanced B1
SIM Inflation Plus
(ASISA) South African MA Low Equity
-4.03 2.00 74.29 25.71 0.33
-8.86 2.00 74.29 25.71 0.30
-10.85 2.00 70.00 30.00 -0.01
-7.65 2.00 70.00 30.00 0.03
-8.12 2.00 65.71 34.29 -0.26
2014/09/01 to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 2.0 4.0 6.0 8.0 10.0 12.0-1.0
1.0
3.0
5.0
7.0
9.0
11.0
13.0
Abax Absolute Prescient B3 Allan Gray Stable A Amplify SCI Defensive Balanced B1
SIM Inflation Plus (ASISA) South African MA Low Equity
Ret
urn
Source: Morningstar Direct 73
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-10.0
-5.0
0.0
5.0
10.0
15.0
Coronation Balanced Defensive A Ninety One Cautious Managed Z Nedgroup Inv Stable A(ASISA) South African MA Low Equity
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-8.0
-6.0
-4.0
-2.0
0.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Coronation Balanced Defensive A Ninety One Cautious Managed Z Nedgroup Inv Stable A(ASISA) South African MA Low Equity
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Coronation Balanced Defensive A
Ninety One Cautious Managed Z
Nedgroup Inv Stable A
(ASISA) South African MA Low Equity
10.31 -0.21 -0.21 2.80 5.19 5.41 9.00 9.50 1.96 7.80 3.90
11.45 8.06 8.06 13.35 8.44 7.23 9.87 11.69 2.57 7.09 0.38
7.72 6.85 6.85 11.31 9.79 9.34 10.38 12.60 6.23
8.34
8.94 3.05
0.56 0.56 3.23 5.20 5.18 7.65 8.58 1.24 8.39 3.59
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-12.0
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
Coronation Balanced Defensive A Ninety One Cautious Managed Z Nedgroup Inv Stable A(ASISA) South African MA Low Equity
2007/11/01 to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Coronation Balanced Defensive A
Ninety One Cautious Managed Z
Nedgroup Inv Stable A
(ASISA) South African MA Low Equity
-10.43 2.00 75.00 25.00 0.32
-8.05 2.00 76.32 23.68 0.52
-6.08 3.00 72.37 27.63 0.42
-8.12 2.00 72.37 27.63 0.00
2007/11/01 to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 2.0 4.0 6.0 8.0 10.00.0
2.0
4.0
6.0
8.0
10.0
12.0
Coronation Balanced Defensive A Ninety One Cautious Managed Z Nedgroup Inv Stable A
(ASISA) South African MA Low Equity
Ret
urn
Source: Morningstar Direct 74
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-5.0
-3.0
-1.0
1.0
3.0
5.0
7.0
9.0
11.0
13.0
15.0
Graviton SCI Low Equity B1 Sanlam Multi Mgd Defensive FoF A Satrix Low Equity Balanced Index C(ASISA) South African MA Low Equity
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-8.0
-6.0
-4.0
-2.0
0.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
2.0
4.0
6.0
8.0
10.0
12.0
Graviton SCI Low Equity B1 Sanlam Multi Mgd Defensive FoF A Satrix Low Equity Balanced Index C(ASISA) South African MA Low Equity
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Graviton SCI Low Equity B1
Sanlam Multi Mgd Defensive FoF A
Satrix Low Equity Balanced Index C
(ASISA) South African MA Low Equity
8.84 2.05 2.05 5.32 6.45 6.17 10.36 1.82 8.42 3.14
8.80 3.34 3.34 6.74 6.20 5.52 7.67 8.87 3.55 5.19 1.40
11.05 0.93 0.93 3.07 5.80 5.80 8.79 0.78 10.17 4.50
8.34 0.56 0.56 3.23 5.20 5.18 7.65 8.58 1.24 8.39 3.59
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-12.0
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
Graviton SCI Low Equity B1 Sanlam Multi Mgd Defensive FoF A Satrix Low Equity Balanced Index C(ASISA) South African MA Low Equity
Since Common Inception (2014/08/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Graviton SCI Low Equity B1
Sanlam Multi Mgd Defensive FoF A
Satrix Low Equity Balanced Index C
(ASISA) South African MA Low Equity
-7.98 2.00 67.61 32.39 -0.07
-6.37 2.00 64.79 35.21 -0.31
-10.17 2.00 66.20 33.80 -0.11
-8.12 2.00 64.79 35.21 -0.28
Since Common Inception (2014/08/01) to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 2.0 4.0 6.0 8.0 10.0 12.0-1.0
1.0
3.0
5.0
7.0
9.0
11.0
Graviton SCI Low Equity B1 Sanlam Multi Mgd Defensive FoF A Satrix Low Equity Balanced Index C
(ASISA) South African MA Low Equity
Ret
urn
Source: Morningstar Direct 75
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-15.0
-7.5
0.0
7.5
15.0
22.5
Discovery Moderate Balanced Graviton SCI Medium Equity B1 Nedgroup Inv Opportunity A(ASISA) South African MA Medium Equity
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-10.0
-7.5
-5.0
-2.5
0.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
2.5
5.0
7.5
10.0
12.5
15.0
17.5
Discovery Moderate Balanced Graviton SCI Medium Equity B1 Nedgroup Inv Opportunity A(ASISA) South African MA Medium Equity
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Discovery Moderate Balanced
Graviton SCI Medium Equity B1
Nedgroup Inv Opportunity A
(ASISA) South African MA Medium Equity
12.35 -1.60 -1.60 0.90 4.88 4.84 9.91 -0.39 11.29 2.24
11.44 0.89 0.89 4.05 5.46 4.77 11.79 -3.75 10.42 0.68
13.88 -9.67 -9.67 -4.82 0.56 2.73 16.17 -2.63 2.97 9.64
11.32 -0.31 -0.31 2.16 4.47 4.19 8.11 9.47 -1.77 9.28 1.54
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-25.0
-20.0
-15.0
-10.0
-5.0
0.0
Discovery Moderate Balanced Graviton SCI Medium Equity B1 Nedgroup Inv Opportunity A(ASISA) South African MA Medium Equity
Since Common Inception (2013/06/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Discovery Moderate Balanced
Graviton SCI Medium Equity B1
Nedgroup Inv Opportunity A
(ASISA) South African MA Medium Equity
-13.88 2.00 64.71 35.29 0.04
-10.79 2.00 64.71 35.29 -0.02
-20.68 3.00 62.35 37.65 0.00
-11.29 2.00 65.88 34.12 -0.10
Since Common Inception (2013/06/01) to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.00.0
2.0
4.0
6.0
8.0
10.0
12.0
Discovery Moderate Balanced Graviton SCI Medium Equity B1 Nedgroup Inv Opportunity A
(ASISA) South African MA Medium Equity
Ret
urn
Source: Morningstar Direct 76
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-20.0
-10.0
0.0
10.0
20.0
30.0
Nedgroup Inv Balanced A Prudential Balanced A SIM Balanced RAmplify SCI Balanced B1 (ASISA) South African MA High Equity
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-10.0
-5.0
0.0
5.0
10.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
15.0
20.0
25.0
Nedgroup Inv Balanced A Prudential Balanced A SIM Balanced RAmplify SCI Balanced B1 (ASISA) South African MA High Equity
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Nedgroup Inv Balanced A
Prudential Balanced A
SIM Balanced R
Amplify SCI Balanced B1
(ASISA) South African MA High Equity
11.49 1.73 1.73 10.18 6.53 5.41 15.68 0.72 4.47 -3.17
16.46 -4.94 -4.94 -4.05 2.85 3.63 9.95 8.77 -3.30 11.79 3.95
15.58 -5.78 -5.78 -2.63 2.50 3.54 9.02 13.02 -5.29 10.84 5.36
21.65 -1.15 -1.15 -0.25 7.05 10.23 1.75 17.26 4.79
13.47 -1.87 -1.87 0.54 3.63 3.52 8.14 9.52 -3.60 9.97 1.31
2015 2016 2017 2018 2019 2020-20.0
-15.0
-10.0
-5.0
0.0
Nedgroup Inv Balanced A Prudential Balanced A SIM Balanced RAmplify SCI Balanced B1 (ASISA) South African MA High Equity
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Nedgroup Inv Balanced A
Prudential Balanced A
SIM Balanced R
Amplify SCI Balanced B1
(ASISA) South African MA High Equity
-10.02 2.00 54.17 45.83 -0.21
-19.21 11.00 60.42 39.58 -0.27
-18.97 2.00 58.33 41.67 -0.27
-19.46 11.00 64.58 35.42 0.09
-14.12 2.00 62.50 37.50 -0.36
Std Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0-10.0
-6.0
-2.0
2.0
6.0
10.0
14.0
18.0
Nedgroup Inv Balanced A Prudential Balanced A SIM Balanced R
Amplify SCI Balanced B1 (ASISA) South African MA High Equity
Ret
urn
Source: Morningstar Direct 77
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-15.0
-7.5
0.0
7.5
15.0
22.5
Coronation Balanced Plus A Ninety One Opportunity D (ASISA) South African MA High Equity
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-10.0
-5.0
0.0
5.0
10.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
15.0
20.0
Coronation Balanced Plus A Ninety One Opportunity D (ASISA) South African MA High Equity
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Coronation Balanced Plus A
Ninety One Opportunity D
(ASISA) South African MA High Equity
14.91 -2.78 -2.78 1.74 3.61 3.68 9.91 12.77 -6.34 12.69 0.54
9.70 6.66 6.66 9.04 6.36 6.27 8.62 11.07 -2.29 7.56 -0.61
13.47 -1.87 -1.87 0.54 3.63 3.52 8.14 9.52 -3.60 9.97 1.31
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-20.0
-15.0
-10.0
-5.0
0.0
Coronation Balanced Plus A Ninety One Opportunity D (ASISA) South African MA High Equity
Since Common Inception (2008/11/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Coronation Balanced Plus A
Ninety One Opportunity D
(ASISA) South African MA High Equity
-9.38 4.00 58.33 41.67 -0.29
-16.02 2.00 56.25 43.75 -0.27
-14.12 2.00 62.50 37.50 -0.36
Since Common Inception (2008/11/01) to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0-10.0
-6.0
-2.0
2.0
6.0
10.0
14.0
18.0
Coronation Balanced Plus A Ninety One Opportunity D (ASISA) South African MA High Equity
Ret
urn
Source: Morningstar Direct 78
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-15.0
-7.5
0.0
7.5
15.0
22.5
Graviton SCI Balanced B1 Nedgroup Inv Core Diversified B Sanlam Multi Mgd Balanced FoF ASatrix Balanced Index C (ASISA) South African MA High Equity
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-10.0
-5.0
0.0
5.0
10.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
15.0
20.0
Graviton SCI Balanced B1 Nedgroup Inv Core Diversified B Sanlam Multi Mgd Balanced FoF ASatrix Balanced Index C (ASISA) South African MA High Equity
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Graviton SCI Balanced B1
Nedgroup Inv Core Diversified B
Sanlam Multi Mgd Balanced FoF A
Satrix Balanced Index C
(ASISA) South African MA High Equity
16.48 -0.81 -0.81 0.83 4.56 4.38 10.17 9.19 -3.61 12.39 2.58
14.93 -2.34 -2.34 0.88 4.14 3.98 11.92 -5.44 12.12 0.87
16.84 -1.63 -1.63 1.94 3.70 3.67 8.62 10.91 -3.46 6.88 2.37
15.72 -3.13 -3.13 -1.92 5.67 5.13 10.49 -5.63 19.82 4.68
13.47 -1.87 -1.87 0.54 3.63 3.52 8.14 9.52 -3.60 9.97 1.31
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-17.5
-15.0
-12.5
-10.0
-7.5
-5.0
-2.5
0.0
Graviton SCI Balanced B1 Nedgroup Inv Core Diversified B Sanlam Multi Mgd Balanced FoF ASatrix Balanced Index C (ASISA) South African MA High Equity
Since Common Inception (2013/11/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Graviton SCI Balanced B1
Nedgroup Inv Core Diversified B
Sanlam Multi Mgd Balanced FoF A
Satrix Balanced Index C
(ASISA) South African MA High Equity
-15.88 2.00 65.00 35.00 -0.05
-15.36 2.00 61.25 38.75 0.00
-16.33 2.00 61.25 38.75 -0.10
-17.02 5.00 62.50 37.50 0.01
-14.12 2.00 62.50 37.50 -0.17
Since Common Inception (2013/11/01) to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0-3.0
0.0
3.0
6.0
9.0
12.0
15.0
Graviton SCI Balanced B1 Nedgroup Inv Core Diversified B Sanlam Multi Mgd Balanced FoF A
Satrix Balanced Index C (ASISA) South African MA High Equity
Ret
urn
Source: Morningstar Direct 79
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-15.0
-7.5
0.0
7.5
15.0
22.5
Bateleur Flexible Prescient B3 Centaur BCI Flexible A Laurium Flexible Prescient B3(ASISA) South African MA Flexible
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
Bateleur Flexible Prescient B3 Centaur BCI Flexible A Laurium Flexible Prescient B3(ASISA) South African MA Flexible
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Bateleur Flexible Prescient B3
Centaur BCI Flexible A
Laurium Flexible Prescient B3
(ASISA) South African MA Flexible
17.60 11.72 11.72 13.62 8.89 7.53 16.00 8.84 -1.98 13.03 -1.94
17.50 -3.48 -3.48 1.80 4.95 6.01 14.52 14.88 -6.40 14.55 9.66
19.69 -0.92 -0.92 -0.21 5.35 5.44 11.04 -2.11 12.76 -0.60
12.71 -1.75 -1.75 0.34 2.74 2.40 7.96 7.95 -4.34 8.69 1.41
2015 2016 2017 2018 2019 2020-20.0
-15.0
-10.0
-5.0
0.0
Bateleur Flexible Prescient B3 Centaur BCI Flexible A Laurium Flexible Prescient B3(ASISA) South African MA Flexible
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Bateleur Flexible Prescient B3
Centaur BCI Flexible A
Laurium Flexible Prescient B3
(ASISA) South African MA Flexible
-9.05 3.00 65.17 34.83 0.62
-17.85 3.00 61.80 38.20 0.40
-17.76 11.00 65.17 34.83 0.52
-12.91 2.00 59.55 40.45 -0.10
Std Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0-3.0
0.0
3.0
6.0
9.0
12.0
15.0
18.0
Bateleur Flexible Prescient B3 Centaur BCI Flexible A Laurium Flexible Prescient B3
(ASISA) South African MA Flexible
Ret
urn
Source: Morningstar Direct 80
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-40.0
-20.0
0.0
20.0
40.0
PSG Flexible A Amplify SCI Flexible Equity B2 Truffle SCI Flexible A(ASISA) South African MA Flexible
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-25.0
-20.0
-15.0
-10.0
-5.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
0.0
5.0
10.0
15.0
20.0
PSG Flexible A Amplify SCI Flexible Equity B2 Truffle SCI Flexible A(ASISA) South African MA Flexible
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
PSG Flexible A
Amplify SCI Flexible Equity B2
Truffle SCI Flexible A
(ASISA) South African MA Flexible
16.86 -18.56 -18.56 -19.14 -5.45 -0.58 8.45 -1.55 -4.16 9.97 17.67
16.88 -13.09 -13.09 -6.96 1.19 1.14 15.83 -8.62 11.40 -3.02
11.18 1.68 1.68 11.10 7.27 5.85 16.83 1.17 6.98 -4.61
12.71 -1.75 -1.75 0.34 2.74 2.40 7.96 7.95 -4.34 8.69 1.41
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-37.5
-30.0
-22.5
-15.0
-7.5
0.0
PSG Flexible A Amplify SCI Flexible Equity B2 Truffle SCI Flexible A(ASISA) South African MA Flexible
2014/09/01 to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
PSG Flexible A
Amplify SCI Flexible Equity B2
Truffle SCI Flexible A
(ASISA) South African MA Flexible
-36.42 19.00 57.14 42.86 -0.32
-12.91 2.00 57.14 42.86 -0.36
-25.65 3.00 61.43 38.57 -0.20
-9.94 2.00 60.00 40.00 0.12
2014/09/01 to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0-9.0
-5.0
-1.0
3.0
7.0
11.0
15.0
19.0
PSG Flexible A Amplify SCI Flexible Equity B2 Truffle SCI Flexible A
(ASISA) South African MA Flexible
Ret
urn
Source: Morningstar Direct 81
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-40.0
-20.0
0.0
20.0
40.0
Coronation Equity R Fairtree Equity Prescient B3 Laurium Equity Prescient B3Nedgroup Inv Rainmaker A FTSE/JSE All Share SWIX TR ZAR
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-22.5
-15.0
-7.5
0.0
7.5
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
15.0
22.5
30.0
37.5
45.0
Coronation Equity R Fairtree Equity Prescient B3 Laurium Equity Prescient B3Nedgroup Inv Rainmaker A FTSE/JSE All Share SWIX TR ZAR
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Coronation Equity R
Fairtree Equity Prescient B3
Laurium Equity Prescient B3
Nedgroup Inv Rainmaker A
FTSE/JSE All Share SWIX TR ZAR
18.79 -2.04 -2.04 4.12 3.69 3.47 11.40 16.90 -12.80 17.25 3.55
41.39 -1.91 -1.91 7.62 11.17 8.43 21.98 -4.08 21.47 10.72
25.83 -9.36 -9.36 -9.55 2.22 1.27 8.59 -6.42 19.74 -2.97
21.41 -10.53 -10.53 -12.18 -3.06 -1.53 7.25 3.53 -12.71 16.51 -2.03
22.09 -6.33 -6.33 -6.09 2.00 2.08 10.61 9.32 -11.67 21.21 4.13
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-35.0
-30.0
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
Coronation Equity R Fairtree Equity Prescient B3 Laurium Equity Prescient B3Nedgroup Inv Rainmaker A FTSE/JSE All Share SWIX TR ZAR
Since Common Inception (2014/04/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Coronation Equity R
Fairtree Equity Prescient B3
Laurium Equity Prescient B3
Nedgroup Inv Rainmaker A
FTSE/JSE All Share SWIX TR ZAR
-18.57 28.00 57.33 42.67 -0.11
-30.62 3.00 56.00 44.00 0.26
-30.03 11.00 57.33 42.67 -0.03
-34.63 28.00 53.33 46.67 -0.31
-26.03 28.00 56.00 44.00 -0.11
Since Common Inception (2014/04/01) to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 5.0 10.0 15.0 20.0 25.0 30.0-9.0
-5.0
-1.0
3.0
7.0
11.0
15.0
Coronation Equity R Fairtree Equity Prescient B3 Laurium Equity Prescient B3
Nedgroup Inv Rainmaker A FTSE/JSE All Share SWIX TR ZAR
Ret
urn
Source: Morningstar Direct 82
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-40.0
-20.0
0.0
20.0
40.0
Coronation Global Em Mkts Flex [ZAR] A Nedgroup Inv Global Flexible FF R (ASISA) Global MA Flexible
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
0.0
5.0
10.0
15.0
20.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
25.0
30.0
35.0
Coronation Global Em Mkts Flex [ZAR] A Nedgroup Inv Global Flexible FF R (ASISA) Global MA Flexible
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Coronation Global Em Mkts Flex [ZAR] A
Nedgroup Inv Global Flexible FF R
(ASISA) Global MA Flexible
16.58 14.03 14.03 21.42 13.42 11.39 13.29 31.34 -13.42 26.22 1.23
9.61 11.58 11.58 17.68 11.08 10.59 13.84 16.97 6.71 -1.22 -4.28
8.76 14.11 14.11 20.36 11.51 9.65 13.11 15.82 3.93 5.05 -8.36
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-25.0
-20.0
-15.0
-10.0
-5.0
0.0
Coronation Global Em Mkts Flex [ZAR] A Nedgroup Inv Global Flexible FF R (ASISA) Global MA Flexible
Since Common Inception (2008/01/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Coronation Global Em Mkts Flex [ZAR] A
Nedgroup Inv Global Flexible FF R
(ASISA) Global MA Flexible
-38.61 9.00 58.00 42.00 0.27
-27.05 15.00 52.00 48.00 0.27
-23.63 15.00 56.67 43.33 0.24
ABSOLUTE RISK REWARD Since Common Inception (2008/01/01) to 2020/06/30
Std Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.00.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Coronation Global Em Mkts Flex [ZAR] A Nedgroup Inv Global Flexible FF R (ASISA) Global MA Flexible
Ret
urn
Source: Morningstar Direct 83
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-20.0
0.0
20.0
40.0
Nedgroup Inv Global Equity FF A Ninety One Global Franchise FF A MSCI World NR USD
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
0.0
5.0
10.0
15.0
20.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
25.0
30.0
35.0
40.0
Nedgroup Inv Global Equity FF A Ninety One Global Franchise FF A MSCI World NR USD
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Nedgroup Inv Global Equity FF A
Ninety One Global Franchise FF A
MSCI World NR USD
9.05 15.42 15.42 25.97 15.67 14.61 18.74 25.30 8.59 10.08 -9.07
10.67 24.16 24.16 33.50 19.27 17.04 18.37 23.83 10.85 10.85 -12.74
16.12 17.09 17.09 26.72 17.23 14.85 19.33 24.11 6.07 10.81 -5.12
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-20.0
-15.0
-10.0
-5.0
0.0
Nedgroup Inv Global Equity FF A Ninety One Global Franchise FF A MSCI World NR USD
Since Common Inception (2001/11/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Nedgroup Inv Global Equity FF A
Ninety One Global Franchise FF A
MSCI World NR USD
-44.53 16.00 56.25 43.75 0.20
-45.18 16.00 56.70 43.30 0.20
-50.09 15.00 58.48 41.52 0.21
Since Common Inception (2001/11/01) to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.00.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Nedgroup Inv Global Equity FF A Ninety One Global Franchise FF A MSCI World NR USD
Ret
urn
Source: Morningstar Direct 84
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-10.0
0.0
10.0
20.0
30.0
40.0
Old Mutual Global Equity R Satrix MSCI World Equity Index FF C MSCI World NR USD
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
0.0
5.0
10.0
15.0
20.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
25.0
30.0
35.0
40.0
Old Mutual Global Equity R Satrix MSCI World Equity Index FF C MSCI World NR USD
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Old Mutual Global Equity R
Satrix MSCI World Equity Index FF C
MSCI World NR USD
13.11 15.64 15.64 25.10 16.20 14.13 23.85 5.06 10.49 -5.73
14.98 13.91 13.91 21.08 14.14 13.45 21.17 19.64 2.38 13.17 -4.28
16.12 17.09 17.09 26.72 17.23 14.85 19.33 24.11 6.07 10.81 -5.12
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-20.0
-15.0
-10.0
-5.0
0.0
Old Mutual Global Equity R Satrix MSCI World Equity Index FF C MSCI World NR USD
Since Common Inception (2013/11/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Old Mutual Global Equity R
Satrix MSCI World Equity Index FF C
MSCI World NR USD
-15.87 5.00 57.50 42.50 0.55
-19.42 4.00 61.25 38.75 0.58
-15.01 5.00 58.75 41.25 0.63
Since Common Inception (2013/11/01) to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.00.0
3.0
6.0
9.0
12.0
15.0
18.0
21.0
Old Mutual Global Equity R Satrix MSCI World Equity Index FF C MSCI World NR USD
Ret
urn
Source: Morningstar Direct 85
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J-20.0
0.0
20.0
40.0
Coronation Market Plus A Coronation Optimum Growth A Foord Flexible FoF A(ASISA) Wwide MA Flexible
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-10.0
-5.0
0.0
5.0
10.0
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
15.0
20.0
25.0
30.0
Coronation Market Plus A Coronation Optimum Growth A Foord Flexible FoF A(ASISA) Wwide MA Flexible
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Coronation Market Plus A
Coronation Optimum Growth A
Foord Flexible FoF A
(ASISA) Wwide MA Flexible
17.26 -3.51 -3.51 0.71 2.41 3.81 10.34 13.28 -6.86 10.36 5.04
13.36 18.66 18.66 26.75 15.59 13.33 16.93 26.94 -1.18 13.73 -3.54
15.23 12.60 12.60 20.44 8.73 7.73 14.20
13.01
13.71 -0.74 5.58 -4.38
6.48 6.48 10.95 7.66 6.63 11.39 13.57 -1.30 7.79 -4.19
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-20.0
-15.0
-10.0
-5.0
0.0
Coronation Market Plus A Coronation Optimum Growth A Foord Flexible FoF A(ASISA) Wwide MA Flexible
Since Common Inception (2008/05/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Coronation Market Plus A
Coronation Optimum Growth A
Foord Flexible FoF A
(ASISA) Wwide MA Flexible
-31.65 9.00 61.64 38.36 0.42
-19.57 9.00 63.01 36.99 0.27
-12.98 5.00 66.44 33.56 0.54
-22.70 9.00 60.27 39.73 0.17
ABSOLUTE RISK REWARD Since Common Inception (2008/05/01) to 2020/06/30
Std Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.00.0
3.0
6.0
9.0
12.0
15.0
18.0
Coronation Market Plus A Coronation Optimum Growth A Foord Flexible FoF A(ASISA) Wwide MA Flexible
Ret
urn
Source: Morningstar Direct 86
ROLLING 1YR RETURNS As of 2020/06/30
J A S O N D
2017
J F M A M J J A S O N D
2018
J F M A M J J A S O N D
2019
J F M A M J J A S O N D
2020
J F M A M J6.5
7.0
7.5
8.0
8.5
Allan Gray Money Market Coronation Money Market A Nedgroup Inv Money Market RNinety One Money Market R STeFI Composite ZAR
Ret
urn
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
0.8
1.5
2.3
3.0
3.8
3m 6m YTD 1 Year 3 Years 5 Years 10 Years
4.5
5.3
6.0
6.8
7.5
8.3
Allan Gray Money Market Coronation Money Market A Nedgroup Inv Money Market RNinety One Money Market R STeFI Composite ZAR
Ret
urn
3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2019 2018 2017 2016
Allan Gray Money Market
Coronation Money Market A
Nedgroup Inv Money Market R
Ninety One Money Market R
STeFI Composite ZAR
1.45
1.58
3.28 3.28
3.42 3.42
7.16 7.57 7.56
7.33
6.66
7.64
7.76
7.59
7.68
6.70 7.72 7.76 7.99 7.63
7.93 7.72
1.36 3.10 3.10 6.84 7.27 7.31 6.46 7.44 7.41 7.70 7.54
1.46 3.18 3.18 6.86 7.17 7.20 6.48 7.29 7.25 7.54 7.39
1.36 3.10 3.10 6.84 7.29 7.32 6.46 7.47 7.46 7.70 7.50
PERFORMANCE RELATIVE TO PEERS As of 2020/06/30
As of 2020/06/30DRAWDOWNS
2015 2016 2017 2018 2019 2020-10.0
0.0
Allan Gray Money Market Coronation Money Market A Nedgroup Inv Money Market RNinety One Money Market R STeFI Composite ZAR
Since Common Inception (2001/08/01) to 2020/06/30RISK STATISTICS
MaxDrawdown
MaxDrawdown #
Periods
UpPeriod
Percent
DownPeriod
Percent
SharpeRatio
Allan Gray Money Market
Coronation Money Market A
Nedgroup Inv Money Market R
Ninety One Money Market R
STeFI Composite ZAR
100.00 0.00 0.77
100.00 0.00 0.63
100.00 0.00 -0.30
100.00 0.00 -0.80
100.00 0.00
Since Common Inception (2001/08/01) to 2020/06/30ABSOLUTE RISK REWARD
Std Dev
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.70.0
2.0
4.0
6.0
8.0
10.0
Allan Gray Money Market Coronation Money Market A Nedgroup Inv Money Market RNinety One Money Market R STeFI Composite ZAR
Ret
urn
Source: Morningstar Direct 87
Interest Bearing Money Market TER Interest Bearing Short Term TER Interest Bearing Variable Term TER
Glacier Money Market 0.23% GMMF Nedgroup Inv Core Income (Taquanta) 0.30% NICPC Coronation Bond 0.42%
Prescient Yield Quant Plus 0.48% PCQFB5 Prescient Bond Quant Plus 0.63%
SIM Enhanced Yield 0.49% SEYB1 Sanlam Select Bond Plus (Matrix) 0.53%
SMM Yield Plus (Futuregrowth) 0.80% SBTB Satrix Bond Index 0.24%
Stanlib Income 0.68% SIFB6 SMM Bond (Prescient Bond Quant) 0.10%
SMM Inflation Linked Bond (SSS) 0.61%
Stanlib Bond 0.86%
Multi Asset Income TER Multi Asset Low Equity TER Multi Asset Medium Equity TER
Amplify SCI Strategic Income (Terebinth) 0.60% SPPB3 Abax Absolute 0.69% AAPB5 Amplify SCI Absolute (Matrix) 0.99%
BCI Income Plus 0.45% BCIPFE Allan Gray Stable 1.00% AGSC Discovery Moderate Balanced 1.65%
Coronation Strategic Income 0.54% CSIB4 Amplify SCI Defensive Balanced (Matrix) 0.82% SPLB3 Foord Conservative 0.79%
Graviton SCI Flexible Income 0.75% GSFA1 Amplify SCI Wealth Protector (Truffle) 0.94% SSWB3 Graviton SCI Medium Equity 1.32%
Nedgroup Inv Flexible Income (Abax) 0.61% NEIFB Coronation Balanced Defensive 1.11% CBDB4 Nedgroup Inv Opportunity (Abax) 1.14%
Ninety One Diversified Income 0.49% IDICI Graviton SCI Low Equity 1.28% GSLB1 Old Mutual Albaraka Balanced 1.23%
Prescient Income Provider 0.49% PIPFB6 Nedgroup Inv Stable (Foord) 1.47% NISA
SIM Active Income 0.70% SIAB4 Ninety One Cautious Managed 0.96% CMFI
Prudential Inflation Plus 0.93% PRCB
Sasfin BCI Stable 0.88% SMSFCA
Satrix Low Equity Balanced Index 0.36% SLEB1
SIM Inflation Plus 0.78% SAIB4
SMM Defensive FoF 1.19% SADF
Multi Asset High Equity TER Multi Asset Flexible TER Real Estate General TER
Abax Balanced Prescient 0.82% ABPB4 36ONE BCI Flexible Opportunity 1.34% TBOC1 ABSA Property 0.69%
Allan Gray Balanced 1.26% AGBC Amplify SCI Flexible Equity (Abax) 0.99% SBB2 Catalyst SA Property Equity Prescient 1.31%
Amplify SCI Balanced (Laurium) 0.93% AMSFB3 Bateleur Flexible Prescient 0.90% BFPB1 Satrix Property Index 0.29%
Aylett Balanced Prescient 1.19% AYPA1 Centaur BCI Flexible 1.53% CMFCC Sesfikile BCI Property 0.78%
Centaur BCI Balanced 1.21% CBBFB Laurium Flexible Prescient 1.20% LFPB4 SMM Inst. Positive Return 3 (Truffle Flex Prop) 0.83%
Coronation Balanced Plus 1.16% CBFB4 PSG Flexible 0.92% PFFMC SMM Property 0.60%
Discovery Balanced 1.96% DBFD SMM Flexible Equity (Truffle Flexible) 0.85% SPRO
Foord Balanced 0.98% FBCB2 Truffle SCI Flexible 0.73% TSFH
Graviton SCI Balanced 1.28% GSBB1
Kagiso Islamic Balanced 1.04% KAICB
Nedgroup Inv Balanced (Truffle) 1.07% TMBFG
Nedgroup Inv Core Diversified 0.46% NIDCB VIAB1
Ninety One Opportunity 1.16% OPPJ VIAB1
Obsidian SCI Balanced 1.22% OSBB1
Prescient Living Planet 1.34% PLPB1 SBB2
Prudential Balanced 0.93% PRAB
PSG Balanced 1.17% PBFE
Rezco Managed Plus 1.30% RPFC1
Rezco Value Trend 1.28% RVTC1
Satrix Balanced Index 0.37% STIB1
SIM Balanced 1.19% SBCB3
SMM Balanced FoF 1.17% SAOF
SAOF
Equity General TER Equity Large Caps TER Global Multi Asset Low Equity TER
36ONE BCI Equity 3.02% MNTR Satrix Equally Weighted Top 40 Index 0.42% STWB1 Ninety One Global Multi-Asset Income Feeder 1.31%
Amplify SCI Equity (Sentio) 1.05% SMGB7
Aylett Equity Prescient 1.18% AYEF
Bateleur Equity Prescient 0.93% BEPFB4
Coronation Equity 0.62% CECB4
Coronation Top 20 0.56% CTTB4
Fairtree Equity Prescient 0.79% FIPFS1
Foord Equity 0.14% FECB2
Kagiso Equity Alpha 1.61% KEAB1
Laurium Equity 1.18% LEPA1
Marriott Dividend Growth 0.89% MDGC
Mazi Asset Management Prime Equity 0.94% MCEFB2
Nedgroup Inv Rainmaker 1.28% NIRB
Ninety One Equity 0.61% EQTI
Ninety One Value 1.32% VALI
Obsidian SCI Equity 2.08% OSEB3
Prudential Dividend Maximiser 1.70% PDMB
Prudential Equity 1.73% PEFB
PSG Equity 1.77% PEFE
Rezco Equity 1.20% REFC1
Satrix ALSI Index 0.35% STAB1
Satrix Dividend Plus Index 0.37% STDB1
Satrix Momentum Index 0.45% SMFB2
Satrix RAFI 40 Index 0.53% STRB1
SIM General Equity 1.05% SGEB6
SIM Top Choice Equity 1.33% STTB4
SMM Equity Index (SWIX) 0.60% SMEB5
SMM Equity FoF 1.83% SAEF
Truffle SCI General Equity 0.89% TRGEC
Global Multi Asset High Equity TER Global Multi Asset Flexible TER Global Equity General TER
Coronation Global Managed 1.01% CGMB4 Coronation Global Em Mkts Flex 1.05% CGEMB4 Glacier Global Stock FF 1.41%
Ninety One Global Strategic Managed 1.39% GBFH Nedgroup Inv Global Flexible FF 1.17% NEIG Nedgroup Inv Global Equity FF (Veritas) 1.17%
Ninety One Global Franchise FF 1.06%
Old Mutual Global Equity 1.63%
Satrix MSCI World Equity Index FF 0.44%
SPW Global High Quality FF 1.64%
Global Real Estate General TER Worldwide Multi Asset Flexible TER
Catalyst Global Real Estate Prescient FF 1.44% CGRE Coronation Market Plus 0.74% CMPL4
Nedgroup Inv Global Property 1.24% NEFCB Coronation Optimum Growth 1.14% COGFB4
Foord Flexible FoF 0.51% FFCB2
The Buy list (Preferred list) of funds above follows the rigorous and thorough investment research and analysis process of both the SMM and Glacier research teams. Each fund was carefully selected per category, in order to ensure that they are best in class and assist in the
combination with other strategies/funds. Together, both team have done a comprehensive due diligence per strategy/fund, to ensure investors comfort and peace-of-mind when investing in any of the funds listed above. TER's listed are based on the fee classes available on the
Glacier Platform.
PLEASE NOTE: THIS DOCUMENT IS FOR INTERNAL USE ONLY
*An estimated Total Expense Ratio (TER) is reflected due to insufficient track record.
The TERs disclosed are generally the institutional class (clean class) of the CIS. This entails that a Linked Investment Service Provider does not receive a rebate for housing this class of fund on their platform.
Contac t Us
This document is intended for use by financial intermediaries. The
information in this document is provided for information purposes only
and any opinions expressed and information provided by any employee,
officer or director of Sanlam and any of its subsidiaries during and
pursuant to this presentation should not be construed as the rendering of
advice to clients. Although we have taken reasonable steps to ensure the
accuracy of the information, neither Sanlam nor any of its subsidiaries
accept any liability whatsoever for any direct, indirect or consequential
loss arising from the use of, or reliance in any manner on the information
provided in this document.
Glacier Financial Solutions (Pty) Ltd. | A member of the Sanlam Group |
Private Bag X5 | Tyger Valley 7536 | Email [email protected]
| Tel +27 21 917 9002 / 0860 452 364 | Fax +27 21 947 9210 | Web
www.glacier.co.za | Twitter @GlacierBySanlam | Reg No 1999/025360/07
| Licensed Discretionary Financial Services Provider FSP 770, trading as
Glacier Invest.
Sanlam Multi-Manager International (Pty) Ltd. | A member of the Sanlam
Group | Private Bag X8 | Tyger Valley 7536 | Tel +27 21 950 2600 | Fax
+27 21 950 2126 | Web www.smmi.com | Reg No 2002/030939/07 |
Licensed Discretionary Financial Services Provider, acting as Juristic
Representative under the Glacier Financial Solutions FSP 770