MultiAsset IP Balanced Plus Fund€¦ · 22/01/2015 · Portfolio Manager Warren Brown MBA, PhD...
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FUND INFORMATION FUND MANAGEMENT EXPERIENCE Tony Bell BCom (Hons), MBA Portfolio Manager Warren Brown MBA, PhD Portfolio Manager & Key Individual Having started out as an accountant, Tony moved to Southern Life Asset Management and soon became assistant General Manager of Investments. His move to Syfrets Managed Assets created the opportunity for Tony to become Chief Investment Officer at Nedcor Investment Bank. As CIO of PeregrineQuant and more recently Vunani Fund Managers Tony brings a wealth of experience especially in running the overall asset allocation of the fund. His MBA thesis Portfolio Management - an Alternative Approach which was awarded with distinction reflects Tony s interest in understanding how the macro environment affects markets and asset class returns. Key Individual, Head of Multi Management, Warren Brown brings with him extensive experience in derivatives, fixed interest, equity and multi management. Starting his career as a derivative analyst at HSBC, he joined Syfrets and became CIO of Community Growth and portfolio manager of their flagship Unit Trust Fund. Warren then joined Old Mutual s multimanager Symmetry as Head of Fixed Interest. As CEO of Investment Consulting at Fund Solutions and more recently Independent Actuaries and Consultants, Warren combined his asset management experience with fund solution experience. Inception date 22 January 2015 Sector South African - Multi-Asset - High Equity Risk profile Aggressive Minimum investment Lump sum: R10 000; Monthly: R1 000 Asset composition Equity, Fixed Interest, Property and Cash Regulation 28 Compliant with Regulation 28 Benchmark CPI + 6% Fund Size R 169,381,079 Income declaration Bi-annual (Mar / Sep) CPU Mar 2020 14.39 Sep 2020 12.56 Distributions (Class A): DESCRIPTION The objective of the fund is to achieve returns of at least 6-7% annualised in excess of inflation (CPI) over rolling 5 year periods whilst simultaneously controlling the risk of underperforming CPI over any rolling 12 month period. The fund will comply with all prudential requirements and regulations controlling retirement funds or such other applicable legislation as may be determined for retirement funds. APPLICATION This fund is suitable for aggressive investors (subject to Regulation 28 Constraints) with an investment time horizon of 5 years or more who wish to have their fund managed to a specified real return target with appropriate risk controls. In achieving this objective, the fund applies asset allocation and manager selection disciplines described herein. OBJECTIVE The MultiAsset IP Balanced Plus Fund is a risk-managed balanced portfolio comprising a range of domestic and foreign asset classes. The fund aims to achieve aggressive capital appreciation with reasonable volatility. The asset allocation of the fund will be varied according to the manager s view on the macroeconomic outlook as well as the attractiveness of each asset class and may include equities, bonds, money market and property. JSE Code Annual mngmtfee (excl. VAT) TER (%) TC (%) TIC (%) NAV Units in Issue Class A: MAIPA 0.90% 1.68 0.16 1.84 1,214.9 4,988,104 Class B1: MUPB1 0.50% 1.22 0.16 1.38 1,216.0 8,946,055 Annual fee breakdown Administration Asset Management Class A: 0.15% 0.75% (Altinvest 0.60%) Class B1: 0.15% 0.35% (Altinvest 0.20%) Total Expense Ratio (TER) of the value of the financial product was incurred as expenses relating to the administration of the financial product. Transaction Cost (TC) of the value of the financial product was incurred as costs relating to the buying and selling of the assets underlying the financial product. Total Investment Charges (TIC) of the value of the financial product was incurred as costs relating to the investment of the financial product. Period (annualised) from 01 Oct 2017 to 30 Sep 2020. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER may not necessarily be an accurate indication of future TER's. Transaction Costs are a necessary cost in adminstering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of financial product, the investment decisions of the investment manager and the TER. INVESTMENT PROCESS MultiAsset s primary tenet is to construct a range of target return portfolios that, individually or combined, allow the investor the greatest opportunity to attain their financial goals. Selecting the right asset manager and implementing an appropriate asset allocation forms the basis of our philosophy. Selecting the Managers MultiAsset has identified four key criteria that define a manager s unique DNA: * Beta sensitivity of investment returns to changes in market returns * Alpha extent to which a fund has outperformed the sector average * Win-loss ratio ratio of winning trades (positive returns) to losing trades (negative returns) * Recovery-drawdown ratio ratio of recovery time following maximum drawdown performance to previous peak With the intimate understanding of each manager s unique DNA we are able to capture individual manager excellence and combine them synergistically. Selecting an Appropriate Asset allocation * Understanding the risk and diversification attributes of each asset class in relation to the investment objective and time horizon forms the foundation. * An active tactical asset allocation overlay ensures that the fund is tilted to take cognizance of the global macro environment. Collective Investment Schemes are generally medium to long term investments. The value of participatory interests or the investment may go down as well as up. Past performance is not necessarily a guide to future performance. Collective investment schemes are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available on request from the manager. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio.The Manager retains full legal responsibility for the Fund, regardless of Co-Naming arrangements. Transaction cutoff time is 14:30 daily. Each portfolio may be closed for new investments. Valuation time is 20:00. Prices are published daily and available in newspapers countrywide, as well as on request from the Manager. IP Management Company (RF) Pty Ltd is the authorised Manager of the Scheme contact 021 673 1340 or [email protected]. Standard Bank is the trustee / custodian contact [email protected]. Additional information including application forms, the annual report of the Manager and detailed holdings of the portfolio as at the last quarter end are available, free of charge, from [email protected]. IP Management Company is a member of ASISA. A statement of changes in the composition of the portfolio during the reporting period is available on request. The performance is calculated for the portfolio. The individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. The fund is invested in portfolios of collective investment schemes that levy their own charges, and which could result in a higher fee structure for the fund. Date of issue: 13/01/2021 MultiAsset IP Balanced Plus Fund 31 December 2020 THIS IS THE MINIMUM DISCLOSURE DOCUMENT AS REQUIRED BY BOARD NOTICE 92
Transcript of MultiAsset IP Balanced Plus Fund€¦ · 22/01/2015 · Portfolio Manager Warren Brown MBA, PhD...
FUND INFORMATION
FUND MANAGEMENT EXPERIENCE
Tony BellBCom (Hons), MBAPortfolio Manager
Warren BrownMBA, PhDPortfolio Manager & Key Individual
Having started out as an accountant, Tony moved to Southern Life Asset Management and soon became assistant General Manager of Investments. His move to Syfrets Managed Assets created the opportunity for Tony to become Chief Investment Officer at Nedcor Investment Bank. As CIO of PeregrineQuant and more recently Vunani Fund Managers Tony brings a wealth of experience especially in running the overall asset allocation of the fund. His MBA thesis “Portfolio Management - an Alternative Approach” which was awarded with distinction reflects Tony’s interest in understanding how the macro environment affects markets and asset class returns.
Key Individual, Head of Multi Management, Warren Brown brings with him extensive experience in derivatives, fixed interest, equity and multi management. Starting his career as a derivative analyst at HSBC, he joined Syfrets and became CIO of Community Growth and portfolio manager of their flagship Unit Trust Fund. Warren then joined Old Mutual’s multimanager Symmetry as Head of Fixed Interest. As CEO of Investment Consulting at Fund Solutions and more recently Independent Actuaries and Consultants, Warren combined his asset management experience with fund solution experience.
Inception date 22 January 2015
Sector South African - Multi-Asset - High Equity
Risk profile Aggressive
Minimum investment Lump sum: R10 000; Monthly: R1 000
Asset composition Equity, Fixed Interest, Property and Cash
Regulation 28 Compliant with Regulation 28
Benchmark CPI + 6%
Fund Size R 169,381,079
Income declaration Bi-annual (Mar / Sep)
CPU
Mar 2020 14.39
Sep 2020 12.56
Distributions (Class A):
DESCRIPTIONThe objective of the fund is to achieve returns of at least 6-7% annualised in excess of inflation (CPI) over rolling 5 year periods whilst simultaneously controlling the risk of underperforming CPI over any rolling 12 month period. The fund will comply with all prudential requirements and regulations controlling retirement funds or such other applicable legislation as may be determined for retirement funds.
APPLICATIONThis fund is suitable for aggressive investors (subject to Regulation 28 Constraints) with an investment time horizon of 5 years or more who wish to have their fund managed to a specified real return target with appropriate risk controls. In achieving this objective, the fund applies asset allocation and manager selection disciplines described herein.
OBJECTIVEThe MultiAsset IP Balanced Plus Fund is a risk-managed balanced portfolio comprising a range of domestic and foreign asset classes. The fund aims to achieve aggressive capital appreciation with reasonable volatility. The asset allocation of the fund will be varied according to the manager’s view on the macroeconomic outlook as well as the attractiveness of each asset class and may include equities, bonds, money market and property.
JSE Code
Annualmngmtfee(excl. VAT)
TER(%)
TC(%)
TIC(%) NAV
Unitsin
Issue
Class A: MAIPA 0.90% 1.68 0.16 1.84 1,214.9 4,988,104
Class B1: MUPB1 0.50% 1.22 0.16 1.38 1,216.0 8,946,055
Annual fee breakdown Administration Asset Management
Class A: 0.15% 0.75% (Altinvest 0.60%)
Class B1: 0.15% 0.35% (Altinvest 0.20%)
Total Expense Ratio (TER) of the value of the financial product was incurred as expenses relating to the administration of the financial product. Transaction Cost (TC) of the value of the financial product was incurred as costs relating to the buying and selling of the assets underlying the financial product. Total Investment Charges (TIC) of the value of the financial product was incurred as costs relating to the investment of the financial product. Period (annualised) from 01 Oct 2017 to 30 Sep 2020.
A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER may not necessarily be an accurate indication of future TER's. Transaction Costs are a necessary cost in adminstering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of financial product, the investment decisions of the investment manager and the TER.
INVESTMENT PROCESSMultiAsset’s primary tenet is to construct a range of target return portfolios that, individually or combined, allow the investor the greatest opportunity to attain their financial goals. Selecting the right asset manager and implementing an appropriate asset allocation forms the basis of our philosophy.
Selecting the ManagersMultiAsset has identified four key criteria that define a manager’s unique DNA:* Beta – sensitivity of investment returns to changes in market returns* Alpha – extent to which a fund has outperformed the sector average* Win-loss ratio – ratio of “winning trades” (positive returns) to “losing trades” (negative returns)* Recovery-drawdown ratio – ratio of recovery time following maximum drawdown performance to previous peak
With the intimate understanding of each manager’s unique “DNA”, we are able to capture individual manager excellence and combine them synergistically.
Selecting an Appropriate Asset allocation* Understanding the risk and diversification attributes of each asset class in relation to theinvestment objective and time horizon forms the foundation.* An active tactical asset allocation overlay ensures that the fund is tilted to take cognizanceof the global macro environment.
Collective Investment Schemes are generally medium to long term investments. The value of participatory interests or the investment may go down as well as up. Past performance is not necessarily a guide to future performance. Collective investment schemes are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available on request from the manager. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio.The Manager retains full legal responsibility for the Fund, regardless of Co-Naming arrangements. Transaction cutoff time is 14:30 daily. Each portfolio may be closed for new investments. Valuation time is 20:00. Prices are published daily and available in newspapers countrywide, as well as on request from the Manager. IP Management Company (RF) Pty Ltd is the authorised Manager of the Scheme – contact 021 673 1340 or [email protected]. Standard Bank is the trustee / custodian – contact [email protected]. Additional information including application forms, the annual report of the Manager and detailed holdings of the portfolio as at the last quarter end are available, free of charge, from [email protected]. IP Management Company is a member of ASISA. A statement of changes in the composition of the portfolio during the reporting period is available on request. The performance is calculated for the portfolio. The individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. The fund is invested in portfolios of collective investment schemes that levy their own charges, and which could result in a higher fee structure for the fund. Date of issue: 13/01/2021
MultiAsset IP Balanced Plus Fund31 December 2020THIS IS THE MINIMUM DISCLOSURE DOCUMENT AS REQUIRED BY BOARD NOTICE 92
PORTFOLIO STRUCTURE AS AT 31 December 2020
PORTFOLIO HOLDINGS
Allan Gray-Orbis Global Equity Feeder Fund Global - Equity - General
Investec Global Franchise Feeder Fund Global - Equity - General
Old Mutual Global Equity Fund Global - Equity - General
Stanlib Global Equity Feeder Fund Global - Equity - General
Mi-Plan IP Global Macro Fund Global - Multi Asset - Flexible
Investec Global Strategic Managed Feeder Fund Global - Multi Asset - High Equity
Catalyst Global Real Estate Prescient Feeder Fund Global - Real Estate - General
Coronation Equity Fund SA - Equity - General
Fairtree Equity Prescient Fund SA - Equity - General
GRYP ALL SHARE TRACK SA - Equity - General
Investec Equity Fund SA - Equity - General
Kagiso Equity Alpha Fund SA - Equity - General
Marriott Dividend Growth SA - Equity - General
Mi-Plan IP Beta Equity Fund SA - Equity - General
PSG Equity Fund SA - Equity - General
Truffle Sanlam General Equity Fund SA - Equity - General
Coronation Money Market Fund SA - IB - Money Market
Allan Gray Bond Fund SA - IB - Variable Term
Coronation Strategic Income Fund SA - Multi Asset - Income
Nedgroup Investments Flexible Income Fund SA - Multi Asset - Income
Prescient Bond QuantPlus Fund SA - Multi Asset - Income
ABSA Property Equity Fund SA - Real Estate - General
AltInvest and IP Management Company1st Floor Mariendahl House, Newlands-on-Main, Newlands, 7700P O Box 23271, Claremont, 7735Client Service (IP) T +27 21 673 1340 | Miplan T +27 657 5960E-mail: [email protected]
Altinvest (Pty) Ltd trading as Altinvest MultiAsset Fund Management is a licensed Financial Services Provider No. 43208IP Management Company (RF) (Pty) Ltd (Reg. No 2007/017601/07)
CONTACT DETAILS
In our comment last month, we pointed to adopting a more cautious stance given the rise in bond yields. Our caution was not entirely rewarded as the dollar was weaker and the MSCI rose by 4.3 percent. The forecasts of many investment houses reveal a common thread: while infection rates in the short-term are expected to spike, the vaccine roll-out is gathering pace, Biden will be sworn-in as president in the US with the Democrats potentially controlling Congress, a stimulus package passed, and all will return to a semblance of normality by mid-2021. Equity markets are pricing this scenario in as well. We remain cautious as the signals continue to flash orange. A little like the pound after the Brexit vote we are asking ourselves with what the market has not yet priced in. What are the consequences if new variants of COVID-19 prove to be resistant to vaccines? But why the concern ourselves, as surely any economic weakness will be met with more stimulus? We suspect that we are rapidly approaching an inflection point where the amount of new money injected into the system by central banks since the onset of COVID-19 invokes a re-pricing of risk in the bond markets. As bond yields rise the risk to the equity market is that price-to-earnings multiples will probably contract which, if added to a downward revision in earnings growth expectations because of the new variant, makes the equity market look a little more vulnerable. Investment house analysts are less risk-averse: 53 percent of the top 200 global company earnings growth expectations were revised up over the past three months. The hope seems to be that the first quarter will bring good news on the vaccine front. Locally, COVID-19 dynamics and longstanding fiscal troubles remain a hindrance to economic dynamism.
An analysis of factors affecting the adherence to the policy objective is contained in the fund manager commentary together with performance as reported. A detailed listing of changes from the previous quarter is available on request from [email protected] or [email protected]
INVESTMENT COMMENTARY
ASSET ALLOCATION
Year Performance
Highest return 2019 11.3%
Lowest return 2018 -1.7%* Returns are annualised if period is longer than 12 months.Annualised returns is the weighted average compound growth rate over the performance period measured.Fund returns shown are based on NAV-NAV unit pricings calculated from INET for a lump-sum investment with income distribution reinvested (after fees and cost).Source for ranking and quartile: Profile Data and Financial Express. Based on B1 class.
PERFORMANCE
Fund Bmk
1 Year 9.2% 9.4%
3 Years * 6.1% 10.1%
5 Years * 5.7% 10.9%
Since inception * 6.1% 11.1%
Information ratio -0.5
Active returns (since inception) -4.5%
The portfolio may include foreign investments and the following additional risks may apply: liquidity constraints when selling foreign investments and risk of non-settlement of trades; macroeconomic and political risks associated with the country in which the investment is made; risk of loss on foreign exchange transactions and investment valuation due to fluctuating exchange rates; risk of foreign tax being applicable; potential limitations on availability of market information which could affect the valuation and liquidity of an investment. All of these risks could affect the valuation of an investment in the fund.
The EAC is a standard industry measure which has been introduced to allow you to compare the charges you incur and their impact on the investment returns over specific periods. Please visit http://www.ipmc.co.za/effectiveannua-cost to address the EAC illustrator.
You can request an EAC calculation from [email protected] or call us on 021 673-1340.
Altinvest (PTY) Ltd.’s ordinary shares are owned by Miplan (Pty) Ltd. Miplan has an ownership interest in IP Management Company (RF) (Pty) Ltd, the registered Collective Investment Manager of the fund. Miplan also provides financial services to Altinvest and receives fees for such services.
MultiAsset IP Balanced Plus Fund31 December 2020
