MANAGER WATCH
â„¢
ANNUAL SURVEY
Survey of Retirement Fund Investment Managers December 2019
A new chapter
Investec Asset Management will soon embark on the next chapter in our journey, when we separate from Investec and list as Ninety One. We’ll be the same company, with the same people and passion for our clients, but with an exciting new name and identity – a celebration of our beginning and whatever comes next. To learn more, visit www.ninetyone.com
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MANAGER WATCH™ SURVEY
Content Section One.........................................................................................................................................................2
Introduction..................................................................................................................................................... 5 History of Alexander Forbes Performance Surveys............................................................................................ 6 Survey Changes 2019...................................................................................................................................... 7 Alexander Forbes Assets under Management Review....................................................................................... 8 Market Indices and Statistics as at 31 December 2019................................................................................... 13 Responsible investment in South Africa: a reflection....................................................................................... 14 Responsible investment: a multi-manager’s reflection..................................................................................... 18 The impact of investing: implications & opportunities...................................................................................... 24 Evolving models of asset allocation that can drive economic growth, impact and capital growth....................... 28
Section Two.......................................................................................................................................................36
Survey Notes.................................................................................................................................................. 39 How managers performed in 2019................................................................................................................. 40 A review of 2019............................................................................................................................................ 44 SA Balanced Manager WatchTM Survey – Best Investment View....................................................................... 48 Global Balanced Manager WatchTM Survey – Dynamic.................................................................................... 52 Global Balanced Manager WatchTM Survey – Best Investment View................................................................. 55 Global Balanced Manager WatchTM Survey – Conservative............................................................................... 59 SA Balanced Manager WatchTM Survey – Best Investment View Risk............................................................... 62 Global Balanced Manager WatchTM Survey – Dynamic Risk............................................................................. 63 Global Balanced Manager WatchTM Survey – Best Investment View Risk.......................................................... 64 Global Balanced Manager WatchTM Survey – Conservative Risk....................................................................... 65 SA and Global Balanced Manager WatchTM Survey – Volatility vs Return.......................................................... 66 Global Balanced Manager WatchTM Survey – Conservative and Dynamic – Volatility vs Return.......................... 67 Global and SA Balanced Manager WatchTM Survey – Asset Allocation.............................................................. 68 Composite Dispersion of SA Balanced Manager WatchTM Managers................................................................ 69 Composite Dispersion of Global Balanced Manager WatchTM Managers........................................................... 70 Offshore investing: hindsight is always 20/20.................................................................................................. 72
Section Three....................................................................................................................................................78
SA Equity Manager Watch™ Survey............................................................................................................... 81 SA Equity Manager WatchTM Survey Composite Dispersion.............................................................................. 93 SA Bond Manager Watch™ Survey................................................................................................................ 95 SA Bond Manager Watch™ Survey Composite Dispersion............................................................................ 104 SA Money Market Manager WatchTM Survey.................................................................................................. 107 SA Money Market Manager Watch™ Survey Composite Dispersion............................................................... 113 Absolute Return Manager Watch™ Survey................................................................................................... 114 Absolute Return Manager Watch™ Survey Composite Dispersion................................................................. 120 Targeted Development Investments Manager Watch™ Survey...................................................................... 122 Fund of Hedge Funds Manager Watch™ Survey.......................................................................................... 126 SA Property Manager Watch™ Survey.......................................................................................................... 128 SA Property Manager Watch™ Survey Composite Dispersion........................................................................ 131 Multi-Manager WatchTM (Specialist) Survey................................................................................................... 132 Multi-Manager WatchTM (Balanced) Survey................................................................................................... 135 SA Medical Aid Manager Watch™ Survey..................................................................................................... 140 BEE Manager Watch™ Survey – Performance Results.................................................................................. 142 BEE Manager Watch™ Survey – Empowerment Details................................................................................ 144 LDI Manager WatchTM Survey....................................................................................................................... 146 Shari’ah Manager Watch™ Survey............................................................................................................... 154 Sustainable investing: an Africa outlook........................................................................................................ 158 2020 Investment outlook.............................................................................................................................. 162 Transformation in retirement funds: responses from three black-owned asset managers................................ 164
Section Four....................................................................................................................................................172
Fees............................................................................................................................................................ 174
Section Five....................................................................................................................................................178 Investment Survey Glossary.......................................................................................................................... 180
Section Six......................................................................................................................................................186 Directory of South African Asset Managers................................................................................................... 188
1
1
ANNUAL SURVEY OVERVIEW
2
SECTION 1
INTRODUCTION The Manager Watch™ Survey of Retirement Fund Investment Managers is an annual survey that showcases the performance of institutional fund managers in South Africa and has been published since 1994.
The Structure of the Retirement Fund Survey This edition includes 19 surveys with 71 managers and 457 funds covering the following: ■ 8 balanced surveys, ■ 10 specialist surveys, and the ■ Multi-manager survey. The following surveys are included: SA Large Manager Watch™ Survey SA Manager Watch™ Survey– Best Investment View SA Manager Watch™ Survey– Conservative Global Large Manager Watch™ Survey Global Manager Watch™ Survey– Best Investment View Global Manager Watch™ Survey– Conservative
As asset managers and investors have grown to recognise this reality, the attentiveness to align societal or environmental benefits with investment returns has gained greater importance. It is in everyone’s best interests to achieve a sustainable world in order to gain the benefits of a greater impact and stronger growth prospects across various areas of society and industry. Section 2 includes the article Offshore investing: hindsight is always 20/20. The local stock market has delivered disappointing returns over the past five years, barely beating inflation. It has been a painful period for equity investors, not only relative to the great returns we have seen in the past, but also relative to the returns local investors could have generated by investing offshore. Hindsight is always 20/20. In this section we also provide an economic review of what happened in 2019.
Global Manager Watch™ Survey– Dynamic Absolute Return Manager Watch™ Survey BEE Manager Watch™ Survey Bond Manager Watch™ Survey Equity Manager Watch™ Survey Fund of Hedge Funds Survey LDI Manager Watch™ Survey
Section 3 provides the 2020 investment outlook for the global and local economy. This section also features an article which looks at sustainable investing providing an African outlook. We also feature perspectives of three black-owned asset managers on some issues of transformation in the investment industry. A glossary of commonly used investment terms is included.
Medical Aid Manager Watch™ Survey Money Market Manager Watch™ Survey Multi-Manager Watch™ Survey Property Manager Watch™ Survey Shari’ah Manager Watch™ Survey Targeted Development Investment Survey
To access our Manager Watch™ Series of Surveys: https://www.alexanderforbes.co.za/ research/publications
In this year’s publication, we feature a range of articles which focus on the theme of sustainability through different lenses. Over the long term, environmental and social issues pose some of the biggest threats to the global economy.
5
MANAGER WATCH™ SURVEY
History of Alexander Forbes Performance Surveys 1994
Manager Watch™ Performance-Only Survey – a market first!
Enhancements post-1998
■ Risk profiling ■ SA-only and Global-only portfolios ■ Benchmark returns ■ Risk-adjusted measures
1998
■ Manager Watch™ ■ Survey revamped ■ Participation criteria set ■ Large Manager Watch™ • Launched June 1998 • Top 10 active balanced managers ■ RDP Survey (later renamed Targeted Development Investments Survey)
2001
Absolute Return Survey
2002
Money Market Survey
2003
Specialist Bond Survey
Specialist Equity Survey
2004
Hedge FOF Survey
2006
International Survey
2007
Medical Aid Survey
Property Survey
2010
Surveys Revamped
2012
BEE Survey LDI Survey
2013
Formalised Survey Governance
2014
Equity Funds Analysis
2015
Survey Rules
2016
Survey Rules Updated, New LMW Definition
2017
New Survey Technology
2018
Shar'iah Survey
2019
■ Africa Global Fund Award winner
2020
■ Survey Rules Updated, ■ Africa Survey Development ■ Passive Survey Development 6
SECTION 1
Survey changes 2019 Survey
Exits
Entries
SA Manager WatchTM: Best Investment View
Prescient Domestic Balanced
Nedgroup Investments Managed Laurium Flexible Prescient Truffle SCI Flexible Fund Prescient Balanced Laurium Balanced Prescient Northstar SCI Managed Sanlam Lifestage Accumulation Sasfin BCI Balanced Sasfin BCI Prudential Nedgroup Investments XS Guarded Aluwani Capped SWIX Old Mutual Double Alpha SWIX40 Laurium Equity Prescient Fund X-Chequer Equity Strategy Excelsia Capital Aggressive Equity Excelsia Capital Core Equity Kagiso Managed Equity Capped SWIX Truffle SCI Institutional Equity Fund BlueAlpha Equity Argon Absolute Return Global Balanced CPI+4% Argon Absolute Return CPI+4% (Domestic)
Global Manager Watch
TM
Dynamic
Global Manager WatchTM: Best Investment View
Global Manager WatchTM: Conservative
Old Mutual Multi Managers Absolute Balanced Old Mutual Double Alpha Top40 Cannon All Equities ALSI
Equity
Medical Aid
Bond
Argon Absolute Domestic SIM Enhanced Cash Medical JM BUSHA Absolute AllClass Old Mutual Multi Managers Absolute Balanced Pan African AM Segregated Domestic Bond
Fund Of Hedge Funds Nedgroup Investments XS Diversified Nedgroup Investments XS Guarded FoF Nedgroup Investments Core Income Nedgroup Investments Corporate Money Market Nedgroup Investments Money Market Catalyst Flexible Property Prescient Catalyst FM Composite SA Listed Property Pan African AM Segregated Domestic Bond Pan Africa Segregated Domestic Cash JM BUSHA Absolute AllClass BEE
Money Market TDI Multi-Manager Shari'ah
Pan Africa Segregated Domestic Cash STANLIB Wealth Development Old Mutual Multi Managers Absolute Balanced
Sasfin BCI Flexible Income Sanlam Select Strategic Income RCIS THINK Growth QI Hedge Catalyst FM Composite SA Listed Property Terebinth Sanne Money Market Excelsia Capital Core Equity Lima Mbeu Multi-Asset Lima Mbeu SA Equity Sanlam Select Strategic Income (Terebinth) Catalyst Flexible Property Prescient Cachalia Capital C Value Mianzo Active Equity CAPI Prescient Money Market Prescient Yield Quantplus Prescient Bond Quant Prescient Bond Quantplus Prescient SA Balanced Prescient Balanced Prescient Global (Absolute) Balanced Prescient Core Equity Prescient Equity Top 40 Prescient Positive Return Prescient Absolute Defensive Prescient Property Kagiso Managed Equity (Capped SWIX)
Sanlam Lifestage Accumulation Alexander Forbes Investments Shariah Medium Growth
7
MANAGER WATCH™ SURVEY
Alexander Forbes Assets Under Management Review Top 20 Asset Managers Ranked by Total Assets Under Management (AuM) as at 30 June 2019 2018 Rank
2019 Rank
1
1
3 2 4
4
6
Asset Manager –
Total AuM (R m)*
Total SA Assets
BEE status
Old Mutual Investment Group
616 850
484 971 Level 2
2
Investec Asset Management
592 417
355 596 Level 2
3
Coronation Fund Managers
505 517
401 592 Level 2
Allan Gray Limited
501 845
337 774 Level 3
5
Sanlam Investment Management
492 089
443 169 Level 2
5
6
STANLIB Asset Management
491 743
489 538 Level 2
7
7
–
Alexander Forbes Investments
300 558
219 352 Level 2
8
8
–
Nedgroup Investments
259 557
207 549 Level 1
10
9
Prudential Portfolio Managers
213 430
189 199 Level 3
9
10
Sanlam Multi Managers International
212 428
170 830 Level 2
11
11
Futuregrowth Asset Management
195 641
195 641 Level 2
13
12
Taquanta Asset Management
160 532
155 553 Level 2
12
13
Momentum Asset Managers
155 622
133 022 Level 3
15
14
Absa Asset Management
132 049
111 984 Level 2
17
15
Momentum Manager of Managers
113 279
97 988 Level 3
14
16
Foord Asset Management
111 991
16
17
Old Mutual Multi Managers
100 691
100 691 Level 2
18
18
–
Prescient Investment Management
93 073
90 381 Level 1
19
19
–
Abax Investments
77 359
70 256 Level 6
20
20
–
STANLIB Multi Managers
74 414
47 971 Level 2
–
–
83 593 Non-Compliant
* AuM as reported in the Alexander Forbes AuM survey June 2019 - these figures represent AuM for SA clients only (Domestic, Africa and International assets) and the review of AuM is based on these figures. Rankings are based on the Total AuM figures Please note that due to standardisation methodology, numbers may be overstated.
Ashburton Management Company RF (Pty) Ltd is an approved CIS manager in terms of the Collective Investment Schemes Control Act, 45 of 2002.
BEING FULLY INVESTED IS THE DIFFERENCE BETWEEN HAVING A GOAL, AND ACHIEVING IT. Ashburton Investments is fully invested in the outcomes of our clients. Through providing access to fixed income and private markets for diversified sources of returns, like private debt, impact, renewable energy, mezzanine finance and private equity, we have committed to helping our clients achieve better results for themselves, and all those who depend on them. Speak to our specialist institutional distribution team on (011) 282-8800 or email institutional@ashburtoninvestments.co.za www.ashburtoninvestments.com
8
private debt • impact • renewable energy mezzanine finance • private equity • fixed income A part of the FirstRand Group
SECTION 1
Review of AuM for June 2019 According to the June 2019 Alexander Forbes Assets under Management (AuM) survey, the Old Mutual Investment Group (OMIG) is still the biggest South African asset manager even though there was a decrease in assets of 4.3% from June 2018. Investec Asset Managers leap-frogged Coronation into second place with an increase in assets of 12.3%. Coronation experienced a decrease in assets of 5%. The June 2019 survey universe grew by 6 new additions compared to the 60 investment managers in the June 2018 survey.
Changes in the AuM Survey for June 2019 The new entries in the survey were:
Entries Truffle Asset Management Northstar Asset Management Terebinth Capital Obsidian Capital ClucasGray Asset Management Lima Mbeu Investment Managers
The exits from the survey were:
Exits Maestro Asset Management
9
MANAGER WATCHâ„¢ SURVEY
Total Value of Assets Managed (31 December 2009 to 30 June 2019) Growth in Assets (year on year) 7 000 000
6 000 000
5 000 000
Total (R m)
4 000 000
3 000 000
2 000 000
1 000 000
0 Dec-2009
Dec-2010
Dec-2011
Jun-2012
Jun-2013
Jun-2014
Jun-2015
Jun-2016
Jun-2017
Jun-2018
Jun-2019
Total AUM (R m)
2 718 458
3 082 163
3 187 853
3 300 885
3 926 696
4 940 445
5 204 943
5 014 927
5 365 119
5 874 757
6 018 999
Total AUM (R m) excl Multi-Managers
2 433 650
2 760 257
2 850 977
2 950 020
3 428 804
4 147 637
4 409 561
4 291 267
4 443 595
5 078 658
5 217 629
Total AUM (R m)
Total AUM (R m) excl Multi-Managers
Asset Distribution to Manager Size 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Jun-2015
Jun-2016 Top 10 Managers
10
Jun-2017 Next 10 Managers
Jun-2018 Remaining Managers
Jun-2019
KINGJAMES 49776
There has never been a better time to be an investor. SIM Aggressive Equity Fund* 1 Year - #1 3 Year - #1 5 Year - #2 7 Year - #2 10 Year - #5
There’s opportunity all around us. The chance to explore, to create, to uplift, to learn, to innovate, to build, to do better. Look hard enough and you’ll find it. And when you do, we can help you make the most of it. To see how our innovative portfolio solutions are taking advantage of the potential we see in the world, visit www.sanlaminvestments.com.
Top Quartile for Top Choice* SIM Top Choice Equity Fund
Maximum fund charges (including VAT): Manager Annual Fee: 1.1%, Transaction Cost (TC): 0.18%, Total Expense Ratio (TER): 1.33%.
SATRIX Balanced Index Fund*** A top-performing balanced fund. Ranked 14th of 157 funds for 3 years and 9th of 100 funds for 5 years to June 2019.
SI MM Absolute Return Fund CPI +3%** 1 Year - #1 3 Year - #1 5 Year - #1
Maximum fund charges (including VAT): Manager Annual Fee: 0.40%, Transaction Cost (TC): 0.25%, Total Expense Ratio (TER): 0.47%.
The SIM Aggressive Equity Fund and the SI MM Absolute Return Fund CPI+ 3% are not collective investment scheme portfolios. *Alexander Forbes SA Equity Manager Watch Survey, 31 July 2019 **Alexander Forbes SA Absolute Return Fund Survey, 31 July 2019 ***ASISA South African Muilti-Asset High Equity Survey, 31 March 2019
Our expertise includes: Active | Index Tracking | Alternatives | Offshore | Multi-Manager
www.sanlaminvestments.com SIM refers to Sanlam Investment Management. Sanlam Collective Investments (RF) (Pty) Ltd and Satrix Managers (RF) (Pty) Ltd are registered and approved Managers in terms of the Collective Investment Schemes Control Act 45 of 2002 (CISCA). A schedule of fees can be obtained from the Manager. There are risks involved when buying, selling or investing in any financial product. The value of financial products can increase as well as decrease over time.
MANAGER WATCH™ SURVEY
Asset Distribution to Manager BEE ratings The asset distribution shifted in 2019 from levels 3 and 4 with a significant increase among the level 2 contributors by 14.2% and 10.7% in the level 1 contributor category, giving an indication that asset managers are transforming and taking BEE seriously. Looking at the total AuM of the top 5 black-owned asset managers in the June 2019 AuM survey, it is encouraging to note that compared to the AuM of the top 5 black-owned managers in the June 2018 survey, we saw growth of 10.7%.
Growth in Assets (year on year) 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
Level 1
Level 2
Level 3
Level 4
Level 5
Level 6
Level 7
Level 8
Unrated
2018
2.03%
50.87%
33.62%
8.82%
2.27%
0.52%
0.00%
1.45%
0.41%
2019
12.74%
65.10%
15.84%
0.10%
0.18%
1.97%
0.00%
1.70%
2.37%
Twenty-one of the 65 participating asset managers were level 1 contributors compared to the 12 in last year’s survey. Prescient improved their rating from a level 3 contributor in 2018 to level 1 in 2019. After improving their rating from level 6 in 2017 to level 5 in 2018, Foord was unrated in 2019. Compared to June 2018, Cannon, Prowess, Aeon, Visio Capital and Fairtree all showed an increase in AuM of over 40% as at June 2019, while Kagiso’s AuM decreased by 24% over the same period. Seventy percent of the top 10 asset managers were rated level 2 contributors, with the remaining managers being level 1 and 3 contributors. For the first time we have 2 level 1 contributors in the top 20 managers ranked by size. There are 2 investment managers in the universe who are on level 8 and 6 who are unrated.
BEE ratings according to Manager Distribution 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
12
Level 1
Level 2
Level 3
Level 4
Level 5
Level 6
Level 7
Level 8
Unrated
Top 10 Managers
10.00%
70.00%
20.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Next 10 Managers
10.00%
50.00%
20.00%
0.00%
0.00%
10.00%
0.00%
0.00%
10.00%
Remaining Managers
42.22%
31.11%
0.00%
6.67%
2.22%
2.22%
0.00%
4.44%
11.11%
SECTION 1
Market Indices and Statistics as at 31 December 2019 1 Year (%)
3 Years (% p.a.)
5 Years (% p.a.)
7 Years (% p.a.)
10 Years (% p.a.)
Equity
FTSE/JSE All Share Index
12.05%
7.42%
5.99%
6.31%
10.78%
FTSE/JSE Capped All Share Index
10.52%
6.41%
5.66%
6.03%
10.75%
FTSE/JSE Capped SWIX All Share Index #
6.75%
3.46%
*
*
*
FTSE/JSE SWIX All Share Index
9.32%
5.39%
4.78%
4.93%
11.09% 10.52%
FTSE/JSE Top 40 Index
12.41%
8.25%
6.06%
6.45%
FTSE/JSE Resource 20 Index
25.32%
19.89%
7.17%
9.84%
2.92%
FTSE/JSE Industrial 25 Index
11.00%
4.57%
4.29%
3.63%
14.98%
FTSE/JSE Financial 15 Index
0.90%
6.37%
4.73%
4.32%
12.52%
FTSE/JSE Mid Cap Index
15.58%
3.86%
5.62%
7.04%
12.11%
FTSE/JSE Small Cap Index
-4.10%
-5.52%
-0.41%
-1.17%
9.26%
Cash
Alexander Forbes Money Market Index
7.26%
7.35%
7.18%
7.44%
6.54%
Short Term Fixed Interest Rate Index
7.29%
7.37%
7.19%
7.45%
6.52%
Bonds
All Bond Index
10.32%
9.40%
7.75%
6.77%
8.87%
1 - 3 Year Bond Index
7.50%
8.75%
8.07%
7.99%
7.69%
3 - 7 Year Bond Index
11.53%
10.02%
8.80%
8.51%
8.97%
7 - 12 Year Bond Index
12.05%
10.11%
8.32%
7.42%
9.35%
12+ Year Bond Index
9.31%
8.88%
7.10%
5.43%
8.74%
Barclays Capital ILB Index
2.25%
1.58%
2.92%
2.71%
6.83%
OTHI Index
10.68%
10.21%
8.20%
6.89%
9.68%
GOVI Index
10.24%
9.14%
7.60%
6.72%
8.69%
IGOV Index
2.41%
1.67%
2.94%
2.73%
6.83%
FTSE/JSE SA Listed Property Index
1.92%
-3.72%
1.21%
-0.10%
10.83%
FTSE/JSE All Property Index #
-0.40%
*
*
*
*
Property
Global (In Rands)
MSCI World
24.82%
14.05%
13.58%
13.92%
17.37%
FTSE WGBI
2.94%
4.90%
5.97%
4.15%
8.60%
Citi 3M US Treasury Bill
-0.60%
2.41%
4.95%
3.25%
7.22%
Exchange rates
Rand / $US
-2.79%
0.75%
3.86%
6.61%
0.59%
Rand / Pound
7.13%
2.65%
1.84%
3.91%
0.41%
Rand / Euro
2.91%
2.78%
3.25%
3.76%
0.38%
Inflation
Headline Inflation
3.56%
4.45%
4.94%
5.12%
5.14%
Headline CPI + 3%
6.56%
7.45%
7.94%
8.12%
8.14%
Headline CPI + 4%
7.56%
8.45%
8.94%
9.12%
9.14%
Headline CPI + 5%
8.56%
9.45%
9.94%
10.12%
10.14%
Headline CPI + 6%
9.56%
10.45%
10.94%
11.12%
11.14%
Foreign Indices (Source: Bloomberg, INET Bridge and Data Stream) All returns quoted above are Total Returns #FTSE/JSE Capped SWIX All Share Index inception date: December 2016 #FTSE/JSE All Property Index inception date: October 2017 *No performance history
Exchange Rates for the past 10 years to December 2019 South African Rand To US $
South African Rand To UK £
2010/12/31
6.62
10.36
South African Rand To Euro € 8.88
2011/12/30
8.07
12.55
10.48
2012/12/31
8.48
13.79
11.19
2013/12/31
10.47
17.35
14.43
2014/12/31
11.57
18.04
14.00
2015/12/31
15.50
22.84
16.83
2016/12/31
13.68
16.90
14.42
2017/12/31
12.38
16.75
14.87
2018/12/31
14.39
18.32
16.44
2019/12/31
13.98
18.52
15.70
13
RESPONSIBLE INVESTMENT IN SOUTH AFRICA: A REFLECTION Nicole Martens
Head of Africa & Middle East, UN-supported Principles for Responsible Investment
Introduction In early 2005, the then United Nations Secretary-General Kofi Annan invited a group of the world’s largest institutional investors to join a process to develop the Principles for Responsible Investment. A 20-person investor group drawn from institutions in 12 countries was supported by a 70-person group of experts from the investment industry, intergovernmental organisations and civil society. These principles were launched in April 2006 at the New York Stock Exchange. As the largest asset owner on the African continent, and a founding signatory to the principles, the Government Employees Pension Fund played a significant role at that time in: ■ catalysing the adoption of responsible investment (RI) practices across the country ■ showcasing leadership in the issue across the region. Since then, both the number of signatories to the principles and representative assets under management have grown exponentially around the world, to over 2 700 and USD90 trillion, respectively. Somewhat disappointingly though, adoption of the RI approach by African investors seems to have stalled. South Africa, the market once seen as a vocal advocate for RI and a definitive leader on the issue for the region, complete with progressive regulatory frameworks, has been largely silent in terms of advocacy and predominantly uninspiring in RI activity over the last few years. Asset owners have been particularly slow to adopt the principles, preferring instead to delegate (or in many cases abdicate entirely) their responsibilities. This attitude is not unique to African asset owners but in a market this size, the impact it has on investor attitudes and behaviour is significant.
While there are examples of investment managers that are implementing truly innovative approaches and working hard at refining what it means to be a responsible investor in practice, asset owners – and other stakeholders – may (and should) be disappointed to learn that a far greater proportion of managers are paying alarmingly little attention to the issue. In a world where ESG integration and RI are receiving increasing attention globally, how are those local investors already committed to RI doing? Are they ahead of the curve? What follows is a brief look at the data collected through reports submitted to PRI by South African investment manager signatories, to get a sense of just how this group of investors is fairing in “walking the talk” when it comes to RI.
Where we stand At the time of writing, there are 92 PRI signatories across Africa and the Middle East. Of the 66 investment manager signatories that operate out of this region, 46 are based in South Africa. The list includes a selection of some of the larger as well as some of the smaller managers in the market. Using the PRI data stores1, we can reflect on the relative performance of these managers going back as far as 2015. For the purposes of this assessment, we will review signatory assessment results related to strategy and governance to identify key trends in this component of RI.
1 PRI reporting is the largest global reporting project on responsible investment. It was developed with investors, for investors. Signatories are required to report on their responsible investment activities annually. This ensures accountability of the PRI and its signatories; a standardised transparency tool for signatories’ reporting; and that signatories receive feedback from which to learn and develop. More detail on the reporting framework and the assessment process can be found on the PRI website.
14
SECTION 1
Trend #1: On average, we’re slightly less than average 2019 strategy and governance module performance 40%
Emerging markets
30%
South Africa
35%
Global
30% 25% 20% 15% 10% 5% 0% A+
A
B
C
Figure 1: SG module performance of global, emerging and South African Investment Managers (median represented by striped bar); 2019 data
The data reveals that the median score for South African managers for this section is an A, which aligns to the median score for investment managers globally, and is higher than the median score for emerging market managers, which rings it at B. So, one could consider South African investors to be either emerging market leaders or developed market middle-of-the-road performers when it comes RI.
Despite aligning to the median, the proportion of South African managers who achieve A and A+ scores trails behind that of global peers (barely a third of South African investment manager signatories scored an A in 2019), with the proportion of B and C scores greater than global comparators, suggesting that South African managers in general are operating at a slightly lower standard than is the global trend.
Trend #2: Performance is stagnant Strategy and governance band performance (South Africa) 50%
A+
40%
A
30%
B
20%
C
10% 0% 2015
2016
2017
2018
2019
Figure 2: PRI assessment performance of South African investment managers over time (strategy and governance)
Over time, the proportion of managers achieving an A+ score has remained relatively low, reflecting the fact that very few local investment manager signatories are operating at the highest levels of international best practice.
At the same time, the proportion of South African managers achieving an A in this area is dropping, while the number of managers receiving a B is increasing. This suggests that, when it comes to strategy and governance in relation to RI, South African managers are not keeping pace with the evolution of international best-practice standards.
15
MANAGER WATCH™ SURVEY
Where we are heading At the launch of the PRI Africa Discussion Group (PADG)2 held in Johannesburg in October 2019, African investors identified four key areas of priority for ESG. The issues identified as those which African investors feel present the greatest threat to the sustainability of their investments are:
Of the issues identified, climate change is arguably the most pressing – in the sense that it is time sensitive (it is happening now) and because it exacerbates the risks presented by almost every other ESG factor that investors could possibly face.
1
climate change 2
water scarcity 3
human rights and labour standards
4
corruption
The consensus in the room was that if asset managers in South Africa are to stand a chance at even generating – let alone maximising – sustainable long-term returns, it is in their interests to ensure that their portfolio companies have in place appropriate policies and practices to identify, assess, monitor and manage these risks.
Yet, despite the crushing importance of the issue, of the South African investment managers required to submit reports to PRI in 2019, less than a third opted to report on voluntary climate change indicators.3 This reflects the fact that to date, barring a few exceptions, the required urgency related to the climate emergency is nowhere to be found in South Africa’s investment industry. Whether investors like it or not, a massive shift is coming. If the increasing evidence on financial materiality (see the recent and persistent drop in Steinhoff’s share price4 as a result of the problems with governance) and growing market demand (see the recent shareholder resolution on climate at FirstRand, which passed with 99% of the vote5) are not enough, regulation will soon force the hand of laggard investors. The latter point is underpinned locally by the FSCA’s Guidance Note on Sustainability of Investments6 and in the PRI’s Inevitable Policy Response (IPR)7 project, which forecasts a response by 2025 that will be forceful, abrupt and disorderly because of the delay in action. To quote from the report, “The question for investors now is not if governments will act, but when they will do so, what policies they will use and where the impact will be felt.”
In this context, the task now at hand for South African investors is one of pre-empting disruption and moving proactively to mitigate the worst of the risks and to claim their share of the rewards that will undoubtedly be available to first movers. This is no small feat – especially considering that to date we seem to be struggling simply to keep up with international best practice – but equally, if managers want to stay in business, there is no other option.
2 Hosted on PRI’s collaboration platform: https://collaborate.unpri.org/ 3 PRI Climate Snapshot Report, 2019; available at: https://dataportal.unpri.org/admin/dashboard 4 https://www.fin24.com/Company/Steinhoff-international-holdings-nv 5 https://www.fin24.com/Companies/Financial-Services/firstrand-says-shareholders-reject-climate-change-proposal-20191128 6 See https://justshare.org.za/wp-content/uploads/2019/07/FSCA-Guidance-Notice-1-of-2019-PFA-Sustainability-of-Investments-and-Assets.pdf 7 Available on PRI website: https://www.unpri.org/inevitable-policy-response/what-is-the-inevitable-policy-response/4787.article
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RESPONSIBLE INVESTMENT: A MULTI-MANAGER’S REFLECTION Premal Ranchod
ESG Champion and Senior Manager Research Analyst – Alexander Forbes Investments
What is responsible investing? Before delving into the regulatory environment surrounding responsible investing (RI), it is necessary to explore briefly the concept of RI itself. RI has suffered a fractured acceptance by the global investment community over its history. The idea has found representation in various forms of investment approaches. Think of it as a concept that has evolved in its naming convention, emotive responses, culture, morality, geography, applicability and theme that is being explored through a time horizon of an investment.
RI horizon – South Africa’s regulatory timeline This timeline represents the application of responsible investing practices and regulatory backdrop through time. 1970s to 1980s
South Africa’s introduction to socially responsible investment (SRI) through divestment strategies ■ Publication of the Sullivan principle in the USA leads to divestment ■ Investment exodus from South Africa due to apartheid ■ Global sanctions
1994
Shareholder engagement and activism begins ■ Positive screening ■ The King Code of Corporate Governance ushers in governance framework ■ Focus on boards and directors
Late 1990's
Thematic and impact investments start ■ The global impact investment network cites the start of impact and thematic investments in Africa ■ Development finance institutions apply ESG in unlisted markets
The first, and oldest, practice affiliated with RI is the approach known as negative screening. This is where investments are excluded based on morals or preferences. Thereafter, came the advent of community investments serving to benefit in times of crisis – something very much in play within South Africa today. This was followed by mission-based investments, positive screening and impact investing, all of which embodied a philanthropic contribution to primarily achieve a purpose, whilst providing positive social, environmental and financial returns thereafter. 18
2002
King Code 2 ■ Earth Summit in South Africa ■ King 2 focus expands to sustainability and risk management
2006
2007
PRI launches in April 2006
Pension fund inclusion of RI
■ 100 signatories on NYSE, 12 countries ■ South Africa's Government Employees Pension Fund is a founding member ■ Understanding of ESG investment implications
■ Circular PF 130 released ■ Regulation 28 of the Pension Funds Act codifies fiduciary dury of trustees and accepts responsible investment approach in capital allocation
As listed markets evolved, so did the accessibility of information which allowed investors to place a value on stewardship. We noted the advent of shareholder activism and corporate governance considerations experienced since 1994 within South Africa. Presently, there has been a growing level of stakeholder activism spurred on by the advent of social and environmental justice organisations, speaking in concert on matters that affect the destruction of value, financial or otherwise.
SECTION 1
2009
2011
King Code 3
CRISA
Regulation 28 changes
■ Integrates strategy and sustainability ■ Applies to all entities (public, private and non-profit)
■ Code for Responsible Investing in South Africa ■ South Africa is the second country to launch such a code after the UK ■ Encourages ESG integration
■ Amendments to consider any factor that may materially affect the sustainable performance of long-term investments
Regulatory backdrop Responsible investing in South Africa has endured a fair amount of regulatory developments over the past few decades, some of them albeit tacit in nature and others enforced through JSE listing requirements or pension fund law monitored by the regulator within South Africa, the Financial Services Conduct Authority.
2015
Sustainable development goals ■ All UN member states accept the global goals known as the 17 SDG's
2016
2019
King 4
FSCA guidance note
■ Refines King 3 and makes the code more accessible to all entities ■ Principle 17 applies to institutional investors of pension funds
■ Encourages pension fund boards to consider ESG risks ■ Evaluates active ownership practices, disclosure, reporting and monitoring
This article seeks to assess the progress made in terms of RI application and the acceptance of RI practices by the wider investment community.
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Principles of responsible investment Over the last decade, considerable progress has been made, notably from the Principles of Responsible Investment (PRI). The PRI is a United Nations-supported initiative and the world’s leading advocate for responsible investing. The primary thesis of the PRI’s approach reflects the increasing relevance of integrating environmental, social and governance considerations (ESG integration) to investment practices. The PRI has received widespread acceptance of ESG integration by a global base of academics, investment managers and asset owners. Today, it supports an international network of more than 2 000 investor signatories globally who have a combined asset under management of around USD90 trillion. Code for Responsible investing in South Africa The Code for Responsible investing in South Africa (CRISA) is a stewardship code that aligns itself with the principles of PRI. The code specifically gives guidance on how asset managers should execute investment analysis and investment activities, requiring them to publicly disclose their policies and methods of incorporating ESG factors in their investment process. More recently, the role of impact reporting from various bodies have found support as the globe seeks to address a growing set of negative externalities. These include the: ■ Global Impact Investing Network ■ International Finance Corporation ■ Global Reporting Initiative ■ Impact Management Project They all seek to find the silver bullet approach in comparing or reporting impact statistics for different types of purposedriven investments. Impact investments such as these are not homogenous in assets, geography, impact, investment objectives or outcomes. For this reason, the measurement or appreciation of the externalities that they seek to address is not immediately evident. At present, there appears to be a consensus around the 17 sustainable development goals (17 SDGs), as defined by the United Nations Development Programme, being incorporated in the measurement of impact footprints.
Regulatory fatigue? The local investment industry showed promise despite a challenging start in a concentrated listed market. The top 40 shares on the Johannesburg Stock Exchange (JSE) make up approximately 72% of the market capitalisation of the JSE Capped Swix index. One share among them comprises an excess of 10% of the index.1
This is followed up by the concentrated management of listed assets (around R6 trillion at June 2019)2 with the top 15 listed asset managers, out of a sample size of 65, managing around R4.9 trillion3 or 80% of the available assets. Some would consider it a niche market that requires regulation tailored for its needs rather than being forced by top-down, global practices. Since it established a presence in 2006, the PRI has worked steadily with its member base to make the self-regulating framework more robust. The South African member base sits at 46 to date and is seemingly flat-lining among the local asset manager community. One needs to critically assess some of the reasons listed by the asset manager network. There appears to be 500 new signatories in 2019 globally, but none appears to be African as cited by an online publication.4 It is worth exploring the challenges levelled by the local asset manager community in heeding the call. The PRI is a costly exercise that requires audit and resources Self-regulation is an annual exercise conducted by the PRI. Signatories are required to perform mandatory annual assessments to evaluate progress in incorporating ESG considerations in their investment processes, and to highlight areas of improvement. It requires a submission of RI practices from strategy and governance to asset class modules. Granted it does take upfront work of defining your investment process for ESG practices. Nonetheless, the process does require that an evidence-based control framework be in place. It requires the articulation of a responsible investment philosophy, process and record-keeping of stewardship practices such as engagement with investee companies and proxy voting record-keeping. New entrants to the industry may view this as a hurdle. There is, however, a case to be made that the cost of being in the business of managing private wealth or retirement nest eggs is a serious one, if not a privilege. Perhaps it does require a serious approach. One that requires these processes, PRI aside. Pension fund Regulation 28 and the Pension fund Act Circular 130 have, without the legalese, spelled out the following:
Prudent investing should give appropriate consideration to any factor which may materially affect the sustainable long-term performance of a fund's assets, including factors of an environmental, social and governance character. This concept applies across all assets and categories of assets and should promote the interests of a fund in a stable and transparent environment.5 This means that one must set aside a consideration for resources within a business and investment team in a manner that is indigenous to the model of managing assets.
1 JSE market cap data – Capped Swix January 2020 2 The Alexander Forbes June 2019 AUM Survey 3 The Alexander Forbes June 2019 AUM Survey 4 PRI gains 500 signatories in 12 months: https://www.ipe.com/pri-gains-500-new-signatories-in-12-months/10032854.article 5 The preamble to Regulation 28 of the Pension Funds Act of 1956, dated 4 March 2011
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Let’s for a moment consider the fees signatories are expected to pay to the PRI and assess whether or not they are burdensome. We should also consider whether they are suited to the global manager base, at the expense of the emerging markets, as well as the “emerging” manager.
Using the AUM bands listed in US dollar (USD) and fees listed in pound sterling (GBP) on the PRI website6 and spot market rates through the Alexander Forbes Investment Daily Market watch on 20 January 20207, the fees applicable to asset owners and investment managers are tabled as follows:
Asset owner fees
Investment manager fees
Assets under management (AuM) in ZAR
ZAR converted fee
Asset under management (AuM) in ZAR ZAR converted fee
Under R14.39bn
R8 831
Under R14.39bn
R20 525
From R14.39bn to R28.78bn
R16 137
From R14.39bn to R28.78bn
R31 070
Above R28.78bn to R71.95bn
R56 659
Above R28.78bn to R71.95bn
R82 287
Above R71.95bn to R143.95bn
R122 922
Above R71.95bn to R143.95bn
Greater than R143.95 bn
R162 107
Greater than R143.95bn with cap on fees above R719.5bn
R144 050 Starting at R205 811 capping out at R257 406
6 PRI website: https://www.unpri.org/pri/about-the-pri/financial-information 7 Alexander Forbes daily market watch 20 January 2020. ZAR:USD is 14.39. ZAR:GBP is 18.83
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Optically, the fees for managers at the lowest tier of AUM do not appear particularly onerous. The average quantum of AUM of managers forming part of the remaining 50 managers, including multi-managers within the Alexander Forbes June 2019 AUM survey, is approximately R25 billion. The commensurate fees appear negligible. One could rationalise the cost by weighing it up against the value of the research output, thought leadership and direction provided by the PRI network across asset classes with respect to RI. The PRI allows for the submission to be non-audited but, of course, this development over time would curtail credibility. The PRI is driven by a global manager network and does not include Africa Let’s face it. There exist unique social nuances that beset African regions as well as other emerging markets. The matters of an environmental aspect, such as climate change – although very much applicable to African countries – require finesse given the glide path of commitments made in the 2016 Paris accord and detailed through the Taskforce on Climate-related Financial Disclosures guidelines. The ability to foster and shape the conversation around the definitions or factors that ought to be considered have been led by the developed world. This is not levelled at the PRI specifically, but also at impact measurement frameworks where definitions of social aspects are still being debated robustly. Take, for example, contract labour being fair wage and competitive in the global landscape, but contested in South Africa given the possibility for worker exploitation. South Africa, as a relatively sophisticated financial market, should have a seat to influence definitions and roll-out of self-regulation measurement models. Uniform, vanilla definitions will not achieve desired outcomes. That said, one cannot influence from the sidelines. A “throwing stones” approach is weak without actually standing up, using academic rigour, investor will, stewardship, collaboration and perhaps a whole lot more that has inadvertently been left out. The approach of managing assets in a vacuum is a worn-out excuse. The offshore earnings base of companies listed within the market capitalisation of JSE is significant. Can one really expect to apply only a local legislation to these? Surely corporate regulation that South African listed businesses are expected to conform to in offshore jurisdictions is not contested but rather accepted as a price one pays for globalising a business? The endorsement of the CRISA code serves the same purpose The endorsement of CRISA is commendable. It is a step in the right direction and therefore acceptable locally. It is no different to the UK stewardship code versus the PRI argument. There is a philosophical alignment between these guiding industry bodies, and their principles can be matched. However, an endorsement
of CRISA is a once-off exercise – the onus of sticking to the pledge rests with the asset owners and asset managers. Consider the argument of conducting investment research once off albeit thoroughly, and not keeping abreast of changes and developments. Any analyst or portfolio manager cannot foreseeably extract value with this approach. Is there more to be said for an evolving process versus a static one? The larger asset managers can allocate time and resources to developing in-house depth in responsible investment activities and initiatives. Emerging managers, however, can use efficient methods of achieving the high watermark of being a signatory. There are numerous examples at play, given the same constraints faced by emerging managers globally. For emerging managers who are sceptical about being a signatory to the PRI at this stage in their business lifecycle, there are case studies worth investigating that highlight methods adopted by their global emerging peer universe.
Alternative avenues towing the spirit of responsible investment Now, let’s highlight the role of alternative contributors to the responsible investing conversation over the years, without placing emphasis on any particular model nor assessing its relative rigour. The first King Code on Corporate Governance arrived in 1994. Very much tied to the dawn of democracy in South Africa, it included an aspect on affirmative action. It focused primarily on aspects relating to boards and directors, eventually evolving to incorporate sustainability considerations in later versions. It widened its application to all types of business not just the listed. Importantly for investment managers, King 4 2016, Principle 17 specifically addressed the needs of the pension fund manager. CRISA articulated in 2011 that it aimed to provide the investor community with the guidance needed to give effect to the King Report on Corporate Governance South Africa (King Code 3 was in effect) as well as the United Nations-backed PRI initiative. Both require institutional investors to take ESG issues seriously.8 Private markets application of the responsible investing practices is also noteworthy. As noted by the African Venture Capital Association (AVCA) in the publication “Untold story: The evolution of responsible investing in Africa”:
Where ESG integration is concerned, African private equity has been ahead of the curve compared to other markets. Practice began with the development finance investor in the mid 90s on the back of the second edition of AVCA’s Sustainability Study in 2017, which found that 80% of investee companies in Africa have ESG considerations in their process from the investment’s inception.9
8 CRISA code: https://www.iodsa.co.za/page/CRISACode 9 African Private Equity and Venture Capital Association, April 2018, Untold story: An evolution of responsible investing in Africa
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The role of the multi-manager The role of the multi-manager is to ensure that we deliver on the promise of managing assets in a manner that provides a smoother investment experience for the end client. The skill and expertise to deliver on this span across research and portfolio construction to optimally blend a bevy of managers (from the start-up to the established), asset classes, styles or risk premiums, listed or unlisted, local and global. The privilege of this vantage point comes with a level of responsibility, regulatory obligations aside. This commitment hinges on the fact that we will influence and shape the market acting as an usher for change. We acknowledge all the approaches and practices adopted within the responsible investing umbrella. These include resource-constrained, emerging managers with limited RI practice. We contrast them with the manager that is bold enough to be an activist, despite not holding a single share in a particular company. We challenge those with weak processes, and tick box articulation of responsible investing practices. Our manager research process penalises those who cannot evidence integration of ESG throughout the investment process from idea generation and portfolio construction to business management aspects of a strategy. We encourage reporting of proxy voting from everyone but make them mandatory for incumbents.
The conversations held with ESG service providers employed within the alternative asset management indicate the application of ESG principles outside the PRI. The role of the development finance institutions in influencing and making ESG very much a part of the term sheet of investments is commendable. The ability to meaningfully contribute to ESG as a driver of performance in unlisted markets is met with less resistance. Managers have exploited advantages by pricing for ESG risks appropriately, whilst benefiting from less “noise” than the comparable listed markets. The hedge fund managers locally and globally have been laggards in their commitment to RI. This is partially due to a niche investor base. Another reason cited by hedge fund managers is that they may, at times, make use of derivative instruments (as opposed to actual share ownership). In this instance, the actual ownership of assets resides with the provider of the instrument and not the manager. Voting as a result would not be necessary. More work needs to be done within this asset class.
Conclusion In considering that:
The top 15 managers (from the sample of 65) account for 80% of the available listed AUM
The statistics noted by the PRI reflect just under 50 signatories in South Africa
Is the idea of RI within South Africa reaching its peak and therefore ex growth? The consideration that South Africa is a mature market relative to the other African peers, and certainly some of the other emerging market peers, is fair. To be genuinely competitive one needs to keep the eye on the local game or bourse, bearing in mind a global mindset. Markets are intertwined and global headwinds influence South Africa. It certainly feels like a “cork floating in the sea” at times, but the point is that you are afloat and destined for a shore. In considering private equity, AVCA notes that South Africa is a mature destination relative to the rest of the African continent. The avenues for opportunity in infrastructure, thematic, developmental investments are more pressing than ever and ample opportunity for responsible investing practice evolution exists.
Taking advantage of ESG opportunities is further supported by the dawn of the “woke” trustee. This “wokeness” is brought about by a free flow of the information age enabling trustees to engage. The endorsement of responsible practices by boards of pension funds suggests that RI growth is still very much on the horizon. Our experience does suggest that there is more than meets the eye. The road to complete ESG integration, transparency through disclosure, appreciation of quantitative and qualitative, financial and non-financial risks is a long one. The efficient market hypothesis has much more to play out for complete price discovery to be coined. At this juncture, there is still a need for influence and change by the responsible steward, green peace analogies aside.
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THE IMPACT OF INVESTING: IMPLICATIONS & OPPORTUNITIES Dr Colin Habberton and Dean Hand
For South African institutional investors, a struggling economy, governance crises and ruminations regarding prescribed assets have highlighted concerns surrounding the social and environmental impact of investments. Improved access to information, policy shifts regarding the sustainability of investments1, the interests of the consumer2 and the state present investors with both risks and opportunities. Investment managers who can demonstrate how their diligence and skill can measure and leverage the impact of investing are likely to derive a new advantage for their investors and the long-term sustainability of their portfolios.
The Impact of Investing and how it differs from ‘Impact Investing’ While investment strategies have undoubtedly contributed to positive progress in society, business leaders also recognise the inadvertent role that finance may have played in the long-term degradation of our planet and negative impacts on people. Concurrently, institutional investors hold the key to mobilising capital toward sustainable solutions that address, indeed reverse some of the damage. It is no wonder that investing with the United Nations Sustainable Development Goals (SDGs) in mind is strongly supported by the work of the United Nations Principles of Responsible Investment (UNPRI) and the World Banks’s International Finance Corporation (IFC). In a first of its kind 2019 market sizing effort, the Global Impact Investing Network (GIIN) determined that impact investing is estimated to have grown to over USD500 billion in AuM in a decade3. Incorporating a wider range of strategies from Environmental, Social and Governance (ESG) screening, to shareholder engagement, to thematic and impact investing, the Global Sustainable Investment Alliance’s biannual review asserts that sustainable investing AuM is USD30.7 trillion (as at early 2018)4. Bloomberg Intelligence demonstrates that half of
shareholder proposals are environmentally or socially driven and in 2019, ESG orientated Exchange Traded Funds had their biggest flows yet topping out at over USD8 billion5. Investing for impact appears to be coming of age, applicable across asset classes and building a compelling business case with regard to investment returns6 in conjunction with widening market acceptance7. One of the challenges to be overcome has been reaching conceptual consensus between practitioners, policymakers and promoters around definition and metrics to ensure consistent application and in time, comparability. Although the term ‘impact investing’ was first coined in 2007 by a group of stakeholders including institutional investors convened by the Rockefeller Foundation, the now broadly accepted definition is:
“…investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return…and target a range of returns from below market to market rate, depending on investors' strategic goals…”8 In terms of its positive intentionality, impact investing aims to: “… address the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy, conservation, microfinance, and affordable and accessible basic services including housing, healthcare, and education.”9 A fundamental requirement in the assessment of the intent however, is the application of the appropriate frameworks and metrics to measure the impact of an investment, whether positive or negative, intended or unintended.
1 FSCA. 2019. Guidance Note 1 of 2019 (PFA). 14 June 2019 2 FSCA. 2019. Treating Customers Fairly. https://www.fsca.co.za/Regulatory%20Frameworks/Pages/Treating-customers-fairly.aspx 3 Global Impact Investing Network. 2019. “Sizing the Impact Investment Market”. https://thegiin.org/research/publication/impinv-market-size 4 Global Sustainable Investment Alliance. 2018. Global Sustainable Investment Review http://www.gsi-alliance.org/wp-content/uploads/2019/03/GSIR_Review2018.3.28.pdf 5 Bloomberg. 2020 Good Business: The Year Ahead in Sustainable Finance. https://www.bloomberg.com/news/newsletters/2020-01-02/good-business-the-year-ahead-in-sustainable-finance?sref=M6TSeOal&utm_content=110904075&utm_medium=social&utm_source=twitter&hss_channel=tw-2473182703 6 Porter, Serafeim and Kramer. 2019. https://www.institutionalinvestor.com/article/b1hm5ghqtxj9s7/Where-ESG-Fails 7 UNPRI. 2018. Impact Investing Market Map. 8 Global Impact Investing Network. 2019. https://thegiin.org/impact-investing/need-to-know/#what-is-impact-investing 9 Global Impact Investing Network. 2019. https://thegiin.org/impact-investing/need-to-know/#what-is-impact-investing
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Impact Measurement and Management Since 2016, a global network of over 2000 institutional investors, asset owners, development finance institutions, academics and multi-lateral agencies have been working together to provide investors and enterprises with a coherent set of metrics, disclosure standards and frameworks for measuring and managing impact. These include IRIS+ managed by the GIIN10, the IFC’s Operating Principles for Impact Management11 and the Impact Management Project (IMP)12. The GIIN’s global survey13 of the state of impact measurement and management (IMM), reveals a growing sophistication and maturation of IMM practice since the first edition, published in 2017. With less focus on definitions, IMM has become increasingly integrated into investment processes and increasingly focused on impact performance. Key challenges facing the market include a lack of transparency on impact performance (89% of investors surveyed cite this as ‘significantly’ or ‘moderately’ challenging) and the inability to compare impact results with market performance (84%). The IMP built consensus around the five dimensions of performance that matter to understand any impact. A critical aspect of IMM involves recognising that all investments have an impact on the stakeholders that are connected to its underlying assets. Although an investor’s intention may be positive, there is a possibility that the impact realised may not match their intention - for example, alignment with the SDGs - in terms of financial, social or environmental returns over time.
In terms of Contribution, the IMP recognises that certain ‘counterfactual’ impact might have taken place regardless of the enterprise or investor activity. In addition, what might be considered a positive intention from an investor’s perspective, may, over time, be experienced very differently from the perspective of certain stakeholders affected by that investment. Examples include health repercussions related to the sugar and tobacco industries and, more recently, the public and investor responses to the coal industry related to carbon-based contributions to climate change14. To assist investors and managers, the IMP also built consensus around a logic to communicate the impact of underlying assets or enterprises across the investment value chain. Using this logic, the impact of an asset, or portfolio of assets, is the combination of its impacts on people and the environment. The logic developed by the IMP can be used to classify an enterprise as “Acting to avoid harm”, “Benefitting stakeholders” or “Contributing to solutions” to social and environmental challenges. The classification does not ignore the possibility that an asset, or portfolio or assets, may cause harm to stakeholders. Investors seeking stronger assurance of positive outcomes can use the IRIS+ Core Metric Sets to deepen their understanding of impact, describe their impact through to portfolio level and, in time, compare their performance to peers in a given geography, sector or market.
Figure 1: F ive Dimensions of Impact
Source: IMP. 2020
10 IRIS+ https://iris.thegiin.org/ 11 IFC.2019. Operating Principles for Asset Management. https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/development+impact/principles/opim 12 Impact Management Project. 2019. https://impactmanagementproject.com/about/ 13 Global Impact Investing Network. 2020. 14 Financial Times. 2019. https://www.ft.com/content/4dec2ce0-d0fc-11e9-99a4-b5ded7a7fe3f
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Figure 2: T he Classification of Impact
Source: IMP. 2020
What does this mean for investment managers?
What does this mean for investors?
Over recent years, these approaches have been tested and applied by institutional investors, enterprises and other stakeholders in various geographies and sectors15 16. For example, Neuberger Berman, a New York based investment management firm (USD339 billion AuM), found that the IMP’s five dimensions provided a useful way to compare the impact of the public companies they invest in. Deutsche Asset Management's Global Social Finance group (GSF) uses IRIS+ metrics to collect both impact and business data on their underlying investments to better analyse the positive impact outcomes they seek. At a transaction level, Capria Ventures uses IRIS+ to compare the relative contribution value of each investment before rolling up the data to consider the portfolio level performance using the dimensions of impact. The Partners Group AG, a Swiss private equity firm (USD91 billion AuM), used the methodology to develop an impact framework for assessing their investments. Bank of Montreal (BMO) Global Asset Management, (USD263 billion AuM), applied the five dimensions to their existing impact reporting process and found that it provided them with a deeper idea of the scale and depth of their impact, in addition to the type of impact that their SDG mapping offered. Nuveen Asset Management, a 5 decade income solution innovator with USD435 billion under management, uses both the dimensions and IRIS+ to help build their impact thesis for their affordable housing portfolio and in so doing, were able to measure impact performance and integrate their impact data into their investment decision-making processes. PGGM, a Dutch pension administrator (€220 billion AuM), took the process one step further to identify and understand their role in contributing to the impact of the investments under their management.
The implications and opportunities of these recent developments in impact reporting are as significant in South Africa as they are in the rest of the world. Indeed, the recent FSCA Guidance Note (June 2019) nudges pension fund Trustees in the direction of greater accountability in their investor policy statements in light of the risks associated with SDG funding gaps and climate change mitigation. These impact measurement approaches illustrated above, present a compelling case in guiding investors towards contributing to the growing data and discourse on their impact through their investing, not only in relation to impact investments but all assets under management.
Impact goals, indicators, metrics and performance will differ depending on the investment manager’s chosen or mandated terms of engagement and portfolio selection. For each investment, detail and complexity can de adapted accordingly. To fulfill standards of rigour and comparability for adequate measurement and analysis, impact reporting is an intentional, evidence-driven discipline supported by the progressive shift towards the standardisation of terminology and data classification. 15 Impact Management Project. 2019. https://impactmanagementproject.com/latest-updates/ 16 The GIIN. 2019. IMM Education. https://iris.thegiin.org/imm-education/
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With the prevailing economic, environmental, social and governance considerations that affect financial investment and impact performance, the availability of impact-oriented data sets contribute positively to improving financial analysis, reducing risk and enabling more robust decision-making. In the context of the country and its particular economic and social challenges, South African investors have a role to play in leading the application and improvement of the tools to further the understanding and benefits derived from the impact of investing. By applying a consistent framework to understand the impact that assets and investment managers have on the economy, environment and society, investors are equipped with new data to inform their decision-making and additional points of comparison on investment managers’ capabilities. As new case studies continue to emerge, there is currently an untapped opportunity for impact-oriented investors and their investment managers to demonstrate their corporate citizenship and discover new competitive advantage in their local environment and international markets.
Our broad and diverse portfolio of clients’ bare testimony to the assets of resources we boast and knowledge we have acquired.
FOR ORGANIC AND SUSTAINABLE GROWTH OF YOUR WEALTH Speak to our team of Portfolio Managers www.mianzo.co.za | info@mianzo.co.za | +27 21 552 3555
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EVOLVING MODELS OF ASSET ALLOCATION THAT CAN DRIVE ECONOMIC GROWTH, IMPACT AND CAPITAL GROWTH Monique Mathys-Graaff and Sholto Dolamo Public Investment Corporation (PIC)
Consider this carefully. What is the real future liability that we need to address with our members’ lifetime savings? If there is one thing that the American social security system taught us when it was introduced in 1935, it’s that just providing people with a future income to sustain them after retirement isn’t enough. That income is only meaningful if it can buy an adequate quality of life: access to adequate housing, healthcare, community support systems.1 Today we can add some very real concerns to that list:
Whether our housing will be wiped out every five years or so because of wildfires or tornadoes or floods triggered by climate change
Whether we will have affordable access to water, air and electricity
Whether the cost of healthcare, insurance, data and information processing will be at all controllable – and so on
1 Gawande, A. Being Mortal, Wellcome Collection, 2014. p. 36
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Every investment we make – whether long term or short term, whether in a listed capital market or a private capital market, whether through a formal mechanism or an informal mechanisim – has an impact. As investors, we can either choose to understand what that impact is or ignore it. As fiduciaries for members, we cannot choose to ignore it. We need to understand it. If, for example, we direct all of our members’ compulsory savings into the JSE-listed capital markets, how effective would that choice be for stimulating the kind of economic growth that will serve that long-term liability challenge? How effective would those investments be in ensuring that South Africa remains globally competitive as a country? Unlisted assets in the form of private equity, real estate and infrastructure present a powerful opportunity to scale up investments with impact when considered alongside listed investments like the JSE. The unfortunate reality is that currently the listed assets and unlisted assets are most often considered in isolation and this potential is lost. The reasons have been well articulated – lack of policy implementation, breakdown in trust between private and public sector, and structural inequality. This framework of analysis provides a methodology that allows us to use unlisted assets to complement listed assets and use the portfolio as a whole to support – and perhaps even catalyse – sustainable economic growth.
SECTION 1
Sector comparison of South African GDP with JSE and emerging market GDP 35%
30%
25%
20%
15%
10%
5%
0% Finance, real estate and services
General government services
Wholesale, retail and motor trade
SA GDP
Manufacturing
EM
ALSI
Mining and quarrying
Transport, storage and communication
Overweight exposure
Agriculture, forestry and fishing
Energy
Construction and Infrastructure
Underweight exposure
Source: RMB Morgan Stanley, StatsSA, PIC Research, Bloomberg (at January 2020)
The graph above shows how large the mismatch is already between South Africa’s current drivers of GDP and the exposures one would get to these growth drivers through the JSE. Comparison to other emerging markets simply accentuates the extent to which the revenues of JSE-listed companies are derived from multinational earnings from offshore (as much as 65%) as opposed to from South Africa itself. As an example, the manufacturing sector has a lower contribution (14%) when compared to its emerging market peers (21%), but the JSE has highly limited exposure (1%). This highlights a lack of reach and intention that underpins exclusionary investing. Furthermore, considering government services such as healthcare and education, the private sector has provided solutions to the richer portions of the population but has not reached the poor (1%). Reach is lacking even with such listed companies, as it serves members of the society with financial means and excludes those who need the benefits of the investments the most. The reality that many global investors are beginning to appreciate is that the listed capital markets in general appear to be getting further and further delinked from their initial objective of funding economic growth. While this phenomenon appears to be impact primarily developed markets, South Africa appears to be behaving more like one of these markets.2
Creating a radically different framework for funding retirement investing The questions being asked here suggest that we will need a radically different framework for funding retirement investing. Realistically, because of the way the retirement industry seems entrenched around a singular approach to solving for funding, it is highly likely that we only see incremental changes over time to address this mindshift change. But the purpose of this article is to alert the South African investment community that the research has already begun that can provide the new framework of analysis – and it’s happening in a particularly surprising place: the Public Investment Corporation. Given that the PIC total portfolio size represents approximately 45% of the South African economy (based on GDP) and about 15% of the Johannesburg Stock Exchange, leveraging its economic development potential was an important priority. But an even greater priority was to create a new governance framework that linked investment initiatives to viable economic imperatives. The PIC’s Research and Projects Development (R&PD) division had a particular interest in understanding exactly how their current investment allocations were impacting (or not impacting) areas of growth that would be critically important to South Africa’s future.
2 Schroder’s white paper on “What is the point of the equity markets?” April 2018
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MANAGER WATCH™ SURVEY
Since the creation of the division in 2015, their sector specialists have undertaken the extensive task of:
■ comparing the current PIC holdings to this more ideal investment opportunity as a way to inform future allocations
■ mapping out the effectiveness of all of South Africa’s investable assets: listed and unlisted, debt as well as equity, to funding different economic imperatives within different economic sectors
■ The starting point for this exercise is to consider what the opportunity sets are across the entire economy as opposed to starting with an allocation to specific assets.
■ identifying which sectors (and specific assets) would provide the best opportunities to fund investments that would enable South Africa to meet both its economic development goals and its sustainable development goals
R&PD combines a multi-disciplinary impact or developmental investing approach ■ Co-investment and attracting foreign direct investment ■ Leveraging existing investment themes into global capital markets ■ Listed and unlisted asset linkages
Economic growth of South Africa and Africa
Allocation of assets by asset or fund managers
Investment catalysts for economic growth
Strong positive relationship
Financial asset growth or returns
Prudent asset allocation
Retirement funds Insurance or banks Consultants or intermediaries
Source: PIC research
Evolution requires new investment approaches, driven by topdown, multi-asset and sector selection strategies
Evolution in investment approach Evolution in investment approach
Macro-economic, sector and thematic research
Macro-economics
Financial services
Quarterly internal departmental briefings, in-house forecast model, integration with external sector or macro-economic model
Project development and thought leadership
Thematic impact investing – Across multiple sectors – Quarterly internal departmental briefings, in-house forecast model, integration with external sector or macro-economic model
Agriculture
Mining
Asset allocation, portfolio construction
Fund of funds Sector-focused incubation funds
Impact investing funds
Energy
Private equity funds Sector allocation framework, combining all sectors and disciplines
Asset allocation Africa
Quarterly meetings, portfolio construction, in-house forecasting model
Manufacturing Project development partnership fund Established to increase delivery of investment strategy and catalyse pipeline origination
ICT
Socially responsible investments Listed equity, bonds
Social infrastructure
Africa and global
Supporting investment process, origination and due diligence with market or industry research Source: PIC research
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Real estate
SECTION 1
■ Reducing concentration risk to specific companies that may not be as important to South Africa’s economic growth story
Benefits of aligning portfolios with economic growth By using this framework for allocation and investment decision-making, the process introduces a number of additional benefits that current allocation strategies may fail to incorporate:
■ Increasing the opportunity to capitalise on long-term thematic trends that have a higher probability of delivering sustainable alpha as opposed to trying to capture short-term price movements – rarely a winnable strategy
■ Diversifying into a range of business models in diverse sectors and at different stages of development which have high economic growth potential
■ Integrating best practice in environmental, social and corporate governance (ESG) investing alongside socially responsible investing.
■ Providing a more explicit ability to match sector allocations with the sustainable development goals (SDGs) that 193 UN signatory nations from around the world have subscribed to
Foundation research driven by global thematic investment trends and South African sector fundamentals Investment strategy background and objective
The PIC Research and Projects Development was established in 2015 to ensure that the investments made are linked to over-arching diversification and alpha-enhancing sector strategies, resulting in increased economic growth and therefore increased employment
Sector investment strategies based on overarching macro economic drivers Taking into account 3 core pillars of each investment strategy
1
2
Global themes driving long-term returns: ■ Key global investment themes ■ Core areas driving long-term growth ■ These areas include sub-categories, demographics, tech-empowered individuals , economic imbalances, climate change, water and so on
3
South African economy sub-sectors which catalyse long-term growth:
Leveraging government initiatives to achieve investment returns and impact:
■ Looking at bottom-up building blocks of economy ■ The dual economy dilemma of the South African economy, which the investment strategy balances by identifying long-term growth prospects, employment and upskilling opportunities and so on
■ Accelerating government and university research to full operating companies ■ Partnering with government and universities to catalyse application of South Africa-driven technology ■ Leveraging government incentives to support strategies
so on
Investment strategies are based on the following sectors
Agriculture
Mining Affordable housing
Financial services
Manufacturing
ICT
Education
Healthcare
Energy
Tourism
Water resources
Source: PIC research
The conclusion of these three steps is a model or reference portfolio of investments. An analysis is then undertaken of the gaps in the current compared to the reference portfolio for each sector. This is the most critical step as it provides strategic direction of where to invest in the unlisted market to close the gaps in the listed market.
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MANAGER WATCH™ SURVEY
Agribusiness – existing portfolio exposure to key drivers Sector portfolio exposure – listed against unlisted
Gap analysis
Key drivers
Land and natural resource scarcity
Agro-processing (Other) Agro-processing (Crops)
Rising population numbers
Agro-processing (Beverages) Agro-processing (Animal product)
Urbanisation and the growing middle class
Financial services Vegetable production Horticulture 0%
20% Listed
40% Unlisted
Increasing globalisation (producing according to comparative advantage AND South Africa as a “springboard” into rest of Africa)
Opportunity or risk to be considered Scramble for high-potential land Rising need for production efficiencies and enhancements Increasing demand for agricultural technology Need for emerging market infrastructure to unlock potential Changing dietary preferences (grains to protein) Increasing demand for consumer-packaged goods and beverages Long-term currency depreciation supports export industries Increasing import competition from developed market economies
PIC exposure Yes BUT scope for expansion Limited Limited
Gaps in our unlisted portfolio
Limited Yes BUT high concentration Limited
Gap in our unlisted portfolio
Yes, but scope for expansion Limited
Gap in our unlisted portfolio
Exposure to “Agro-processing (Other)” skewed by holdings in British American Tobacco, Mondi and Sappi Source: PIC R&PD
A high-level example of the first iteration of that process is shown below. Consideration and prioritisation are given to those areas which present strong value chain underpins and clear market growth aspects which support economic growth (exports or imports).
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SECTION 1
PIC thematic focus areas centre on catalysing economic growth Global thematic mega trends
PIC SA Focus Sectors Agriculture or Mining and agri-processing beneficiation
Manufacturing
Energy
Off-grid supply
Demographics tech-empowered individuals
4th Industrial Revolution
Tech-empowered organisations
Agricultural technology
Economic imbalances
Food security
Government footprint High potential land banking
Other
Globalisation
Property
Financial services or inclusion
ICT
Middle-income private schools
Geographic information system or urban planning
Micro-finance
Fibre
Renewable Energy Tech-driven education
Mechanisation Promoting regional value chains Steel-making materials
Resource management
Infrastructure or social infrastructure
Affordable housing (student and urban) Affordable healthcare Gas-related generation
Commodity fund and fuel cells
Fintech
Web connectivity Modern cities
Water scarcity solutions
Sectoral, regional and global value chains Export growth or import substitution Source: CFA Institute, PIC R&PD
How can we make this process relevant to any South African retirement fund? Understandably, the full PIC investment process incorporates return assumptions for each element in an array of available strategies, sectors and specific assets. By integrating a top-down macro-view with a bottom-up view on valuations, deriving return assumptions is a fairly robust process. But clearly investment professionals managing other retirement funds will each develop their own return assumptions for these investments. That said, we still believe perspective of portfolio analysis provides considerable value to any South African pension fund.
and fiduciaries get a better feel for how effective member investment deployment is in both meeting South African growth imperatives and ferreting out where investors can find those critical long-term alpha generators. We believe that our evolving understanding about what could be achieved through a more considered investment process will have a dramatic and irrevocable impact on how we approach pension fund investing in the future. We believe the time to start engaging with this new thought process is now.
Just as we can apply any risk model or ESG assessment to any pension fund, irrespective of the underlying return assumptions, so can we apply the PIC analysis framework to help trustees
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The true value of Alexander Forbes is the power of one team. As one, we combine 85 years of knowledge to offer our clients a seamless experience. Through a single platform, we share our expertise, experience and insights to strengthen our advice-led approach across our retirement, investment and health portfolios. Because as one, we can ensure the best outcomes to help our clients grow. Go to alexanderforbes.co.za
MANAGER WATCHâ„¢ SURVEY
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2
Disciplined Value Investing. No matter the season.
SECTION 2
Survey information relating to the year ended 31 December 2019
The changes which took place in the 2019 calendar year are summarised in the below. SA Manager WatchTM – Best Investment View
Prescient Domestic Balanced exited in January Nedgroup Investments Managed entered in July
SA Manager Watch™ – Conservative
No changes took place in this survey
SA Large Manager Watch™
No changes took place in this survey
Global Manager Watch™ – Dynamic
Laurium Flexible Prescient entered in March
Global Manager Watch™ – Best Investment View
Laurium Balanced Prescient entered in March
Truffle SCI Flexible Fund entered in July
Northstar SCI Managed entered in April Prescient Balanced entered in February Sanlam Lifestage Accumulation entered in June Sasfin BCI Balanced entered in July Sasfin BCI Prudential entered in July
Global Manager Watch™ – Conservative
Old Mutual Multi Managers Absolute Balanced exited in September
Global Large Manager Watch™
No changes took place in this survey
Nedgroup Investments XS Guarded entered in September
Sources of performance Multi-Asset class portfolios build and implement their investment strategies based on a multitude of methods; the most popular being economic macro research; asset allocation modelling (strategic and tactical); relative asset class valuation; assessment of market risks; security valuation; portfolio construction and market hedging strategies. Its primary driver of return is its asset allocation strategy as it will seek to take advantage of the different expected returns between assets; while sector and/or security selection within the asset seek to provide additional sources of performance. The portfolio manager will also use the asset class exposures to manage an overall risk strategy.
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HOW MANAGERS PERFORMED IN 2019
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SECTION 2
The year 2019 was dominated by US and China trade tensions, global economic slowdown, fears of a hard Brexit and global policy uncertainties. The year ended on a high note, with the global financial markets having the best performance since the global financial crisis. This hit a record high, as some of these concerns eased and the global central banks’ accommodative stance injected liquidity into financial markets. Asset class returns in Q4 2019 were strongly boosted by trade ease as the US and China reached a partial deal, boosting the global risk appetite. An increase in global liquidity by major central banks also supported the global financial markets, with investors buying emerging market equities and bonds compared to global bonds and US dollar cash. Global equity markets experienced a strong 2019, returning resilient returns across a broad range of asset classes and geographies. The MSCI All Countries World Index (MSCI ACWI) returned 27.3% in 2019, from negative returns of 8.9% in 2018, in US dollars. Global bonds underperformed equities for the full year as the global fundamentals improved, favouring risky assets. The Citi World Government Bond Index (WGBI) and corporate bonds returned 5.9% and 14.5% in 2019, in US dollars. In the commodities markets, oil prices and gold saw strong gains of 5.7% and 3.6% in the last month of the year, which brought the gains for the year to 22.7% and 18.3% respectively. South African markets delivered positive returns despite negative domestic fundamentals like power cuts, low business confidence, worsening fiscal constraints and a weak local economy. Ultimately, the favourable global backdrop drove most asset class returns into positive territory. The ALSI returned 12.1% in 2019 while the Capped SWIX returned 6.8% for the year. Bonds and cash lagged equities in the year, with 10.3% and 6.6% respectively as global investors preferred risky assets. Property bucked the strong performance trend, returning 1.9% for the year as the rental vacancy rate remained high due to weak economic growth.
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MANAGER WATCH™ SURVEY
How South Africa Best Investment View managers performed For the year, most South African best investment view (BIV) managers kept their asset allocation relatively stable except for Allan Gray and Investec, who decreased their allocation to equities by 6.6% and 7.5% respectively from their position in December 2018.
The fund employs a long-term strategic asset allocation of 65% to South African equity and 35% to South African listed property. The majority of Bridge’s underperformance can be attributed to their lack of exposure to Naspers or resource stocks and their overweight position in South African listed property.
All the managers in the SA BIV category had positive returns for the year except for Bridge, who posted a return of -4.8% for their Managed Growth fund. Nedgroup and Coronation were the two best performers for the year in the category.
Comments on the performance of some managers
Nedgroup’s overweight exposure to platinum group metals (PGMs) was a significant contributor to performance. Their position in Naspers and Prosus also contributed positively to performance. British American Tobacco and Reinet Investments benefited from the banning of vaping flavours in the US and easing of US regulatory tensions regarding combustibles. Nedgroup’s position in AngloGold Ashanti benefited from the higher gold price. Coronation’s large exposure to the PGM sector contributed meaningfully to portfolio performance for both the quarter and the full year. Another meaningful contribution came from the portfolio’s large position in Anglo American. Coronation’s underweight position in Sasol during the year contributed positively as well. The worst performing manager for the year was Bridge. The Bridge Managed Growth fund maintained a full allocation to growth assets (equity and listed property) during 2019.
Foord Asset allocation added value through the year with the meaningful allocation to government bonds making the largest single contribution to returns. Equities also contributed positively to returns. The very low weight in struggling domestic property companies was positive. The holding in physical gold Newgold ETF also provided attractive double-digit returns. Fixed interest yield curve positioning and stock selection were also positive. Property stock selection added value with most of the allocation in niche property companies Capital and Counties and Stor-Age. Prudential The biggest contributors were the overweight positions to stocks with exposure to global growth and foreign currency earnings like Anglo American, Exxaro, Sasol and Sappi, as well as global giants such as British American Tobacco. Detractors from relative return were the underweight exposure to stocks such as Sibanye, Northam and Anglo Platinum. Domestic bonds also contributed favourably to the performance over the year.
How Global Best Investment View managers performed The Global BIV category significantly outperformed the domestic mandates with a 3% differential between the medians. For the year, most managers in this category kept their domestic asset allocation relatively stable except for Obsidian who increased their allocation to domestic equities by 8.7% over their position in December 2018 and Investec who decreased their position in domestic equities by 7.9%. Most managers remain close to the limits of 30% for investment in international assets allowed by Regulation 28 of the Pension Funds Act. Of the 32 managers, only 9 were lower than the limit of 30% by more than 4%. Sasfin was the lowest at 18.8%. Kagiso was the best performing manager in the Global BIV category for the year. Excellent local and global stock selection as well as fixed interest instrument selection attributed to performance for Kagiso. Strong local equity contributors included Northam Platinum, Quilter and Aspen. Siemans, Prudential and Spire Healthcare were among the strong global equity holdings contributors.
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PSG had a disappointing year. Performance of the Balanced fund was primarily driven by the disappointing returns from local and foreign equities. Asset allocation and fixed income selection added value but could not offset the effects of stock selection. Notable detractors of performance included Tongaat, Sun International, Discovery and Super Group. After delivering a solid performance in 2018, Rezco consolidated their position in the Global BIV category by once again being one of the strongest performing managers for the year ending 2019. The key driver of performance of the Rezco Value Trend fund was its investment in the Rezco Global Flexible fund, which produced a 27.7% return for the year in US dollars. Domestic equity contributors included SibanyeStillwater and Northam Platinum. Looking at the SA and Global BIV categories over the 1-year period, Coronation and Foord delivered solid performances. Coronation ranked second and fourth respectively and Foord, fourth and twelfth respectively.
SECTION 2
Comments on the performance of some managers Allan Gray Underperformance could largely be attributed to stock selection both locally and offshore. Holding an overweight position in Sasol and Glencore and an underweight position in AngloGold Ashanti and Anglo Platinum was detrimental to performance. Absa The exposure to domestic equity added to performance from an asset allocation perspective. This was, however, largely offset by poor stock selection. Low exposure to mining and resources shares detracted value. The low exposure to domestic bonds also detracted from performance. Coronation The large exposure to the PGM sector contributed meaningfully to performance for the year. The large position in Anglo American and the underweight position in Sasol also contributed to performance. British American Tobacco, a stock which detracted from performance in 2018, was up strongly during 2019.
SIM Particularly strong positive contributions came from the large exposure to domestic equity and bonds. Global equities also delivered a strong performance for the year. Some exposure to local bank Additional Tier 1 (AT1) paper delivered performance in excess of domestic equities. STANLIB An overweight position in developed market equities contributed significantly to performance. In addition, stock selection in global technology and consumer shares also added to alpha. An overweight position in fixed income also contributed positively. Despite positive attribution from asset allocation and sector selection in the portfolio, STANLIB’S South African domestic stock selection was a detractor in their balanced portfolios. The precious metal sub-sector was the largest detractor as STANLIB held an underweight position in platinum names and did not hold gold shares.
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A REVIEW OF 2019 Key themes:
2019 returns better than expected | Major economic events that drove the market | Challenging SA economic growth | Fiscal risks remain elevated
South Africa delivers positive returns in 2019 The Capped SWIX returned 6.8% in the year, from -10.9% in 2018. The ALSI benefited relative to the Capped SWIX from its higher allocation to commodity shares. The increase in equities was broad-based across, small, medium and large caps.
South African markets delivered positive returns despite negative domestic fundamentals like power cuts, low business confidence, worsening fiscal constraints and a weak local economy. They were boosted mainly by resource stocks and rand-hedge stocks within the industrial sector. The main drivers of resources were the rally in platinum and gold. Financials and SA Inc industrials underperformed, reflecting the local poor economy. The economy saw the largest quarterly drop in a decade after the power utility implemented a series of power cuts in Q1 2019, resulting in a contraction of 3.2% which saw growth forecasts for the year fall below 1.0%. The Medium-Term Budget Policy Statement showed a deterioration in fiscal outlook. Eskom’s debt burden and rolling electricity blackouts increased risks for both the fiscus and economic growth and negatively impacted market sentiment and business confidence.
Resources were the best sector in the year, returning 28.6% from 15.7% in 2018, particularly well supported by gold mining shares. It was followed by industrials, which returned 9.1% in 2019 from -17.4% in 2018. Despite the dovish global central banks, financials marginally performed in 2019, returning 0.6% from -8.7% in 2018. The financial sector has a strong correlation with the performance of the local economy. Bonds and cash lagged equities in the year, with 10.3% and 6.6% respectively as global investors preferred risky assets. Property bucked the strong performance trend, returning 1.9% for the year as the rental vacancy rate remained high due to weak economic growth.
Ultimately, the favourable global backdrop drove most asset class returns into positive territory. The ALSI returned 12.1% in 2019, from -8.4% in 2018.
Global asset classes in US dollar MSCI DM Index MSCI ACWI Index MSCI EM Index MSCI EFM EX SA Index Citi World GBI JP Morgan EM bonds MSCI UK SA asset class performance in rand All Share Index Top 40 Index Capped Swix JSE Resources JSE Financials JSE Industrials ALBI Local Property Local Cash Sources: Bloomberg and Alexander Forbes Investments
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December
Q4 2019
2019
2018
5 years
10 years
3.0 3.5 7.3 4.9 0.3 4.0 5.2
8.7 9.0 11.7 8.6 -0.4 4.4 10.0
28.4 27.3 18.6 17.2 5.9 10.1 21.0
-8.2 -8.9 -14.3 -12.6 -0.8 -6.9 -8.8
9.4 9.0 6.0 -1.2 2.0 2.1 3.3
10.1 9.4 4.0 2.3 1.9 2.5 5.0
December
Q4 2019
2019
2018
5 years
10 years
3.3 3.6 3.1 7.0 0.7 2.3 1.9 -2.1 0.6
4.6 4.5 5.3 13.8 2.8 0.0 1.7 0.6 1.6
12.1 12.5 6.8 28.6 0.6 9.1 10.3 1.9 6.6
-8.4 -8.2 -10.9 15.7 -8.7 -17.4 7.7 -25.2 6.6
6.1 6.2 – 8.2 3.9 3.6 7.7 1.2 6.5
10.9 10.6 – 3.3 12.3 14.0 8.9 10.7 6.0
SECTION 2
Major economic events that drove the market in 2019 Trade tensions The positive sentiments around US–China trade talks have helped financial markets rebound in 2019 after 2018 returns were negative across the breadth and depth of major asset classes and investment styles. President Donald Trump signed off a phaseone deal with China in early December 2019, reducing trade tensions between the two countries and averting the 15 December introduction of a new wave of US tariffs on Chinese goods. The deal includes a promise by the Chinese to buy more US agricultural goods and a possible reduction of existing duties on Chinese products. The US agreed to a significant increase in purchases of Chinese agricultural goods in exchange for tariff relief. China committed to doing more to stop intellectual property theft and both sides agreed not to manipulate their currencies. The partial deal will boost global sentiment, mainly towards emerging markets and risky assets but is also positive for global growth. However, our view remains that any deal reached will only be a temporary relief, as the trade war is a proxy for a technology war. However, deglobalisation is beyond the US–China trade tension. Japan has taken steps to limit technology exports to Korea, Brexit is likely to result in greater resistance in UK-EU trade and the US has threatened to impose tariffs on Europe, Brazil and Argentina. Controls over foreign ownership on national security grounds are becoming more commonplace, suggesting that trade global policy uncertainties may continue to cause volatility in the global financial markets and hinder global economic growth.
Slowing global economic growth Disappointing global economic data shows that the global economy has slowed down in 2019. China’s GDP has been expanding at the slowest pace since the early 1990s. In the US, the manufacturing PMI of the Institute for Supply Management has fallen to its slowest level since the global financial crisis. The Chinese economy slowed to 6.0% year on year in Q3 2019 from 6.2% year on year in Q2 2019 – the weakest growth rate since the first quarter of 1992, while the US economy grew by 2.1% year on year in Q3 2019 from 2.0% in Q2 2019. The economy grew by 3.1% year on year in Q1 2019, reflecting that the trade disputes between the two countries negatively impacted their economic activities.
Europe’s biggest economy, Germany, grew at 0.6% in 2019, but it is the weakest expansion since 2013. The UK economy grew by 0.4% quarter on quarter in Q3 2019 from -0.2% in Q2 2019, the first quarter of contraction since Q4 2012. Growth was supported by strong household consumption in the quarter. The contraction in Q2 2019 highlights that the Brexit uncertainties weighed on economic activities.
Dovish major central banks In response to economic growth concerns, central banks exhibited panic and pushed out or postponed plans to increase interest rates and end liquidity withdrawal. Globally, in 2019 central banks offered support to weakening economies through interest rate cuts and bond-buying programmes. The US Fed cut interest rates three times last year, to a 1.50% to 1.75% target range with a cumulative 75 basis points cut in 2019. This was due to weakening global fundamentals and muted inflation pressures. The Fed also started to buy USD60 billion worth of treasury bills per month in an effort to steepen the yield curve which had inverted. The bank highlighted that the current stance on monetary policy is likely to remain appropriate as long as incoming information about the economy remains broadly consistent with the bank’s outlook. Given this, the US Fed is likely to keep rates unchanged this year unless global fundamentals take a turn and negatively impact the US economy. In the euro area, the European Central Bank (ECB) has started its quantitative easing (QE) programme where it will inject €20 billion per month into the economy from 1 November 2019. Additionally, the ECB cut the deposit rates by 10 basis points to -0.5% from -0.4%. The ECB also expects interest rates to remain at their present or lower levels until its inflation outlook robustly converges to a level sufficiently close to (but below) 2%, which is within its projection horizon. Meanwhile, the ECB reduced its inflation forecast to 1.2%, 1.0% and 1.5% in 2019, 2020 and 2021 respectively. This means that the ECB will not reach its target of 2.0% until after 2021, implying that it is reasonable to expect the ECB to continue with QE beyond 2021. The People’s Bank of China unexpectedly reduced short-term interest rates by 5 basis points, the first such cut in more than four years, from 2.55% to 2.50%, in an effort to support an economy that is showing signs of slowing economic growth.
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MANAGER WATCH™ SURVEY
Geopolitical risks Brexit Prime Minister Boris Johnson won the UK general election, promising to deliver Brexit before the 31 January deadline. This ends the Brexit uncertainties that have negatively affected economic activity in the UK. Furthermore, Boris Johnson promised to guarantee that the Brexit transition phase is not extended, setting up a new cliff-edge for a no-deal split with the European Union at the end of 2020. The Labour Party suffered a devastating defeat and party-leader Jeremy Corbyn promised not to lead the party into the next election. The British pound has strengthened against the US dollar. Middle East tensions The tensions in the Middle East caused volatility for markets and the global economy, as the region plays a vital role in the world economy through its oil markets. Oil prices surged up by more than 10% early in September after drone attacks on Saudi Arabia’s oil refinery implicated 5.7 million barrels of oil supply per day, which accounts for roughly half of Saudi Arabia’s output capacity and for nearly 5% of total global production. The oil price rose by 22.7% in 2019. Heightened tensions in the region threaten the supply of oil to the global economy, negatively impacting the global economic activities.
Locally South African economic growth is lacklustre due to Eskom power cuts
Power cuts A series of electricity blackouts – stage 4 load shedding (loss of 4000MW) implemented by Eskom throughout two weeks in March – negatively impacted investor sentiment and business activity, resulting in a contraction of 3.2% in Q1 2019, the largest quarterly drop in a decade. The economy struggled to improve throughout the year due to deteriorating global fundamentals, low business confidence and lack of structural reforms to revive the local economy. South Africa’s Q3 2019 GDP came in worse than expected, contracting by 0.6% quarter on quarter in Q3 2019 from the revised expansion of 3.2% q/q in Q2 2019. The market expected an expansion of 0.1% quarter on quarter. Inflation Tight domestic credit, weaker currency pass-through effects, and low economic growth have kept inflation contained in 2019. South African CPI decelerated to 3.6% in November 2019 from 3.7% in October 2019, the 8-year low. Inflation averaged to 4.1% in 2019 to the end of November, well below the South Africa Reserve Bank’s (SARB) point target of 4.5%. The SARB has cut rates by 25 basis points to 6.5% in 2019 due to low inflation and weak economic growth. The muted inflation outlook and low economic growth saw the SARB unanimously cut interest rates by 25 basis points in January 2020.
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SECTION 2
The Medium-Term Budget Policy Statement showed a deterioration in the fiscal outlook The Medium-Term Budget Policy Statement (MTBPS) showed that the debt trajectory has worsened significantly more than expected and is unsustainable. Even after stripping out the impact of Eskom’s bailouts, the debt trajectory remains unsustainable in the medium and long terms. Given weakening local fundamentals, there will be a sizeable revenue shortfall of R251 billion over the Medium-Term Expenditure Framework (MTEF). This fiscal outcome was worse than expected and was due to downward revisions in economic growth and shortfalls in tax revenue collections, more bailout provisions for Eskom and other state-owned enterprises (SOEs) while expenditure cuts have remained on the margin. After the MTBPS, Moody’s changed the country credit rating outlook to negative. It is the only rating agency that still rates South Africa at investment grade.
The worsening fundamentals suggest that Moody’s downgrade to non-investment grade is the most likely outcome of 2020 as economic reforms remain too slow while economic growth deteriorates. However, the downgrade has largely been priced in by markets, which suggests that the impact of financial markets will not be too pronounced. The Standard & Poor’s Global rating agency also changed the outlook on South Africa’s sovereign ratings to negative from stable. S&P left South Africa’s rating unchanged at BB, two notches below investment grade. The agency, together with Fitch, already has the country in sub-investment grade. S&P highlighted that the country could be downgraded deeper into sub-investment grade status if they were to observe continual fiscal deterioration.
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COMPETITIVE USD YIELDS
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Laurium is an authorised financial services provider (FSP No 34142). Collective Investment Schemes in Securities (CIS) should be considered as medium to long-term investments. The value may go up as well as down and past performance is not necessarily a guide to future performance. CIS’s are traded at the ruling price and can engage in scrip lending and borrowing. A schedule of fees, charges and maximum commissions is available on request from the Manager. There is no guarantee in respect of capital or returns in a portfolio. A CIS may be closed to new investors in order for it to be managed more efficiently in accordance with its mandate. CIS prices are calculated on a net asset basis, which is the total value of all the assets in the portfolio including any income accruals and less any permissible deductions (brokerage, STT, VAT, auditor’s fees, bank charges, trustee and custodian fees and the annual management fee) from the portfolio divided by the number of participatory interests (units) in issue. Forward pricing is used.Prescient Management Company (RF) (Pty) Ltd is registered and approved under the Collective Investment Schemes Control Act (No.45 of 2002). For any additional information such as fund prices, fees, brochures, minimum disclosure documents and application forms please go to www.lauriumcapital.com.
47
MANAGER WATCH™ SURVEY
SA Balanced Manager WatchTM Survey – Best Investment View Objective: The portfolios are balanced (multi-asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and are confined to investing in South Africa only. These portfolios represent the managers’ best investment view.
Range of Returns of SA Best Investment View Investable Universe for the periods ending 31 December 2019 20% 15% 10% 5% 0% -5% -10% 1 Year
3 Years (p.a.)
5 Years (p.a.) 25% – 75%
7 Years (p.a.)
Min – Max
10 Years (p.a.)
Median
Return Statistics (Investable) 1 Year
3 Years (p.a.)
5 Years (p.a.)
7 Years (p.a.)
Highest
15.82%
8.17%
7.13%
9.27%
10.99%
Upper Quartile
10.47%
5.72%
5.76%
8.60%
10.81%
Median
8.57%
5.15%
5.13%
7.44%
9.67%
Average
7.57%
4.54%
4.61%
6.75%
9.12%
Asset-weighted Average
8.50%
5.37%
5.88%
8.45%
10.77%
Lower Quartile
5.43%
3.88%
3.69%
7.21%
10.16%
Lowest
-4.84%
-0.62%
2.10%
4.51%
8.60%
Range
20.66%
8.80%
5.04%
4.77%
2.39%
10
10
9
8
8
Number of Participants
48
10 Years (p.a.)
SECTION 2
SA Balanced Manager Watch™ Survey – Best Investment View Objective: The portfolios are balanced (multi-asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and are confined to investing in South Africa only. These portfolios represent the managers’ best investment view.
General information Investment Managers Absa Asset Management Domestic Balanced Alexander Forbes Investments Performer Local Allan Gray
GIPS™ (Verified / Compliant) V
N/A V
Bridge Managed Growth Fund
Portfolio Type
Regulation 28 Compliant Certification (Y/N)
Benchmark Description
No. of Funds in Composite
Portfolio Size (R m)
Segregated
Y
65% FTSE/JSE Capped SWIX Index; 21% All Bond Index; 7% STEFI Composite Index; 7% SA Listed Property Index
Pooled
Y
SA LMW Median
N/A
4 344
Segregated
Y
Pooled
1
464
SA LMW Average
13
36 997
CPI + 6% p.a. over rolling 60-month periods
3
1 538
Coronation
V
Segregated
Y
SA LMW Median
11
9 104
Foord Domestic Balanced
C
Segregated
Y
65% ALSI, 5% PROP, 25% ALBI, 5% STFCAD
7
26 377
Investec Asset Management
V
Segregated
Y
SA LMW Median
14
28 255
N/A
Unit Trust
Y
ASISA SA MA High Equity
N/A
1 066
Prudential Domestic Balanced
V
Segregated
Y
SA LMW Median
7
33 045
STANLIB AM
V
Segregated
Y
SA BIV Median
1
Nedgroup Investments Managed Fund
Total
241 141 431
V = Verified C = Compliant
49
MANAGER WATCH™ SURVEY
SA Balanced Manager WatchTM Survey – Best Investment View Objective: The portfolios are balanced (multi-asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and are confined to investing in South Africa only. These portfolios represent the managers’ best investment view.
Investment Data to the end of December 2019 – Performance Data Investment Manager
1 Year
3 Years (p.a.)
5 Years (p.a.)
7 Years (p.a.)
10 Years (p.a.)
Portfolio
Rank
Benchmark
Portfolio
Rank
Benchmark
Portfolio
Rank
Benchmark
Portfolio
Rank
Benchmark
Portfolio
Rank
Benchmark
Absa Asset Management Domestic Balanced
4.50%
9
7.01%
4.18%
7
5.93%
4.80%
6
5.38%
6.88%
7
7.36%
9.03%
7
9.44%
Alexander Forbes Investments Performer Local
8.54%
5
8.82%
5.39%
5
5.62%
5.76%
3
5.32%
8.38%
4
7.57%
10.70%
5
9.77%
Allan Gray
2
7.35%
10.54%
6
9.62%
*
*
7.59%
10.77%
4
9.79%
7.14%
6
8.57%
5.47%
4
5.28%
7.13%
1
5.25%
9.16%
Bridge Managed Growth Fund -4.84%
10
9.96%
-0.62%
10
10.90%
2.43%
8
11.46%
*
Coronation
2
8.82%
5.81%
3
5.65%
5.44%
5
5.34%
8.41%
13.11%
3
*
Foord Domestic Balanced
8.85%
4
10.74%
3.78%
8
7.39%
3.69%
7
6.27%
7.32%
6
8.18%
10.99%
1
10.16%
Investec Asset Management
11.01%
3
8.82%
6.85%
2
5.65%
7.10%
2
5.34%
9.27%
1
7.59%
10.89%
2
9.79%
Nedgroup Investments Managed Fund
15.82%
1
9.64%
8.17%
1
5.14%
*
*
*
*
*
Prudential Domestic Balanced
6.80%
7
8.82%
5.37%
6
5.65%
5.52%
4
5.34%
7.95%
5
7.59%
10.78%
3
9.79%
STANLIB AM
4.98%
8
8.57%
1.71%
9
5.15%
2.10%
9
5.13%
4.51%
8
7.44%
8.60%
8
9.67%
*
*No performance history.
Investment Data to the end of December for the past 5 Calendar years Investment Manager
2017
2016
2015
2014
Rank
Portfolio
Rank
Portfolio
Rank
Portfolio
Rank
Portfolio
Rank
Absa Asset Management Domestic Balanced
-4.96%
6
13.85%
4
8.34%
4
3.21%
5
9.53%
7
Alexander Forbes Investments Performer Local
-4.47%
5
12.89%
6
8.18%
5
4.51%
3
12.19%
4
Allan Gray
-3.13%
2
13.06%
5
13.14%
1
6.31%
2
13.47%
3
Bridge Managed Growth Fund
-7.52%
9
11.52%
7
10.20%
2
4.28%
4
7.65%
9
Coronation
-8.78%
10
14.80%
3
7.01%
6
2.84%
7
10.81%
5
Foord Domestic Balanced
-4.10%
3
7.06%
9
4.07%
9
3.06%
6
13.78%
2
Investec Asset Management
-4.37%
4
14.90%
2
5.07%
7
9.95%
1
14.34%
1
Nedgroup Investments Managed Fund
2.25%
1
6.89%
10
*
Prudential Domestic Balanced
-5.73%
7
16.18%
1
9.67%
3
1.97%
8
10.80%
6
STANLIB AM
-6.68%
8
7.39%
8
4.74%
8
0.67%
9
8.53%
8
*No performance history.
50
2018 Portfolio
*
*
SECTION 2
Because of you, we can invest in more of By teaching thousands of children to read, we build empowered communities. And through the launch of the country’s first employee-only BEE scheme in 2005 we have created 187 owners, each of whom
Coronation is an authorised financial services provider. Trust is Earned™
51
MANAGER WATCH™ SURVEY
Global Balanced Manager Watch™ Survey – Dynamic Objective: The portfolios are balanced (multi-asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to maximise long-term (more than 5 years) capital growth. This may lead to volatility of returns in the short term (less than one year).
Range of returns of Global Dynamic Investable Universe for the periods ending 31 December 2019 25% 20% 15% 10% 5% 0% 1 Year
3 Years (p.a.)
5 Years (p.a.) 25% – 75%
7 Years (p.a.)
Min – Max
10 Years (p.a.)
Median
Return Statistics (Investable) 1 Year
3 Years (p.a.)
5 Years (p.a.)
7 Years (p.a.)
Highest
18.07%
9.55%
10.42%
12.01%
12.69%
Upper Quartile
14.20%
8.21%
8.36%
10.09%
12.37%
Median
14.55%
8.46%
8.14%
10.93%
12.06%
Average
12.87%
7.37%
7.69%
10.19%
11.45%
Asset-weighted Average
13.79%
7.78%
8.26%
10.10%
11.59%
Lower Quartile
11.98%
6.14%
6.55%
9.61%
10.66%
Lowest
5.55%
3.91%
6.20%
8.40%
8.75%
Range
12.51%
5.64%
4.22%
3.61%
3.94%
8
8
8
6
4
Number of Participants
52
10 Years (p.a.)
SECTION 2
Global Balanced Manager Watch™ Survey – Dynamic Objective: The portfolios are balanced (multi-asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to maximise long-term (more than 5 years) capital growth. This may lead to volatility of returns in the short term (less than one year).
General information Investment Managers Allan Gray Life Global Absolute Portfolio Coronation (Managed) Investec Asset Management Managed Investec Opportunity Laurium Flexible Prescient Fund
GIPS™ (Verified / Compliant) V V V V
Portfolio Type
Benchmark Description
Pooled Pooled Pooled Pooled Unit Trust
Global LMW Average Global LMW Average Global LMW Median Headline CPI + 6% CPI + 5% 47.50% FTSE/JSE SWIX,10.00% FTSE/JSE SA Listed Property Index, 5.00% ALBI, 7.50% SteFi, 5.00% Barclays BEASSA SA Government ILB Index, 20.00% MSCI All Countries World Index, 5.00% Citigroup World Government Bond Index 55.00% FTSE/JSE SWIX, 10.00% FTSE/JSE SA Listed Property Index, 5.00% ALBI,5.00% Barclays BEASSA SA Government ILB Index, 20.00% MSCI All Countries World Index, 5.00% Citigroup World Government Bond Index CPI + 5%
Momentum Investments Flexible Factor 6
N/A
Pooled
Momentum Investments Flexible Factor 7
N/A
Pooled
Truffle SCI Flexible Fund
N/A
Unit trust
Total
No. of Funds in Composite
Portfolio Size (R m)
N/A 1 1 12 N/A
3 477 9 822 16 148 50 545 2 082
N/A
663
N/A
1 979
N/A
4 310 89 026
V = Verified C = Compliant
53
MANAGER WATCH™ SURVEY
Global Balanced Manager Watch™ Survey – Dynamic Objective: The portfolios are balanced (multi-asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to maximise long-term (more than 5 years) capital growth. This may lead to volatility of returns in the short term (less than one year).
Investment Data to the end of December 2019 – Performance Data Investment Managers
1 Year
3 Years (p.a.)
5 Years (p.a.)
7 Years (p.a.)
10 Years (p.a.)
Portfolio Rank Benchmark Portfolio Rank Benchmark Portfolio Rank Benchmark Portfolio Rank Benchmark Portfolio Rank Benchmark Allan Gray Life Global Absolute Portfolio
5.55%
8
10.87%
3.91%
8
6.56%
6.20%
8
6.06%
8.40%
6
8.97%
8.75%
4
10.55%
Coronation (Managed)
13.99%
3
10.87%
6.25%
6
6.49%
6.36%
7
5.99%
10.16%
2
8.83%
12.26%
2
10.46%
Investec Asset Management Managed
14.82%
2
10.88%
9.50%
2
6.56%
10.42%
1
6.35%
12.01%
1
9.28%
12.69%
1
10.73%
5
11.12%
11.30%
3
11.11%
*
*
*
Investec Opportunity
13.81%
4
9.56%
7.78%
3
10.45%
8.15%
3
10.94%
9.60%
Laurium Flexible Prescient Fund
10.19%
7
8.57%
5.83%
7
9.45%
6.61%
6
9.94%
*
Momentum Investments Flexible Factor 6
12.57%
6
10.76%
6.67%
5
6.38%
6.85%
5
6.55%
9.65%
4
9.62%
*
*
Momentum Investments Flexible Factor 7
13.20%
5
10.92%
7.04%
4
6.16%
6.91%
4
6.32%
9.86%
3
9.83%
*
*
Truffle SCI Flexible Fund
18.07%
1
8.57%
9.55%
1
9.45%
8.99%
2
9.94%
*
*
*
*
*No performance history.
Investment Data to the end of December for the past 5 Calendar years Investment Managers
54
2018
2017
2016
2015
2014
Portfolio
Rank
Portfolio
Rank
Portfolio
Rank
Portfolio
Rank
Portfolio
Rank
Allan Gray Life Global Absolute Portfolio
-1.65%
4
8.08%
8
7.87%
2
11.63%
5
11.45%
5
Coronation (Managed)
-6.50%
8
12.54%
2
7.96%
1
5.10%
8
11.22%
6
Investec Asset Management Managed
0.50%
2
13.78%
1
4.79%
3
19.31%
2
9.14%
8
Investec Opportunity
-0.19%
3
10.20%
6
2.32%
6
15.53%
4
10.46%
7
Laurium Flexible Prescient Fund
-3.30%
7
11.24%
5
-0.71%
7
17.00%
3
25.25%
1
Momentum Investments Flexible Factor 6
-3.27%
6
11.47%
3
3.22%
4
11.19%
6
13.19%
3
Momentum Investments Flexible Factor 7
-2.75%
5
11.41%
4
2.86%
5
10.72%
7
12.73%
4
Truffle SCI Flexible Fund
2.62%
1
8.52%
7
-3.24%
8
20.90%
1
19.03%
2
SECTION 2
Global Balanced Manager WatchTM Survey – Best Investment View Objective: The portfolios are balanced (multi-asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and represent the managers’ best investment view.
Range of Returns of Global Best Investment View Investable Universe for the periods ending 31 December 2019 25% 20% 15% 10% 5% 0% -5% 1 Year
3 Years (p.a.)
5 Years (p.a.) 25% – 75%
7 Years (p.a.)
Min – Max
10 Years (p.a.)
Median
Return Statistics (Investable) 1 Year
3 Years (p.a.)
5 Years (p.a.)
7 Years (p.a.)
Highest
19.94%
11.42%
8.76%
10.94%
10 Years (p.a.) 12.11%
Upper Quartile
12.58%
7.30%
7.32%
10.43%
11.89%
Median
11.70%
6.88%
6.46%
9.27%
10.72%
Average
11.47%
6.89%
6.44%
9.03%
10.56%
Asset-weighted Average
10.82%
6.88%
7.17%
10.25%
11.64%
Lower Quartile
10.46%
6.43%
6.18%
8.88%
10.69%
Lowest
-0.15%
3.10%
5.08%
7.25%
9.15%
Range
20.09%
8.32%
3.68%
3.69%
2.96%
33
31
27
20
15
Number of Participants
55
MANAGER WATCH™ SURVEY
Global Balanced Manager Watch™ Survey – Best Investment View Objective: The portfolios are balanced (multi-asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and represent the managers’ best investment view.
General information Investment Managers
GIPS™ (Verified / Compliant)
Benchmark Description
No. of Funds in Composite
No.of funds in composite
Absa Asset Management Global Balanced
V
Pooled
Y
Global LMW Median
4
Alexander Forbes Investments (Performer)
N/A
Pooled
Y
Global LMW Median
N/A
Alexander Forbes Investments (Spectrum)
NA
Portfolio Size (R m) 5198 139 846
Pooled
Y
Global LMW Average
N/A
898
Allan Gray
V
Segregated
Y
Global LMW Average (Non Investable)
15
57 340
Ashburton Global Balanced Composite
C
Pooled
Y
Market Value Weighted Average Return of ASISA Multi Asset – High Equity Category excluding the Ashburton Balanced Fund.
2
523
Cadiz Global Balanced
V
Segregated
Y
Global LMW Median
1
161
Coronation
V
Segregated
Y
Global LMW Median
10
19 842
Foord Global Balanced
C
Segregated
Y
55% ALSI, 9% MSCI, 6% CITI, 5% PROP, 20% ALBI, 5% STFCAD
6
33 227
Investec Asset Management
V
Segregated
Y
Global LMW Median
30
77 256
Kagiso Global Balanced Fund
C
Segregated
Y
Global LMW Median
4
1 751
Unit trust
Y
ASISA South African MA High Equity
N/A
799
Pooled
55.00% FTSE/JSE SWIX,10.00% FTSE/JSE SA Listed Property Index,5.00% ALBI,5.00% Barclays BEASSA SA Government ILB Index,20.00% MSCI All Countries World Index, 5.00% Citigroup World Government Bond Index
N/A
6 303
55.00% FTSE/JSE SWIX,10.00% FTSE/JSE SA Listed Property Index,5.00% ALBI,5.00% Barclays BEASSA SA Government ILB Index,20.00% MSCI All Countries World Index, 5.00% Citigroup World Government Bond Index
N/A
17 166
55.00% FTSE/JSE SWIX,10.00% FTSE/JSE SA Listed Property Index,5.00% ALBI,5.00% Barclays BEASSA SA Government ILB Index,20.00% MSCI All Countries World Index, 5.00% Citigroup World Government Bond Index
N/A
583
N/A
2 027
1
4 383
Laurium Balanced Prescient Fund
Momentum Investments Classic Factor 7
N/A
Momentum Investments Enhanced Factor 7
N/A
Pooled
Momentum Investments Target Factor 7
N/A
Pooled
Nedgroup Investments Balanced Fund
N/A
Unit trust
Y
ASISA South African Multi-Asset High Equity sector average
Nedgroup Investments XS Diversified Fund of Funds
N/A
Unit trust
Y
Headline CPI + 5%
Unit trust
Y
ASISA Category Avg: SA – Multi Asset – High Equity
Segregated
Y
Global BIV Average
Pooled
Y
FTSE/JSE All Share Index
Northstar SCI Managed Fund Oasis
V
Obsidian SCI Balanced fund
Y
N/A
871
5
736
N/A
840
Old Mutual Multi Managers Managed
N/A
Pooled
Y
Global LMW Median(Non Investable)
N/A
2 896
Old Mutual Multi-Managers Inflation Plus 5-7%
N/A
Pooled
Y
Headline CPI + 6%
N/A
12 723
Segregated
Y
The performance target is CPI+6%. No benchmark.
3
8 309
2
4 370
628
OMIG MacroSolutions (Edge28)
V
OMIG MacroSolutions Balanced
V
Segregated
Y
The benchmark for our full discretionary funds is calculated in-house, using FTSE free market indices and estimated peer group weightings.
Prescient Balanced Composite
V
Pooled
Y
55.25% FTSE/JSE Swix 40 [15h00] + 17% ALBI + 12.75% STeFi + 9.75% MSCI World + 5.25% US 1 Mth TB all Total Return
1
Prudential Balanced
V
Segregated
Y
Global LMW Median
7
9 631
Unit trust
Y
Headline CPI+5%
1
10 339
Unit trust
Y
FTSE/JSE All Share
1
4 985
Pooled
Y
24.5% FTSE/JSE SWIX, 24.5% FTSE/JSE Capped SWIX, 10% ALBI, 6% Barclays SA Gov ILB Index, 2% STeFI, 8% FTSE/JSE SAPY, 21% MSCI World Index, 4% Barclays Global Aggregate Bond Index
N/A
15 823
PSG Balanced Fund Rezco Value Trend
V
Sanlam Lifestage Accumulation
Sasfin BCI Balanced fund
N/A
Unit trust
Y
Average of SA Multi Asset Medium Equity category
1
390
Sasfin BCI Prudential fund
N/A
Unit trust
Y
Average of SA Multi Asset High Equity category
1
2 385 19 246
SIM Global Unique
V
Segregated
Y
Global LMW Median
3
STANLIB AM
V
Segregated
Y
Global BIV Median
4
1 227
Pooled
Y
Global BIV Median Non Investable
N/A
6 778
STANLIB Multi Manager Balanced Fund Total V = Verified C = Compliant
56
Portfolio Type
N/A
469 480
SECTION 2
Global Balanced Manager Watch™ Survey – Best Investment View Objective: The portfolios are balanced (multi-asset class) portfolios with exposure to global and local assets, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and represent the managers’ best investment view.
Investment Data to the end of December 2019 – Performance Data Investment Managers
1 Year
3 Years (p.a.)
5 Years (p.a.)
7 Years (p.a.)
10 Years (p.a.)
Portfolio Rank Benchmark Portfolio Rank Benchmark Portfolio Rank Benchmark Portfolio Rank Benchmark Portfolio Rank Benchmark Absa Asset Management Global Balanced
8.16%
31
10.88%
5.94%
25
6.56%
5.96%
24
6.35%
8.23%
19
9.28%
*
Alexander Forbes Investments (Performer)
10.94%
22
10.88%
7.23%
10
6.56%
7.46%
5
6.35%
10.45%
5
9.28%
11.90%
3
10.90%
Alexander Forbes Investments (Spectrum)
10.91%
23
10.87%
6.66%
19
6.49%
6.33%
18
5.98%
9.08%
14
8.83%
10.71%
11
10.57%
Allan Gray
6.51%
32
10.87%
5.54%
27
6.56%
7.34%
6
6.06%
10.14%
10
8.97%
11.03%
8
10.55%
Ashburton Global Balanced Composite
8.48%
30
9.50%
5.54%
28
4.72%
*
*
*
*
*
Cadiz Global Balanced
11.04%
20
10.88%
6.44%
23
6.56%
6.01%
23
6.35%
7.25%
20
9.28%
9.15%
15
10.73%
Coronation
14.50%
4
10.88%
7.50%
7
6.56%
6.95%
10
6.35%
10.58%
4
9.28%
12.11%
1
10.73%
Foord Global Balanced
12.24%
12
11.54%
5.43%
29
7.86%
5.42%
26
7.02%
8.69%
16
9.29%
11.38%
6
10.87%
Investec Asset Management
11.59%
19
10.88%
7.96%
6
6.56%
8.11%
2
6.35%
10.94%
1
9.28%
11.89%
4
10.73%
Kagiso Global Balanced Fund
19.94%
1
10.88%
11.42%
1
6.56%
8.76%
1
6.35%
*
*
*
*
Laurium Balanced Prescient Fund
10.46%
25
9.33%
*
*
*
*
*
*
*
*
Momentum Investments Classic Factor 7
12.14%
14
10.92%
6.84%
17
6.16%
6.91%
12
6.32%
10.43%
6
9.83%
*
*
Momentum Investments Enhanced Factor 7
12.12%
16
10.92%
6.72%
18
6.16%
6.75%
14
6.32%
10.23%
9
9.83%
11.88%
Momentum Investments Target Factor 7
12.45%
10
10.92%
6.97%
14
6.16%
6.71%
15
6.32%
*
*
*
*
Nedgroup Investments Balanced Fund
19.13%
2
9.51%
9.26%
2
7.90%
*
*
*
*
*
*
Nedgroup Investments XS Diversified Fund of Funds
9.20%
29
8.73%
5.77%
26
9.67%
6.14%
21
10.19%
8.94%
10.38%
10.38%
Northstar SCI Managed Fund
11.02%
21
9.52%
6.43%
24
5.10%
6.25%
19
4.83%
*
*
*
Oasis
9.80%
26
11.47%
5.08%
30
6.89%
5.08%
27
6.44%
8.59%
9.03%
10.15%
Obsidian SCI Balanced fund
13.57%
6
12.05%
6.60%
21
7.42%
7.90%
3
5.99%
*
*
*
*
Old Mutual Multi Managers Managed
12.58%
9
10.88%
7.12%
12
6.63%
6.67%
16
6.41%
*
*
*
*
Old Mutual Multi-Managers Inflation Plus 5-7%
12.12%
15
9.57%
6.63%
20
10.45%
6.75%
13
10.94%
10.71%
3
11.12%
*
*
OMIG MacroSolutions (Edge28)
9.51%
27
*
6.93%
16
*
6.96%
9
*
10.30%
8
*
11.27%
7
*
OMIG MacroSolutions Balanced
9.28%
28
11.02%
7.16%
11
6.98%
6.67%
17
6.78%
9.37%
13
9.64%
10.66%
12
11.14%
2
10.73%
15
17
*
*
5
13
11.63%
10.18% *
14
10.56%
Prescient Balanced Composite
11.71%
18
9.71%
*
*
*
*
*
*
*
Prudential Balanced
10.49%
24
10.88%
7.33%
8
6.56%
7.48%
4
6.35%
10.41%
7
9.28%
11.98%
PSG Balanced Fund
-0.15%
33
8.56%
3.10%
31
9.61%
6.03%
22
10.04%
9.99%
11
10.66%
*
*
Rezco Value Trend
15.68%
3
12.05%
8.02%
5
7.42%
7.30%
8
5.99%
10.82%
2
9.31%
*
*
Sanlam Lifestage Accumulation
12.22%
13
10.86%
6.95%
15
6.63%
6.22%
20
6.53%
*
*
*
*
Sasfin BCI Balanced fund
13.34%
8
9.46%
8.84%
3
5.54%
*
*
*
*
*
*
Sasfin BCI Prudential fund
13.49%
7
9.50%
8.63%
4
5.06%
7.33%
7
7.46%
*
*
*
*
SIM Global Unique
13.68%
5
10.88%
7.08%
13
6.56%
6.91%
11
6.35%
9.53%
12
9.28%
10.93%
10
10.73%
STANLIB AM
12.44%
11
11.70%
6.56%
22
6.88%
5.62%
25
6.46%
8.44%
18
9.27%
10.99%
9
10.72%
STANLIB Multi Manager Balanced Fund
11.85%
17
11.70%
7.27%
9
6.88%
*
*
*
*
*
*
*
*No performance history.
57
MANAGER WATCH™ SURVEY
Global Balanced Manager Watch™ Survey – Best Investment View Objective: The portfolios are balanced (multi-asset class) portfolios with exposure to global and local assets, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and represent the managers’ best investment view.
Investment Data to the end of December for the past 5 Calendar years Investment Managers
2017
2016
2015
2014
Rank
Portfolio
Rank
Portfolio
Rank
Portfolio
Rank
Portfolio
Rank
Absa Asset Management Global Balanced
-1.18%
13
11.26%
24
3.70%
16
8.34%
22
11.57%
14
Alexander Forbes Investments (Performer)
-0.71%
8
11.93%
21
5.05%
9
10.64%
10
11.50%
16
Alexander Forbes Investments (Spectrum)
-2.15%
19
11.81%
22
4.48%
12
7.21%
25
10.27%
25
Allan Gray
-1.40%
16
11.94%
20
7.51%
4
12.77%
6
10.29%
24
Ashburton Global Balanced Composite
-1.41%
17
9.92%
25
1.68%
27
10.52%
12
11.16%
20
Cadiz Global Balanced
-3.09%
23
12.06%
19
5.86%
7
4.90%
31
3.17%
30
Coronation
-4.92%
28
14.13%
12
3.44%
19
8.89%
18
12.09%
12 21
Foord Global Balanced
-3.10%
24
7.76%
29
0.53%
28
10.51%
13
11.00%
Investec Asset Management
-0.88%
9
13.77%
13
1.68%
26
15.41%
3
13.26%
8
Kagiso Global Balanced Fund
0.47%
6
14.78%
9
12.11%
2
-1.85%
32
9.12%
28
Laurium Balanced Prescient Fund
0.50%
5
15.41%
6
3.47%
18
*
Momentum Investments Classic Factor 7
-6.05%
31
15.75%
4
4.76%
11
9.31%
16
13.87%
4
Momentum Investments Enhanced Factor 7
-5.73%
30
14.99%
8
3.96%
15
9.72%
14
13.55%
5
Momentum Investments Target Factor 7
-7.06%
33
17.11%
2
3.14%
22
9.61%
15
15.53%
1
Nedgroup Investments Balanced Fund
3.31%
1
5.97%
33
-1.67%
31
19.60%
1
2.77%
31
Nedgroup Investments XS Diversified Fund of Funds
-1.20%
14
9.67%
26
4.87%
10
8.57%
20
11.29%
19 26
*
Northstar SCI Managed Fund
1.14%
3
7.36%
30
5.71%
8
6.25%
29
9.96%
Oasis
-0.89%
10
6.63%
32
4.43%
13
5.73%
30
12.91%
9
Obsidian SCI Balanced fund
-1.11%
12
7.87%
28
7.65%
3
12.12%
7
14.34%
3
Old Mutual Multi Managers Managed
-3.01%
22
12.56%
17
4.03%
14
8.02%
24
11.36%
17
Old Mutual Multi-Managers Inflation Plus 5-7%
-6.50%
32
15.31%
7
2.77%
24
11.28%
8
13.54%
6
OMIG MacroSolutions (Edge28)
-3.58%
26
15.79%
3
3.07%
23
11.07%
9
14.72%
2
OMIG MacroSolutions Balanced
-1.48%
18
14.29%
11
3.40%
20
8.52%
21
12.14%
11
Prescient Balanced Composite
-3.32%
25
18.16%
1
2.32%
25
9.09%
17
6.39%
29
Prudential Balanced
-2.36%
20
14.62%
10
6.60%
6
8.84%
19
11.67%
13
PSG Balanced Fund
-2.82%
21
12.94%
15
14.53%
1
6.77%
26
13.33%
7
Rezco Value Trend
1.61%
2
7.25%
31
-4.39%
33
17.99%
2
10.99%
22
Sanlam Lifestage Accumulation
-5.58%
29
15.44%
5
3.69%
17
6.62%
27
12.59%
10
Sasfin BCI Balanced fund
0.94%
4
12.69%
16
0.36%
30
13.19%
5
10.59%
23
Sasfin BCI Prudential fund
-0.27%
7
13.25%
14
-2.69%
32
14.21%
4
11.53%
15
SIM Global Unique
-3.89%
27
12.37%
18
6.87%
5
6.45%
28
11.32%
18
STANLIB AM
-0.95%
11
8.64%
27
0.42%
29
8.18%
23
9.69%
27
STANLIB Multi Manager Balanced Fund
-1.21%
15
11.70%
23
3.24%
21
10.55%
11
*
*No performance history.
58
2018 Portfolio
SECTION 2
Global Balanced Manager Watch™ Survey – Conservative Objective: The portfolios are balanced (multi-asset class) portfolios with exposure to both global and local assets, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to minimise the probability of short-term (less than one year) capital loss while targeting long-term (more than five years) capital return.
Range of Returns of Global Conservative Investable Universe for the periods ending 31 December 2019 20%
15%
10%
5%
0% 1 Year
3 Years (p.a.)
5 Years (p.a.) 25% – 75%
7 Years (p.a.)
Min – Max
10 Years (p.a.)
Median
Return Statistics (Investable) 1 Year
3 Years (p.a.)
5 Years (p.a.)
7 Years (p.a.)
10 Years (p.a.)
Highest
13.80%
9.01%
8.68%
10.47%
10.37%
Upper Quartile
11.38%
7.74%
7.61%
9.59%
9.93%
Median
9.82%
7.35%
7.56%
8.84%
9.66%
Average
9.95%
7.37%
7.50%
8.76%
9.60%
Asset-weighted Average
10.16%
7.77%
7.84%
9.34%
9.72%
Lower Quartile
8.80%
6.96%
7.03%
8.44%
9.43%
Lowest
3.82%
6.01%
6.73%
8.00%
9.42%
Range
9.98%
3.00%
1.95%
2.48%
0.95%
15
14
14
11
5
Number of Participants
59
MANAGER WATCH™ SURVEY
Global Balanced Manager Watch™ Survey – Conservative Objective: The portfolios are balanced (multi-asset class) portfolios with exposure to both global and local assets, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to minimise the probability of short-term (less than one year) capital loss while targeting long-term (more than five years) capital return.
General information Investment Managers
GIPS™ (Verified / Compliant)
Benchmark Description
No. of Funds in Composite
No.of funds in composite
Portfolio Size (R m)
N/A
Pooled
Y
FTSE/JSE Capped SWIX ALSI 32.00%, All Bond Index 24.00%, STeFI Call Deposit Index 24.00%, MSCI AC World 7.90%, FTSE WGBI 6.00%, French Treasury Bill 3.05%, US Treasury Bill 3.05%
Allan Gray Life Global Stable Portfolio
V
Pooled
Y
STeFI + 2%
N/A
5 931
Coronation Inflation Plus Fund
V
Pooled
Y
Headline CPI + 3.5%
1
3 514
Foord Conservative Balanced
C
Pooled
Y
Headline CPI+4%
1
614
Investec Cautious Managed Fund
V
Pooled
Y
(ASISA) SA MA Low Equity
1
13 924
Y
37.5% FTSE/JSE Capped SWIX; 12.5% JSE ASSA ALBI; 10% SteFI; 10% FTSE/JSE Listed Property Index; 10% JSE ASSA IGOV; 15% MSCI All Countries World Index; 5% FTSE WGBI
N/A
603
Pooled
27.50% FTSE/JSE SWIX,7.50% FTSE/JSE SA Listed Property Index,17.50% ALBI, 20.00% SteFi, 12.50% Barclays BEASSA SA Government ILB Index, 10.00% MSCI All Countries World Index, 5.00% Citigroup World Government Bond Index
N/A
1 181
37.50% FTSE/JSE SWIX,10.00% FTSE/JSE SA Listed Property Index,12.50% ALBI, 10.0% SteFi,10.00% Barclays BEASSA SA Government ILB Index, 15.00% MSCI All Countries World Index,5.00% Citigroup World Government Bond Index
N/A
1 575
Alexander Forbes Investments (Conserver)
Momentum Investments Classic Factor 5
Momentum Investments Enhanced Factor 4
N/A
N/A
Pooled
N/A
5 073
Momentum Investments Enhanced Factor 5
N/A
Pooled
Nedgroup Investments XS Guarded Fund of Funds
N/A
Pooled
Y
CPI + 3%
N/A
1 118
Old Mutual Multi-Managers Inflation Plus 1-3%
N/A
Pooled
Y
Headline CPI + 3%
N/A
614
Old Mutual Multi-Managers Inflation Plus 3-5%
N/A
Pooled
Y
Headline CPI + 5%
N/A
4 896
N/A
480
OMIG MacroSolutions (Profile Capital)
V
Pooled
Y
The performance target is CPI + 3%. Benchmark is 20% Capped SWIX, 10% MSCI ACWI Net Index, 30% BEASSA Index, 22,5% Stefi 3 Months, 10% Barclays Capital Global Bond Aggregate Index, 5% SAPY, 2.5% Gold Trust EFT Index
OMIG MacroSolutions Moderate portfolio
V
Segregated
Y
Headline CPI + 4%
2
Unit trust
Y
Headline CPI + 3%
N/A
3 815
Pooled
Y
Headline CPI + 3% (1 month lag)
N/A
2 503
PSG Stable Fund STANLIB Multi-Manager Defensive Balanced Fund Total V = Verified C = Compliant
60
Portfolio Type
N/A
749
46 590
SECTION 2
Global Balanced Manager Watch™ Survey – Conservative Objective: The portfolios are balanced (multi-asset class) portfolios with exposure to both global and local assets, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to minimise the probability of short-term (less than one year) capital loss while targeting long-term (more than five years) capital return.
Investment Data to the end of December 2019 – Performance Data Investment Managers
1 Year
3 Years (p.a.)
5 Years (p.a.)
7 Years (p.a.)
10 Years (p.a.)
Portfolio Rank Benchmark Portfolio Rank Benchmark Portfolio Rank Benchmark Portfolio Rank Benchmark Portfolio Rank Benchmark Alexander Forbes Investments (Conserver)
10.06%
8
8.30%
8.22%
2
6.88%
7.32%
6
6.57%
8.44%
8
8.12%
9.42%
5
9.38%
Allan Gray Life Global Stable Portfolio
7.36%
13
9.02%
7.25%
10
9.12%
8.68%
1
8.95%
9.60%
3
8.51%
9.43%
4
8.33%
Coronation Inflation Plus Fund
10.73%
5
3.56%
7.43%
7
5.36%
7.21%
9
6.97%
8.44%
9
7.63%
*
*
*
*
*
7.08%
9.93%
*
*
*
Foord Conservative Balanced
13.80%
1
7.36%
7.77%
4
8.11%
6.98%
11
9.01%
*
Investec Cautious Managed Fund
12.41%
3
8.73%
9.01%
1
6.07%
8.59%
2
5.88%
9.57%
Momentum Investments Classic Factor 5
10.67%
6
9.14%
*
*
*
*
*
Momentum Investments Enhanced Factor 4
9.57%
10
8.33%
6.33%
13
6.07%
6.73%
14
6.27%
8.00%
11
7.79%
*
*
Momentum Investments Enhanced Factor 5
10.63%
7
9.14%
6.42%
12
6.04%
6.82%
13
6.30%
8.67%
7
8.33%
*
*
Nedgroup Investments XS Guarded Fund of Funds
9.91%
9
6.66%
7.41%
8
7.58%
7.64%
4
8.09%
9.50%
5
8.29%
*
*
Old Mutual Multi-Managers Inflation Plus 1-3%
12.44%
2
6.57%
8.19%
3
6.36%
7.69%
3
6.21%
10.05%
2
5.97%
*
*
Old Mutual Multi-Managers Inflation Plus 3-5%
12.02%
4
8.57%
7.33%
9
9.45%
7.32%
7
9.94%
10.47%
1
10.12%
*
*
OMIG MacroSolutions (Profile Capital)
7.28%
14
9.52%
7.45%
6
7.83%
7.23%
8
7.47%
8.35%
10
8.26%
9.57%
3
9.37%
OMIG MacroSolutions Moderate portfolio
8.12%
12
10.31%
7.66%
5
9.58%
7.15%
10
9.75%
9.05%
6
9.64%
10.37%
1
9.47%
PSG Stable Fund
3.82%
15
6.55%
6.01%
14
7.61%
7.52%
5
8.04%
*
*
*
*
STANLIB Multi-Manager Defensive Balanced Fund
9.48%
11
6.53%
6.86%
11
7.44%
6.85%
12
7.95%
*
*
*
*
4
2
7.82%
*No performance history.
Investment Data to the end of December for the past 5 Calendar years Investment Managers
2018
2017
2016
2015
2014
Portfolio
Rank
Portfolio
Rank
Portfolio
Rank
Portfolio
Rank
Portfolio
Rank
Alexander Forbes Investments (Conserver)
4.45%
2
10.26%
10
5.31%
9
6.65%
15
7.93%
13
Allan Gray Life Global Stable Portfolio
4.20%
4
10.29%
9
7.36%
2
14.46%
1
7.77%
14
Coronation Inflation Plus Fund
2.65%
7
9.09%
12
6.27%
4
7.48%
14
9.56%
10
Foord Conservative Balanced
1.77%
9
8.08%
15
1.44%
15
10.39%
4
9.56%
9
Investec Cautious Managed Fund
5.78%
1
8.94%
13
2.86%
14
13.34%
2
9.54%
11
Momentum Investments Classic Factor 5
-3.10%
14
12.79%
3
5.59%
7
9.29%
8
12.01%
4
Momentum Investments Enhanced Factor 4
-0.53%
12
10.31%
8
5.79%
5
8.90%
9
10.79%
7
Momentum Investments Enhanced Factor 5
-2.94%
13
12.25%
4
5.19%
10
9.69%
6
11.93%
5
Nedgroup Investments XS Guarded Fund of Funds
4.25%
3
8.13%
14
6.43%
3
9.55%
7
11.34%
6
Old Mutual Multi-Managers Inflation Plus 1-3%
0.95%
11
11.34%
7
5.31%
8
8.57%
11
12.40%
2
Old Mutual Multi-Managers Inflation Plus 3-5%
-4.05%
15
14.85%
1
3.86%
12
10.86%
3
12.91%
1
OMIG MacroSolutions (Profile Capital)
3.30%
5
11.93%
5
5.64%
6
8.17%
13
9.73%
8
OMIG MacroSolutions Moderate portfolio
1.48%
10
13.71%
2
4.43%
11
8.40%
12
12.36%
3
PSG Stable Fund
2.79%
6
11.64%
6
10.80%
1
8.88%
10
9.26%
12
STANLIB Multi-Manager Defensive Balanced Fund
1.86%
8
9.41%
11
3.77%
13
10.02%
5
0.82%
15
61
62
8.17%
5.37%
1.71%
Prudential Domestic Balanced
STANLIB AM
*No performance history.
Number of participants
10
3.88%
-0.62%
Lower Quartile
Lowest
10
6.06%
6.77%
7.51%
7.26%
5.19%
4.60%
Median
5.72%
Upper Quartile
Average
8.38%
8.17%
9.13%
8.80%
3
8
2
9
4
7
10
6
5
1
Rank
Lower volatility= higher ranking
6.73%
8.46%
6.71%
8.47%
Highest
9
6
1
2
6.87%
8.17%
9.13%
7.28%
7.25%
6.06%
Range
Statistics
6.85%
Investec Asset Management
Nedgroup Investments Managed Fund
8
3
5.81%
3.78%
Coronation
4
10
5.47%
-0.62%
Allan Gray
Bridge Managed Growth Fund
Foord Domestic Balanced
5
5.39%
Alexander Forbes Investments Performer Local
7
4.18%
Absa Asset Management Domestic Balanced
Volatility
10
-11.53%
-3.02%
-1.63%
-0.26%
0.19%
3.04%
-3.44%
-0.29%
3.04%
1.20%
-3.62%
0.15%
-11.53%
0.20%
-0.23%
-1.75%
Active Return
Tracking Error
Sharpe Ratio
10
0.93%
2.15%
3.24%
2.53%
3.58%
9.12%
2.77%
2.13%
3.65%
2.19%
3.96%
2.29%
9.12%
1.95%
0.93%
3.38%
10
-0.87
-0.52
-0.37
-0.27
-0.20
0.12
-0.84
-0.24
0.12
-0.06
-0.52
-0.19
-0.87
-0.26
-0.27
-0.52
9
2.10%
3.69%
4.63%
5.20%
5.76%
7.13%
5.04%
2.10%
5.52%
*
7.10%
3.69%
5.44%
2.43%
7.13%
5.76%
4.80%
9
4
2
7
5
8
1
3
6
Rank
9.45%
9
6.26%
6.80%
7.71%
7.52%
8.45%
2
6
7
3
8
9
4
5
1
Rank
Lower volatility= higher ranking
6.41%
8.33%
*
8.45%
6.80%
8.71%
9.45%
7.49%
7.52%
6.26%
Volatility
3 Year Return (p.a.)
Rank
Calculated on 5 year Performance Returns 5 Year Return (p.a.)
Calculated on 3 year Performance Returns
Investment Data to the end of December 2019 - Volatility vs Return
9
-9.02%
-2.58%
-1.21%
0.10%
0.44%
1.88%
-3.03%
0.18%
*
1.76%
-2.58%
0.10%
-9.02%
1.88%
0.44%
-0.57%
Active Return
9
1.23%
2.39%
3.38%
2.87%
3.19%
9.55%
2.61%
1.96%
*
2.87%
3.71%
2.91%
9.55%
2.39%
1.23%
3.19%
Tracking Error
9
-0.79
-0.50
-0.31
-0.20
-0.19
-0.01
-0.79
-0.20
*
-0.01
-0.51
-0.20
-0.50
-0.01
-0.19
-0.38
Sharpe Ratio
MANAGER WATCH™ SURVEY
SA Balanced Manager Watch™ Survey – Best Investment View Risk
Objective: The portfolios are balanced (multi-asset class) portfolios with exposure to local assets, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and represent the managers’ best investment view.
7.04%
9.55%
Momentum Investments Flexible Factor 7
Truffle SCI Flexible Fund
7.19%
7.51%
6.14%
3.91%
Average
Lower Quartile
8
7.79%
7.45%
8.52%
Median
Lowest
7.87%
8.21%
Upper Quartile
8
8.08%
9.55%
8.30%
5.64%
Number of participants
5
4
2
7
1
3
6
8
Rank
Lower volatility = higher ranking
7.95%
7.79%
7.42%
Highest
1
4
5
8.12%
7.19%
7.46%
8.06%
8.30%
Range
Statistics
6.67%
Momentum Investments Flexible Factor 6
7
3
7.78%
5.83%
2
9.50%
Investec Opportunity
6
6.25%
Coronation (Managed)
Investec Asset Management Managed
Laurium Flexible Prescient Fund
8
3.91%
Allan Gray Life Global Absolute Portfolio
Volatility
8
-3.62%
-2.65%
-0.62%
-0.07%
0.44%
2.94%
0.10%
0.88%
0.29%
-3.62%
-2.67%
2.94%
-0.24%
-2.65%
Active Return
Tracking Error
Sharpe Ratio
8
2.38%
2.94%
4.77%
3.24%
7.53%
8.17%
8.01%
2.99%
2.38%
8.17%
7.37%
3.26%
2.80%
3.22%
8
-0.42
-0.15
-0.03
-0.07
0.11
0.29
0.28
-0.04
-0.09
-0.19
0.06
0.29
-0.14
-0.42
8
6.20%
6.55%
7.73%
8.44%
8.36%
10.42%
4.22%
8.99%
6.91%
6.85%
6.61%
8.15%
10.42%
6.36%
6.20%
2
4
5
6
3
1
7
8
Rank
6
5
4
8
2
1
7
3
Rank
8
6.79%
7.13%
7.57%
7.40%
8.19%
8.40%
Lower volatility = higher ranking
8.14%
7.59%
7.21%
8.40%
6.96%
6.79%
8.34%
7.18%
Volatility
3 Year Return (p.a.)
Rank
Calculated on 5 year Performance Returns 5 Year Return (p.a.)
Calculated on 3 year Performance Returns
Investment Data to the end of December 2019 – Volatility vs Return
8
-3.34%
-1.41%
-0.20%
0.22%
0.43%
4.07%
-0.95%
0.59%
0.30%
-3.34%
-2.79%
4.07%
0.37%
0.14%
Active Return
8
2.20%
2.93%
4.91%
3.78%
7.36%
8.45%
8.21%
2.83%
2.20%
8.45%
7.08%
3.60%
2.96%
3.96%
Tracking Error
8
-0.14
-0.08
0.06
-0.04
0.16
0.48
0.22
-0.04
-0.05
-0.07
0.14
0.48
-0.10
-0.14
Sharpe Ratio
SECTION 2
Global Balanced Manager Watch™ Survey – Dynamic Risk
Objective: The portfolios are balanced (multi-asset class) portfolios with exposure to both global and local assets, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to maximise long-term (more than 5 years) capital returns. This may lead to volatility of returns in the short term (less than one year).
63
64
7.23%
6.66%
5.54%
5.54%
6.44%
7.50%
5.43%
7.96%
11.42%
6.84%
6.72%
6.97%
9.26%
5.77%
6.43%
5.08%
6.60%
7.12%
6.63%
6.93%
7.16%
7.33%
3.10%
8.02%
6.95%
8.84%
8.63%
7.08%
6.56%
7.27%
Alexander Forbes Investments (Performer)
Alexander Forbes Investments (Spectrum)
Allan Gray
Ashburton Global Balanced Composite
Cadiz Global Balanced
Coronation
Foord Global Balanced
Investec Asset Management
Kagiso Global Balanced Fund
Momentum Investments Classic Factor 7
Momentum Investments Enhanced Factor 7
Momentum Investments Target Factor 7
Nedgroup Investments Balanced Fund
Nedgroup Investments XS Diversified Fund of Funds
Northstar SCI Managed Fund
Oasis
Obsidian SCI Balanced fund
Old Mutual Multi Managers Managed
Old Mutual Multi-Managers Inflation Plus 5-7%
OMIG MacroSolutions (Edge28)
OMIG MacroSolutions Balanced
Prudential Balanced
PSG Balanced Fund
Rezco Value Trend
Sanlam Lifestage Accumulation
Sasfin BCI Balanced fund
Sasfin BCI Prudential fund
SIM Global Unique
STANLIB AM
STANLIB Multi Manager Balanced Fund
*No performance history.
31
3.10%
Lowest
Number of participants
6.43%
Lower Quartile 31
5.50%
6.92%
7.55%
7.71%
6.88%
6.92%
Median
Average
8.10%
7.30%
Upper Quartile
8.74%
8.32%
11.42%
16
6
15
5
1
25
29
4
20
7
9
19
17
13
3
2
11
23
27
31
30
24
18
28
22
26
12
21
10
14
8
Rank
Lower volatility = higher ranking
7.71%
6.55%
7.55%
6.51%
5.50%
8.23%
8.72%
6.48%
7.94%
6.66%
6.97%
7.90%
7.81%
7.42%
6.44%
6.31%
7.11%
8.10%
8.66%
8.74%
8.73%
8.10%
7.90%
8.69%
7.99%
8.58%
7.40%
7.97%
7.05%
7.51%
6.87%
Highest
9
22
13
4
3
15
5
31
8
11
16
20
12
21
30
24
26
2
14
18
17
1
6
29
7
23
28
27
19
10
25
Volatility
Range
Statistics
5.94%
Absa Asset Management Global Balanced
Rank
30
-6.51%
-0.54%
0.08%
0.50%
0.81%
4.86%
0.38%
-0.32%
0.52%
3.56%
3.30%
0.31%
0.60%
-6.51%
0.77%
0.18%
*
-3.83%
0.49%
-0.82%
-1.81%
1.33%
-3.90%
1.36%
0.80%
0.55%
0.68%
4.86%
1.40%
-2.43%
0.95%
-0.12%
0.82%
-1.02%
0.17%
0.67%
-0.61%
30
0.39%
1.54%
3.14%
2.05%
4.41%
9.57%
1.15%
2.50%
1.79%
1.72%
1.29%
1.13%
9.57%
6.63%
1.75%
1.85%
*
7.96%
1.26%
6.89%
2.37%
2.53%
7.12%
6.35%
1.03%
1.86%
1.59%
4.46%
1.89%
4.44%
2.20%
4.34%
1.52%
2.52%
0.39%
1.16%
3.03%
31
-0.66
-0.13
-0.06
-0.06
-0.01
0.50
-0.01
-0.12
-0.04
0.19
0.27
-0.05
0.08
-0.66
0.00
-0.03
-0.06
-0.09
-0.03
-0.10
-0.35
-0.15
-0.22
0.23
-0.05
-0.07
-0.06
0.50
0.08
-0.22
0.02
-0.11
-0.25
-0.23
-0.10
-0.02
-0.21
27
5.08%
6.18%
6.46%
6.44%
7.32%
8.76%
3.68%
*
5.62%
6.91%
7.33%
*
6.22%
7.30%
6.03%
7.48%
6.67%
6.96%
6.75%
6.67%
7.90%
5.08%
6.25%
6.14%
*
6.71%
6.75%
6.91%
8.76%
8.11%
5.42%
6.95%
6.01%
*
7.34%
6.33%
7.46%
5.96%
25
11
7
20
8
22
4
17
9
13
16
3
27
19
21
15
14
12
1
2
26
10
23
6
18
5
24
Rank
1
11
12
21
20
9
14
3
8
16
19
13
7
6
4
25
27
26
23
15
22
24
18
17
5
10
2
Rank
27
6.23%
6.97%
7.46%
7.45%
7.92%
8.55%
Lower volatility = higher ranking
*
6.23%
7.20%
7.22%
*
7.93%
7.90%
7.11%
7.45%
6.73%
7.03%
7.58%
7.69%
7.43%
6.90%
6.87%
6.74%
*
8.41%
8.55%
8.52%
8.22%
7.52%
8.15%
8.33%
7.65%
*
7.64%
6.77%
7.19%
6.45%
Volatility
Calculated on 5 year Performance Returns Sharpe Ratio
5 Year Return (p.a.)
Tracking Error
3 Year Return (p.a.)
Active Return
Calculated on 3 year Performance Returns
Investment Data to the end of December 2019 – Volatility vs Return
26
-4.19%
-0.38%
-0.07%
0.37%
1.12%
2.41%
*
-0.84%
0.56%
-0.13%
*
-0.31%
1.31%
-4.01%
1.13%
-0.11%
*
-4.19%
0.26%
1.91%
-1.36%
1.42%
-4.05%
*
0.39%
0.43%
0.59%
2.41%
1.76%
-1.60%
0.60%
-0.34%
*
1.28%
0.35%
1.11%
-0.39%
Active Return
26
0.47%
1.62%
3.40%
2.62%
4.72%
9.65%
*
2.46%
1.95%
5.46%
*
1.25%
9.65%
7.08%
1.56%
1.87%
*
7.55%
1.37%
6.31%
2.56%
2.87%
6.67%
*
1.06%
1.82%
1.55%
4.82%
2.31%
4.40%
2.67%
3.93%
*
2.74%
0.47%
1.28%
2.67%
Tracking Error
27
-0.31
-0.15
-0.06
-0.06
0.02
0.19
*
-0.25
-0.04
0.02
*
-0.12
0.01
-0.16
0.04
-0.08
-0.03
-0.06
-0.07
0.10
-0.31
-0.14
-0.16
*
-0.06
-0.05
-0.03
0.19
0.12
-0.22
-0.03
-0.15
*
0.02
-0.13
0.04
-0.19
Sharpe Ratio
MANAGER WATCH™ SURVEY
Global Balanced Manager Watch™ Survey – Best Investment View Risk
Objective: The portfolios are balanced (multi-asset class) portfolios with exposure to global and local assets. subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and represent the managers’ best investment view.
14
6.33%
6.42%
7.41%
8.19%
7.33%
7.45%
7.66%
6.01%
6.86%
Momentum Investments Enhanced Factor 5
Nedgroup Investments XS Guarded Fund of Funds
Old Mutual Multi-Managers Inflation Plus 1-3%
Old Mutual Multi-Managers Inflation Plus 3-5%
OMIG MacroSolutions (Profile Capital)
OMIG MacroSolutions Moderate portfolio
PSG Stable Fund
STANLIB Multi-Manager Defensive Balanced Fund
3.37%
6.01%
14
4.78%
4.09%
7.37%
6.96%
Average
Lower Quartile
Lowest
4.37%
7.35%
Median
14
5.59%
7.74%
Upper Quartile
6.59%
3.00%
9.01%
Number of participants
4
3
9
2
13
1
7
14
10
5
12
8
11
6
Rank
Lower volatility = higher ranking
4.07%
3.65%
4.81%
3.40%
6.59%
3.37%
4.29%
6.59%
4.93%
4.15%
Range
11
6
9
3
8
12
13
1
6.54%
4.46%
5.81%
4.23%
Volatility
Highest
Statistics
5
9.01%
Investec Cautious Managed Fund
Momentum Investments Enhanced Factor 4
7
4
7.43%
7.77%
10
Coronation Inflation Plus Fund
7.25%
Allan Gray Life Global Stable Portfolio
2
Foord Conservative Balanced
8.22%
Alexander Forbes Investments (Conserver)
Rank
14
-2.13%
-1.35%
-0.01%
-0.26%
1.10%
2.94%
-0.58%
-1.60%
-1.93%
-0.39%
-2.13%
1.84%
-0.18%
0.39%
0.26%
2.94%
-0.34%
2.07%
-1.86%
1.34%
14
1.16%
2.09%
3.76%
3.98%
4.53%
6.70%
4.07%
3.89%
4.55%
2.08%
6.66%
3.58%
4.33%
1.67%
1.56%
2.12%
6.70%
4.46%
5.81%
1.16%
14
-0.37
-0.10
0.01
0.01
0.06
0.40
-0.12
-0.37
0.06
0.03
-0.01
0.25
0.01
-0.14
-0.21
0.40
0.06
0.02
-0.02
0.20
14
6.73%
7.03%
7.50%
7.56%
7.61%
8.68%
1.95%
6.85%
7.52%
7.15%
7.23%
7.32%
7.69%
7.64%
6.82%
6.73%
8.59%
6.98%
7.21%
8.68%
7.32%
12
5
10
8
7
3
4
13
14
2
11
9
1
6
Rank
5
3
10
2
12
1
4
14
9
8
13
7
11
6
Rank
14
3.54%
4.00%
4.68%
4.35%
5.26%
6.45%
Lower volatility = higher ranking
4.01%
3.74%
4.88%
3.55%
6.07%
3.54%
3.99%
6.45%
4.87%
4.38%
6.13%
4.32%
5.39%
4.16%
Volatility
Calculated on 5 year Performance Returns Sharpe Ratio
5 Year Return (p.a.)
Tracking Error
3 Year Return (p.a.)
Active Return
Calculated on 3 year Performance Returns
Investment Data to the end of December 2019 - Volatility vs Return
14
-2.63%
-0.95%
-0.26%
-0.26%
0.51%
2.72%
-1.10%
-0.52%
-2.60%
-0.25%
-2.63%
1.47%
-0.46%
0.52%
0.46%
2.72%
-2.02%
0.24%
-0.27%
0.75%
Active Return
14
1.31%
2.20%
3.69%
3.91%
4.68%
6.20%
4.27%
3.84%
4.80%
2.20%
6.08%
3.81%
3.99%
1.65%
1.61%
2.22%
6.20%
4.31%
5.40%
1.31%
Tracking Error
14
-0.09
-0.03
0.05
0.02
0.11
0.32
-0.08
0.09
-0.01
0.01
0.02
0.14
0.11
-0.06
-0.09
0.32
-0.03
0.00
0.28
0.03
Sharpe Ratio
SECTION 2
Global Balanced Manager Watch™ Survey – Conservative Risk
Objective: The portfolios are balanced (multi-asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to minimise the probability of short-term (less than one year) capital loss while targeting long-term (more than five years) capital growth.
65
MANAGER WATCH™ SURVEY
SA and Global Manager Watch™ – Volatility vs Return Volatility vs Return Scatterplot – SA Best Investment View 3 years ended 31 December 2019 9.00% Nedgroup Investments Managed Fund
8.10% 7.20%
Investec Asset Management
6.30% Coronation
Allan Gray
Return (p.a.)
5.40% 4.50% 3.60%
Alexander Forbes Investments Performer Local
Prudential Domestic Balanced
Absa Asset Management Domestic Balanced Foord Domestic Balanced
2.70% 1.80%
STANLIB AM
0.90% 0.00% -0.90% 6.00%
6.40%
6.80%
7.20%
7.60%
8.00%
8.40%
8.80%
9.20%
Volatility (p.a.) (standard deviation)
Volatility vs Return Scatterplot – Global Best Investment View 3 years ended 31 December 2019 11.70%
Rezco Value Trend Kagiso Global Balanced Fund Cadiz Global Balanced
10.80%
Nedgroup Investments Balanced Fund
9.90% 9.00%
Coronation Investec Asset Management
Sasfin BCI Balanced fund
Old Mutual Multi-Managers Inflation Plus 5-7% Old Mutual Multi Managers Managed STANLIB Multi Manager Balanced Fund SIM Global Unique OMIG MacroSolutions Balanced
Return (p.a.)
Sasfin BCI Prudential fund
8.10% 7.20% 6.30%
STANLIB AM Northstar SCI Managed Fund Prudential Balanced Allan Gray
Absa Asset Management Global Balanced
5.40%
Momentum Investments Target Factor 7
Oasis OMIG MacroSolutions (Edge28)
4.50%
Momentum Investments Classic Factor 7
Alexander Forbes Investments (Spectrum) Obsidian SCI Balanced fund
PSG Balanced Fund
2.70% 5.20%
Foord Global Balanced Momentum Investments Enhanced Factor 7
Nedgroup Investments XS Diversified Fund of Funds
3.60%
5.60%
6.00%
6.40%
6.80%
Alexander Forbes Investments (Performer) Ashburton Global Balanced Composite
7.20%
Volatility (p.a.) (standard deviation)
66
Sanlam Lifestage Accumulation
7.60%
8.00%
8.40%
8.80%
SECTION 2
Global Balanced Manager Watch™ – Conservative and Dynamic – Volatility vs Return Volatility vs Return Scatterplot – Global Conservative 3 years ended 31 December 2019 9.20% Investec Cautious Managed Fund
8.80% Old Mutual Multi-Managers Inflation Plus 1-3%
8.40% Alexander Forbes Investments (Conserver)
Return (p.a.)
8.00% Foord Conservative Balanced OMIG MacroSolutions Moderate portfolio
OMIG MacroSolutions (Profile Capital)
7.60%
Old Mutual Multi-Managers Inflation Plus 3-5%
Coronation Inflation Plus Fund
Allan Gray Life Global Stable Portfolio
7.20%
Nedgroup Investments XS Guarded Fund of Funds STANLIB Multi-Manager Defensive Balanced Fund
6.80%
Momentum Investments Enhanced Factor 5
6.40%
Momentum Investments Enhanced Factor 4 PSG Stable Fund
6.00% 3.20%
3.60%
4.00%
4.40%
4.80%
5.20%
5.60%
6.00%
6.40%
6.80%
Volatility (p.a.) (standard deviation)
Volatility vs Return Scatterplot – Global Dynamic 3 years ended 31 December 2019 9.60% Investec Asset Management Managed
Truffle SCI Flexible Fund
9.00% 8.40% 7.80% Return (p.a.)
Investec Opportunity
7.20%
Momentum Investments Flexible Factor 7
Momentum Investments Flexible Factor 6
6.60% Coronation (Managed)
6.00%
Laurium Flexible Prescient Fund
5.40% 4.80% 4.20% Allan Gray Life Global Absolute Portfolio
3.60% 7.00%
7.20%
7.40%
7.60%
7.80%
8.00%
8.20%
8.40%
Volatility (p.a.) (standard deviation)
67
MANAGER WATCH™ SURVEY
Global and SA Balanced Manager Watch™ Survey – Asset Allocation Average Asset Allocation of Global Best Investment View as at 31 December 2019 100%
90%
Global 25.98%
28.23%
24.12%
24.66%
2.07%
2.59%
13.20%
9.65%
0.06% 5.05%
6.13%
24.56%
27.71%
SA Cash
80% 1.81% 70%
1.69%
14.52% 16.83%
60% 4.10% 50%
SA Other
4.23% 12.12%
1.14% 6.24% 5.13%
15.29% 13.84%
13.77%
1.87% 5.89% 4.07%
16.94%
SA Real Estate SA Listed Property SA Bonds SA Equities
12.24%
40%
30% 41.48%
36.99%
41.67%
43.20%
45.65%
43.51%
2014
2015
2016
2017
2018
2019
1.55%
1.29%
2.41%
11.09%
11.78%
7.54%
20%
10%
0%
Average Asset Allocation of SA Best Investment View as at 31 December 2019 100%
90%
1.87% 18.91%
1.92% 18.28%
80% 4.51% 70%
14.80%
4.87%
17.42%
1.87% 15.78%
6.14%
6.41%
19.47%
19.19%
5.70%
SA Cash SA Real Estate
4.83%
17.71%
SA Other
23.11%
SA Listed Property SA Bonds
60% SA Equities 50%
40% 59.91%
57.50%
59.80%
61.71%
61.34%
61.24%
2014
2015
2016
2017
2018
2019
30%
20%
10%
0%
68
SECTION 2
Composite Dispersion of SA Balanced Manager WatchTM Managers SA Best Investment View 0.20%
Allan Gray
0.43%
Coronation Domestic Foord Segregated Domestic
HERE FOR YOU, THERE FOR YOU
0.23%
Investec Domestic Balanced Prudential Domestic Balanced
0.11%
0.00%
SA Best Investment View Allan Gray Coronation Domestic
0.34%
0.05%
0.10%
Minimum Return
0.15%
Maximum Return
0.20%
Median Composite Return
0.25%
0.30%
Composite Dispersion (1yr)
0.35%
0.40%
Composite Dispersion (3yrs)
0.45%
Composite Dispersion (5yrs)
6.64%
7.41%
7.00%
0.20%
*
*
11.84%
13.57%
13.07%
0.43%
0.15%
0.15%
Foord Segregated Domestic
8.25%
8.97%
8.72%
0.23%
0.32%
0.29%
Investec Domestic Balanced
10.96%
12.19%
11.19%
0.34%
0.08%
0.09%
Prudential Domestic Balanced
6.52%
6.87%
6.77%
0.11%
*
*
*Data not available.
PARTNER WITH TOP INTERNATIONAL INVESTMENT EXPERTS, HAND-PICKED FROM THE BEST, WORLDWIDE.
0.50%
Rated SA’s Top Offshore Management Company for the past four years
911281 Nedgroup NotePad_232Hx148W.indd 1
2019/06/28 10:46
69
MANAGER WATCH™ SURVEY
Composite Dispersion of Global Balanced Manager WatchTM Managers Global Best Investment View Absa Asset Management Global Balanced
0.30%
Allan Gray
0.42%
Ashburton Global Balanced
0.45%
Coronation Full Discretion
0.15%
Foord Global Balanced
0.29%
Investec Balanced International
0.44%
Oasis
0.45%
OMIG MacroSolutions Balanced
0.04%
Prudential Global Balanced
0.08%
SIM Global Unique
0.18%
STANLIB AM
0.20%
0.00%
0.20%
0.30%
0.40%
0.50%
0.60%
Minimum Return
Maximum Return
Median Composite Return
Composite Dispersion (1yr)
Composite Dispersion (3yrs)
Composite Dispersion (5yrs)
Absa Asset Management Global Balanced
7.39%
8.76%
7.94%
0.50%
0.17%
0.32%
Allan Gray
5.87%
7.68%
6.28%
0.42%
*
*
Ashburton Global Balanced
7.43%
8.34%
7.88%
0.45%
*
*
Coronation Full Discretion
14.17%
14.72%
14.58%
0.15%
0.09%
0.08%
Foord Global Balanced
12.00%
12.88%
12.30%
0.29%
0.33%
0.12%
Investec Balanced International
10.81%
12.99%
11.53%
0.44%
0.17%
0.13%
Oasis
8.90%
10.17%
9.59%
0.45%
0.31%
0.39%
OMIG MacroSolutions Balanced
9.23%
9.28%
9.25%
0.03%
0.04%
0.03%
Prudential Global Balanced
10.25%
10.45%
10.37%
0.08%
*
*
SIM Global Unique
13.31%
13.66%
13.49%
0.18%
*
*
STANLIB AM
12.05%
12.55%
12.24%
0.20%
0.09%
0.10%
Global Best Investment View
*Data not available.
70
0.10%
Closer to the truth Our obsession with depth and detail brings greater understanding and better performance. To find out more, visit www.northstar.co.za
Northstar Asset Management (Pty) Ltd (1996/001423/07) is a licensed Financial Service Provider (FSP 601).
OFFSHORE INVESTING: HINDSIGHT IS ALWAYS 20/20 Hannes van Zyl
Principal Investment Consultant – Alexander Forbes Investments
One of the first and most commonly referred to lessons of investing is to remove emotions from the investment decision-making process. However, this is much easier said than done. Behavioural finance is the field of study that aims to understand how investment decision-making in the real world (behavioural finance) differs from that prescribed by the textbook (traditional or theoretical finance). Traditional finance assumes investors are rational, risk averse and always seeking to maximise value.
However, in the real world, the opposite may often be true, with irrational decision-making and inappropriate risk-seeking behaviour driving bad outcomes and nasty surprises for investors. Behavioural finance seeks to explain why investors sometimes fall into the trap of making decisions that are clearly irrational and sub-optimal for the investment objectives they are ultimately seeking to achieve.
Overconfidence and confirmation bias are perhaps the two most prevalent behavioural biases affecting investment decisions:
Overconfidence bias
Confirmation bias
This is when people overestimate their abilities and underestimate their lack thereof.
This is when the answer to a question is based on an existing belief or theory.
They pay too much attention to past successes and too little to failures.
In other words, people fool themselves in trying to be objective, yet only paying attention to information supporting or confirming the theory and ignoring all evidence to the contrary.
Past successes are attributed only to skill (no luck). However, past failures are due to bad luck and not to a lack of skill. Overconfidence often leads to investors overestimating their ability to repeat their past successes and conveniently ignoring their past mistakes.
72
With the benefit of hindsight, both these biases often have a large impact on the foolish certainty we think we have of the future.
SECTION 2
So let’s consider the workings of an offshore investment When investing in assets denominated in a foreign currency, the ultimate rand return will depend on two sources:
This article is not about behavioural finance as such but rather about showing how emotions may lead to irrational and, consequently, sub-optimal decision-making, with possible destruction of value using current examples.
1. the return on the offshore account 2. the return on the currency
It looks at:
For example, if a South African invests in an S&P 500 index tracking portfolio, the ultimate rand return over any period would be determined by both the US dollar return on the index, and the change in the value of the rand–dollar currency exchange rate.
■ some hot topics making the rounds in parts of local financial media, especially those that would have you pack up your hard-earned rands and cents and investing them offshore ■ the role of Regulation 28 of the Pension Funds Act, as a bastion of prudent portfolio construction, as well as the sources of your rand return on offshore investments
Over the past five years, the local stock market has delivered disappointing returns, barely beating inflation. It has been a painful period for equity investors, not only relative to the good returns we have seen in the past, but also relative to the returns local investors could have generated by investing offshore. However, as the saying goes, “hindsight is always 20/20”.
Finally and most importantly, the article serves as a reminder that an investment strategy is, or at least, should be, linked to goals whilst being cognisant of the danger (historically) of emotive decision-making resulting in destruction of value for investors.
Graph 1 compares the South African stock market, relative to an offshore equivalent, over the past five years ending 31 March 2019. An initial investment of R100 000, on 1 April 2014, in the FTSE/JSE All Share Index (ALSI), would have resulted in a relatively poor investment return compared to the rand return of investing in an S&P 500 index tracker portfolio over the same period.
“This time it is different – take all your assets offshore” The South African economy has been a poor performer for some time now – low real GDP growth, increased unemployment rates and a looming credit rating downgrade creeping ever closer. Markets have not come off unscathed either, with poor equity market returns and the real yields in our bond market exposing the lack of appetite for South African government debt. All the negative news makes it easy to feel that these days everything South African is bad, everything foreign is good and investing locally guarantees a poor outcome.
Based on this five-year past performance of the South African equity market, and combining it with the current political uncertainty, and low economic growth expectations, it is unsurprising to see how easily investors could conclude that they will never see double-digit returns in the local equity market again.
Graph 1: C omparing local and offshore equity markets over five years ending 31 March 2019, with an initial investment of R100 000 R200 000
ALSI S&P500 (in ZAR)
R180 000
Inflation adjusted amount (CPI)
R120 000
R100 000
Feb-19
Oct-18
Dec-18
Jun-18
Aug-18
Apr-18
Feb-18
Oct-17
Dec-17
Aug-17
Apr-17
Jun-17
Feb-17
Dec-16
Oct-16
Aug-16
Apr-16
Jun-16
Feb-16
Oct-15
Dec-15
Jun-15
Aug-15
Apr-15
Feb-15
Oct-14
Dec-14
Aug-14
Apr-14
Jun-14
R80 000
Source: Alexander Forbes Investments and Bloomberg Costs and charges have not been considered. Income is reinvested. The graph above is for illustrative purposes only and should not be considered as advice.
73
MANAGER WATCH™ SURVEY
Despite the many warnings about the dangers of investing our money based on past performance, this information still drives most investment decisions. It enables us to rationalise the decisions we make to invest in the midst of an uncertain future. Unfortunately, uncertainty is a part of investing, and it is safe to say that local investors are not now faced with uncertainty for the first time. Graph 2 compares the South African stock market, relative to an offshore equivalent, but this time over the five years ending 31 December 2001. At 31 December 2001, a five-year initial investment of R100 000 in the ALSI would have grown to a cumulative value of approximately R178 000, compared to a similar investment in the S&P 500 (in rand), which would have grown to an approximate value of R326 000 (combination of US dollar returns and a weakening rand). Compared to inflation (initial R100 000 growing at the inflation rate), this was a similar scenario to what we currently see, with local equities not only lagging global markets significantly, but also failing to deliver any meaningful real returns for South African investors. “Hindsight is always 20/20”.
Graph 2: C omparing local versus offshore markets over five years to 31 December 2001, with an initial investment of R100 000 R350 000 R325 969 R300 000
R250 000
R200 000
R177 941
R150 000 R131 835
R100 000
R50 000
All Share
S&P 500
Inflation adjusted amount (CPI)
Source: Alexander Forbes Investments and Bloomberg Costs and charges have not been considered. Income is reinvested. The graph above is for illustrative purposes only and should not be considered as advice.
74
Nov-01
Sep-01
Jul-01
May-01
Mar-01
Jan-01
Nov-00
Sep-00
Jul-00
May-00
Mar-00
Jan-00
Nov-99
Sep-99
Jul-99
May-99
Mar-99
Jan-99
Nov-98
Sep-98
Jul-98
May-98
Mar-98
Jan-98
Nov-98
Sep-97
Jul-97
May-97
Mar-97
Jan-97
R
SECTION 2
Case study: Peter – Civil engineer Consider this … It is early December 2001 and Peter, a 55-year-old local civil engineer, has been diligently saving towards his employersponsored retirement fund since leaving university 30 years ago. Peter is set to retire at the age of 60 and only has five years of formal employment left.
It is Christmas now and Peter instructs his adviser to move all his remaining local investments offshore. In addition, Peter resigns from his employment, to access his retirement savings accumulated over 30 years, paying taxes on the lump-sum withdrawal.
With the advice of his financial adviser, he has also saved additional discretionary investments in local and offshore unit trusts. His financial adviser has been extremely negative on the outlook of the South African economy and constantly reminds him of the poor returns his retirement account and other local investments are generating, relative to his offshore investments. Peter’s adviser is especially critical of the imposed limits of Regulation 28 and believes that his client is penalised by not having the option to invest a greater portion (if not all) of his retirement savings offshore.
Early in February 2002 he moves all his retirement savings to offshore accounts. Peter clearly communicated to his adviser, before this drastic action, that he still planned to retire in South Africa, in five years’ time, at the age of 60. Let us assume that at that date (1 December 2001), Peter had a total of R100 000 in total savings to invest. All his savings were invested in an index on the largest developed market stock exchange, the S&P 500, a so-called safe haven compared to the local market. Now, it would be fair to say that the uncertainty and apprehensiveness among South African investors during the latter part of 2001 would have been justified. However, graph 3 shows just how much value a decision to place all investments offshore would have destroyed.
After months of his adviser prompting him to invest all his discretionary investments in offshore assets and with the rand weakening to its all-time low against the dollar, Peter has had enough. All the signs indicate that it is time for drastic action.
1 December 2001 | 55 years old
R100 000
Graph 3: T aking R100 000 offshore or remaining in the ALSI at 31 December 2001 to 31 December 2019 R1 000 000
Inflation (CPI) ALSI
R800 000
S&P500 (in ZAR) CPI + 5%
R600 000
R400 000
R200 000
Nov-18
Apr-18
Sep-17
Jul-16
Feb-17
May-15
Oct-14
Dec-15
Mar-14
Aug-13
Jan-13
Jun-12
Apr-11
Nov-11
Sep-10
Sep-10
Jul-09
Feb-10
Dec-08
May-08
Oct-07
Mar-07
Jan-06
Aug-06
Jun-05
Apr-04
Nov-04
Feb-03
Sep-03
Jul-02
Dec-01
R
Source: Alexander Forbes Investments and Bloomberg Costs and charges have not been considered. Income is reinvested. The graph above is for illustrative purposes only and should not be considered as advice.
75
MANAGER WATCH™ SURVEY
Based on the above illustration, had South African investors (such as Peter) moved all their assets from local to offshore accounts (assuming either investing to local equities or US equities), it would have taken more than a decade to break even in nominal rand terms. The years after December 2001 saw the rand–dollar exchange rate appreciate from the initial R13.84 to the dollar to the level of R5.66 achieved on 31 January 2005. Any positive dollar returns were simply erased by the appreciating (stronger) rand. In fact, it would have taken the investor more than a decade (to November 2012) just to break even again. Taking the local inflation rate into account, it would have taken almost 14 years for the initial R100 000 offshore investment to break even in real rand terms (to October 2015).
The lessons learnt Having a portion of our long-term investments (retirement or discretionary) allocated to offshore assets provides for great investment rationale. Not only does the ability to invest offshore increase local investors’ investment opportunity set, but it also provides for great diversification benefits. However, blindly allocating capital to offshore investments only also holds risks. What to consider when deciding on the optimal percentage of investor assets to be invested offshore: 1. The currency in which investors’ liabilities are based When future liabilities (cash flows) are based in one currency and investments are based in another, currency risk needs to be considered. Any positive returns in a foreign currency investment can either be dampened or enhanced by an appreciating or depreciating local currency.
2. Decisions driven by emotions can result in undesirable outcomes The journey to steadily growing wealth can often be marred by emotions that drive irrational actions with undesirable outcomes. Investment decisions informing portfolio construction should consider financial goals (retirement spending needs) and be based on rational and attainable outcomes. Forgetting our human decision-making biases, people easily fall into the trap of overestimating their ability to forecast the future with any level of certainty. An investment strategy tied to needs and expectations – rather than emotions – can help investors navigate the peaks and troughs of the market with confidence. A qualified and experienced financial adviser or consultant can highlight the importance of commitment to an investment strategy over the long term, ensuring you stay on track and reach the finish line with no unexpected surprises. 3. Regulation 28 safeguards us from emotional decision-making Regulation 28 of the Pension Funds Act is not a measure put in place to penalise retirement fund investors and members. Regulation 28 seeks mainly to protect long-term investors from implementing drastic investment decisions and reinforcing sound investment plans while diversifying across multiple asset classes, locally and globally. Finally, the most often used justification for a much larger percentage of assets invested offshore is that the local equity market only represents about 1% of the global market. Hence, with more global investment opportunities, most assets should be invested offshore. This argument is fundamentally flawed, as it completely ignores the second source of rand-based returns, namely the currency return.
In conclusion, as biased decision-makers, we need clear and prudent investment guidelines to safeguard us from our own (often irrational) emotional decision-making.
76
MANAGER WATCHâ„¢ SERIES OF SURVEYS
78
3
Looking further to bring opportunities closer? Investing locally can feel like the safer option. But by limiting yourself to 1% of the global equity market, you could be missing out on growth in other areas of the world. Schroders has over 200 years of experience investing in global markets, so you can rest easy knowing that if you decide to diversify your investments, you will be in expert hands. Please remember that the value of investments and income from them may go down as well as up, and you may not get back the amount originally invested.
Find out more. schroders.co.za
For what matters most. Schroder Investment Management Ltd, South Africa. Cape Town: Cube WS, 183 Albion Springs, Rondebosch, Cape Town 7700 | Johannesburg: 155 West Street, Sandton, Johannesburg, Gauteng, 2031. Schroders.co.za Marketing material for investment professionals and advisers only. Issued in February 2019 by Schroder Investment Management Ltd, an authorised financial services provider FSP No: 48998, registration number: 01893220. (Incorporated in England and Wales). Collective Investment Schemes in securities are generally medium to long term investments. The value of participatory interests may go up or down and past performance is not necessarily an indication of future performance. The Manager does not guarantee the capital or the return of a portfolio. Collective Investments are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees, charges and maximum commissions is available on request.
SECTION 3
SA Equity Manager Watch™ Survey Objective: The portfolios included in this survey represent specialist active equity portfolios with various benchmarks. No carve-outs are reflected.
Range of Returns of SA Equity Total Investable Universe for the periods ending 31 December 2019 30% 25% 20% 15% 10% 5% 0% -5% 1 Year
3 Years (p.a.)
5 Years (p.a.) 25% – 75%
7 Years (p.a.)
Min – Max
10 Years (p.a.)
Median
Return Statistics (Investable) 1 Year
3 Years (p.a.)
5 Years (p.a.)
7 Years (p.a.)
Highest
SA Equity Total
28.53%
12.46%
11.29%
14.38%
10 Years (p.a.) 13.49%
Upper Quartile
11.12%
6.26%
5.67%
9.52%
11.84%
Median
7.78%
4.98%
4.70%
8.56%
11.12%
Average
9.42%
4.86%
4.68%
8.33%
10.69%
Lower Quartile
5.42%
3.33%
3.51%
7.32%
9.96%
Lowest
-2.34%
-1.54%
0.64%
3.89%
5.66%
Range
30.87%
14.01%
10.65%
10.49%
7.84%
71
60
50
45
31
Number of Participants
Benchmarks of Portfolios in the equity survey as a percentage of the Survey Benchmark FTSE/JSE All Share Index
% of Universe 5.63%
FTSE/JSE Capped All Share Index
4.23%
FTSE/JSE SWIX All Share Index
29.58%
FTSE/JSE Capped SWIX ALSI
43.66%
FTSE/JSE Top 40 Index
2.82%
Other
14.08%
81
MANAGER WATCH™ SURVEY
SA Equity Manager Watch™ Survey Objective: The portfolios included in this survey represent specialist active equity portfolios with various benchmarks. No carve-outs are reflected.
General information GIPS™ (Verified/ Compliant)
Managed ITO Regulation 28? (Y/N)
V
N
FTSE/JSE SWIX All Share Index
Absa Asset Management Prime Equity
V
N
FTSE/JSE Top 40 Index
2
887
Aeon Active Equity Fund
C
N
FTSE/JSE SWIX All Share Index
19
11 230
FTSE/JSE Capped All Share Index
2
439
V
N
FTSE/JSE Capped All Share Index
2
N/A
N
FTSE/JSE Capped SWIX All Share Index FTSE/JSE SWIX All Share index
1
659
N
FTSE/JSE Capped SWIX All Share Index
6
1 684 3 243
Investment Managers
Benchmark Description
No. of Funds in Composite
Portfolio Size (R m)
Benchmark Cognisant Abax Equity Fund Absa Asset Management Core Equity
FTSE/JSE Capped SWIX All Share Index
Afena Capital Core Equity Afena Capital Moderate Equity CAPI Alexander Forbes Investments Pure Equity Local All Weather Capital SWIX Equity Fund Aluwani Capped SWIX Equity Composite Argon SA Equity Capped SWIX
9 081
3
2 898
N/A
509 10 622
Y
FTSE/JSE Capped SWIX All Share Index
5
Y
FTSE/JSE SWIX All Share Index
3
698
FTSE/JSE Capped SWIX All Share Index
5
2 085
Benguela SA Equity SWIX Fund
FTSE/JSE SWIX All Share index
1
128
BlueAlpha Equity
C
N
FTSE/JSE SWIX All Share Index since inception to 31/10/2017,FTSE/JSE Capped SWIX thereafter
Coronation Core Equity
V
N
FTSE/JSE SWIX All Share Index
1
FTSE/JSE Capped SWIX All Share Index
1
933
FTSE/JSE Capped SWIX All Share Index
1
14 133 1 063
Argon SA Equity Fund
V
Benguela SA Equity Capped SWIX Fund
C
Excelsia Capital Core Equity Fairtree Asset Management Equity fund First Avenue General Equity
N C
Y
Kagiso Core Equity Capped SWIX Fund Mergence CAPI Fund
V
N
Mergence SWIX Fund
V
N
N/A
2 362 662
FTSE/JSE SWIX All Share Index
3
FTSE/JSE Capped SWIX All Share Index
3
2 008
FTSE/JSE Capped All Share Index
2
1 161
8
2 469
FTSE/JSE SWIX All Share Index
Mianzo Active Equity Fund
CAPI, SWIX and Capped SWIX combined
Mianzo Enhanced Equity Fund
FTSE/JSE Capped SWIX minus SAPY
1
1 438 15 593
Momentum Investments Classic Equity
N/A
669
N/A
N
FTSE/JSE Capped SWIX All Share Index
1
Old Mutual Double Alpha SWIX40
V
N
FTSE/JSE SWIX40 Index
2
635
Old Mutual Fundamental Equity
V
N
FTSE/JSE Capped SWIX All Share Index
4
37 315
OMIG Managed Alpha Equity
V
N
FTSE/JSE Capped SWIX All Share Index
1
1 887
Prescient Core Equity
V
Y
FTSE/JSE SWIX All Share Index
4
2 024 9 363
Prudential Core Equity
V
Y
FTSE/JSE Capped SWIX All Share Index
14
Prudential Select Equity
V
Y
FTSE/JSE Capped SWIX All Share Index
3
4 388
FTSE/JSE Capped SWIX All Share Index
7
4 312
N
FTSE/JSE SWIX All Share Index
2
8 364
Y
98% FTSE/JSE SWIX ALL Share Index; 2% 4 Major Bank Call Rate
2
1 718
FTSE/JSE SWIX All Share Index
1
2 651
N
FTSE/JSE Capped SWIX All Share Index
1
3 396
Sentio General Equity (Capped SWIX) Sentio General Equity Fund SIM Moderate Equity
V
STANLIB Core Equity
V
STANLIB Multi Factor Equity
V
STANLIB Multi-Manager SA Equity Fund
N/A
N
FTSE/JSE Capped SWIX All Share Index
N/A
8 757
Sygnia Core Equity Fund
N/A
N
FTSE/JSE SWIX All Share Index
N/A
3 726
N
FTSE/JSE Capped Shareholder Weighted Index (SWIX)
N/A
595
Truffle SCI General Equity fund VunaniFM Active Capped SWIX
V
Y
FTSE/JSE Capped SWIX All Share Index
3
1 312
VunaniFM Core Equity Fund
V
Y
FTSE/JSE SWIX All Share Index
1
261
FTSE/JSE Capped SWIX All Share Index
4
X-Chequer Equity Strategy Total V = Verified C = Compliant
82
N/A
316 177 672
SECTION 3
SA Equity Manager Watch™ Survey Objective: The portfolios included in this survey represent specialist active equity portfolios with various benchmarks. No carve-outs are reflected.
General information GIPS™ (Verified/ Compliant)
Managed ITO Regulation 28? (Y/N)
Benchmark Description
No. of Funds in Composite
Absa Asset Management Value
V
N
FTSE/JSE All Share Index
3
Afena Capital Unconstrained Equity
V
N
FTSE/JSE Capped SWIX All Share Index
1
1 527
Allan Gray
V
Y
FTSE/JSE All Share Index
60
47 699
Investment Managers
Portfolio Size (R m)
Not Benchmark Cognisant 3 710
Bridge Equity Income Growth Fund
ASISA South African Equity General Sector Ave
3
262
ClucasGray Equity Fund
FTSE/JSE SWIX All Share Index
1
735
Coronation Aggressive Equity
V
N
FTSE/JSE Capped SWIX All Share Index
4
8 690
Coronation Houseview Equity
V
N
FTSE/JSE Capped SWIX All Share Index
48
28 720
Denker SA Equity
V
Y
FTSE/JSE Capped SWIX All Share Index
2
853
Electus Equity Fund
C
N
FTSE/JSE Capped SWIX All Share Index
1
1 028
Element Equity
V
Y
FTSE/JSE SWIX All Share Index
2
295
FTSE/JSE SWIX All Share Index
2
303
C
Y
FTSE/JSE SWIX All Share Index
1
314
4
7 656
Excelsia Capital Aggressive Equity First Avenue Focused Equity Foord Domestic Equity
C
N
FTSE/JSE Capped All Share Index (prior to 1 July 2018 FTSE/JSE All Share Index)
Investec Equity
V
Y
FTSE/JSE Capped SWIX All Share Index
27
21 892
Investec Value
V
Y
FTSE/JSE All Share Index
9
5 068
Kagiso Managed Equity Capped SWIX
C
N
FTSE/JSE Capped SWIX All Share Index
3
3 377
Kagiso Managed Equity Fund
V
N
FTSE/JSE SWIX All Share Index
4
1 542
N
FTSE/JSE Capped SWIX All Share Index
N/A
2 015
C
N
FTSE/JSE Capped SWIX All Share Index
24
12 056
Mazi Asset Management SWIX Composite
C
N
FTSE/JSE SWIX All Share Index
7
1 312
Momentum Investments Trending Equity
N/A
N
FTSE/JSE Capped SWIX All Share Index
3
7 254
Momentum Investments Value Equity
N/A
N
FTSE/JSE Capped SWIX All Share Index
3
1 711
N
FTSE/JSE SWIX Top 40 Index
3
1 461
Laurium Equity Prescient Fund Mazi Asset Management Equity CAPPED SWIX Composite
Nedgroup Investments Private Wealth Equity Fund Oasis Specialist Domestic Equity
V
Y
South Africa OE (ASISA) Domestic Equity General
3
8 676
OMIG Premium Equity
V
N
FTSE/JSE Capped SWIX All Share Index
3
819
FTSE/JSE SWIX All Share Index
1
2 939
Rezco Equity
V
N
FTSE/JSE All Share Index
1
563
SIM Aggressive Equity
V
Y
98% FTSE/JSE Capped SWIX ALSI; 2% STeFI
1
516
SIM Top Choice Equity Fund
C
N
FTSE/JSE SWIX: 97% | STeFI: 3%
2
2 780
N/A
N
FTSE/JSE SWIX All Share Index
1
Perpetua Equity
Sygnia Absolute Focus Equity Fund Total
3 663 179 436
V = Verified C = Compliant
83
MANAGER WATCH™ SURVEY
SA Equity Manager Watch™ Survey Objective: The portfolios included in this survey represent specialist active equity portfolios with various benchmarks. No carve-outs are reflected.
Investment Data to the end of December 2019 – Performance Data Investment Managers Benchmark Cognisant Abax Equity Fund Absa Asset Management Core Equity Absa Asset Management Prime Equity Aeon Active Equity Fund Afena Capital Core Equity Afena Capital Moderate Equity CAPI Alexander Forbes Investments Pure Equity Local All Weather Capital SWIX Equity Fund Aluwani Capped SWIX Equity Composite Argon SA Equity Capped SWIX Argon SA Equity Fund Benguela SA Equity Capped SWIX Fund Benguela SA Equity SWIX Fund BlueAlpha Equity Coronation Core Equity Excelsia Capital Core Equity Fairtree Asset Management Equity Fund First Avenue General Equity Kagiso Core Equity Capped SWIX Fund Mergence CAPI Fund Mergence SWIX Fund Mianzo Active Equity Fund Mianzo Enhanced Equity Fund Momentum Investments Classic Equity Old Mutual Double Alpha SWIX40 Old Mutual Fundamental Equity OMIG Managed Alpha Equity Prescient Core Equity Prudential Core Equity Prudential Select Equity Sentio General Equity (Capped SWIX) Sentio General Equity Fund SIM Moderate Equity STANLIB Core Equity STANLIB Multi Factor Equity STANLIB Multi-Manager SA Equity Fund Sygnia Core Equity Fund Truffle SCI General Equity fund VunaniFM Active Capped SWIX VunaniFM Core Equity Fund X-Chequer Equity Strategy
1 Year Portfolio
3 Years (p.a.) Benchmark Portfolio
5 Years (p.a.)
Benchmark Portfolio
7 Years (p.a.)
Benchmark Portfolio
10 Years (p.a.)
Benchmark Portfolio
Benchmark
FTSE/JSE Capped SWIX All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE Top 40 Index FTSE/JSE SWIX All Share Index FTSE/JSE Capped All Share Index FTSE/JSE Capped All Share Index
5.28% 10.34% 20.23% 8.96% 8.41% 7.26%
6.75% 9.32% 12.41% 9.32% 10.52% 10.52%
3.46% 4.91% 9.24% 6.67% 5.61% 5.04%
3.78% 5.39% 8.25% 5.39% 6.42% 6.41%
4.02% 5.35% 8.22% 5.78% * 4.36%
3.83% 4.78% 6.06% 4.78% * 5.66%
8.67% * 11.33% 9.83% * 6.40%
7.71% * 8.75% 8.41% * 8.57%
11.58% * * 11.80% * 7.84%
10.58% * * 11.09% * 10.75%
FTSE/JSE Capped SWIX All Share Index
5.36%
6.75%
2.12%
3.78%
2.33%
3.82%
6.21%
7.70%
9.09%
10.58%
FTSE/JSE SWIX All Share index
5.38%
9.34%
5.68%
5.40%
*
*
*
*
*
*
FTSE/JSE Capped SWIX All Share Index
7.87%
6.75%
4.91%
3.46%
*
*
*
*
*
*
FTSE/JSE Capped SWIX All Share Index FTSE/JSE SWIX All Share Index
9.68% 11.66%
6.75% 9.32%
* 6.66%
* 5.39%
* 5.98%
* 4.78%
* 9.99%
* 8.41%
* 11.40%
* 11.09%
FTSE/JSE Capped SWIX
3.15%
6.75%
*
*
*
*
*
*
*
*
FTSE/JSE SWIX All Share index FTSE/JSE SWIX All Share Index since inception to 31/10/2017, FTSE/JSE Capped SWIX thereafter FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX All Share Index
6.28%
9.32%
4.27%
5.45%
*
*
*
*
*
*
7.11%
6.74%
6.00%
5.01%
*
*
*
*
*
*
11.64% 7.08%
9.32% 6.73%
6.30% *
5.39% *
4.93% *
4.78% *
9.12% *
8.41% *
12.02% *
11.09% *
FTSE/JSE Capped SWIX All Share Index
21.98%
6.75%
12.46%
3.96%
11.29%
3.92%
14.38%
7.77%
*
*
FTSE/JSE SWIX All Share Index
3.03%
9.32%
-0.45%
5.39%
1.01%
4.78%
5.34%
8.41%
*
*
FTSE/JSE Capped SWIX All Share Index
9.85%
6.73%
*
*
*
*
*
*
*
*
FTSE/JSE Capped All Share Index FTSE/JSE SWIX All Share Index CAPI, SWIX and Capped SWIX combined FTSE/JSE Capped SWIX minus SAPY
8.27% 6.01%
10.52% 9.32%
4.92% 3.48%
6.41% 5.39%
5.40% 4.47%
5.66% 4.78%
8.77% 8.67%
8.57% 8.41%
10.30% 10.68%
10.75% 11.09%
5.46%
7.57%
4.51%
4.44%
3.85%
4.37%
*
*
*
*
5.81%
7.47%
4.61%
5.09%
*
*
*
*
*
*
FTSE/JSE Capped SWIX All Share Index
10.60%
6.75%
5.70%
5.22%
5.10%
4.68%
8.82%
8.33%
11.20%
11.03%
FTSE/JSE SWIX40 Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE SWIX All Share Index 98% FTSE/JSE SWIX ALL Share Index; 2% 4 Major Bank Call Rate FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX All Share Index
9.29% 7.63% 7.01% 10.06% 4.92% 4.87% 5.77% 7.38%
8.63% 6.75% 6.74% 9.32% 6.75% 6.75% 6.73% 9.32%
6.57% 3.67% 2.33% 5.80% 5.40% 5.71% * 3.32%
5.78% 3.97% 4.12% 5.39% 4.48% 4.80% * 5.39%
5.42% 3.56% 3.53% 5.25% 5.58% 5.69% * 4.25%
4.55% 3.93% 4.03% 4.78% 4.24% 4.46% * 4.78%
9.24% 8.38% 8.05% * 9.88% 9.72% * 8.38%
8.25% 7.78% 7.85% * 8.01% 8.12% * 8.41%
* 10.28% * * 12.44% 11.89% * *
* 10.64% * * 10.80% 10.83% * *
12.48%
9.27%
6.25%
5.43%
5.49%
4.83%
9.58%
8.37%
11.92%
11.00%
2.60% 9.20%
9.32% 6.75%
1.35% 6.33%
5.39% 4.51%
0.72% 4.44%
4.78% 4.26%
4.42% 7.87%
8.41% 8.02%
9.15% 10.77%
11.09% 10.81%
FTSE/JSE Capped SWIX All Share Index
9.21%
6.75%
4.47%
4.12%
3.52%
4.02%
7.26%
7.84%
*
*
FTSE/JSE SWIX All Share Index FTSE/JSE Capped Shareholder Weighted Index (SWIX) FTSE/JSE Capped SWIX All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX All Share Index
9.30%
9.32%
3.85%
5.39%
3.35%
4.78%
7.47%
8.41%
*
*
17.77%
12.10%
9.00%
7.42%
7.82%
5.99%
11.50%
8.77%
*
*
5.22% 9.03% 7.36%
6.75% 9.32% 6.75%
* 5.56% *
* 5.39% *
* 5.72% *
* 4.78% *
* 8.39% *
* 8.41% *
* * *
* * *
Market Indices & Statistics FTSE/JSE All Share Index FTSE/JSE Capped All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE Mid Cap Index FTSE/JSE Small Cap Index FTSE/JSE Top 40 Index FTSE/JSE Value Index FTSE/JSE Growth Index S&P South Africa (DSW)
12.05% 10.52% 9.32% 6.75% 15.58% -4.10% 12.41% 6.14% 17.87% 9.22%
7.42% 6.41% 5.39% 3.46% 3.86% -5.52% 8.25% 4.39% 9.42% 5.87%
5.99% 5.66% 4.78% * 5.62% -0.41% 6.06% 2.79% 8.25% 5.14%
8.77% 8.57% 8.41% * 8.55% 5.88% 8.75% 5.03% 11.22% 8.77%
10.78% 10.75% 11.09% * 12.11% 9.26% 10.52% 8.26% 12.24% 11.22%
S&P South Africa (DSW) Capped
7.23%
3.42%
3.60%
7.60%
10.39%
*No performance history.
84
Benchmark
SECTION 3
SA Equity Manager Watch™ Survey Objective: The portfolios included in this survey represent specialist active equity portfolios with various benchmarks. No carve-outs are reflected.
Investment Data to the end of December 2019 – Performance Data Investment Managers
Benchmark
Not Benchmark Cognisant Absa Asset Management Value Afena Capital Unconstrained Equity Allan Gray Bridge Equity Income Growth Fund
FTSE/JSE All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE All Share Index ASISA South African Equity General Sector Ave FTSE/JSE SWIX All Share ClucasGray Equity Fund Index FTSE/JSE Capped SWIX Coronation Aggressive Equity All Share Index FTSE/JSE Capped SWIX Coronation Houseview Equity All Share Index Denker SA Equity FTSE/JSE Capped SWIX FTSE/JSE Capped SWIX Electus Equity Fund All Share Index FTSE/JSE SWIX All Share Element Equity Index Excelsia Capital Aggressive FTSE/JSE SWIX All Share Equity Index FTSE/JSE SWIX All Share First Avenue Focused Equity Index FTSE/JSE Capped All Share Foord Domestic Equity Index (prior to 1 July 2018 FTSE/JSE All Share Index) FTSE/JSE Capped SWIX Investec Equity All Share Index Investec Value FTSE/JSE All Share Index Kagiso Managed Equity FTSE/JSE Capped SWIX Capped SWIX All Share Index FTSE/JSE SWIX All Share Kagiso Managed Equity Fund Index FTSE/JSE Capped SWIX Laurium Equity Prescient Fund All Share Index Mazi Asset Management Equity FTSE/JSE Capped SWIX CAPPED SWIX Composite All Share Index Mazi Asset Management SWIX FTSE/JSE SWIX All Share Composite Index Momentum Investments FTSE/JSE Capped SWIX Trending Equity Momentum Investments FTSE/JSE Capped SWIX Value Equity Nedgroup Investments FTSE/JSE SWIX Top 40 Index Private Wealth Equity Fund Oasis Specialist Domestic Equity OMIG Premium Equity Perpetua Equity Rezco Equity SIM Aggressive Equity SIM Top Choice Equity Fund Sygnia Absolute Focus Equity Fund
South Africa OE (ASISA) Domestic Equity General FTSE/JSE Capped SWIX All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE All Share Index 98% FTSE/JSE Capped SWIX ALSI; 2% STeFI FTSE/JSE SWIX: 97% STeFI: 3% FTSE/JSE SWIX All Share Index
Market Indices & Statistics FTSE/JSE All Share Index FTSE/JSE Capped All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE Mid Cap Index FTSE/JSE Small Cap Index FTSE/JSE Top 40 Index FTSE/JSE Value Index FTSE/JSE Growth Index S&P South Africa (DSW) S&P South Africa (DSW) Capped
1 Year Portfolio
3 Years (p.a.) Benchmark
Portfolio
5 Years (p.a.)
Benchmark
Portfolio
7 Years (p.a.)
Benchmark
Portfolio
10 Years (p.a.)
Benchmark
Portfolio
Benchmark
14.47%
12.05%
6.17%
7.42%
4.20%
5.99%
7.32%
8.77%
10.39%
2.74%
6.75%
1.04%
4.30%
1.85%
4.13%
3.89%
7.93%
*
10.78% *
3.90%
12.05%
3.26%
7.42%
5.46%
5.99%
9.21%
8.77%
11.12%
10.78%
-2.34%
7.96%
0.84%
3.32%
*
*
*
*
*
*
6.68%
9.34%
6.55%
5.40%
*
*
*
*
*
*
15.77%
6.75%
5.78%
3.78%
4.59%
3.82%
8.36%
7.70%
11.48%
10.58%
13.95%
6.75%
4.91%
3.78%
4.31%
3.82%
8.79%
7.70%
11.60%
10.58%
6.85%
6.75%
0.41%
4.20%
0.91%
4.09%
4.57%
7.83%
7.57%
10.61%
2.86%
7.05%
3.34%
5.19%
3.42%
4.68%
7.70%
7.80%
9.65%
10.10%
9.58%
9.32%
7.46%
5.39%
4.81%
4.78%
3.90%
8.41%
5.66%
11.09%
7.78%
9.32%
1.39%
5.39%
*
*
*
*
*
*
2.03%
9.32%
-1.54%
5.39%
0.64%
4.78%
5.19%
8.41%
*
*
5.95%
10.52%
-0.67%
7.39%
0.79%
5.97%
6.47%
8.75%
10.82%
10.77%
12.21%
6.75%
5.71%
4.84%
6.89%
4.45%
10.50%
8.17%
11.88%
10.92%
28.53%
12.05%
5.48%
7.42%
7.92%
5.99%
7.42%
8.77%
7.99%
10.78%
22.93%
6.73%
9.77%
3.46%
*
*
*
*
*
*
24.60%
9.32%
10.65%
5.39%
6.50%
4.78%
9.15%
8.41%
11.02%
11.09%
8.56%
5.12%
6.71%
3.71%
5.47%
3.81%
*
*
*
*
2.66%
6.75%
*
*
*
*
*
*
*
*
5.37%
9.32%
2.71%
5.39%
3.51%
4.78%
8.01%
8.41%
13.00%
11.09%
17.30%
6.75%
*
*
*
*
*
*
*
*
6.28%
6.75%
*
*
*
*
*
*
*
*
3.84%
8.65%
-1.22%
5.79%
2.48%
4.55%
8.56%
8.25%
11.43%
10.58%
7.40%
8.32%
3.78%
3.57%
3.05%
2.96%
5.94%
6.20%
9.37%
8.32%
9.97%
6.75%
6.10%
4.12%
6.02%
4.03%
8.88%
7.85%
*
*
3.73%
9.33%
0.41%
5.39%
1.47%
4.78%
*
*
*
*
16.56%
12.05%
*
*
*
*
*
*
*
*
25.89%
6.77%
11.80%
5.28%
9.17%
4.74%
11.64%
8.31%
12.67%
10.95%
25.03%
9.27%
10.03%
5.47%
8.42%
4.87%
12.35%
8.37%
13.49%
10.97%
11.70%
9.32%
4.78%
5.39%
5.62%
4.78%
9.52%
8.41%
*
*
12.05% 10.52% 9.32% 6.75% 15.58% -4.10% 12.41% 6.14% 17.87% 9.22% 7.23%
7.42% 6.41% 5.39% 3.46% 3.86% -5.52% 8.25% 4.39% 9.42% 5.87% 3.42%
5.99% 5.66% 4.78% * 5.62% -0.41% 6.06% 2.79% 8.25% 5.14% 3.60%
8.77% 8.57% 8.41% * 8.55% 5.88% 8.75% 5.03% 11.22% 8.77% 7.60%
10.78% 10.75% 11.09% * 12.11% 9.26% 10.52% 8.26% 12.24% 11.22% 10.39%
*No performance history.
85
MANAGER WATCH™ SURVEY
SA Equity Manager Watch™ Survey Objective: The portfolios included in this survey represent specialist active equity portfolios with various benchmarks. No carve-outs are reflected.
Investment Data to the end of December for the past 5 Calendar years Investment Managers
Benchmark
2018
2017
Portfolio Benchmark Portfolio
2016
2015
2014
Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio
Benchmark
Benchmark Cognisant FTSE/JSE Capped SWIX All Share Index Absa Asset Management Core Equity FTSE/JSE SWIX All Share Index Absa Asset Management Prime Equity FTSE/JSE Top 40 Index Aeon Active Equity Fund FTSE/JSE SWIX All Share Index Afena Capital Core Equity FTSE/JSE Capped All Share Index Afena Capital Moderate Equity CAPI FTSE/JSE Capped All Share Index Alexander Forbes Investments Pure FTSE/JSE Capped SWIX Equity Local All Share Index All Weather Capital SWIX Equity Fund FTSE/JSE SWIX All Share index Capped SWIX Aluwani Capped SWIX Equity Composite FTSE/JSE All Share Index FTSE/JSE Capped SWIX Argon SA Equity Capped SWIX All Share Index Argon SA Equity Fund FTSE/JSE SWIX All Share Index Benguela SA Equity Capped SWIX Fund FTSE/JSE Capped SWIX Benguela SA Equity SWIX Fund FTSE/JSE SWIX All Share index FTSE/JSE SWIX All Share Index BlueAlpha Equity since inception to 31/10/2017, FTSE/JSE Capped SWIX thereafter Coronation Core Equity FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX Excelsia Capital Core Equity All Share Index Capped SWIX Fairtree Asset Management Equity fund FTSE/JSE All Share Index First Avenue General Equity FTSE/JSE SWIX All Share Index Capped SWIX Kagiso Core Equity Capped SWIX Fund FTSE/JSE All Share Index Mergence CAPI Fund FTSE/JSE Capped All Share Index Mergence SWIX Fund FTSE/JSE SWIX All Share Index CAPI, SWIX and Capped SWIX Mianzo Active Equity Fund combined FTSE/JSE Capped SWIX Mianzo Enhanced Equity Fund minus SAPY Capped SWIX Momentum Investments Classic Equity FTSE/JSE All Share Index Old Mutual Double Alpha SWIX40 FTSE/JSE SWIX40 Index FTSE/JSE Capped SWIX Old Mutual Fundamental Equity All Share Index FTSE/JSE Capped SWIX OMIG Managed Alpha Equity All Share Index Prescient Core Equity FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX Prudential Core Equity All Share Index FTSE/JSE Capped SWIX Prudential Select Equity All Share Index FTSE/JSE Capped SWIX Sentio General Equity (Capped SWIX) All Share Index Sentio General Equity Fund FTSE/JSE SWIX All Share Index 98% FTSE/JSE SWIX ALL Share SIM Moderate Equity Index; 2% 4 Major Bank Call Rate STANLIB Core Equity FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX STANLIB Multi Factor Equity All Share Index Capped SWIX STANLIB Multi-Manager SA Equity Fund FTSE/JSE All Share Index Sygnia Core Equity Fund FTSE/JSE SWIX All Share Index FTSE/JSE Capped Shareholder Truffle SCI General Equity fund Weighted Index (SWIX) FTSE/JSE Capped SWIX VunaniFM Active Capped SWIX All Share Index VunaniFM Core Equity Fund FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX X-Chequer Equity Strategy All Share Index Market Indices & Statistics FTSE/JSE All Share Index FTSE/JSE Capped All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE Mid Cap Index FTSE/JSE Small Cap Index FTSE/JSE Top 40 Index Abax Equity Fund
-10.94%
18.32%
17.57%
-0.97%
4.19%
11.01%
3.62%
14.77%
15.42%
-11.67% -8.31% -11.67% -7.64% -7.67%
16.97% 14.73% 25.79% 16.91% 15.15%
21.21% 23.07% 21.21% 18.07% 18.06%
2.14% 3.75% 1.86% * 7.66%
4.13% -1.60% 4.13% * 3.94%
10.04% 9.76% 7.14% * -0.81%
3.62% 7.52% 3.62% * 5.17%
* 12.58% 13.48% * 5.12%
* 9.17% 15.42% * 11.08%
-12.28%
-10.93%
15.21%
17.57%
4.20%
4.13%
1.11%
3.62%
10.52%
15.42%
-7.35%
-11.66%
20.89%
21.21%
*
*
*
*
*
*
-9.86%
-10.94%
18.73%
16.49%
*
*
*
*
*
*
-6.03%
-10.94%
*
*
*
*
*
*
*
*
-7.47% -9.79% -10.91%
-11.67% -10.94% -11.60%
17.45% * 19.71%
21.21% * 21.34%
0.36% * *
4.13% * *
9.81% * *
3.62% * *
16.22% * *
15.42% * *
-9.59%
-10.93%
23.01%
21.80%
*
*
*
*
*
*
-11.81%
-11.67%
21.98%
21.21%
5.57%
4.13%
0.33%
3.62%
12.25%
15.42%
-10.70%
-10.93%
*
*
*
*
*
*
*
*
-4.00%
-10.94%
21.47%
18.17%
10.71%
4.13%
8.42%
3.62%
20.07%
15.42%
-16.49%
-11.67%
14.65%
21.21%
-2.68%
4.13%
9.53%
3.62%
13.85%
15.42%
-7.86%
-10.93%
*
*
*
*
*
*
*
*
-6.39% -10.71%
-7.67% -11.67%
13.96% 17.07%
18.06% 21.21%
4.47% 4.66%
3.94% 4.13%
7.78% 7.31%
5.17% 3.62%
10.74% 14.61%
11.08% 15.42%
-7.59%
-11.14%
17.10%
19.17%
8.21%
4.13%
-2.21%
4.41%
*
*
-10.17%
-11.14%
20.43%
21.52%
7.90%
3.72%
*
*
*
*
-9.55%
-10.93%
18.06%
22.51%
5.89%
4.13%
2.58%
3.62%
12.34%
15.42%
-11.74%
-12.12%
25.47%
24.00%
0.87%
-0.60%
6.63%
6.16%
15.19%
14.23%
-9.58%
-10.92%
14.49%
18.19%
0.11%
4.14%
6.77%
3.62%
15.59%
15.42%
-13.80%
-10.92%
16.16%
18.72%
2.07%
4.14%
8.78%
3.62%
15.69%
15.42%
-11.53%
-11.67%
21.62%
21.21%
4.63%
4.13%
4.25%
3.62%
*
*
-9.42%
-11.33%
23.19%
20.50%
5.86%
4.13%
5.82%
3.62%
15.10%
15.42%
-8.90%
-10.83%
23.64%
20.91%
5.09%
4.12%
6.22%
3.78%
14.53%
14.99%
-10.49%
-10.93%
*
*
*
*
*
*
*
*
-11.49%
-11.67%
16.06%
21.21%
4.98%
4.13%
6.31%
3.62%
15.97%
15.42%
-10.82%
-11.32%
19.58%
20.92%
5.30%
4.19%
3.43%
3.67%
14.49%
15.22%
-10.54%
-11.67%
13.41%
21.21%
-0.07%
4.13%
-0.37%
3.62%
10.07%
15.42%
-9.52%
-10.93%
21.66%
20.06%
0.65%
4.13%
2.68%
3.62%
15.09%
15.41%
-8.53%
-10.94%
14.14%
18.71%
3.85%
4.13%
0.40%
3.62%
11.70%
15.42%
-12.06%
-11.67%
16.51%
21.21%
1.82%
4.13%
3.42%
3.62%
11.85%
15.42% 10.88%
-1.32%
-8.57%
11.43%
20.95%
-3.10%
2.65%
16.13%
5.12%
16.88%
-6.02%
-10.94%
*
*
*
*
*
*
*
*
-6.99%
-11.67%
16.00%
21.21%
4.36%
4.13%
7.60%
3.62%
9.18%
15.42%
*
*
*
*
*
*
*
*
*
*
-8.53% -7.67% -11.67% -10.94% -9.73% -14.59% -8.31%
20.95% 18.06% 21.21% 16.49% 7.36% 2.95% 23.07%
2.63% 3.94% 4.13% * 26.89% 20.90% -1.60%
5.13% 5.17% 3.62% * -7.54% -3.92% 7.52%
10.88% 11.08% 15.42% * 19.62% 20.57% 9.17%
FTSE/JSE Value Index
-4.44%
12.15%
17.15%
-13.90%
4.59%
FTSE/JSE Growth Index
-11.48%
25.56%
-3.63%
17.72%
14.90%
S&P South Africa (DSW)
-11.38%
22.61%
5.05%
3.04%
15.60%
S&P South Africa (DSW) Capped
-10.79%
15.64%
6.28%
1.51%
15.38%
*No performance history.
86
-11.09% -10.53% -5.50% -11.46% -7.07% -6.16%
SECTION 3
SA Equity Manager Watchâ„¢ Survey Objective: The portfolios included in this survey represent specialist active equity portfolios with various benchmarks. No carve-outs are reflected.
Investment Data to the end of December for the past 5 Calendar years Investment Managers
Benchmark
Not Benchmark Cognisant Absa Asset Management Value Afena Capital Unconstrained Equity Allan Gray Bridge Equity Income Growth Fund
FTSE/JSE All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE All Share Index ASISA South African Equity General Sector Ave FTSE/JSE SWIX All Share ClucasGray Equity Fund Index FTSE/JSE Capped SWIX Coronation Aggressive Equity All Share Index FTSE/JSE Capped SWIX Coronation Houseview Equity All Share Index Denker SA Equity FTSE/JSE Capped SWIX FTSE/JSE Capped SWIX Electus Equity Fund All Share Index FTSE/JSE SWIX Element Equity All Share Index FTSE/JSE SWIX Excelsia Capital Aggressive Equity All Share Index FTSE/JSE SWIX First Avenue Focused Equity All Share Index FTSE/JSE Capped All Share Foord Domestic Equity Index (prior to 1 July 2018 FTSE/JSE All Share Index) FTSE/JSE Capped SWIX Investec Equity All Share Index Investec Value FTSE/JSE All Share Index Kagiso Managed Equity FTSE/JSE Capped SWIX Capped SWIX All Share Index FTSE/JSE SWIX All Share Kagiso Managed Equity Fund Index FTSE/JSE Capped SWIX Laurium Equity Prescient Fund All Share Index Mazi Asset Management Equity FTSE/JSE Capped SWIX CAPPED SWIX Composite All Share Index Mazi Asset Management SWIX FTSE/JSE SWIX All Share Composite Index Momentum Investments FTSE/JSE Capped SWIX Trending Equity Momentum Investments FTSE/JSE Capped SWIX Value Equity Nedgroup Investments Private FTSE/JSE SWIX Top 40 Index Wealth Equity Fund South Africa OE (ASISA) Oasis Specialist Domestic Equity Domestic Equity General FTSE/JSE Capped SWIX OMIG Premium Equity All Share Index FTSE/JSE SWIX All Share Perpetua Equity Index Rezco Equity FTSE/JSE All Share Index 98% FTSE/JSE Capped SWIX SIM Aggressive Equity ALSI; 2% STeFI FTSE/JSE SWIX: 97% SIM Top Choice Equity Fund STeFI: 3% Sygnia Absolute Focus FTSE/JSE SWIX Equity Fund All Share Index Market Indices & Statistics FTSE/JSE All Share Index FTSE/JSE Capped All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE Mid Cap Index FTSE/JSE Small Cap Index FTSE/JSE Top 40 Index FTSE/JSE Value Index FTSE/JSE Growth Index S&P South Africa (DSW) S&P South Africa (DSW) Capped
2018 Portfolio
Benchmark
2017 Portfolio
2016
Benchmark
Portfolio
2015
Benchmark
Portfolio
2014
Benchmark
Portfolio
Benchmark
-8.24%
-8.53%
13.94%
20.95%
6.09%
2.63%
-3.24%
5.13%
12.39%
10.88%
-9.90%
-12.32%
11.42%
21.21%
24.65%
4.13%
-14.75%
3.62%
1.80%
15.42%
-7.47%
-8.53%
14.51%
20.95%
12.66%
2.63%
5.16%
5.13%
15.59%
10.88%
-7.52%
-9.21%
13.54%
12.53%
8.56%
3.14%
*
*
*
*
-4.23%
-11.67%
18.39%
21.21%
*
*
*
*
*
*
-11.84%
-10.94%
15.96%
17.57%
15.98%
4.13%
-8.85%
3.62%
7.08%
15.42%
-12.46%
-10.94%
15.76%
17.57%
6.85%
4.13%
0.10%
3.62%
10.15%
15.42%
-3.62%
-12.36%
-1.69%
20.92%
17.09%
4.19%
-11.72%
3.67%
10.70%
15.22%
-3.60%
-10.94%
11.29%
22.07%
7.65%
2.71%
-0.40%
5.13%
14.00%
10.88%
-1.96%
-11.67%
15.50%
21.21%
21.57%
4.13%
-16.14%
3.62%
1.15%
15.42%
-11.20%
-11.67%
8.91%
21.21%
*
*
*
*
*
*
-20.01%
-11.67%
16.94%
21.21%
-4.14%
4.13%
12.86%
3.62%
14.29%
15.42%
-12.22%
-7.36%
5.39%
20.95%
3.11%
2.63%
2.90%
5.13%
16.05%
10.88%
-7.01%
-10.94%
13.21%
21.21%
2.47%
4.13%
15.26%
3.62%
17.73%
15.42%
-4.85%
-8.53%
-4.05%
20.95%
53.62%
2.63%
-18.82%
5.13%
13.09%
10.88%
-5.34%
-10.93%
13.65%
16.49%
*
*
*
*
*
*
-6.42%
-11.67%
16.20%
21.21%
10.80%
4.13%
-8.71%
3.62%
7.66%
15.42%
-6.41%
-6.93%
19.59%
14.01%
-3.06%
5.16%
10.82%
2.78%
*
*
-12.42%
-10.94%
*
*
*
*
*
*
*
*
-13.24%
-11.67%
18.53%
21.21%
-2.54%
4.13%
12.51%
3.62%
14.48%
15.42%
-9.14%
-10.94%
*
*
*
*
*
*
*
*
-5.41%
-10.94%
*
*
*
*
*
*
*
*
-10.94%
-12.12%
4.22%
24.00%
4.58%
-0.60%
12.13%
6.16%
19.57%
14.23%
-6.91%
-9.06%
11.80%
12.76%
14.89%
3.12%
-9.49%
0.99%
10.53%
10.29%
-7.52%
-10.92%
17.43%
18.72%
5.70%
4.14%
6.12%
3.62%
14.79%
15.42%
-10.13%
-11.67%
8.60%
21.22%
22.11%
4.13%
-13.01%
3.62%
*
*
-1.06%
-8.53%
*
*
*
*
*
*
*
*
-2.59%
-9.62%
13.95%
20.92%
13.19%
4.19%
-1.97%
3.67%
10.95%
15.22%
-5.88%
-11.13%
13.18%
20.80%
4.70%
4.24%
7.43%
3.72%
14.04%
15.13%
-8.70%
-11.67%
12.80%
21.21%
2.34%
4.13%
11.68%
3.62%
17.35%
15.42%
-8.53% -7.67% -11.67% -10.94% -9.73% -14.59% -8.31% -4.44% -11.48% -11.38% -10.79%
20.95% 18.06% 21.21% 16.49% 7.36% 2.95% 23.07% 12.15% 25.56% 22.61% 15.64%
2.63% 3.94% 4.13% * 26.89% 20.90% -1.60% 17.15% -3.63% 5.05% 6.28%
5.13% 5.17% 3.62% * -7.54% -3.92% 7.52% -13.90% 17.72% 3.04% 1.51%
10.88% 11.08% 15.42% * 19.62% 20.57% 9.17% 4.59% 14.90% 15.60% 15.38%
*No performance history.
87
88
2.93%
-3.03%
0.36%
0.35%
FTSE/JSE Capped SWIX
FTSE/JSE SWIX All Share index
FTSE/JSE SWIX All Share Index since inception to 31/10/2017, FTSE/JSE Capped SWIX thereafter
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
Benguela SA Equity Capped SWIX Fund
Benguela SA Equity SWIX Fund
BlueAlpha Equity
Coronation Core Equity
Excelsia Capital Core Equity
-6.29%
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE Capped All Share Index
FTSE/JSE SWIX All Share Index
CAPI, SWIX and Capped SWIX combined
FTSE/JSE Capped SWIX minus SAPY
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE SWIX40 Index
Kagiso Core Equity Capped SWIX Fund
Mergence CAPI Fund
Mergence SWIX Fund
Mianzo Active Equity Fund
Mianzo Enhanced Equity Fund
Momentum Investments Classic Equity
Old Mutual Double Alpha SWIX40
-1.83%
-1.88%
-1.94%
3.21%
2.45%
FTSE/JSE SWIX All Share Index
98% FTSE/JSE SWIX ALL Share Index; 2% 4 Major Bank Call Rate
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
Sentio General Equity Fund
SIM Moderate Equity
STANLIB Core Equity
STANLIB Multi Factor Equity
FTSE/JSE Capped Shareholder Weighted Index (SWIX)
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
Truffle SCI General Equity fund
VunaniFM Active Capped SWIX
VunaniFM Core Equity Fund
X-Chequer Equity Strategy
9.42%
12.41%
6.14%
17.87%
9.22%
7.23%
FTSE/JSE Top 40 Index
FTSE/JSE Value Index
FTSE/JSE Growth Index
S&P South Africa (DSW)
S&P South Africa (DSW) Capped
*No performance history.
4.39%
-4.10%
FTSE/JSE Small Cap Index
3.42%
5.87%
8.25%
18
3
28
16
2
33
12
32
10
9
15
30
20
13
14
23
19
31
27
34
1
11
7
25
6
4
17
29
26
24
5
8
22
21
Rank
-5.52%
3.86%
3.46%
5.39%
6.41%
7.42%
6.75%
*
15.58%
9.32%
FTSE/JSE SWIX All Share Index
* 0.18%
FTSE/JSE Capped SWIX All Share Index
10.52%
17
22
27
1.58%
-1.54%
0.35%
1.82%
-4.04%
0.82%
-2.06%
*
0.91%
0.92%
0.41%
-1.80%
-0.30%
0.79%
0.48%
-0.48%
0.07%
-1.90%
-1.49%
*
-5.84%
8.51%
*
0.91%
0.99%
-1.19%
*
1.27%
*
1.45%
0.29%
-1.67%
-1.36%
-0.81%
1.28%
0.99%
-0.48%
-0.32%
Active Return: 3 Years (p.a.)
FTSE/JSE Mid Cap Index
12.05%
FTSE/JSE Capped All Share Index
0.61%
-0.29%
3
21
8
9
41
5
31
24
30
29
15
20
14
16
4
28
32
37
34
6
40
1
19
11
18
35
38
10
7
12
39
25
36
33
23
2
13
26
Rank
FTSE/JSE All Share Index
Market Indices & Statistics
5.68%
FTSE/JSE SWIX All Share Index
Sygnia Core Equity Fund
-1.53%
2.46%
-0.02%
STANLIB Multi-Manager SA Equity Fund FTSE/JSE Capped SWIX All Share Index
-6.72%
-0.96%
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
Prudential Select Equity
Sentio General Equity (Capped SWIX)
Prudential Core Equity
0.74%
FTSE/JSE SWIX All Share Index
Prescient Core Equity
0.89%
0.26%
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
Old Mutual Fundamental Equity
OMIG Managed Alpha Equity
0.66%
3.85%
-1.66%
-2.11%
-3.30%
-2.26%
3.12%
15.23%
Fairtree Asset Management Equity fund FTSE/JSE Capped SWIX All Share Index
First Avenue General Equity
2.33%
-3.60%
2.34%
1.12%
-3.96%
FTSE/JSE SWIX All Share Index
FTSE/JSE SWIX All Share index
All Weather Capital SWIX Equity Fund
-1.39%
-3.26%
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
Alexander Forbes Investments Pure Equity Local
Argon SA Equity Fund
FTSE/JSE Capped All Share Index
Afena Capital Moderate Equity CAPI
-2.11%
Argon SA Equity Capped SWIX
FTSE/JSE Capped All Share Index
Afena Capital Core Equity
-0.35%
7.82%
1.02%
-1.47%
Aluwani Capped SWIX Equity Composite FTSE/JSE Capped SWIX All Share Index
FTSE/JSE Top 40 Index
FTSE/JSE SWIX All Share Index
Absa Asset Management Prime Equity
FTSE/JSE SWIX All Share Index
Aeon Active Equity Fund
FTSE/JSE Capped SWIX All Share Index
Absa Asset Management Core Equity
Benchmark
Abax Equity Fund
Benchmark Cognisant
Investment Managers
Active Return: 1 Year
5.62%
*
4.78%
5.66%
5.99%
6.06%
3.60%
5.14%
8.25%
2.79%
8
3
25
21
15
28
10
23
5
4
12
20
19
9
13
22
18
17
27
1
16
6
26
24
7
2
11
14
Rank
-0.41%
*
0.95%
*
1.83%
-1.43%
-0.50%
0.18%
-4.06%
0.66%
-0.53%
*
1.23%
1.34%
0.47%
-0.49%
-0.37%
0.87%
0.43%
*
-0.52%
-0.31%
-0.27%
*
-3.77%
7.37%
*
0.15%
*
*
*
1.21%
*
*
*
-1.49%
-1.30%
*
1.00%
2.16%
0.57%
0.19%
Active Return: 5 Years (p.a.)
5.03%
8.75%
5.88%
8.55%
*
8.41%
8.57%
8.77%
7.60%
8.77%
17
2
21
20
19
25
8
18
5
4
16
12
9
13
14
15
24
1
11
6
22
23
7
3
10
Rank
11.22%
*
-0.02%
*
2.73%
-0.94%
-0.59%
-0.15%
-3.99%
1.20%
-0.03%
*
1.60%
1.87%
*
0.20%
0.60%
0.99%
0.48%
*
*
0.26%
0.20%
*
-3.07%
6.61%
*
0.71%
*
*
*
1.58%
*
*
*
-1.48%
-2.17%
*
1.42%
2.58%
*
0.96%
Active Return: 7 Years (p.a.)
10.39%
11.22%
12.24%
8.26%
10.52%
9.26%
12.11%
*
11.09%
10.75%
10.78%
*
*
*
*
*
*
-0.04%
-1.94%
0.92%
*
*
1.07%
1.63%
*
*
-0.36%
*
0.17%
*
*
-0.40%
-0.44%
9
14
5
2
1
10
8
11
-10.79%
-11.38%
-11.48%
-4.44%
-8.31%
-14.59%
-9.73%
-10.94%
-11.67%
-7.67%
39
36
38
41
4
30
24
18
12
13
11
29
28
8
2
22
10
25
27
33
16
21
32
1
40
9
6
23
15
20
34
37
17
35
3
26
14
7
31
19
5
Rank
-8.53%
6.67%
4.68%
4.92%
9.62%
-0.40%
2.40%
1.36%
1.13%
0.50%
0.52%
0.43%
1.93%
1.92%
0.21%
-2.88%
1.34%
0.38%
1.38%
1.59%
3.56%
0.96%
1.28%
3.07%
*
6.94%
0.23%
-0.14%
1.35%
0.69%
1.15%
4.19%
4.90%
1.08%
4.30%
-1.34%
1.52%
0.57%
0.21%
2.81%
1.13%
-0.16%
-4.82% 12
4
7
13
15
6
3
Rank
Active Return - 2018
*
*
*
0.93%
*
*
*
0.31%
*
*
*
-1.49%
-2.90%
*
0.71%
*
*
0.99%
Active Return: 10 Years (p.a.)
15.64%
22.61%
25.56%
12.15%
23.07%
2.95%
7.36%
16.49%
21.21%
18.06%
21
5
7
8
9
31
3
24
6
33
32
28
18
15
30
10
26
20
12
13
4
34
23
29
36
22
14
1
27
19
16
25
35
2
11
17
Rank
20.95%
-1.64%
-5.22%
*
-5.06%
-4.70%
-4.57%
1.60%
-7.81%
-1.34%
-5.16%
*
2.73%
2.69%
0.41%
-2.56%
-3.70%
1.47%
-4.45%
-1.09%
-2.07%
-4.15%
-4.10%
*
-6.56%
3.30%
-1.42%
0.77%
6.52%
-1.63%
*
-3.76%
*
-14.20%
-0.32%
-2.36%
-2.92%
-1.15%
4.58%
-8.34%
-4.25%
-2.90%
Active Return - 2017
6.28%
5.05%
-3.63%
17.15%
-1.60%
20.90%
26.89%
*
4.13%
3.94%
30
14
1
8
12
7
4
20
18
19
23
15
10
5
22
24
27
26
17
16
2
29
21
6
13
25
9
28
11
3
Rank
2.63%
9.10%
0.23%
*
-8.26%
-2.31%
-0.28%
-3.48%
-4.20%
1.11%
0.86%
*
0.97%
1.73%
0.50%
-2.07%
-4.03%
1.47%
1.76%
4.18%
4.08%
0.53%
0.53%
*
-6.80%
6.59%
*
1.44%
*
*
*
-3.77%
*
*
*
0.07%
3.72%
*
-2.27%
5.35%
-1.98%
-5.10%
Active Return - 2016
1.51%
3.04%
17.72%
-13.90%
7.52%
-3.92%
-7.54%
*
3.62%
5.17%
20
22
29
10
5
8
3
9
17
15
13
12
24
18
11
7
1
21
16
25
23
4
26
6
2
19
14
27
28
Rank
5.13%
3.68%
3.98%
*
13.35%
-0.20%
-3.22%
-0.94%
-3.99%
-0.25%
2.69%
*
2.45%
2.20%
0.63%
5.16%
3.16%
0.47%
-1.04%
*
-6.62%
3.69%
2.61%
*
5.91%
4.80%
*
-3.29%
*
*
*
6.19%
*
*
*
-2.51%
-5.98%
*
3.52%
2.24%
6.42%
7.40%
Active Return 2015
Calender Year Returns
Due to differing benchmarks, the portfolios below are ranked by active returns only (actual performance less benchmark return) and are purely for illustrative purposes.
Investment Data to the end of December 2019 – Performance Data
15.38%
15.60%
14.90%
4.59%
9.17%
20.57%
19.62%
*
15.42%
11.08%
1
22
6
5
16
3
12
20
14
17
19
18
8
11
15
10
24
7
21
4
2
9
23
13
Rank
10.88%
*
-6.24%
*
1.46%
-3.57%
-3.72%
-0.33%
-5.35%
-0.73%
0.54%
*
-0.46%
-0.32%
*
0.27%
0.17%
-3.08%
*
*
-0.81%
-0.34%
*
-1.57%
4.65%
*
-3.17%
*
*
*
0.80%
*
*
*
-4.90%
-5.95%
-1.94%
3.40%
*
-0.65%
Active Return - 2014
MANAGER WATCH™ SURVEY
SA Equity Manager Watch™ Survey
Objective: The portfolios included in this survey represent specialist active equity portfolios with various benchmarks. No carve-outs are reflected.
-7.28%
-4.57%
5.46%
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped All Share Index (prior to 1 July 2018 FTSE/JSE All Share Index)
Foord Domestic Equity
-4.09%
10.55%
-0.47%
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped SWIX
Mazi Asset Management Equity CAPPED SWIX Composite
Mazi Asset Management SWIX Composite
Momentum Investments Trending Equity
FTSE/JSE SWIX All Share Index
17.87%
9.22%
7.23%
FTSE/JSE Growth Index
S&P South Africa (DSW)
S&P South Africa (DSW) Capped
*No performance history.
6.14%
FTSE/JSE Value Index
15.58%
FTSE/JSE Mid Cap Index
-4.10%
6.75%
FTSE/JSE Capped SWIX All Share Index
12.41%
9.32%
FTSE/JSE SWIX All Share Index
FTSE/JSE Top 40 Index
10.52%
FTSE/JSE Small Cap Index
12.05%
FTSE/JSE Capped All Share Index
2.38%
15.76%
FTSE/JSE All Share Index
Market Indices & Statistics
Sygnia Absolute Focus Equity Fund
19.12%
98% FTSE/JSE Capped SWIX ALSI; 2% STeFI
FTSE/JSE SWIX: 97% | STeFI: 3%
4.51%
FTSE/JSE SWIX All Share Index
FTSE/JSE All Share Index
Perpetua Equity
Rezco Equity
SIM Aggressive Equity
3.23%
FTSE/JSE Capped SWIX All Share Index
Oasis Specialist Domestic Equity
OMIG Premium Equity
SIM Top Choice Equity Fund
-0.93%
South Africa OE (ASISA) Domestic Equity General
-5.59%
-4.81%
FTSE/JSE Capped SWIX
FTSE/JSE SWIX Top 40 Index
Momentum Investments Value Equity
Nedgroup Investments Private Wealth Equity Fund
-3.95%
3.43%
FTSE/JSE Capped SWIX All Share Index
Laurium Equity Prescient Fund
16.20%
15.28%
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE SWIX All Share Index
Kagiso Managed Equity Capped SWIX
Kagiso Managed Equity Fund
16.48%
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE All Share Index
Investec Equity
Investec Value
-1.54%
First Avenue Focused Equity
0.26%
FTSE/JSE Capped SWIX All Share Index
Electus Equity Fund
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped SWIX
Denker SA Equity
FTSE/JSE SWIX All Share Index
0.10%
-4.19%
FTSE/JSE Capped SWIX All Share Index
Coronation Houseview Equity
Element Equity
9.02%
7.20%
FTSE/JSE Capped SWIX All Share Index
Coronation Aggressive Equity
Excelsia Capital Aggressive Equity
-2.66%
-10.30%
ASISA South African Equity General Sector Ave
FTSE/JSE SWIX All Share Index
Bridge Equity Income Growth Fund
-8.14%
FTSE/JSE All Share Index
Allan Gray
ClucasGray Equity Fund
2.42%
-4.01%
FTSE/JSE All Share Index
FTSE/JSE Capped SWIX All Share Index
Absa Asset Management Value
Benchmark
Afena Capital Unconstrained Equity
Not Benchmark Cognisant
Investment Managers
Active Return: 1 Year
14
4
1
10
27
12
18
26
17
6
21
23
11
5
3
2
9
25
28
19
15
24
16
8
7
20
30
29
22
13
Rank
3.42%
5.87%
9.42%
4.39%
8.25%
-5.52%
3.86%
3.46%
5.39%
6.41%
7.42%
-0.61%
4.56%
6.52%
*
-4.98%
1.97%
0.22%
-7.01%
*
*
-2.68%
*
3.00%
5.26%
6.31%
-1.95%
0.87%
-8.05%
-6.93%
-3.99%
2.07%
-1.85%
-3.79%
1.13%
2.00%
1.15%
-2.48%
-4.17%
-3.26%
-1.25%
Active Return: 3 Years (p.a.)
13
4
1
23
8
12
25
18
5
3
2
16
11
26
24
21
6
15
20
10
7
9
17
22
19
14
Rank
3.60%
5.14%
8.25%
2.79%
6.06%
-0.41%
5.62%
*
4.78%
5.66%
5.99%
0.85%
3.55%
4.43%
*
-3.31%
2.00%
0.10%
-2.08%
*
*
-1.27%
*
1.66%
1.73%
*
1.93%
2.43%
-5.18%
-4.14%
*
0.03%
-1.26%
-3.18%
0.50%
0.77%
*
*
-0.53%
-2.28%
-1.79%
Active Return: 5 Years (p.a.)
8
2
1
20
4
11
17
15
7
6
5
3
22
21
12
14
19
10
9
13
18
16
Rank
7.60%
8.77%
11.22%
5.03%
8.75%
5.88%
8.55%
*
8.41%
8.57%
8.77%
1.11%
3.97%
3.33%
*
*
1.03%
-0.27%
0.31%
*
*
-0.39%
*
*
0.75%
*
-1.35%
2.33%
-2.28%
-3.21%
*
-4.50%
-0.10%
-3.26%
1.10%
0.66%
*
*
0.44%
-4.04%
-1.45%
Active Return: 7 Years (p.a.)
4
1
2
6
12
10
13
7
14
3
16
17
20
11
18
5
8
9
19
15
Rank
10.39%
11.22%
12.24%
8.26%
10.52%
9.26%
12.11%
*
11.09%
10.75%
10.78%
*
2.52%
1.72%
*
*
*
1.05%
0.84%
*
*
1.92%
*
*
-0.07%
*
-2.79%
0.96%
0.05%
*
*
-5.43%
-0.45%
-3.04%
1.02%
0.91%
*
*
0.34%
*
-0.39%
1
3
4
8
2
11
14
6
10
16
13
15
5
7
9
12
Active Return: 10 Rank Years (p.a.)
-10.79%
-11.38%
-11.48%
-4.44%
-8.31%
-14.59%
-9.73%
-10.94%
-11.67%
-7.67%
-8.53%
2.97%
5.25%
7.03%
7.47%
1.54%
3.40%
2.32%
1.18%
5.65%
1.72%
-1.57%
-1.49%
4.53%
5.24%
5.60%
3.68%
3.93%
-3.69%
-8.35%
0.47%
9.71%
7.34%
8.74%
-1.52%
-0.91%
7.43%
1.70%
1.06%
2.42%
0.29%
Active Return - 2018
17
23
26
29
11
18
14
10
25
13
3
5
21
22
24
19
20
2
1
8
31
27
30
4
6
28
12
9
15
7
Rank
15.64%
22.61%
25.56%
12.15%
23.07%
2.95%
7.36%
16.49%
21.21%
18.06%
20.95%
-8.42%
-7.61%
-6.98%
*
-12.62%
-1.29%
-0.96%
-19.78%
*
*
-2.69%
*
3.10%
-5.02%
-2.84%
-25.00%
-8.00%
-15.57%
-4.27%
-12.31%
-5.72%
-10.78%
-22.61%
-1.81%
-1.61%
-2.82%
1.01%
-6.44%
-9.80%
-7.01%
Active Return - 2017
10
12
14
6
24
25
4
21
27
17
19
1
11
5
18
7
16
8
2
22
23
20
26
15
9
13
Rank
6.28%
5.05%
-3.63%
17.15%
-1.60%
20.90%
26.89%
*
4.13%
3.94%
2.63%
-1.79%
0.46%
9.00%
*
17.99%
1.56%
11.77%
5.18%
*
*
-6.66%
*
-8.22%
6.67%
*
51.00%
-1.66%
0.48%
-8.27%
*
17.44%
4.94%
12.90%
2.72%
11.85%
*
5.42%
10.03%
20.53%
3.46%
Active Return - 2016
4
6
15
21
8
17
12
3
2
14
24
5
7
1
20
11
19
9
18
13
16
23
10
Rank
Calender Year Returns
1.51%
3.04%
17.72%
-13.90%
7.52%
-3.92%
-7.54%
*
3.62%
5.17%
5.13%
8.06%
3.71%
-5.65%
*
-16.63%
2.50%
-10.48%
5.97%
*
*
8.89%
*
8.04%
-12.33%
*
-23.94%
11.64%
-2.23%
9.24%
*
-19.76%
-5.53%
-15.39%
-3.51%
-12.46%
*
*
0.03%
-18.37%
-8.36%
Active Return - 2015
20
17
11
4
16
9
18
21
19
8
1
23
14
22
2
12
6
13
7
15
3
10
Rank
Due to differing benchmarks, the portfolios below are ranked by active returns only (ie actual performance less benchmark return) and are purely for illustrative purposes.
Investment Data to the end of December 2019
15.38%
15.60%
14.90%
4.59%
9.17%
20.57%
19.62%
*
15.42%
11.08%
10.88%
1.92%
-1.10%
-4.27%
*
*
-0.64%
0.24%
5.34%
*
*
-0.94%
*
*
-7.76%
*
2.21%
2.31%
5.17%
-1.13%
*
-14.28%
3.12%
-4.52%
-5.27%
-8.34%
*
*
4.72%
-13.62%
1.52%
Active Return - 2014
15
10
8
12
13
21
11
5
16
17
20
9
1
18
7
6
4
19
2
14
Rank
SECTION 3
SA Equity Manager Watchâ„¢ Survey
Objective: The portfolios included in this survey represent specialist active equity portfolios with various benchmarks. No carve-outs are reflected.
89
90
6.67%
5.61%
FTSE/JSE Top 40 Index
FTSE/JSE SWIX All Share Index
Absa Asset Management Prime Equity
Aeon Active Equity Fund
4.27%
6.00%
-0.45%
4.92%
FTSE/JSE Capped SWIX ALSI
FTSE/JSE SWIX All Share index
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE SWIX All Share Index
FTSE/JSE SWIX All Share index
FTSE/JSE SWIX All Share Index since inception to 31/10/2017, FTSE/JSE Capped SWIX thereafter
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped SWIX ALSI
FTSE/JSE SWIX All Share Index
Alexander Forbes Investments Pure Equity Local
All Weather Capital SWIX Equity Fund
Aluwani Capped SWIX Equity Composite
Argon SA Equity Fund
Benguela SA Equity SWIX Fund
BlueAlpha Equity
Coronation Core Equity
Fairtree Asset Management Equity fund
First Avenue General Equity
4.51%
CAPI, SWIX and Capped SWIX combined
FTSE/JSE Capped SWIX minus SAPY
Mianzo Active Equity Fund
Mianzo Enhanced Equity Fund
5.40%
5.71%
3.32%
6.25%
1.35%
6.33%
3.85%
9.00%
FTSE/JSE Capped SWIX ALSI
FTSE/JSE Capped SWIX ALSI
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE SWIX All Share Index
98% FTSE/JSE SWIX ALL Share Index; 2% 4 Major Bank Call Rate
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE Capped SWIX ALSI
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped Shareholder Weighted Index (SWIX)
FTSE/JSE SWIX All Share Index
Old Mutual Fundamental Equity
OMIG Managed Alpha Equity
Prescient Core Equity
Prudential Core Equity
Prudential Select Equity
Sentio General Equity Fund
SIM Moderate Equity
STANLIB Core Equity
STANLIB Multi Factor Equity
STANLIB Multi-Manager SA Equity Fund
Sygnia Core Equity Fund
Truffle SCI General Equity fund
VunaniFM Core Equity Fund
*No performance history.
5.80%
FTSE/JSE SWIX40 Index
5.56%
4.47%
2.33%
3.67%
5.70%
6.57%
Momentum Investments Classic Equity FTSE/JSE Capped SWIX ALSI
Old Mutual Double Alpha SWIX40
4.61%
3.48%
FTSE/JSE Capped All Share Index
FTSE/JSE SWIX All Share Index
Mergence CAPI Fund
Mergence SWIX Fund
12.46%
6.30%
6.66%
4.91%
5.68%
2.12%
5.04%
FTSE/JSE Capped All Share Index
FTSE/JSE Capped All Share Index
Afena Capital Core Equity
Afena Capital Moderate Equity CAPI
9.24%
4.91%
FTSE/JSE SWIX All Share Index
3.46%
FTSE/JSE Capped SWIX ALSI
16
3
26
24
7
33
9
30
12
17
11
31
27
6
13
22
23
28
19
34
1
8
10
25
5
21
14
32
18
15
4
2
20
29
Rank
11.02%
11.71%
11.33%
10.39%
10.55%
11.24%
11.67%
11.92%
10.69%
11.28%
11.93%
10.77%
10.41%
13.25%
10.84%
11.22%
9.99%
11.01%
10.68%
10.95%
14.15%
12.26%
10.48%
11.24%
11.49%
11.00%
11.19%
10.22%
10.96%
11.02%
11.44%
12.05%
10.97%
11.02%
Volatility (Risk)
17
28
24
3
6
21
27
29
8
23
30
9
4
33
10
20
1
15
7
11
34
32
5
22
26
14
19
2
12
16
25
31
13
18
Rank
Calculated on 3 year performance returns
3 year return
Absa Asset Management Core Equity
Benchmark
Abax Equity Fund
Benchmark Cognisant
Investment Managers
0.18%
1.58%
-1.54%
0.35%
1.82%
-4.04%
0.82%
-2.06%
0.91%
0.92%
0.41%
-1.80%
-0.30%
0.79%
0.48%
-0.48%
0.07%
-1.90%
-1.49%
-5.84%
8.51%
0.91%
0.99%
-1.19%
1.27%
1.45%
0.29%
-1.67%
-1.36%
-0.81%
1.28%
0.99%
-0.48%
-0.32%
Active Return
Investment Data to the end of December 2019 – Volatility vs Return
18
3
28
16
2
33
12
32
10
9
15
30
20
13
14
23
19
31
27
34
1
11
7
25
6
4
17
29
26
24
5
8
22
21
Rank
3.48%
4.88%
0.94%
3.08%
1.38%
3.20%
1.81%
3.75%
2.43%
3.17%
0.41%
2.06%
2.69%
0.43%
2.36%
1.45%
3.40%
1.77%
1.71%
3.85%
6.58%
1.89%
2.62%
2.36%
3.08%
2.56%
2.13%
1.89%
2.59%
1.93%
3.13%
3.35%
3.20%
3.28%
Tracking Error
0.05
0.32
-1.65
0.11
1.32
-1.26
0.46
-0.55
0.37
0.29
1.00
-0.87
-0.11
1.83
0.20
-0.33
0.02
-1.08
-0.87
-1.51
1.29
0.48
0.38
-0.50
0.41
0.56
0.13
-0.88
-0.53
-0.42
0.41
0.29
-0.15
-0.10
Information Ratio
18
12
34
17
2
32
7
27
11
14
4
29
21
1
15
23
19
31
28
33
3
6
10
25
8
5
16
30
26
24
9
13
22
20
Rank
5.72%
7.82%
3.35%
3.52%
4.44%
0.72%
5.49%
4.25%
5.69%
5.58%
5.25%
3.53%
3.56%
5.42%
5.10%
*
3.85%
4.47%
5.40%
1.01%
11.29%
4.93%
*
*
5.98%
*
*
2.33%
4.36%
*
5.78%
8.22%
5.35%
4.02%
6
3
25
24
17
28
9
19
7
8
13
23
22
10
14
21
16
11
27
1
15
4
26
18
5
2
12
20
Rank
11.03%
11.43%
11.12%
10.67%
10.91%
10.84%
11.40%
11.36%
10.62%
11.11%
11.58%
10.85%
10.51%
12.71%
10.76%
*
10.39%
10.89%
10.57%
11.36%
13.48%
11.96%
*
*
11.42%
*
*
10.37%
11.19%
*
11.01%
11.54%
10.85%
11.21%
Volatility (Risk)
14
23
16
6
12
8
21
19
5
15
25
10
3
27
7
2
11
4
20
28
26
22
1
17
13
24
9
18
Rank
Calculated on 5 year performance returns 5 Year Return
0.95%
1.83%
-1.43%
-0.50%
0.18%
-4.06%
0.66%
-0.53%
1.23%
1.34%
0.47%
-0.49%
-0.37%
0.87%
0.43%
*
-0.52%
-0.31%
-0.27%
-3.77%
7.37%
0.15%
*
*
1.21%
*
*
-1.49%
-1.30%
*
1.00%
2.16%
0.57%
0.19%
Active Return
8
3
25
21
15
28
10
23
5
4
12
20
19
9
13
22
18
17
27
1
16
6
26
24
7
2
11
14
Rank
3.13%
4.83%
0.97%
3.03%
1.86%
3.43%
1.71%
3.83%
2.37%
2.88%
0.39%
2.30%
2.64%
0.40%
2.31%
*
3.29%
1.98%
1.89%
4.01%
5.95%
2.27%
*
*
3.20%
*
*
2.18%
2.76%
*
2.81%
3.24%
3.38%
3.75%
Tracking Error
0.30
0.38
-1.47
-0.16
0.10
-1.19
0.39
-0.14
0.52
0.47
1.21
-0.21
-0.14
2.16
0.19
*
-0.16
-0.15
-0.14
-0.94
1.24
0.07
*
*
0.38
*
*
-0.68
-0.47
*
0.36
0.67
0.17
0.05
Information Ratio
11
8
28
22
14
27
7
17
5
6
3
23
19
1
12
21
20
18
26
2
15
9
25
24
10
4
13
16
Rank
MANAGER WATCH™ SURVEY
SA Equity Manager Watch™ Survey Risk
Objective: The portfolios included in this survey represent specialist active equity portfolios with various benchmarks. No carve-outs are reflected.
3.34%
10.65%
6.71%
-1.22%
3.78%
0.41%
FTSE/JSE Capped SWIX ALSI
FTSE/JSE All Share Index
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE SWIX All Share Index
FTSE/JSE SWIX Top 40 Index
South Africa OE (ASISA) Domestic Equity General
FTSE/JSE Capped SWIX ALSI
FTSE/JSE SWIX All Share Index
Foord Domestic Equity
Investec Equity
Investec Value
Kagiso Managed Equity Capped SWIX
Kagiso Managed Equity Fund
Laurium Equity Prescient Fund
Mazi Asset Management SWIX Composite
Nedgroup Investments Private Wealth Equity Fund
Oasis Specialist Domestic Equity
OMIG Premium Equity
Perpetua Equity
SIM Aggressive Equity
6.41%
5.39%
3.46%
3.86%
-5.52%
8.25%
4.39%
9.42%
5.87%
3.42%
FTSE/JSE Capped All Share Index
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
FTSE/JSE Mid Cap Index
FTSE/JSE Small Cap Index
FTSE/JSE Top 40 Index
FTSE/JSE Value Index
FTSE/JSE Growth Index
S&P South Africa (DSW)
S&P South Africa (DSW) Capped
*No performance history.
7.42%
FTSE/JSE All Share Index
Market Indices & Statistics
10.03%
FTSE/JSE SWIX All Share Index
SIM Top Choice Equity Fund
Sygnia Absolute Focus Equity Fund
4.78%
11.80%
98% FTSE/JSE Capped SWIX ALSI; 2% STeFI
FTSE/JSE SWIX: 97% STeFI: 3%
6.10%
2.71%
9.77%
5.48%
5.71%
-0.67%
FTSE/JSE Capped All Share Index (prior to 1 July 2018 FTSE/ JSE All Share Index)
1.39%
-1.54%
FTSE/JSE SWIX All Share Index
FTSE/JSE SWIX All Share Index
Excelsia Capital Aggressive Equity
7.46%
First Avenue Focused Equity
FTSE/JSE Capped SWIX ALSI
FTSE/JSE SWIX All Share Index
Electus Equity Fund
FTSE/JSE Capped SWIX
Coronation Houseview Equity
Denker SA Equity
Element Equity
4.91%
FTSE/JSE Capped SWIX All Share Index
0.41%
6.55%
5.78%
FTSE/JSE SWIX All Share Index
FTSE/JSE Capped SWIX All Share Index
ClucasGray Equity Fund
Coronation Aggressive Equity
14
3
1
22
9
15
25
18
6
2
4
12
11
24
26
19
5
16
23
13
10
7
21
17
3.26%
0.84%
FTSE/JSE All Share Index
ASISA South African Equity General Sector Ave
Allan Gray
Bridge Equity Income Growth Fund
20
6.17%
1.04%
FTSE/JSE All Share Index
8
Rank
FTSE/JSE Capped SWIX All Share Index
3 year return
19
25
22
4
13
7
20
24
16
11
3
26
23
17
18
21
2
1
5
14
12
10
15
8
6
9
Rank
10.62%
11.89%
13.16%
12.05%
13.07%
8.30%
11.55%
10.51%
11.75%
11.32%
12.00%
Lower volatility = higher ranking
11.47%
12.85%
11.65%
9.66%
10.71%
9.97%
11.49%
11.97%
10.99%
10.56%
9.63%
16.30%
11.83%
11.41%
11.44%
11.54%
8.92%
8.13%
9.67%
10.77%
10.56%
10.31%
10.88%
9.97%
9.84%
10.26%
Volatility (Risk)
-0.61%
4.56%
6.52%
-4.98%
1.97%
0.22%
-7.01%
-2.68%
3.00%
5.26%
6.31%
-1.95%
0.87%
-8.05%
-6.93%
-3.99%
2.07%
-1.85%
-3.79%
1.13%
2.00%
1.15%
-2.48%
-4.17%
-3.26%
-1.25%
Active Return
Calculated on 3 year performance returns
Absa Asset Management Value
Benchmark
Afena Capital Unconstrained Equity
Not Benchmark Cognisant
Investment Managers
Investment Data to the end of December 2019 – Volatility vs Return
13
4
1
23
8
12
25
18
5
3
2
16
11
26
24
21
6
15
20
10
7
9
17
22
19
14
Rank
3.32%
6.19%
6.76%
6.51%
1.67%
3.20%
5.25%
2.91%
3.72%
5.50%
5.71%
12.96%
4.40%
5.80%
3.89%
4.31%
8.53%
6.22%
5.59%
4.32%
4.75%
5.47%
8.02%
4.77%
4.51%
3.94%
Tracking Error
-0.18
0.74
0.96
-0.76
1.18
0.07
-1.34
-0.92
0.81
0.96
1.10
-0.15
0.20
-1.39
-1.78
-0.93
0.24
-0.30
-0.68
0.26
0.42
0.21
-0.31
-0.87
-0.72
-0.32
Information Ratio
14
6
3
20
1
12
24
22
5
4
2
13
11
25
26
23
9
15
18
8
7
10
16
21
19
17
Rank
3.60%
5.14%
8.25%
2.79%
6.06%
-0.41%
5.62%
2.54%
4.78%
5.66%
7
2
1
19
6
16
17
14
8
5
3
4
21
22
10
15
20
12
11
9
18
13
Rank
5.99%
5.62%
8.42%
9.17%
1.47%
6.02%
3.05%
2.48%
3.51%
5.47%
6.50%
*
7.92%
6.89%
0.79%
0.64%
*
4.81%
3.42%
0.91%
4.31%
4.59%
*
*
5.46%
1.85%
4.20%
5 Year Return
5
20
13
19
2
7
9
11
8
12
22
14
6
15
18
1
17
10
16
4
21
3
Rank
10.92%
11.69%
12.39%
13.92%
12.48%
10.90%
13.17%
10.42%
11.46%
11.07%
11.50%
Lower volatility = higher ranking
10.93%
12.24%
11.61%
12.22%
10.20%
11.20%
11.26%
11.31%
11.23%
11.39%
*
21.42%
11.61%
10.97%
11.71%
*
11.91%
8.87%
11.91%
11.30%
11.80%
*
*
10.55%
12.50%
10.48%
Volatility (Risk)
0.85%
3.55%
4.43%
-3.31%
2.00%
0.10%
-2.08%
-1.27%
1.66%
1.73%
*
1.93%
2.43%
-5.18%
-4.14%
*
0.03%
-1.26%
-3.18%
0.50%
0.77%
*
*
-0.53%
-2.28%
-1.79%
Active Return
Calculated on 5 year performance returns
8
2
1
20
4
11
17
15
7
6
5
3
22
21
12
14
19
10
9
13
18
16
Rank
3.50%
5.29%
5.82%
8.29%
1.90%
5.22%
4.77%
3.52%
4.54%
6.11%
*
19.35%
4.44%
5.07%
4.49%
*
9.94%
5.92%
7.08%
4.35%
5.79%
*
*
4.74%
7.40%
3.88%
Tracking Error
0.24
0.67
0.76
-0.40
1.05
0.02
-0.43
-0.36
0.37
0.28
*
0.10
0.55
-1.02
-0.92
*
0.00
-0.21
-0.45
0.11
0.13
*
*
-0.11
-0.31
-0.46
Information Ratio
7
3
2
17
1
11
18
16
5
6
10
4
22
21
12
14
19
9
8
13
15
20
Rank
SECTION 3
SA Equity Manager Watch™ Survey Risk (continued)
Objective: The portfolios included in this survey represent specialist active equity portfolios with various benchmarks. No carve-outs are reflected.
91
MANAGER WATCH™ SURVEY
SA Equity Manager Watch™ Survey – Volatility vs Return Volatility vs Return Scatterplot on SA Equity Managers – Benchmark Cognisant 3 Years ended 31 December 2019 13.00%
Fairtree Asset Management Equity fund Aeon Active Equity Fund Truffle SCI General Equity fund Prudential Core Equity Argon SA Equity Fund All Weather Capital SWIX Equity Fund SIM Moderate Equity Afena Capital Core Equity
11.70% 10.40% 9.10%
FTSE/JSE All Share Index
Prudential Select Equity STANLIB Multi Factor Equity
7.80% Return (p.a.)
Absa Asset Management Prime Equity
VunaniFM Core Equity Fund Momentum Investments Classic Equity
Coronation Core Equity Old Mutual Double Alpha SWIX40
BlueAlpha Equity
6.50% Prescient Core Equity FTSE/JSE SWIX All Share Index Aluwani Capped SWIX Equity Composite Mianzo Enhanced Equity Fund Benguela SA Equity SWIX Fund
Afena Capital Moderate Equity CAPI Mergence CAPI Fund Mianzo Active Equity Fund
5.20% 3.90%
STANLIB Multi-Manager SA Equity Fund Absa Asset Management Core Equity
2.60%
Sentio General Equity Fund
Alexander Forbes Investments Pure Equity Local
Sygnia Core Equity Fund
1.30%
Old Mutual Fundamental Equity
Mergence SWIX Fund
Abax Equity Fund
0.00%
OMIG Managed Alpha Equity
First Avenue General Equity
STANLIB Core Equity
-1.30% 4.50%
5.40%
6.30%
7.20%
8.10%
9.00%
9.90%
10.80%
11.70%
12.60%
13.50%
14.40%
Volatility (p.a.) (standard deviation)
Volatility vs Return Scatterplot on SA Equity Managers – Not Benchmark Cognisant 3 years ended 31 December 2019 12.60% SIM Aggressive Equity
11.20% Kagiso Managed Equity Fund Kagiso Managed Equity Capped SWIX
9.80%
SIM Top Choice Equity Fund
ClucasGray Equity Fund
8.40%
OMIG Premium Equity Element Equity
Return (p.a.)
7.00% 5.60%
Laurium Equity Prescient Fund Absa Asset Management Value
Investec Equity
Coronation Aggressive Equity
FTSE/JSE SWIX All Share Index Sygnia Absolute Focus Equity Fund
Coronation Houseview Equity
4.20% 2.80%
FTSE/JSE All Share Index
Investec Value
Oasis Specialist Domestic Equity Allan Gray Mazi Asset Management SWIX Composite
Electus Equity Fund
Afena Capital Unconstrained Equity
1.40% 0.00% -1.40%
Excelsia Capital Aggressive Equity Bridge Equity Income Growth Fund
Perpetua Equity
Foord Domestic Equity Nedgroup Investments Private Wealth Equity Fund
Denker SA Equity
First Avenue Focused Equity
-2.80% 8.10%
9.00%
9.90%
10.80%
11.70%
12.60%
13.50%
Volatility (p.a.) (standard deviation)
92
14.40%
15.30%
16.20%
17.10%
SECTION 3
Composite Dispersion of SA Equity Manager Watchâ„¢ Survey 1 Year to 31 December 2019 Benchmark Cognisant Absa Asset Management Prime Equity
0.24% 1.49%
Absa Asset Management Core Equity 0.75%
Aeon Active Equity Fund Afena Capital Core Equity CAPI
0.00% 0.34%
Afena Capital Moderate Equity CAPI 0.06%
Afena Capital Moderate Equity Capped SWIX
0.14%
ALUWANI Capped SWIX Equity Argon SA Equity Capped SWIX
0.08% 0.03%
Prescient Core Equity
0.04%
Old Mutual Fundamental Equity
0.00%
OMIG Double Alpha SWIX40
0.08%
Prudential Core Equity
0.22%
SIM Moderate Equity
0.88%
Vunani Active Capped SWIX 0.00%
Not Benchmark Cognisant
0.20%
Minimum Return
0.40%
Maximum Return
0.60%
Median Composite Return
0.80%
1.00%
Composite Dispersion (1yr)
1.20%
Composite Dispersion (3yrs)
1.40%
1.60%
Composite Dispersion (5yrs)
Absa Asset Management Prime Equity
20.17%
20.65%
20.41%
0.24%
0.33%
*
Absa Asset Management Core Equity
9.67%
13.28%
11.34%
1.49%
1.34%
*
Aeon Active Equity Fund
7.05%
9.31%
8.30%
0.75%
*
*
Afena Capital Core Equity CAPI
8.41%
8.41%
8.41%
0.00%
*
*
Afena Capital Moderate Equity CAPI
7.23%
7.90%
7.57%
0.34%
*
*
Afena Capital Moderate Equity Capped SWIX
3.42%
3.55%
3.49%
0.06%
*
*
ALUWANI Capped SWIX Equity
7.65%
8.04%
7.92%
0.14%
*
*
Argon SA Equity Capped SWIX
9.50%
9.66%
9.58%
0.08%
*
*
Prescient Core Equity
9.77%
9.84%
9.80%
0.03%
*
*
Old Mutual Fundamental Equity
7.60%
7.70%
7.64%
0.04%
0.03%
0.04% 0.06%
OMIG Double Alpha SWIX40
9.29%
9.29%
9.29%
0.00%
0.03%
Prudential Core Equity
4.62%
4.91%
4.82%
0.08%
*
*
SIM Moderate Equity
12.17%
12.61%
12.39%
0.22%
0.34%
*
Vunani Active Capped SWIX
4.66%
6.41%
5.54%
0.88%
0.20%
0.62%
* Data not available.
93
MANAGER WATCH™ SURVEY
Composite Dispersion of SA Equity Manager Watch™ Survey 1 Year to 31 December 2019 Not Benchmark Cognisant
Absa Asset Management Value
0.58%
Allan Gray
0.28%
Coronation Aggressive Equity
0.50% 0.15%
Coronation Houseview Equity Denker SA Equity
0.47%
Element Equity
0.72%
Excelsia Capital Aggressive Equity
0.25% 0.64%
Foord Specialist Domestic Equity Investec Equity
0.52%
Investec Value
14.13%
Oasis Specialist Domestic
1.01% 0.08%
OMIG Premium Equity
0.34%
Prudential Select Equity
0.00%
Not Benchmark Cognisant Absa Asset Management Value
4.00%
6.00%
8.00%
12.00%
14.00%
16.00%
Minimum Return
Maximum Return
Median Composite Return
Composite Dispersion (1yr)
Composite Dispersion (3yrs)
Composite Dispersion (5yrs)
13.78%
15.19%
14.43%
0.58%
0.19%
0.57%
Allan Gray
3.30%
4.70%
3.91%
0.28%
*
*
Coronation Aggressive Equity
15.48%
16.54%
16.01%
0.50%
0.15%
0.09% 0.05%
Coronation Houseview Equity
13.29%
14.17%
13.94%
0.15%
0.08%
Denker SA Equity
6.31%
7.24%
6.78%
0.47%
*
*
Element Equity
6.62%
8.06%
7.34%
0.72%
0.74%
0.78%
Excelsia Capital Aggressive Equity
7.37%
7.86%
7.62%
0.25%
0.32%
*
Foord Specialist Domestic Equity
5.95%
7.57%
6.48%
0.64%
0.07%
0.07% 0.17%
Investec Equity
10.56%
12.74%
12.21%
0.52%
0.15%
Investec Value
8.54%
43.13%
22.20%
14.13%
5.35%
3.91%
Oasis Specialist Domestic
5.46%
7.92%
6.61%
1.01%
0.16%
0.27%
OMIG Premium Equity
9.88%
10.03%
9.96%
0.08%
0.15%
0.12%
Prudential Select Equity
4.75%
5.50%
4.80%
0.34%
0.38%
0.23%
* Data not available.
94
2.00%
SECTION 3
SA Bond Manager Watch™ Survey Objective: The portfolios included in this survey represent specialist bond portfolios with ALBI as their benchmark and have an effective modified duration mandate of ±2 years around the ALBI. This survey also include the following two categories: inflation linked bonds and flexible bonds-income.
Range of Returns of Bond Universe for the periods ending 31 December 2019 25%
20%
15%
10%
5%
0% 1 Year
3 Years (p.a.)
5 Years (p.a.) 25% – 75%
7 Years (p.a.)
Min – Max
10 Years (p.a.)
Median
Return Statistics (Investable) 1 Year
3 Years (p.a.)
5 Years (p.a.)
7 Years (p.a.)
10 Years (p.a.)
Highest
12.50%
11.67%
10.23%
9.13%
11.26%
Upper Quartile
11.38%
10.60%
8.97%
8.11%
9.86%
Median
10.81%
10.24%
8.68%
7.89%
9.64%
Average
10.94%
10.26%
8.74%
7.92%
9.74%
Lower Quartile
10.39%
9.87%
8.30%
7.57%
9.42%
Lowest
8.84%
8.83%
7.73%
7.20%
9.08%
Range
3.66%
2.84%
2.51%
1.94%
2.17%
23
23
22
19
19
Number of Participants
95
MANAGER WATCH™ SURVEY
SA Bond Manager Watch™ Survey Objective: The portfolios included in this survey represent specialist bond portfolios with ALBI as their benchmark and have an effective modified duration mandate of ±2 years around the ALBI. This survey also include the following two categories: inflation linked bonds and flexible bonds-income.
General information Investment Managers Specialist Bonds Absa Asset Management Bond Fund Alexander Forbes Investments Pure Fixed Interest Local ALUWANI Active Bond Argon SA Bond Fund Ashburton Bond Composite Balondolozi Bond Fund Cadiz Houseview Bond Fund Coronation Active Bond Portfolio (Composite) Futuregrowth Core Bond Composite Futuregrowth Yield Enhanced Investec Corporate Bond Composite Investec Triple Alpha JM BUSHA BondPlus Kagiso Bond Fund Momentum Investments SA Bond Prescient Bond Quant Prescient Bond QuantPlus Prowess Corporate Bond Portfolio Prudential Yield Enhanced Portfolio SIM Institutional Total Return Bond Fund STANLIB Core Bond Portfolio STANLIB Multi-Manager Bond VunaniFM Active Bond Fund Total
Portfolio Modified Duration
% Invested No.of in AAA rated funds in instruments composite
Portfolio Size (R m)
All Bond Index
6.23
100.00%
1
3 167
N/A
Y
All Bond Index
5.94
68.00%
N/A
4 281
N/A V C N/A V V C C V V C C C V V N/A V V V N/A V
N Y Y Y Y Y Y N Y Y Y N Y Y Y Y Y Y Y Y Y
All Bond Index All Bond Index All Bond Index ALBI+1% All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index All Bond Index
6.92 6.04 7.02 7.12 7.72 7.39 6.72 6.76 6.85 7.02 6.36 7.62 7.08 6.83 6.86 6.62 7.24 7.00 6.78 6.98 6.85
83.02% 58.70% 70.42% 71.00% 51.00% 85.21% 80.38% 43.01% 80.56% 94.47% 75.00% 90.00% 86.39% 80.28% 88.68% 85.69% 75.00% 78.90% 63.20% 61.57%
8 3 4 6 1 5 5 5 8 3 2 2 1 1 7 2 3 7 8 N/A 14
6 336 1 049 1 030 1 751 608 6 387 17 989 15 595 17 946 1 898 956 540 4 709 248 5 072 365 1 030 4 545 5 752 3 192 5 723 110 169
V V V V V N/A
N N Y Y Y Y
All Bond Index Higher of STeFI 3m/ALBI All Bond Index All Bond Index All Bond Index SteFI Composite Index
4.02 6.57 6.90 6.99 6.88 2.52
39.54% 77.58% 77.68% 91.36% 78.12% 41.41%
2 3 9 11 6 1
5 556 8 443 4 256 6 577 3 657 3 399 31 888
N/A V V
N Y Y
9.85 9.55 9.78
81.57% 95.63% 75.65%
6 3 2
3 243 3 656 1 526
SIM Inflation Linked Bond Fund
V
Y
9.64
87.00%
2
2 006
STANLIB Inflation Linked Bond Fund
V
N
7.60
33.00%
1
579
VunaniFM Active Inflation-linked Bond Fund Total
V
Y
JSE IGOV index IGOV 90 ILBI / 10 STEFI Call JSE TR Inflation-Linked Bond Index STeFi Overnight Index 10%; Barclays Inflation Linked Government Bond Index 90% CILI
10.03
55.68%
3
576 11 586
Inflation Linked Bonds ALUWANI Active Inflation Linked Bond Investec Inflation Linked Bond Composite Prescient Inflation Linked Bond Composite
Indices All Bond Index V = Verified C = Compliant
V
Benchmark Description
N
Flexible Bonds/Income Coronation Absolute Bond Portfolio Coronation Flexible Fixed Interest Coronation Strategic Bond Composite Investec Flexible Bond Composite Prescient Flexible Bond Fund Sasfin BCI Flexible Income fund Total
96
GIPS™ Managed ito (Verified/ Regulation Compliant) 28? (Y/N)
6.83
SECTION 3
SA Bond Manager Watch™ Survey Objective: The portfolios included in this survey represent specialist bond portfolios with ALBI as their benchmark and have an effective modified duration mandate of ±2 years around the ALBI. This survey also include the following two categories: inflation linked bonds and flexible bonds-income.
Investment Data to the end of December 2019 – Performance Data Investment Managers Specialist Bonds Absa Asset Management Bond Fund Alexander Forbes Investments Pure Fixed Interest Local ALUWANI Active Bond Argon SA Bond Fund Ashburton Bond Composite Balondolozi Bond Fund Cadiz Houseview Bond Fund Coronation Active Bond Portfolio (Composite) Futuregrowth Core Bond Composite Futuregrowth Yield Enhanced Investec Corporate Bond Composite Investec Triple Alpha JM BUSHA BondPlus Kagiso Bond Fund Momentum Investments SA Bond Prescient Bond Quant Prescient Bond QuantPlus Prowess Corporate Bond Portfolio Prudential Yield Enhanced Portfolio SIM Institutional Total Return Bond Fund STANLIB Core Bond Portfolio STANLIB Multi-Manager Bond VunaniFM Active Bond Fund
1 Year
Rank
3 Years (p.a.)
Rank
5 Years (p.a.)
Rank
7 Years (p.a.)
Rank
10 Years (p.a.)
Rank
11.99%
4
10.96%
3
9.51%
3
8.32%
4
9.73%
8
10.32%
20
10.13%
13
8.69%
11
8.10%
6
9.71%
9
10.39% 12.09% 11.21% 10.81% 10.71% 9.86% 10.48% 11.44% 12.50% 11.33% 12.38% 10.59% 10.97% 10.33% 8.84% 10.57% 10.39% 11.19% 11.12% 10.22% 11.98%
17 3 8 12 13 22 16 6 1 7 2 14 11 19 23 15 18 9 10 21 5
9.97% 11.03% 10.41% 10.54% 8.83% 10.00% 9.91% 10.90% 11.67% 10.50% 10.66% 10.31% 9.80% 9.80% 9.65% 9.83% 9.64% 10.13% 10.38% 10.24% 10.78%
16 2 9 7 23 15 17 4 1 8 6 11 20 19 21 18 22 14 10 12 5
8.33% 9.21% 8.74% 9.50% 7.73% 8.54% 8.20% 9.61% 10.23% 8.93% 8.92% * 8.17% 8.30% 8.57% 8.27% 8.06% 8.33% 8.86% 8.67% 8.99%
16 5 10 4 22 14 19 2 1 7 8
7.57% 8.52% * * 7.20% 8.02% 7.60% 9.13% 8.75% 7.88% 7.89% * 7.47% 7.57% 7.91% 7.53% 7.40% 7.69% 7.91% * 8.12%
15 3
9.56% 9.83% * * 9.19% 9.89% 9.57% 11.26% 10.81% 9.75% 9.37% * 9.47% 9.30% 9.27% 9.08% 9.61% 9.64% 9.94% * 10.03%
13 6
Specialist Bonds Statistics Highest Upper Quartile Median Average Lower Quartile Lowest Range Number of Participants
12.50% 11.38% 10.81% 10.94% 10.39% 8.84% 3.66% 23
Flexible Bonds – Income Coronation Absolute Bond Portfolio Coronation Flexible Fixed Interest Coronation Strategic Bond Composite Investec Flexible Bond Composite Prescient Flexible Bond Fund Sasfin BCI Flexible Income fund
9.72% 8.55% 9.03% 11.20% 7.94% 12.42%
Flexible Bonds – Income Statistics Highest Upper Quartile Median Average Lower Quartile Lowest Range Number of Participants
12.42% 10.83% 9.38% 9.81% 8.67% 7.94% 4.48% 6
11.67% 10.60% 10.24% 10.26% 9.87% 8.83% 2.84% 23
3 5 4 2 6 1
9.83% 8.87% 9.05% 10.20% 9.67% 12.50%
12.50% 10.11% 9.75% 10.02% 9.20% 8.87% 3.63% 6
20 17 13 18 21 15 9 12 6
10.23% 8.97% 8.68% 8.74% 8.30% 7.73% 2.51% 22
3 6 5 2 4 1
8.88% 8.39% 8.02% 8.74% 9.09% *
9.09% 8.88% 8.74% 8.62% 8.39% 8.02% 1.07% 5
19 7 13 1 2 11 10 17 14 8 16 18 12 9 5
9.13% 8.11% 7.89% 7.92% 7.57% 7.20% 1.94% 19
2 4 5 3 1
8.20% * 7.76% * 8.97% *
8.97% 8.58% 8.20% 8.31% 7.98% 7.76% 1.20% 3
18 5 12 1 2 7 15 14 16 17 19 11 10 4 3
11.26% 9.86% 9.64% 9.74% 9.42% 9.08% 2.17% 19
2 3 1
10.00% * 9.80% * 9.18% *
1 2 3
10.00% 9.90% 9.80% 9.66% 9.49% 9.18% 0.82% 3
*No performance history.
97
MANAGER WATCH™ SURVEY
SA Bond Manager Watch™ Survey (continued) Objective: The portfolios included in this survey represent specialist bond portfolios with ALBI as their benchmark and have an effective modified duration mandate of ±2 years around the ALBI. This survey also include the following two categories: inflation linked bonds and flexible bonds-income.
Investment Data to the end of December 2019 – Performance Data 1 Year
Rank
3 Years (p.a.)
Rank
5 Years (p.a.)
Rank
ALUWANI Active Inflation Linked Bond
3.07%
4
2.31%
4
3.56%
4
*
Investec Inflation Linked Bond Composite
2.63%
6
1.84%
6
2.99%
6
3.81%
4
*
Prescient Inflation Linked Bond Composite
3.35%
3
3.28%
3
4.02%
2
4.49%
1
6.88%
SIM Inflation Linked Bond Fund
2.98%
5
2.19%
5
3.34%
5
4.06%
3
*
STANLIB Inflation Linked Bond Fund
5.20%
1
3.61%
1
4.38%
1
*
VunaniFM Active Inflation-linked Bond Fund
4.05%
2
3.40%
2
3.97%
3
4.08%
Investment Managers
7 Years (p.a.)
Rank
10 Years (p.a.)
Rank
Inflation Linked Bonds *
* 2
*
Inflation Linked Bonds Statistics Highest
5.20%
3.61%
4.38%
4.49%
6.88%
Upper Quartile
3.87%
3.37%
4.01%
4.18%
6.88%
Median
3.21%
2.80%
3.77%
4.07%
6.88%
Average
3.55%
2.77%
3.71%
4.11%
6.88%
Lower Quartile
3.00%
2.22%
3.39%
4.00%
6.88%
Lowest
2.63%
1.84%
2.99%
3.81%
6.88%
Range
2.56%
1.77%
1.39%
0.68%
0.00%
6
6
6
4
1
Number of Participants Indices All Bond Index
10.32%
9.40%
7.75%
7.04%
8.87%
1-3 Year Bond Index
7.50%
8.75%
8.07%
7.27%
7.69%
3-7 Year Bond Index
11.53%
10.02%
8.80%
7.59%
8.97%
7-12 Year Bond Index
12.05%
10.11%
8.32%
7.06%
9.35%
12+ Year Bond Index
9.31%
8.88%
7.10%
6.76%
8.74%
Barclays - BESA SA Inflation Linked Index
2.25%
1.58%
2.92%
3.74%
6.83%
GOVI
10.24%
9.14%
7.60%
6.87%
8.69%
IGOV Index
2.41%
1.67%
2.94%
3.75%
6.83%
OTHI
10.68%
10.21%
8.20%
7.72%
9.68%
STeFI
7.29%
7.36%
7.19%
6.72%
6.52%
S&P South Africa Sovereign Bond
10.14%
9.29%
7.71%
6.96%
8.70%
S&P South Africa Sovereign Inflation-Linked Bond
2.40%
1.66%
2.94%
3.68%
6.72%
*No performance history.
98
1
SECTION 3
SA Bond Manager Watch™ Survey Objective: The portfolios included in this survey represent specialist bond portfolios with ALBI as their benchmark and have an effective modified duration mandate of ±2 years around the ALBI. This survey also include the following two categories: inflation linked bonds and flexible bonds-income.
Investment Data to the end of December for the past 5 Calendar years Investment Managers
2018
Rank
2017
Rank
2016
Rank
2015
Rank
2014
Rank
Absa Asset Management Bond Fund
8.51%
13
12.41%
2
16.63%
8
-1.14%
5
10.27%
8
Alexander Forbes Investments Pure Fixed Interest Local
8.73%
10
11.35%
11
16.53%
9
-2.56%
12
11.08%
3
ALUWANI Active Bond
8.44%
14
11.09%
16
16.28%
13
-3.52%
18
10.18%
9
Argon SA Bond Fund
9.28%
3
11.74%
6
16.37%
11
-2.47%
9
11.08%
4
Ashburton Bond Composite
8.77%
9
11.27%
13
15.81%
19
-2.47%
10
10.12%
11
Balondolozi Bond Fund
8.53%
12
12.31%
3
17.49%
2
-0.82%
2
7.96%
20
Cadiz Houseview Bond Fund
6.85%
23
8.95%
23
15.47%
22
-2.51%
11
9.98%
12
Coronation Active Bond Portfolio (Composite)
8.60%
11
11.55%
8
16.65%
7
-2.98%
14
11.33%
2
Futuregrowth Core Bond Composite
8.21%
18
11.08%
17
15.79%
20
-3.56%
20
10.33%
6
Futuregrowth Yield Enhanced
9.52%
2
11.77%
5
16.95%
4
-0.82%
3
12.81%
1
Investec Corporate Bond Composite
10.00%
1
12.53%
1
17.13%
3
-0.20%
1
7.08%
21
Investec Triple Alpha
8.79%
8
11.40%
9
15.99%
18
-2.00%
7
8.83%
19
JM BUSHA BondPlus
8.93%
7
10.69%
21
15.73%
21
-2.22%
8
9.59%
17
Kagiso Bond Fund
9.04%
6
11.32%
12
16.17%
15
*
Momentum Investments SA Bond
7.66%
22
10.78%
20
16.00%
17
-3.53%
19
10.27%
7
Prescient Bond Quant
7.95%
20
11.14%
15
16.11%
16
-3.08%
15
10.12%
10
Prescient Bond QuantPlus
8.35%
17
11.80%
4
16.36%
12
-1.67%
6
9.66%
15
Prowess Corporate Bond Portfolio
8.02%
19
10.93%
18
13.50%
23
-1.09%
4
9.03%
18
Prudential Yield Enhanced Portfolio
7.93%
21
10.64%
22
16.52%
10
-4.05%
21
9.86%
13
SIM Institutional Total Return Bond Fund
8.37%
16
10.84%
19
16.73%
6
-4.29%
22
10.67%
5
STANLIB Core Bond Portfolio
8.40%
15
11.64%
7
17.51%
1
-3.25%
16
9.61%
16
Specialist Bonds
*
STANLIB Multi-Manager Bond
9.15%
5
11.36%
10
16.24%
14
-2.67%
13
*
VunaniFM Active Bond Fund
9.20%
4
11.17%
14
16.93%
5
-3.25%
17
9.69%
14
Specialist Bonds Statistics Highest
10.00%
12.53%
17.51%
-0.20%
12.81%
Upper Quartile
8.99%
11.69%
16.69%
-1.75%
10.33%
Median
8.53%
11.32%
16.36%
-2.54%
10.12%
Average
8.58%
11.29%
16.30%
-2.46%
9.98%
Lower Quartile
8.28%
11.00%
15.99%
-3.25%
9.61%
Lowest
6.85%
8.95%
13.50%
-4.29%
7.08%
Range
3.15%
3.58%
4.01%
4.09%
5.73%
23
23
23
22
21
Number of Participants Flexible Bonds – Income Coronation Absolute Bond Portfolio
8.92%
2
10.87%
6
10.02%
6
4.98%
1
8.51%
Coronation Flexible Fixed Interest
6.63%
6
11.49%
4
13.74%
5
1.93%
2
*
Coronation Strategic Bond Composite
7.07%
5
11.07%
5
16.12%
1
-2.33%
5
11.69%
Investec Flexible Bond Composite
7.93%
3
11.51%
3
15.79%
2
-1.88%
4
*
Prescient Flexible Bond Fund
7.83%
4
13.34%
2
15.34%
3
1.53%
3
10.02%
Sasfin BCI Flexible Income fund
10.97%
1
14.13%
1
15.30%
4
*
*
3 1 2
Flexible Bonds – Income Statistics Highest
10.97%
14.13%
16.12%
4.98%
11.69%
Upper Quartile
8.68%
12.88%
15.67%
1.93%
10.85%
Median
7.88%
11.50%
15.32%
1.53%
10.02%
Average
8.23%
12.07%
14.38%
0.85%
10.07%
Lower Quartile
7.26%
11.18%
14.13%
-1.88%
9.26%
Lowest
6.63%
10.87%
10.02%
-2.33%
8.51%
Range
4.34%
3.26%
6.10%
7.30%
3.17%
6
6
6
5
3
Number of Participants *No performance history.
99
MANAGER WATCH™ SURVEY
SA Bond Manager Watch™ Survey (continued) Objective: The portfolios included in this survey represent specialist bond portfolios with ALBI as their benchmark and have an effective modified duration mandate of ±2 years around the ALBI. This survey also include the following two categories: inflation linked bonds and flexible bonds-income.
Investment Data to the end of December for the past 5 Calendar years Investment Managers
2018
Rank
2017
Rank
2016
Rank
2015
Rank
2014
Rank
ALUWANI Active Inflation Linked Bond
0.86%
4
3.03%
4
6.82%
1
4.11%
2
*
Investec Inflation Linked Bond Composite
0.26%
6
2.64%
6
5.62%
6
3.88%
3
10.91%
1
Prescient Inflation Linked Bond Composite
1.76%
2
4.76%
1
6.64%
2
3.66%
5
10.22%
3
SIM Inflation Linked Bond Fund
0.83%
5
2.79%
5
6.43%
3
3.73%
4
10.87%
2
STANLIB Inflation Linked Bond Fund
1.68%
3
3.97%
3
6.26%
4
4.86%
1
*
VunaniFM Active Inflation-linked Bond Fund
1.76%
1
4.41%
2
6.15%
5
3.53%
6
8.17%
Inflation Linked Bonds
Flexible Bonds – Income Statistics Highest
1.76%
4.76%
6.82%
4.86%
10.91%
Upper Quartile
1.74%
4.30%
6.58%
4.06%
10.88%
Median
1.27%
3.50%
6.34%
3.81%
10.55%
Average
1.19%
3.60%
6.32%
3.96%
10.04%
Lower Quartile
0.84%
2.85%
6.17%
3.68%
9.71%
Lowest
0.26%
2.64%
5.62%
3.53%
8.17%
Range
1.50%
2.12%
1.20%
1.33%
2.74%
6
6
6
6
4
All Bond Index
7.69%
10.22%
15.45%
-3.93%
10.15%
1-3 Year Bond Index
9.14%
9.61%
10.08%
4.10%
6.23%
3-7 Year Bond Index
7.34%
11.23%
13.44%
0.93%
7.90%
7-12 Year Bond Index
7.32%
11.03%
15.40%
-3.19%
8.30%
12+ Year Bond Index
7.65%
9.69%
17.46%
-7.04%
12.91%
Barclays - BESA SA Inflation Linked Index
-0.43%
2.93%
6.27%
3.68%
11.15%
GOVI
6.82%
10.39%
14.93%
-3.44%
9.81%
IGOV Index
0.02%
2.62%
6.12%
3.62%
11.09%
OTHI
10.24%
9.71%
16.73%
-5.08%
11.81%
STeFI
7.25%
7.54%
7.39%
6.47%
5.91%
S&P South Africa Sovereign Bond
7.55%
10.19%
15.48%
-3.82%
10.10%
S&P South Africa Sovereign Inflation-Linked Bond
0.04%
2.55%
6.27%
3.52%
10.95%
Number of Participants Indices
*No performance history.
100
4
11.67% 10.60% 10.24% 10.26% 9.87% 8.83% 23
9.83% 8.87% 9.05% 10.20% 9.67% 12.50%
12.50% 10.11% 9.75% 10.02% 9.20% 8.87% 6
Statistics Highest Upper Quartile Median Average Lower Quartile Lowest Number of participants
Flexible Bonds – Income Coronation Absolute Bond Portfolio Coronation Flexible Fixed Interest Coronation Strategic Bond Composite Investec Flexible Bond Composite Prescient Flexible Bond Fund Sasfin BCI Flexible Income fund
Statistics Highest Upper Quartile Median Average Lower Quartile Lowest Number of participants
*No performance history.
10.96% 10.13% 9.97% 11.03% 10.41% 10.54% 8.83% 10.00% 9.91% 10.90% 11.67% 10.50% 10.66% 10.31% 9.80% 9.80% 9.65% 9.83% 9.64% 10.13% 10.38% 10.24% 10.78%
3 6 5 2 4 1
3 13 16 2 9 7 23 15 17 4 1 8 6 11 20 19 21 18 22 14 10 12 5
6.24% 5.49% 4.30% 4.27% 3.17% 2.11% 6
2.11% 4.50% 5.82% 6.24% 4.10% 2.86%
6.14% 5.92% 5.77% 5.70% 5.57% 4.78% 23
1 4 5 6 3 2
5.51% 5 5.44% 4 5.84% 15 6.01% 22 5.77% 11 5.33% 3 5.94% 18 5.90% 17 5.57% 6 5.58% 8 5.77% 12 5.90% 16 5.57% 7 5.76% 10 5.82% 13 5.95% 19 5.12% 2 4.78% 1 6.14% 23 5.82% 14 6.00% 21 5.61% 9 5.95% 20 Lower volatility = higher ranking
5.17% 1.24% 0.54% 1.12% -0.20% -0.53% 6
1.38% -0.53% -0.35% 0.80% 0.27% 5.17%
2.27% 1.20% 0.84% 0.86% 0.47% -0.57% 23
1.56% 0.73% 0.57% 1.63% 1.01% 1.14% -0.57% 0.60% 0.51% 1.50% 2.27% 1.10% 1.26% 0.91% 0.40% 0.40% 0.25% 0.43% 0.24% 0.73% 0.97% 0.84% 1.38%
Calculated on 3 year Performance Returns 3 Year Return Volatility Active Rank Rank (p.a.) (Risk) Return
Specialist Bonds Absa Asset Management Bond Fund Alexander Forbes Investments Pure Fixed Interest Local ALUWANI Active Bond Argon SA Bond Fund Ashburton Bond Composite Balondolozi Bond Fund Cadiz Houseview Bond Fund Coronation Active Bond Portfolio (Composite) Futuregrowth Core Bond Composite Futuregrowth Yield Enhanced Investec Corporate Bond Composite Investec Triple Alpha JM BUSHA BondPlus Kagiso Bond Fund Momentum Investments SA Bond Prescient Bond Quant Prescient Bond QuantPlus Prowess Corporate Bond Portfolio Prudential Yield Enhanced Portfolio SIM Institutional Total Return Bond Fund STANLIB Core Bond Portfolio STANLIB Multi-Manager Bond VunaniFM Active Bond Fund
Investment Managers
Investment Data to the end of December 2019 – Volatility vs Return
2 6 5 3 4 1
3 13 16 2 9 7 23 15 17 4 1 8 6 11 20 19 21 18 22 14 10 12 5
Rank
2.86% 2.76% 2.27% 1.96% 1.23% 0.53% 6
2.49% 2.06% 0.96% 0.53% 2.86% 2.85%
1.42% 0.85% 0.62% 0.68% 0.44% 0.21% 23
0.81% 0.78% 0.30% 0.53% 0.88% 0.98% 1.38% 0.68% 0.54% 0.62% 0.43% 0.31% 0.79% 0.62% 0.56% 0.21% 1.27% 1.42% 0.28% 0.46% 0.49% 1.01% 0.36%
Tracking Error
1.81 1.25 0.29 0.55 -0.17 -0.37 6
0.49 -0.26 -0.37 1.50 0.10 1.81
5.29 1.95 1.46 1.66 0.87 -0.41 23
1.92 0.92 1.89 3.09 1.14 1.16 -0.41 0.87 0.94 2.43 5.29 3.56 1.59 1.46 0.70 1.92 0.20 0.30 0.87 1.58 1.98 0.83 3.83
Information Ratio
3 5 6 2 4 1
7 16 9 4 14 13 23 17 15 5 1 3 10 12 20 8 22 21 18 11 6 19 2
Rank
9.09% 8.88% 8.74% 8.62% 8.39% 8.02% 5
8.88% 8.39% 8.02% 8.74% 9.09% *
10.23% 8.97% 8.68% 8.74% 8.30% 7.73% 22
9.51% 8.69% 8.33% 9.21% 8.74% 9.50% 7.73% 8.54% 8.20% 9.61% 10.23% 8.93% 8.92% * 8.17% 8.30% 8.57% 8.27% 8.06% 8.33% 8.86% 8.67% 8.99%
2 4 5 3 1
20 17 13 18 21 15 9 12 6
3 11 16 5 10 4 22 14 19 2 1 7 8
7.55% 7.01% 5.12% 5.33% 4.71% 2.25% 5
2.25% 4.71% 7.01% 7.55% 5.12% *
7.64% 7.34% 7.20% 7.10% 7.02% 5.73% 22
1 2 4 5 3
6.69% 4 6.87% 5 7.35% 17 7.46% 20 7.04% 7 6.59% 2 7.06% 8 7.26% 13 7.29% 14 7.07% 9 7.07% 10 7.25% 12 7.01% 6 * 7.31% 16 7.31% 15 6.66% 3 5.73% 1 7.63% 21 7.64% 22 7.38% 19 7.16% 11 7.37% 18 Lower volatility = higher ranking
1.34% 1.00% 0.64% 0.64% 0.27% -0.06% 5
-0.06% 0.64% 0.27% 1.00% 1.34% *
2.49% 1.22% 0.93% 1.00% 0.56% -0.02% 22
1.76% 0.94% 0.58% 1.46% 0.99% 1.75% -0.02% 0.79% 0.45% 1.86% 2.49% 1.18% 1.18% * 0.43% 0.55% 0.82% 0.52% 0.32% 0.58% 1.11% 0.92% 1.24%
Calculated on 5 year Performance Returns Active 5 Year Return Volatility Rank Rank Return (p.a.) (Risk)
5 3 4 2 1
20 17 13 18 21 15 9 12 6
3 11 16 5 10 4 22 14 19 2 1 7 8
Rank
3.23% 2.97% 2.71% 2.12% 1.08% 0.58% 5
2.71% 3.23% 1.08% 0.58% 2.97% *
1.87% 0.90% 0.68% 0.77% 0.48% 0.29% 22
1.08% 0.83% 0.36% 0.46% 0.81% 1.49% 1.28% 0.65% 0.64% 0.83% 0.70% 0.47% 0.80% * 0.51% 0.29% 1.17% 1.87% 0.29% 0.50% 0.51% 0.93% 0.44%
Tracking Error
1.70 0.45 0.25 0.50 0.20 -0.09 5
-0.09 0.20 0.25 1.70 0.45 *
3.53 2.12 1.22 1.53 1.02 -0.02 22
1.64 1.12 1.61 3.17 1.22 1.18 -0.02 1.21 0.70 2.26 3.53 2.50 1.47 * 0.83 1.92 0.70 0.28 1.09 1.16 2.19 1.00 2.84
Information Ratio
5 4 3 1 2
18 7 19 21 16 14 6 17 3
8 15 9 2 11 13 22 12 20 5 1 4 10
Rank
SECTION 3
SA Bond Manager Watch™ Survey Risk
Objective: The portfolios included in this survey represent specialist bond portfolios with ALBI as their benchmark and have an effective modified duration mandate of ±2 years around the ALBI. This survey also include the following two categories: inflation linked bonds and flexible bonds-income.
101
MANAGER WATCH™ SURVEY
SA Bond Manager Watch™ Survey Risk (continued) Objective: The portfolios included in this survey represent specialist bond portfolios with ALBI as their benchmark and have an effective modified duration mandate of ±2 years around the ALBI. This survey also include the following two categories: inflation linked bonds and flexible bonds-income.
Investment Data to the end of December 2019 – Volatility vs Return Investment Managers
Calculated on 3 year Performance Returns
Calculated on 5 year Performance Returns
3 Year Return (p.a.)
Rank
Volatility (Risk)
Rank
5 Year Return (p.a.)
Rank
Volatility (Risk)
Rank
ALUWANI Active Inflation Linked Bond
2.31%
4
5.82%
3
0.64%
4
0.30%
2.17
Investec Inflation Linked Bond Composite
1.84%
6
5.91%
5
0.20%
6
0.24%
0.84
Prescient Inflation Linked Bond Composite
3.28%
3
4.86%
1
1.07%
3
1.52%
0.70
SIM Inflation Linked Bond Fund
2.19%
5
5.74%
2
0.60%
5
1.04%
0.57
STANLIB Inflation Linked Bond Fund
3.61%
1
5.88%
4
1.54%
1
1.15%
1.34
VunaniFM Active Inflation-linked Bond Fund
3.40%
2
5.93%
6
1.49%
2
0.48%
3.08
Inflation Linked Bonds
Lower volatility = higher ranking
Lower volatility = higher ranking
Statistics Highest
3.61%
5.93%
1.54%
1.52%
3.08
Upper Quartile
3.37%
5.90%
1.38%
1.12%
1.96
Median
2.80%
5.85%
0.86%
0.76%
1.09
Average
2.77%
5.69%
0.92%
0.79%
1.45
Lower Quartile
2.22%
5.76%
0.61%
0.34%
0.74
Lowest
1.84%
4.86%
0.20%
0.24%
0.57
6
6
6
6
6
All Bond Index
9.40%
6.05%
Barclays - BESA SA Inflation Linked Index
1.58%
6.40%
Number of participants
Indices
102
SECTION 3
SA Bond Manager Watch™ Survey Active Return vs Tracking Error Scatterplot on SA Bond Managers – 3 Years ended 31 December 2019 6.00%
Prescient Bond Quant ALUWANI Active Bond ALUWANI Active Inflation Linked Bond Investec Triple Alpha VunaniFM Active Bond Fund Investec Corporate Bond Composite STANLIB Core Bond Portfolio VunaniFM Active Inflation-linked Bond Fund
5.00%
Return (p.a.)
4.00%
IR = 2
Argon SA Bond Fund Investec Flexible Bond Composite Futuregrowth Yield Enhanced Kagiso Bond Fund
3.00%
Sasfin BCI Flexible Income fund
IR = 1
Coronation Active Bond Portfolio (Composite) Alexander Forbes Investments Pure Fixed Interest Local JM BUSHA BondPlus Absa Asset Management Bond Fund
2.00%
Coronation Active Bond Portfolio (Composite) IR = 0.5 Balondolozi Bond Fund STANLIB Multi-Manager Bond Coronation Absolute Bond Portfolio
1.00%
Prescient Inflation Linked Bond Composite SIM Inflation Linked Bond Fund Prowess Corporate Bond Portfolio Momentum Investments SA Bond Prescient Flexible Bond Fund Prescient Bond QuantPlus Futuregrowth Core Bond Composite SIM Institutional Total Return Bond Fund Coronation Strategic Bond Composite Coronation Flexible Fixed Interest Prudential Yield Enhanced Portfolio Cadiz Houseview Bond Fund Investec Inflation Linked Bond Composite
0.00%
-1.00% 0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
Tracking Error (p.a.)
Volatility vs Return Scatterplot on SA Bond Managers – 3 Years ended 31 December 2019 13.50%
Argon SA Bond Fund VunaniFM Active Bond Fund Investec Triple Alpha Sasfin BCI Flexible Income fund Investec Corporate Bond Composite Coronation Active Bond Portfolio Ashburton Bond Composite (Composite) Futuregrowth Yield Enhanced Absa Asset Management Bond Fund JM BUSHA BondPlus Balondolozi Bond Fund Kagiso Bond Fund Prowess Corporate Bond Portfolio Prescient Flexible Bond Fund Prescient Bond QuantPlus
12.00%
10.50%
Return (p.a.)
9.00%
7.50%
6.00%
4.50%
Coronation Flexible Fixed Interest Coronation Absolute Bond Portfolio SIM Institutional Total Return Bond Fund Alexander Forbes Investments Pure Fixed Interest Local ALUWANI Active Bond Momentum Investments SA Bond Futuregrowth Core Bond Composite STANLIB Multi-Manager Bond Coronation Strategic Bond Composite Prescient Bond Quant Cadiz Houseview Bond Fund STANLIB Core Bond Portfolio All Bond Index Prudential Yield Enhanced Portfolio Investec Flexible Bond Composite VunaniFM Active Inflation-linked Bond Fund STANLIB Inflation Linked Bond Fund Prescient Inflation Linked Bond Composite ALUWANI Active Inflation Linked Bond
3.00%
SIM Inflation Linked Bond Fund Investec Inflation Linked Bond Composite
1.50% 2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
6.00%
6.50%
Tracking Error (p.a.)
103
MANAGER WATCH™ SURVEY
Composite Dispersion of SA Bond Manager Watch™ Survey 1 Year to 31 December 2019 Specialist Bonds ALUWANI Active Bond
0.24%
Ashburton Bond
0.23%
Coronation Active Bond
0.06%
FutureGrowth Core Bond
0.14%
FutureGrowth Yield Enhanced
0.12%
Investec Corporate Bond
0.15%
Investec Triple Alpha
0.08%
Prescient Bond QuantPlus
0.58% 0.25%
Prowess Corporate Bond Prudential Yield Enhanced
0.07%
SIM Institutional Total Return Bond
0.14%
Stanlib Core Bond
0.14%
VunaniFM Active Bond Fund
0.26% 0.00%
0.10%
0.20%
Minimum Return
Maximum Return
Median Composite Return
Composite Dispersion (1yr)
Composite Dispersion (3yrs)
Composite Dispersion (5yrs)
ALUWANI Active Bond
10.25%
11.06%
10.39%
0.24%
0.17%
0.06%
Ashburton Bond
11.03%
11.67%
11.29%
0.23%
*
*
Coronation Active Bond
9.74%
9.94%
9.85%
0.06%
0.15%
0.22%
FutureGrowth Core Bond
10.35%
10.70%
10.54%
0.14%
0.15%
0.16%
FutureGrowth Yield Enhanced
11.39%
11.71%
11.45%
0.12%
0.27%
0.22%
Investec Corporate Bond
12.20%
12.69%
12.50%
0.15%
0.01%
0.18%
Investec Triple Alpha
11.27%
11.45%
11.38%
0.08%
0.09%
0.11%
Prescient Bond QuantPlus
7.25%
9.04%
8.87%
0.58%
0.20%
0.16%
Prowess Corporate Bond
10.16%
10.67%
10.41%
0.25%
1.43%
1.86%
Prudential Yield Enhanced
10.35%
10.52%
10.42%
0.07%
0.05%
*
SIM Institutional Total Return Bond
11.03%
11.45%
11.18%
0.14%
0.26%
0.40%
Stanlib Core Bond
10.79%
11.18%
11.00%
0.14%
*
*
VunaniFM Active Bond Fund
11.30%
12.30%
11.88%
0.26%
0.17%
*
Specialist Bonds
* Data not available.
104
0.30%
0.40%
0.50%
0.60%
0.70%
SECTION 3
Composite Dispersion of SA Bond Manager Watchâ„¢ Survey 1 Year to 31 December 2019 Inflation Linked Bonds 0.09%
ALUWANI Active Inflation Linked Bond
0.24%
Investec Inflation Linked Bond 0.08%
SIM Inflation Linked Bond Fund
0.14%
VunaniFM Inflation Linked Bond Fund
0.00%
0.05%
0.10%
Minimum Return
Inflation Linked Bonds
Maximum Return
0.15%
Median Composite Return
Composite Dispersion (1yr)
0.20%
Composite Dispersion (3yrs)
0.25%
Composite Dispersion (5yrs)
ALUWANI Active Inflation Linked Bond
2.98%
3.23%
3.07%
0.09%
0.13%
0.26%
Investec Inflation Linked Bond
2.55%
3.12%
2.88%
0.24%
0.27%
0.19%
SIM Inflation Linked Bond Fund
2.85%
3.02%
2.94%
0.08%
0.00%
0.06%
VunaniFM Inflation Linked Bond Fund
3.86%
4.14%
4.00%
0.14%
0.14%
0.02%
Flexible Bonds 0.31%
Coronation Absolute Bond
0.24%
Coronation Strategic Bond 0.10%
Investec Flexible Bond
0.96%
Prescient Flexible Bond
0.00%
Inflation Linked Bonds
0.20%
0.40%
Minimum Return
Maximum Return
0.60%
Median Composite Return
0.80%
Composite Dispersion (1yr)
1.00%
Composite Dispersion (3yrs)
1.20%
Composite Dispersion (5yrs)
Coronation Absolute Bond
9.14%
9.76%
9.45%
0.31%
0.28%
*
Coronation Strategic Bond
8.56%
9.27%
8.94%
0.24%
0.21%
0.16%
Investec Flexible Bond
11.00%
11.39%
11.17%
0.10%
0.06%
0.04%
Prescient Flexible Bond
5.43%
8.17%
7.83%
0.96%
0.12%
0.30%
* Data not available.
105
MANAGER WATCH™ SURVEY
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106
C
V
C
Futuregrowth Core Money Market Composite
Investec Money Market Fund
Momentum Investments Money Market
Y
C
Futuregrowth 180 Day Enhanced Money Market Composite
V = Verified C = Compliant
V V V N/A V
V N/A C N/A
V
Investec Money Fund Momentum Investments Diversified Money Market Momentum Investments Enhanced Yield Nedgroup Investments Core Income Fund Old Mutual Multi-Managers Money Market Prescient Yield Quantplus Fund SIM Cash Enhanced STANLIB Enhanced Yield Fund Sygnia Money Market Fund Taquanta Cash Fund
Y
C
Balondolozi Cash Fund
Coronation Institutional Cash
Y
Y Y Y Y N Y Y N
Y
Y
Y Y
V
C
Argon Enhanced Money Market Fund
Ashburton Cash Plus
Y N
Y N Y Y
Y
Y
Y
Y
Y
N/A N/A
This includes multi-managers thus must be noted as possible "double-counting"
This includes multi-managers thus must be noted as possible "double-counting"
Able to invest in instruments that have a maturity longer than one year
Able to invest in instruments that have a maturity longer than one year
Notes
STeFI STeFI STeFI STeFI STeFI 3M STeFI STeFI STeFI STeFI STeFI
STeFI
STeFI
STeFI
STeFI
STeFI
STeFI STeFI
STeFI Call STeFI Call STeFI STeFI
STeFI
STeFI 3M
STeFI 3M
STeFI
STeFI
STeFI
Managed ITO Benchmark Regulation Description 28? (Y/N)
Alexander Forbes Investments Banker Aluwani Cash Plus
Maximum duration up to 91-180 days
N/A N/A V V
V
Coronation Strategic Cash
Nedgroup Investments Corporate Money Market Fund Nedgroup Investments Money Market Fund Prescient Money Market Composite STANLIB Money Market Portfolio
V
C
Ashburton Money Market Composite
GIPS™ (Verified / Compliant)
Absa Asset Management Money Market
Maximum duration up to 90 days
Investment Managers
General information
Pooled Segregated Segregated Unit trust Pooled Segregated Pooled Pooled Pooled Segregated
Pooled
Segregated
Segregated
Segregated
Segregated
Pooled Segregated
Unit trust Unit trust Segregated Pooled
Segregated
Pooled
Pooled
Pooled
Pooled
Segregated
Classification
Mark-to-Market Mark-to-Market Time Weighted Rate of Return Mark-to-Market Time-weighted Rate of Return Mark-to-Market Time-Weighted Rate of Return (Modified Dietz) Mark-to-Market Accrual Mark-to-Market Mark to Market Mark-to-Market TWRR Mark-to-Market Mark-to-Market Modified Dietz Mark-to-Market
Acrual Accrual Mark-to-Market Accrual
Mark-to-Market
Time-Weighted Rate of Return (Modified Dietz) Accrual
Accrual
Mark-to-Market
Accrual
Valuation Methodology
180 days 180 days 180 days 180 days 180 days 180 days 180 days 180 days 180 days 180 days
180 days
180 days
180 days
180 days
180 days
180 days 180 days
90 days 90 days 90 days 90 days
90 days
90 days
90 days
90 days
90 days
90 days
Sep-22 Sep-22 Nov-22 Feb-48 Nov-24
Dec-24 Apr-26 Dec-26 Aug-24
Jun-22
Mar-28
Dec-20
Aug-33
Jun-22
Nov-26 Nov-24
Aug-24 Aug-24 Jan-21 Apr-21
Jan-21
Dec-20
Sep-20
Jul-22
Jan-30
Dec-20
100.00% 97.42% 100.00% 100.00% 100.00%
99.10% 81.17% 93.50% 98.55%
96.83%
100.00%
100.00%
89.00%
100.00%
100.00% 96.25%
100.00% 100.00% 100.00% 100.00%
100.00%
99.95%
96.02%
100.00%
100.00%
100.00%
% of portfolio Maximum Maturity of invested Duration of longest dated in F1 and Portfolio instrument better rated instruments
Total
Total
1 1 1 1 N/A 12 16 2 1 1
5
1
3
11
3
N/A 14
1 1 9 3
1
1
6
1
1
3
No. of Funds in Composite
176 080
11 958 200 14 057 43757 857 7 034 12 248 17 066 1 005 7 155
8 911
532
1 024
18 146
839
19 881 11 409
273 845
29 726 13 510 6 855 86 928
9 594
30 078
17 693
3 280
3 966
72 216
Portfolio Size (R m)
SECTION 3
SA Money Market Manager Watch™ Survey
Objective: The portfolios in this survey represent short-term debt securities that are highly marketable and trade in large denominations.
107
108
8.07%
8.32%
8.03%
8.07%
8.09%
7.97%
8.05%
8.18%
8.02%
Coronation Strategic Cash
Futuregrowth Core Money Market Composite
Investec Money Market Fund
Momentum Investments Money Market
Nedgroup Investments Corporate Money Market Fund
Nedgroup Investments Money Market Fund
Prescient Money Market Composite
STANLIB Money Market Portfolio
7.29%
6.64%
6.92%
7.48%
8.03%
Short Term Fixed Interest Rate Index
STeFI Call Deposit Index
STeFI 3 Month NCD Rate
STeFI 6 Month NCD Rate
STeFI 12 Month NCD Rate
0.56%
*No performance history.
10
0.35%
Number of Participants
Range
8.01%
8.02%
7.97%
Lower Quartile
Lowest
8.14%
10
8.08%
8.19%
8.06%
8.08%
Median
Average
8.23%
8.32%
8.57%
8.08%
7.55%
7.00%
6.70%
7.36%
7.35%
8.11%
8.26%
8.13%
8.07%
8.43%
8.15%
8.15%
8.57%
8.05%
8.01%
Portfolio
8.08%
8
2
6
10
3
5
7
1
4
9
Rank
Highest
1 Year
Upper Quartile
Statistics
7.26%
Alexander Forbes Money Market Index
Market Statistics
7.97%
Ashburton Money Market Composite
Portfolio
Absa Asset Management Money Market
Maximum duration up to 90 days
Investment Managers
Investment Data to the end of December 2019 3 Years
7
3
6
8
2
4
5
1
9
10
Rank
10
0.49%
7.83%
7.86%
7.98%
7.91%
7.99%
8.32%
7.88%
7.38%
6.82%
6.55%
7.19%
7.18%
7.88%
8.00%
7.91%
7.84%
8.30%
7.95%
7.91%
8.32%
7.83%
7.85%
Portfolio
5 Years
7
3
5
9
2
4
6
1
10
8
Rank
9
0.64%
7.24%
7.33%
7.45%
7.38%
7.46%
7.88%
7.32%
6.90%
6.40%
6.13%
6.72%
6.74%
7.33%
7.46%
7.38%
7.28%
7.76%
7.39%
7.35%
7.88%
*
7.24%
Portfolio
7 Years
7
3
5
8
2
4
6
1
9
Rank
10 Years
8
0.75%
7.01%
7.08%
7.25%
7.14%
7.31%
7.76%
7.13%
6.67%
6.22%
5.96%
6.52%
6.54%
7.08%
7.22%
7.14%
*
7.57%
7.14%
7.07%
7.76%
*
7.01%
Portfolio
6
3
4
2
5
7
1
8
Rank
MANAGER WATCH™ SURVEY
SA Money Market Manager Watch™ Survey
Objective: The portfolios in this survey represent short-term debt securities that are highly marketable and trade in large denominations.
Portfolio
1 Year Rank
Portfolio
3 Years Rank
Portfolio
5 Years Rank
Portfolio
7 Years Rank
1 10
8.30%
8.86%
Argon Enhanced Money Market Fund
Ashburton Cash Plus
3
8
8.74%
Taquanta Cash Fund
8.44%
7.55%
7.48%
8.03%
STeFI 6 Month NCD Rate
STeFI 12 Month NCD Rate
0.90%
*No performance history.
17
0.57%
Number of Participants
Range
8.18%
8.56%
8.29%
Lower Quartile
Lowest 17
8.66%
8.75%
8.62%
8.59%
Median
Average
8.79%
9.08% 8.96%
8.86%
8.70%
Highest
Upper Quartile
Statistics
6.70% 7.00%
6.64%
6.92%
STeFI Call Deposit Index
STeFI 3 Month NCD Rate 8.08%
7.36%
7.26%
7.29%
7.35%
9.08%
8.66%
8.97%
8.79%
8.83%
8.18%
8.66%
8.84%
9.02%
8.81%
8.40%
8.71%
8.67%
8.96%
Alexander Forbes Money Market Index
2
9
6
11
5
15
12
8.78% 8.96%
Short Term Fixed Interest Rate Index
Market Statistics
8.65%
8.62%
STANLIB Enhanced Yield Fund
8.59%
SIM Cash Enhanced
Sygnia Money Market Fund
8.33%
8.70%
Old Mutual Multi-Managers Money Market
Prescient Yield Quantplus Fund
8.64%
8.56%
4
Momentum Investments Enhanced Yield
13
8.56%
8.71%
Investec Money Fund
Momentum Investments Diversified Money Market
Nedgroup Investments Core Income Fund
17
8.29%
Futuregrowth 180 Day Enhanced Money Market Composite
14
8.59%
8.48%
Balondolozi Cash Fund
Coronation Institutional Cash
16
7
8.72%
8.64%
Alexander Forbes Investments Banker
Aluwani Cash Plus
1
13
3
9
7
17
14
6
2
8
16
11
12
4
15
5
10
8.53%
16
0.85%
7.85%
8.37%
8.45%
8.53%
8.59%
8.71%
7.88%
7.38%
6.82%
6.55%
7.19%
7.18%
8.71%
8.32%
8.70%
8.57%
8.58%
7.85%
8.44%
8.52%
8.63%
8.45%
8.19%
8.38%
*
8.54%
8.20%
8.63%
8
1
13
2
6
5
16
11
9
3
10
15
12
7
14
4
7.98%
16
0.75%
7.34%
7.78%
7.85%
7.91%
7.99%
8.09%
7.32%
6.90%
6.40%
6.13%
6.72%
6.74%
8.04%
7.70%
8.09%
7.96%
8.09%
7.34%
7.81%
7.97%
7.96%
7.83%
7.56%
7.81%
*
7.86%
7.59%
8.03%
5
3
13
2
7
1
16
12
6
8
10
15
11
9
14
4
10 Years Portfolio
12
0.64%
7.21%
7.63%
7.65%
7.69%
7.80%
7.84%
7.13%
6.67%
6.22%
5.96%
6.52%
6.54%
7.84%
*
7.79%
7.63%
7.77%
7.21%
7.67%
7.80%
*
7.67%
*
7.61%
*
*
7.31%
7.80%
7.71%
Maximum duration up to 91 - 180 days
Investment Managers
Investment Data to the end of December 2019
1
4
9
5
12
7
3
8
10
11
2
6
Rank
SECTION 3
SA Money Market Manager Watch™ Survey
Objective: The portfolios in this survey represent short-term debt securities that are highly marketable and trade in large denominations.
109
110 Rank
Active Return
Rank
8.05%
8.57%
8.15%
8.15%
8.43%
8.07%
8.13%
8.26%
8.11%
Ashburton Money Market Composite
Coronation Strategic Cash
Futuregrowth Core Money Market Composite
Investec Money Market Fund
Momentum Investments Money Market
Nedgroup Investments Corporate Money Market Fund
Nedgroup Investments Money Market Fund
Prescient Money Market Composite
STANLIB Money Market Portfolio
7
3
6
8
2
4
5
1
9
10
Lower volatility = higher ranking
0.11%
0.09%
0.08%
0.08%
0.15%
0.09%
0.12%
0.19%
0.07%
0.10%
7
4
3
2
9
5
8
10
1
6
0.74%
0.90%
0.77%
0.71%
1.07%
0.79%
0.79%
1.21%
0.69%
0.65%
8.96%
8.44%
8.96%
8.67%
8.71%
8.40%
8.81%
9.02%
8.84%
8.66%
8.18%
8.83%
8.79%
8.97%
8.66%
9.08%
Aluwani Cash Plus
Argon Enhanced Money Market Fund
Ashburton Cash Plus
Balondolozi Cash Fund
Coronation Institutional Cash
Futuregrowth 180 Day Enhanced Money Market Composite
Investec Money Fund
Momentum Investments Diversified Money Market
Momentum Investments Enhanced Yield
Nedgroup Investments Core Income Fund
Old Mutual Multi-Managers Money Market
Prescient Yield Quantplus Fund
SIM Cash Enhanced
STANLIB Enhanced Yield Fund
Sygnia Money Market Fund
Taquanta Cash Fund
7.36%
*No performance history.
7.35%
Alexander Forbes Money Market Index
Short Term Fixed Interest Rate Index
Market statistics
8.78%
Alexander Forbes Investments Banker
1
13
3
9
7
17
14
6
2
8
16
11
12
4
15
5
10
0.07%
0.05%
0.32%
0.19%
0.25%
0.21%
0.13%
0.17%
0.10%
0.13%
0.20%
0.19%
0.14%
0.10%
0.28%
0.13%
0.18%
0.15%
0.16%
17
12
15
14
5
9
1
4
13
11
6
2
16
3
10
7
8
1.72%
1.30%
1.61%
1.43%
1.47%
0.82%
1.30%
1.47%
1.66%
1.45%
1.04%
1.35%
1.31%
1.60%
1.08%
1.60%
1.42%
Maximum duration up to 91 - 180 days
8.01%
Absa Asset Management Money Market
1
13
3
9
7
17
14
6
2
8
16
11
12
4
15
5
10
7
3
6
8
2
4
5
1
9
10
7.19%
7.18%
8.71%
8.32%
8.70%
8.57%
8.58%
7.85%
8.44%
8.52%
8.63%
8.45%
8.19%
8.38%
*
8.54%
8.20%
8.63%
8.53%
7.88%
8.00%
7.91%
7.84%
8.30%
7.95%
7.91%
8.32%
7.83%
7.85%
1
13
2
6
5
16
11
9
3
10
15
12
7
14
4
8
7
3
5
9
2
4
6
1
10
8
Rank
0.12%
0.12%
0.30%
0.23%
0.40%
0.30%
0.20%
0.22%
0.16%
0.19%
0.25%
0.24%
0.20%
0.19%
*
0.21%
0.28%
0.22%
0.24%
Lower volatility = higher ranking
0.18%
0.16%
0.15%
0.15%
0.19%
0.14%
0.18%
0.22%
0.15%
0.17%
Volatility (Risk)
Calculated on 5 year Performance Returns
Volatility (Risk)
5 Year Return (p.a.)
Rank
Calculated on 3 year Performance Returns
3 Year Return (p.a.)
Maximum duration up to 90 days
Investment Managers
Volatility vs Return
15
9
16
14
5
7
1
3
12
10
4
2
6
13
8
11
7
5
3
4
9
1
8
10
2
6
Rank
1.52%
1.13%
1.51%
1.38%
1.40%
0.67%
1.25%
1.34%
1.45%
1.26%
1.00%
1.20%
*
1.36%
1.01%
1.44%
1.35%
0.69%
0.81%
0.72%
0.65%
1.12%
0.76%
0.72%
1.13%
0.64%
0.66%
Active Return
1
13
2
6
5
16
11
9
3
10
15
12
7
14
4
8
7
3
5
9
2
4
6
1
10
8
Rank
MANAGER WATCH™ SURVEY
SA Money Market Manager Watch™ Survey Risk
Objective: The portfolios in this Survey represent short-term debt securities that are highly marketable and trade in large denominations.
SECTION 3
SA Money Market Manager Watch™ Survey Volatility vs Return Scatterplot on Money Market Managers (up to 90 day duration) – 3 Years ended 31 December 2019 8.60% Coronation Strategic Cash
8.50%
Momentum Investments Money Market
Return (p.a.)
8.40%
8.30% Prescient Money Market Composite
8.20% Investec Money Market Fund
Futuregrowth Core Money Market Composite Nedgroup Investments Money Market Fund STANLIB Money Market Portfolio
8.10%
Nedgroup Investments Corporate Money Market Fund
8.01%
Ashburton Money Market Composite Absa Asset Management Money Market
0.05%
0.20%
0.10%
0.20%
Volatility (p.a.) (standard deviation)
Volatility vs Return Scatterplot on Money Market Managers (91–180 day duration) – 3 Years ended 31 December 2019 9.10% 9.00%
Taquanta Cash Fund Momentum Investments Diversified Money Market Ashburton Cash Plus
8.90% 8.80%
STANLIB Enhanced Yield Fund
Aluwani Cash Plus Momentum Investments Enhanced Yield Prescient Yield Quantplus Fund
SIM Cash Enhanced
Alexander Forbes Investments Banker
Return (p.a.)
Investec Money Fund
8.70%
Coronation Institutional Cash Nedgroup Investments Core Income Fund
Sygnia Money Market Fund
Balondolozi Cash Fund
8.60% 8.50% Argon Enhanced Money Market Fund
8.40% Futuregrowth 180 Day Enhanced Money Market Composite
8.30% 8.20%
Old Mutual Multi-Managers Money Market
8.10% 0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
0.35%
Volatility (p.a.) (standard deviation)
111
MANAGER WATCH™ SURVEY
SA Money Market Manager Watch™ Survey Objective: The portfolios in this survey represent short-term debt securities that are highly marketable and trade in large denominations.
Investment Data to the end of December for the past 5 Calendar years Investment Managers
2018
2017
2016
2015
2014 5.94%
Maximum duration up to 90 days Absa Asset Management Money Market
7.89%
8.17%
8.29%
6.94%
Ashburton Money Market Composite
7.99%
8.09%
8.07%
6.94%
*
Coronation Strategic Cash
8.67%
8.72%
8.56%
7.32%
6.83%
Futuregrowth Core Money Market Composite
8.06%
8.36%
8.23%
6.86%
6.28%
Investec Money Market Fund
8.06%
8.32%
8.14%
7.15%
6.36%
Momentum Investments Money Market
8.26%
8.95%
8.86%
7.37%
6.61%
Nedgroup Investments Corporate Money Market Fund
7.98%
8.26%
8.09%
6.91%
6.22%
Nedgroup Investments Money Market Fund
8.03%
8.32%
8.16%
7.00%
6.39%
Prescient Money Market Composite
8.23%
8.38%
8.21%
7.02%
6.53%
STANLIB Money Market Portfolio
7.96%
8.33%
8.21%
6.88%
6.24%
Maximum duration 91 - 180 days Alexander Forbes Investments Banker
8.80%
8.81%
8.97%
7.38%
6.74%
Aluwani Cash Plus
8.99%
9.25%
8.89%
7.37%
6.67%
Argon Enhanced Money Market Fund
8.18%
8.83%
8.78%
6.92%
6.30%
Ashburton Cash Plus
9.03%
8.99%
8.29%
7.55%
6.52%
Balondolozi Cash Fund
8.52%
8.90%
8.72%
*
*
Coronation Institutional Cash
8.69%
8.96%
8.23%
7.56%
6.76%
Futuregrowth 180 Day Enhanced Money Market Composite
8.26%
8.64%
8.60%
7.14%
6.35%
Investec Money Fund
8.71%
9.18%
8.55%
7.28%
6.23%
Momentum Investments Diversified Money Market
9.10%
9.24%
8.74%
7.38%
6.33%
Momentum Investments Enhanced Yield
8.65%
9.21%
8.66%
7.47%
6.71%
Nedgroup Investments Core Income Fund
8.56%
8.87%
8.71%
7.51%
6.16%
Old Mutual Multi-Managers Money Market
8.00%
8.21%
8.01%
6.73%
6.22%
Prescient Yield Quantplus Fund
8.73%
9.05%
8.90%
7.53%
7.11%
SIM Cash Enhanced
8.71%
9.08%
9.18%
7.31%
6.53%
STANLIB Enhanced Yield Fund
8.83%
9.42%
9.56%
7.04%
6.46%
Sygnia Money Market Fund
8.52%
8.85%
8.40%
7.21%
6.01%
Taquanta Cash Fund
9.06%
9.45%
8.73%
7.57%
6.28%
Market statistics Alexander Forbes Money Market Index
7.26%
7.53%
7.42%
6.42%
5.97%
Short Term Fixed Interest Rate Index
7.25%
7.54%
7.39%
6.47%
5.91%
STeFI Call Deposit Index
6.57%
6.88%
6.84%
5.79%
5.42%
STeFI 3 Month NCD Rate
6.92%
7.15%
7.05%
6.08%
5.65%
STeFI 6 Month NCD Rate
7.43%
7.73%
7.58%
6.69%
6.11%
STeFI 12 Month NCD Rate
7.93%
8.29%
8.00%
7.16%
6.32%
*No performance history.
112
SECTION 3
Composite Dispersion of SA Money Market Manager Watch™ Survey 1 Year to 31 December 2019 Maximum duration up to 90 days 0.27%
Absa Management Money Market 0.14%
Futuregrowth Core Money Market Prescient Money Market
0.13% 0.15%
SIM Cash Enhanced 0.10%
STANLIB Money Market 0.00%
0.5%
Minimum Return
Maximum up to 90 days
0.10%
0.15%
0.20%
0.25%
0.30%
0.35%
Maximum Return
Median Composite Return
Composite Dispersion (1yr)
Composite Dispersion (3yrs)
Composite Dispersion (5yrs)
Absa Management Money Market
7.84%
8.46%
8.09%
0.27%
0.28%
0.33%
Futuregrowth Core Money Market
7.67%
8.04%
7.87%
0.14%
0.12%
0.12%
Prescient Money Market
8.04%
8.50%
8.14%
0.13%
0.07%
0.07%
SIM Cash Enhanced
8.55%
9.03%
8.67%
0.15%
0.16%
0.39%
STANLIB Money Market
7.67%
7.91%
7.76%
0.10%
0.12%
0.11%
Maximum duration from 91–180 days 0.10%
ALUWANI Cash Plus
0.32%
Ashburton Cash Plus Futuregrowth Yield Enhanced 180 Day Money Market Composite
0.19% 0.27%
Prescient Yield Quantplus Fund 0.12%
Momentum Investments Enhanced Yield 0.09%
STANLIB Enhanced Yield Fund 0.00%
Maximum from 91–180 days
0.5%
Minimum Return
0.10%
Maximum Return
0.15%
Median Composite Return
0.20%
0.25%
0.30%
0.35%
Composite Dispersion (1yr)
Composite Dispersion (3yrs)
Composite Dispersion (5yrs)
ALUWANI Cash Plus
8.50%
8.87%
8.62%
0.10%
0.10%
0.10%
Ashburton Cash Plus
7.86%
9.02%
8.52%
0.32%
*
*
Futuregrowth Yield Enhanced 180 Day Money Market Composite
7.93%
8.41%
8.26%
0.19%
0.17%
0.17%
Prescient Yield Quantplus Fund
8.01%
9.19%
8.66%
0.27%
0.22%
0.21%
Momentum Investments Enhanced Yield
8.58%
8.83%
8.71%
0.12%
0.13%
0.16%
STANLIB Enhanced Yield Fund
8.53%
8.70%
8.61%
0.09%
0.14%
0.17%
* Data not available.
113
114
V
V
Sep-13
Dec-01
Oct-01
Aug-29 May-01 Oct-01 Jan-01 Oct-01 Dec-01 Jul-10 Dec-01
SIM Absolute
V
Domestic and Global
Domestic and Global Domestic and Global Domestic and Global Domestic and Global
N/A V
V
V
V
Nov-01
Oct-01 Sep-01 Jul-01 Mar-01
Jul-01
Nov-30
Prudential Domestic Real Return Plus 5%
V
V
Dec-01
Prudential Real Return + 5%
V
Jan-01
Aug-01
Mar-31
SIM CPI + 6%
Investec Opportunity
Mianzo Global Absolute Return - CPI+6%
V = Verified C = Compliant
V
Dec-01
Prudential Domestic Real Return Plus 6%
V
V N/A V
Dec-01
May-01 Dec-19 Mar-01 Mar-01
SIM CPI + 5% Global
SMM Moderate Absolute Fund STANLIB Absolute Plus Fund STANLIB Multi-Manager Real Return Fund Vunani Global Absolute Return Constrained (CPI+5%) Headline CPI + 6%
V C C V
Jan-01
Oct-31 Aug-01 Jun-01 Jun-01 Aug-01
SIM CPI + 5%
Argon Absolute Return CPI+5% Coronation Absolute Foord Absolute Nedgroup Investments Opportunity Fund OMIG Wealth Defender
V
V V C N/A
Domestic and Global
Domestic and Global
Domestic
Domestic
Domestic and Global Domestic and Global Domestic and Global Domestic and Global
Domestic and Global
Domestic and Global
Domestic and Global Domestic and Global Domestic and Global Domestic and Global Domestic and Global
Domestic
Domestic
Domestic
Domestic Domestic Domestic Domestic Domestic Domestic Domestic and Global Domestic and Global
Domestic
Domestic
Domestic Domestic
Domestic
Domestic Domestic Domestic Domestic Domestic
Taquanta True Absolute Headline CPI + 4% Absa Asset Management Absolute Domestic CPI+4% Alexander Forbes Investments Real Return Focus Local Argon Absolute Return Fund Coronation Absolute Mergence CPI + 4% Fund Momentum Investments Absolute Strategies Abax Absolute Return fund Absa Asset Management Absolute Global CPI +4% Alexander Forbes Investments Real Return Focus Portfolio Argon Absolute Return Global Balanced CPI+4% Fund Old Mutual Multi-Managers Defensive Balanced fund OMIG MacroSolutions Stable Growth Fund Sasfin Absolute Fund Headline CPI + 5% Mergence CPI +5% Fund
V
V
Mar-01
V
V N/A
GIPS™ Global / Domestic (Verified / Mandate Compliant)
OMIG Capital Builder
Oct-31 Apr-01 Mar-28 Jan-01 Jul-01
Portfolio Inception Date
Prescient Positive Return Fund PSG Stable Fund
Headline CPI + 3% Absa Asset Management Absolute CPI +3% Alexander Forbes Investments Stable Focus Balondolozi Absolute Return Fund Mianzo Absolute Return Fund Momentum Investments Real Return
Investment Managers
General Information
Y
Y
Y
Y
Y Y N Y
Y
Y
Y Y Y Y Y
Y
Y
Y
Y Y Y Y
Y
Y Y Y Y Y Y Y Y
N
Y
Y Y
Y
Y Y Y Y Y
Managed ITO Regulation 28? (Y/N)
Headline CPI + 6%
Headline CPI + 6%
Headline CPI + 6%
Headline CPI + 6%
Headline CPI + 5% Headline CPI + 5% Headline CPI + 5% Headline CPI + 5%
Headline CPI + 5%
Headline CPI + 5%
Headline CPI + 5% Headline CPI + 5% Headline CPI + 5% Headline CPI + 5% Headline CPI + 5%
Headline CPI + 5%
Headline CPI + 5%
Headline CPI + 5%
Headline CPI + 4% Headline CPI + 4% Headline CPI + 4% Headline CPI + 4%
Headline CPI + 4%
Headline CPI + 4% Headline CPI + 4% Headline CPI + 4% Headline CPI + 4% Headline CPI + 4% Headline CPI + 4% Headline CPI + 4% Headline CPI + 4%
Headline CPI + 3%
Headline CPI + 3%
Headline CPI + 3% Headline CPI + 3%
Headline CPI + 3%
Headline CPI + 3% Headline CPI + 3% Headline CPI + 3% Headline CPI + 3% Headline CPI + 3%
CPI Target Return
The fund performance objectives is no negative returns in any 1 year rolling period and out performance of the benchmark (CPI+6% over a 3 year period).
The primary objective is to outperform CPI by 6% (gross of fees) over a rolling 3-year period. The secondary objective is to reduce the risk of capital loss over any rolling 12-month period. The primary objective is to outperform CPI by 6% (gross of fees) over a rolling 3-year period. The secondary objective is to reduce the risk of capital loss over any rolling 12-month period. SIM targets low volatility real returns that match the upside return objective (e.g. CPI+X %) over rolling three-year periods. At the same time, they target not to lose capital over rolling one-year periods
Capital preservation over a rolling 12 month period
The primary objective is to outperform CPI by 5% (gross of fees) over a rolling 3-year period. The secondary objective is to reduce the risk of capital loss over any rolling 12-month period. SIM targets low volatility real returns that match the upside return objective (e.g. CPI+X %) over rolling three-year periods. At the same time, they target not to lose capital over rolling one-year periods
Preserve capital over a rolling 12m period
Non-negative returns over a rolling 1-year period The primary objective is to outperform CPI by 5% (gross of fees) over a rolling 3-year period. The secondary objective is to reduce the risk of capital loss over any rolling 12-month period. SIM targets low volatility real returns that match the upside return objective (e.g. CPI+X %) over rolling three-year periods. At the same time, they target not to lose capital over rolling one-year periods
Non-negative returns over rolling 1-year periods
No negative returns over rolling 12 month period
No negative returns over rolling 12 month period No negative returns over 1 year rolling period. Preserve capital over a rolling 12m period
SIM targets low volatility real returns that match the upside return objective (e.g. CPI+X %) over rolling three-year periods. At the same time, they target not to lose capital over rolling one-year periods
Targets both positive returns every quarter and CPI+3% pa, or Cash+2% pa over rolling 3-year periods.
Limit negative returns in any 1 year rolling period.
No negative returns over rolling 12 month period
Dual Objective (if applicable)
3
399.7
50 544.9
778.5
3 470.9
478.9 7 299.1 1 195.2 1 721.7
22 647.7
28 352.1
826.0 2 696.1 211.0 6 658.8 5 861.3
452.8
1 716.5
1 195.3
1 077.2 728.7 6 403.4 848.5
5 206.4
1 680.1 7 570.9 121.1 3 090.8 2 861.0 1 225.4 2 497.3 6 027.0
4 017.8
1 811.4
2 529.8 3 814.9
629.2
746.3 3 386.7 383.5 1 039.5 590.2
Portfolio Size (R m)
Total 194 793.7
12
1
4
1 1 0 1
21
3
3 1 1 N/A 4
2
3
1
3 N/A 1 2
N/A
7 N/A 1 6 5 1 N/A 3
1
3
7 N/A
1
1 N/A 2 1 1
No. of Funds in Composite
MANAGER WATCH™ SURVEY
Absolute Return Manager Watch™ Survey
Objective: The portfolios in this survey comply with Regulation 28 and represent products targeted at real returns with a CPI objective.
Calendar Year Returns
*No performance history. #Inflation figures in this table are lagged by one month
* 9.91% 11.15% 9.13% 16.85% 9.16% 13.51% 13.36% 9.65% 9.82% 12.69% 10.02% 9.37% 9.46%
5.80%
* 6.21% 11.20% 3.80% 6.38% 9.45% 4.08% 10.23% 6.39% 12.06% 11.27% 7.78% 8.40% 9.43%
* 6.52% -0.92% 6.66% 11.48% 4.11% 9.29% 5.13% 10.25% 6.41% 2.15% 4.97% 3.18% 3.10%
* 10.26% 11.59% 10.33% 10.01% 11.75% * 9.90% 7.37% 8.41% 10.14% 10.33% *
5.91% 31
* 4.96% 9.54% 3.28% 8.06% 7.19% * 0.05% 5.05% 4.91% 12.15% 8.57% *
* 7.24% 3.94% 7.70% 5.16% 6.62% 5.21% 8.37% 5.82% 7.56% 3.96% 5.43% *
9.82% 8.98% * * 8.51% 7.93% 7.03% 9.26% 8.65% 1.93%
4.77%
5.13% 4.53% * * 5.34% 3.39% 5.82% 8.88% 6.73% 10.17%
7.13% 6.38% 5.25% 9.66% 6.97% 5.09% 6.81% 10.80% 11.05% 11.94%
2014
6.47% 31
2015
2016
Market Statistics Consumer Price Inflation (Headline CPI) 3.56% 4.45% 4.94% 5.12% 5.11% 5.18% 4.62% 6.61% [I-Net code: AECPI] STEFI 7.29% 7.36% 7.19% 6.72% 6.52% 7.25% 7.54% 7.39% Number of Participants 37 34 31 28 25 37 34 34
Investment Managers
1 Year 3 Years 5 Years 7 Years 10 Years 2018 2017 Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Headline CPI + 3% Absa Asset Management Absolute CPI +3% 11.52% 6.57% 10.53% 7.45% 8.74% 7.94% 8.43% 8.12% 9.30% 8.12% 9.63% 10.44% Alexander Forbes Investments Stable Focus 9.61% 6.57% 7.59% 7.45% 6.73% 7.94% 7.36% 8.12% 8.11% 8.12% 4.07% 9.19% Balondolozi Absolute Return Fund 12.47% 6.57% 9.81% 7.45% * * * * * * 4.67% 12.47% Mianzo Absolute Return Fund 11.86% 6.57% 8.02% 7.45% * * * * * * -0.47% 13.20% Momentum Investments Real Return 9.60% 6.57% 8.40% 7.45% 7.49% 7.94% 8.07% 8.12% 7.72% 8.12% 6.37% 9.25% OMIG Capital Builder 6.20% 6.57% 6.30% 7.45% 5.47% 7.94% 6.45% 8.12% 6.50% 8.12% 1.84% 11.06% Prescient Positive Return Fund 11.25% 6.57% 7.63% 7.45% 7.10% 7.94% 7.62% 8.12% 7.33% 8.12% 3.87% 7.91% PSG Stable Fund 3.82% 6.57% 6.01% 7.45% 7.52% 7.94% * * * * 2.79% 11.64% SIM Absolute 9.71% 6.57% 8.19% 7.45% 8.46% 7.94% 8.68% 8.12% 9.59% 8.12% 4.44% 10.53% Taquanta True Absolute 11.81% 6.57% 12.28% 7.45% 11.79% 7.94% * * * * 12.33% 12.71% Headline CPI + 4% OMIG Capital Builder 6.20% 6.57% 6.30% 7.45% 5.47% 7.94% 6.45% 8.12% 6.50% 8.12% 7.58% * Prescient Positive Return Fund 11.25% 6.57% 7.63% 7.45% 7.10% 7.94% 7.62% 8.12% 7.33% 8.12% 5.22% 9.73% PSG Stable Fund 3.82% 6.57% 6.01% 7.45% 7.52% 7.94% * * * * 3.95% 8.20% SIM Absolute 9.71% 6.57% 8.19% 7.45% 8.46% 7.94% 8.68% 8.12% 9.59% 8.12% 1.28% 11.85% Taquanta True Absolute 11.81% 6.57% 12.28% 7.45% 11.79% 7.94% * * * * 3.29% 10.05% Argon Absolute Return Fund 10.19% 7.57% 7.01% 8.45% 6.97% 8.94% 8.17% 9.12% 9.22% 9.12% -0.23% 11.48% Argon Absolute Return Global Balanced CPI+4% Fund 9.84% 7.57% 7.11% 8.45% * * * * * * 1.09% 10.68% Coronation Absolute 8.45% 7.57% 5.26% 8.45% 4.81% 8.94% 6.63% 9.12% 8.70% 9.12% -2.51% 10.31% Mergence CPI + 4% Fund 8.53% 7.57% 6.45% 8.45% 6.04% 8.94% 6.68% 9.12% 7.86% 9.12% 0.12% 11.01% Momentum Investments Absolute Strategies 8.83% 7.57% 6.29% 8.45% 6.27% 8.94% 6.66% 9.12% 6.80% 9.12% 0.47% 9.84% Old Mutual Multi-Managers Defensive Balanced fund 11.27% 7.57% 6.50% 8.45% 7.09% 8.94% 8.94% 9.12% 9.71% 9.12% 0.27% 8.25% OMIG MacroSolutions Stable Growth Fund 7.75% 7.57% 7.89% 8.45% 7.53% 8.94% 8.86% 9.12% 10.01% 9.12% 3.67% 12.41% Sasfin Absolute Fund 8.56% 7.57% * * * * * * * * 5.24% * Headline CPI + 5% * * * * -0.27% * Argon Absolute Return CPI+5% 11.62% 8.57% * * * * Coronation Absolute 11.46% 8.57% 6.61% 9.45% 6.51% 9.94% 8.98% 10.12% 10.53% 10.12% -0.21% 8.93% Foord Absolute 12.36% 8.57% 5.21% 9.45% 5.11% 9.94% 8.59% 10.12% 11.03% 10.12% -3.60% 7.52% Mergence CPI +5% Fund 8.47% 8.57% 6.72% 9.45% 6.12% 9.94% 7.06% 10.12% 8.30% 10.12% -1.86% 14.17% Nedgroup Investments Opportunity Fund 18.02% 8.57% 6.53% 9.45% 7.47% 9.94% 10.15% 10.12% * * -2.12% 4.65% OMIG Wealth Defender 10.03% 8.57% 6.54% 9.45% 6.63% 9.94% 8.67% 10.12% 9.60% 10.12% -1.35% 11.43% Prudential Domestic Real Return Plus 5% 6.23% 8.57% 5.03% 9.45% 5.68% 9.94% * * * * -3.65% 13.20% Prudential Real Return + 5% 7.84% 8.57% 5.15% 9.45% 6.14% 9.94% 8.68% 10.12% * * -3.62% 11.86% SIM CPI + 5% 10.42% 8.57% 8.00% 9.45% 8.12% 9.94% 8.94% 10.12% 9.90% 10.12% 2.39% 11.43% SIM CPI + 5% Global 11.32% 8.57% 8.30% 9.45% 8.66% 9.94% 9.97% 10.12% 10.43% 10.12% 4.15% 9.56% SMM Moderate Absolute Fund 14.20% 8.57% 8.63% 9.45% 7.82% 9.94% 9.92% 10.12% 9.93% 10.12% 3.94% 7.99% STANLIB Absolute Plus Fund 8.85% 8.57% 7.92% 9.45% 7.30% 9.94% 8.81% 10.12% 9.76% 10.12% 1.78% 13.45% STANLIB Multi-Manager Real Return Fund 11.97% 8.57% 7.68% 9.45% 6.91% 9.94% 8.15% 10.12% 9.04% 10.12% 1.04% 10.35% Vunani Global Absolute Return Constrained (CPI+5%) 7.56% 8.57% 6.44% 9.45% 6.35% 9.94% 7.63% 10.12% 9.67% 10.12% 1.06% 10.95%
Investment Data to the end of December 2019
SECTION 3
Absolute Return Manager Watch™ Survey
Objective: The portfolios in this survey comply with Regulation 28 and represent products targeted at real returns with a CPI objective.
115
116
Portfolio
Benchmark
Portfolio
Benchmark
Portfolio
5 Years Benchmark
Portfolio
7 Years Benchmark
Portfolio
10 Years Benchmark
2018
15.22%
6.35%
10.67%
Mianzo Global Absolute Return CPI+6%
Prudential Domestic Real Return Plus 6%
SIM CPI + 6%
9.57%
9.57%
9.57%
9.57%
7.66%
5.31%
8.76%
7.78%
10.45%
10.45%
10.45%
10.45%
7.81%
5.86%
*
8.15%
10.94%
10.94%
*
10.94%
9.05%
7.97%
*
9.60%
11.12%
11.12%
*
11.12%
10.17%
10.75%
*
11.30%
11.12%
11.12%
*
11.12%
0.21%
-5.12%
1.33%
-0.19%
12.51%
15.75%
10.19%
10.20%
9.74%
9.08%
*
2.32%
4
7.36%
7.29%
4
4.45%
3.56%
*No performance history. #Inflation figures in this table are lagged by one month
Number of Participants
STEFI
Consumer Price Inflation (Headline CPI) [I-Net code: AECPI]
3
7.19%
4.94%
3
6.72%
5.12%
3
6.52%
5.11%
4
7.25%
5.18%
4
7.54%
4.62%
3
7.39%
6.61%
Market Statistics
13.81%
Investec Opportunity
2016
3
6.47%
4.77%
6.35%
4.33%
*
15.53%
2015
Calendar Year Returns 2017
Headline CPI + 6%
Investment Managers
3 Years
1 Year
Investment Data to the end of December 2019
3
5.91%
5.80%
10.31%
13.74%
*
10.46%
2014
MANAGER WATCH™ SURVEY
Absolute Return Manager Watch™ Survey
Objective: The portfolios in this survey comply with Regulation 28 and represent products targeted at real returns with a CPI objective.
9.71%
11.81%
SIM Absolute
Taquanta True Absolute
8.79%
7.36%
8.22%
8.79%
10.19%
9.84%
8.45%
8.53%
8.83%
11.27%
7.75%
8.56%
Absa Asset Management Absolute Domestic CPI+4%
Absa Asset Management Absolute Global CPI +4%
Alexander Forbes Investments Real Return Focus Local
Alexander Forbes Investments Real Return Focus Portfolio
Argon Absolute Return Fund
Argon Absolute Return Global Balanced CPI+4% Fund
Coronation Absolute
Mergence CPI + 4% Fund
Momentum Investments Absolute Strategies
Old Mutual Multi-Managers Defensive Balanced fund
OMIG MacroSolutions Stable Growth Fund
Sasfin Absolute Fund
11.46%
12.36%
8.47%
18.02%
10.03%
6.23%
7.84%
10.42%
11.32%
14.20%
8.85%
11.97%
7.56%
Coronation Absolute
Foord Absolute
Mergence CPI +5% Fund
Nedgroup Investments Opportunity Fund
OMIG Wealth Defender
Prudential Domestic Real Return Plus 5%
Prudential Real Return + 5%
SIM CPI + 5%
SIM CPI + 5% Global
SMM Moderate Absolute Fund
STANLIB Absolute Plus Fund
STANLIB Multi-Manager Real Return Fund
Vunani Global Absolute Return Constrained (CPI+5%)
7.29%
STEFI
*No performance history. #Inflation figures in this table are lagged by one month
3.56%
Consumer Price Inflation (Headline CPI) [I-Net code: AECPI]
Market Indices & Statistics
11.62%
Argon Absolute Return CPI+5%
Headline CPI + 5%
11.16%
Abax Absolute Return fund
Headline CPI + 4%
3.82%
PSG Stable Fund
9.60%
Momentum Investments Real Return
6.20%
11.86%
Mianzo Absolute Return Fund
11.25%
12.47%
Balondolozi Absolute Return Fund
Prescient Positive Return Fund
9.61%
Alexander Forbes Investments Stable Focus
OMIG Capital Builder
11.52%
Absa Asset Management Absolute CPI +3%
Headline CPI + 3%
Investment Managers
Maximum Drawdown
0.07%
1.17%
4.88%
5.09%
3.01%
4.65%
3.12%
3.23%
5.11%
6.29%
4.33%
6.65%
5.20%
7.46%
4.97%
5.55%
2.10%
2.92%
3.65%
4.40%
4.43%
4.60%
4.07%
4.27%
3.39%
3.99%
1.87%
1.58%
2.76%
0.39%
1.39%
4.23%
4.27%
2.17%
2.46%
2.97%
3.87%
1.38%
0.52%
75.00%
75.00%
83.33%
83.33%
83.33%
75.00%
75.00%
66.67%
75.00%
75.00%
66.67%
75.00%
83.33%
66.67%
83.33%
83.33%
83.33%
66.67%
66.67%
66.67%
66.67%
66.67%
75.00%
66.67%
83.33%
91.67%
91.67%
100.00%
100.00%
66.67%
75.00%
66.67%
83.33%
83.33%
75.00%
100.00%
100.00%
-2.06%
-2.24%
-1.24%
-2.15%
-0.65%
-0.78%
-2.52%
-2.66%
-2.12%
-2.36%
-1.56%
-4.12%
-2.36%
-2.12%
-0.51%
-1.20%
-1.18%
-1.77%
-1.21%
-2.00%
-1.41%
-1.43%
-1.27%
-1.57%
-0.28%
-0.04%
-0.23%
0.83%
0.24%
-1.60%
-1.09%
-0.39%
-0.31%
-0.64%
-1.06%
0.15%
0.62%
-2.06%
-2.24%
-1.24%
-2.15%
-0.65%
-0.78%
-2.52%
-3.31%
-2.12%
-2.51%
-2.28%
-4.12%
-2.36%
-2.12%
-0.51%
-1.20%
-1.18%
-1.77%
-1.59%
-2.00%
-1.41%
-1.43%
-1.27%
-1.57%
-0.28%
-0.04%
-0.23%
0.00%
0.00%
-3.56%
-1.77%
-0.39%
-0.31%
-0.64%
-1.34%
0.00%
0.00%
7.36%
4.45%
6.44%
7.68%
7.92%
8.63%
8.30%
8.00%
5.15%
5.03%
6.54%
6.53%
6.72%
5.21%
6.61%
*
*
7.89%
6.50%
6.29%
6.45%
5.26%
7.11%
7.01%
7.34%
7.03%
6.49%
7.90%
*
12.28%
8.19%
6.01%
7.63%
6.30%
8.40%
8.02%
9.81%
7.59%
10.53%
3 Years Worst Month
3 Year Return (p.a.)
% Volatility Positive Months
1 Year
1 Year Return (p.a.)
Investment Data to the end of December 2019
0.07%
1.03%
5.17%
6.33%
3.94%
4.79%
4.14%
3.28%
5.53%
5.67%
5.33%
7.28%
5.68%
9.25%
5.70%
*
*
3.42%
5.39%
4.27%
4.37%
4.62%
4.21%
4.14%
3.98%
3.63%
2.74%
1.98%
*
0.49%
1.89%
3.65%
3.81%
3.38%
2.44%
5.40%
4.48%
1.91%
1.12%
72.22%
63.89%
75.00%
66.67%
69.44%
77.78%
61.11%
61.11%
63.89%
61.11%
61.11%
61.11%
66.67%
*
*
77.78%
58.33%
63.89%
63.89%
63.89%
69.44%
69.44%
61.11%
66.67%
72.22%
86.11%
*
100.00%
86.11%
69.44%
69.44%
63.89%
80.56%
72.22%
72.22%
88.89%
100.00%
% Volatility Positive Months
-2.72%
-2.71%
-1.93%
-2.15%
-1.44%
-1.47%
-2.52%
-2.66%
-2.76%
-5.98%
-2.68%
-4.70%
-2.36%
*
*
-1.43%
-2.68%
-1.77%
-2.07%
-2.18%
-1.78%
-2.09%
-1.48%
-1.57%
-0.91%
-0.40%
*
0.80%
-0.71%
-1.60%
-1.49%
-1.39%
-0.61%
-3.14%
-2.56%
-0.72%
0.01%
Worst Month
5 Years
-5.14%
-6.19%
-2.54%
-3.03%
-3.23%
-2.09%
-5.84%
-6.33%
-4.61%
-9.22%
-4.98%
-11.71%
-6.03%
7.19%
4.94%
6.35%
6.91%
7.30%
7.82%
8.66%
8.12%
6.14%
5.68%
6.63%
7.47%
6.12%
5.11%
6.51%
*
*
* *
7.53%
7.09%
6.27%
6.04%
4.81%
*
6.97%
7.04%
6.40%
6.58%
7.17%
*
11.79%
8.46%
7.52%
7.10%
5.47%
7.49%
*
*
6.73%
8.74%
5 Year Return (p.a.)
-2.34%
-6.46%
-3.38%
-3.09%
-5.00%
-3.48%
-3.36%
-3.72%
-2.55%
-1.68%
-0.40%
*
0.00%
-0.79%
-3.56%
-2.13%
-2.10%
-0.79%
-5.22%
-4.00%
-0.72%
0.00%
Maximum Drawdown
0.12%
1.27%
5.26%
5.91%
3.91%
5.02%
3.84%
3.34%
5.25%
5.90%
5.04%
6.84%
5.57%
8.79%
5.92%
*
*
3.52%
4.90%
4.53%
4.42%
5.31%
*
4.24%
4.09%
4.26%
3.16%
2.94%
*
0.48%
2.15%
3.74%
3.66%
3.12%
3.02%
*
*
2.92%
2.35%
Volatility
68.33%
63.33%
75.00%
65.00%
71.67%
76.67%
60.00%
60.00%
63.33%
60.00%
56.67%
61.67%
63.33%
*
*
71.67%
63.33%
61.67%
63.33%
60.00%
*
70.00%
61.67%
61.67%
71.67%
76.67%
*
100.00%
88.33%
73.33%
71.67%
65.00%
75.00%
*
*
80.00%
88.33%
% Positive Months
-2.72%
-2.71%
-1.93%
-2.33%
-1.44%
-1.47%
-2.52%
-3.50%
-2.76%
-5.98%
-2.68%
-4.70%
-2.36%
*
*
-1.43%
-2.68%
-2.57%
-2.07%
-3.44%
*
-2.29%
-1.48%
-1.96%
-1.45%
-1.69%
*
0.73%
-0.98%
-1.60%
-1.49%
-1.41%
-1.55%
*
*
-1.59%
-1.06%
Worst Month
-5.14%
-6.19%
-2.82%
-3.34%
-3.23%
-2.09%
-5.84%
-6.33%
-4.61%
-9.22%
-4.98%
-11.71%
-6.03%
*
*
-2.34%
-6.46%
-3.38%
-3.09%
-6.42%
*
-3.36%
-3.72%
-3.81%
-2.15%
-2.85%
*
0.00%
-1.22%
-3.56%
-2.13%
-2.10%
-2.06%
*
*
-2.70%
-2.05%
Maximum Drawdown
SECTION 3
Absolute Return Manager Watch™ Survey Risk
Objective: The portfolios in this survey comply with Regulation 28 and represent products targeted at real returns with a CPI objective.
117
118 % positive months
Worst month
Maximum drawdown Volatility
% Positive months
1 Year Return (p.a.)
Volatility
3 Years 3 Year Return (p.a.)
1 Year Worst month
Maximum drawdown Volatility
15.22%
6.35%
10.67%
Mianzo Global Absolute Return - CPI+6%
Prudential Domestic Real Return Plus 6%
SIM CPI + 6%
4.24%
7.57%
5.32%
6.33%
66.67%
66.67%
83.33%
75.00%
-1.44%
-3.55%
-2.07%
-2.34%
-1.44%
-4.92%
-2.07%
-2.34%
7.66%
5.31%
8.76%
7.78%
4.49%
6.84%
6.27%
7.19%
69.44%
61.11%
69.44%
61.11%
-2.24%
-3.55%
-3.65%
-3.17%
-3.52%
-7.91%
-5.13%
-8.69%
7.81%
5.86%
*
8.15%
4.39%
6.84%
*
6.96%
70.00%
61.67%
*
60.00%
*No performance history. #Inflation figures in this table are lagged by one month
STEFI
Consumer Price Inflation (Headline CPI) [I-Net code: AECPI]
1.17%
0.07%
3.56%
7.29%
7.36%
4.45% 0.07%
1.03%
7.19%
4.94%
0.12%
1.27%
Market Statistics
13.81%
Investec Opportunity
% Positive months
5 Years 5 Year Return (p.a.)
Headline CPI + 6%
Investment Managers
Investment Data to the end of December 2019
-2.24%
-3.56%
*
-3.17%
Worst month
-3.52%
-7.91%
*
-8.69%
Maximum drawdown
MANAGER WATCH™ SURVEY
Absolute Return Manager Watch™ Survey Risk (continued)
Objective: The portfolios in this survey comply with Regulation 28 and represent products targeted at real returns with a CPI objective.
SECTION 3
Absolute Return Manager Watch™ Survey Volatility vs Return Scatterplot for Absolute Return Managers – All categories for the 3 Years ended 31 December 2019 13.00%
Taquanta True Absolute Absa Asset Management Absolute CPI +3%
SIM CPI + 6% Balondolozi Absolute Return Fund
12.00% Argon Absolute Return Global Balanced CPI+4% Fund
11.00% SIM CPI + 5% Global
SMM Moderate Absolute Fund Vunani Global Absolute Return Constrained (CPI+5%) OMIG Wealth Defender
Argon Absolute Return Fund STANLIB Absolute Plus Fund
10.00%
CPI + 6%
Mianzo Absolute Return Fund
Return (p.a.)
Prescient Positive Return Fund CPI + 5%
Alexander Forbes Investments Real Return Focus Local OMIG MacroSolutions Stable Growth Fund
9.00%
SIM CPI + 5%
Mianzo Global Absolute Return – CPI+6%
Momentum Investments Real Return
STANLIB Multi-Manager Real Return Fund
SIM Absolute
8.00%
Investec Opportunity
6.00%
5.00%
Mergence CPI +5% Fund Coronation Absolute Nedgroup Investments Opportunity Fund Prudential Real Return + 5% Prudential Domestic Real Return Plus 5% Prudential Domestic Real Return Plus 6%
PSG Stable Fund Momentum Investments Absolute Strategies Absa Asset Management Absolute Global CPI +4% Coronation Absolute SIM Absolute Absa Asset Management Absolute Domestic CPI+4%
0.0%
1.00%
2.00%
CPI + 3%
Old Mutual Multi-Managers Defensive Balanced Fund
Alexander Forbes Investments Real Return Focus Local Mergence CPI + 4% Fund OMIG Capital Builder
7.00%
CPI + 4%
3.00%
4.00%
Foord Absolute
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
Volatility (p.a.) (standard deviation)
119
MANAGER WATCH™ SURVEY
Composite Dispersion of Absolute Return Manager Watch™ Survey 1 Year to 31 December 2019 Headline CPI + 3% 0.15%
Prescient Positive Return 0.09%
SIM CPI + 3%
0.13%
SIM CPI + 3% Global
0.00%
0.02%
Headline CPI + 3%
0.04%
0.06%
0.08%
Minimum Return
Maximum Return
Median Composite Return
0.10%
0.14%
0.12%
0.16%
Composite Dispersion (1yr)
Composite Dispersion (3yrs)
Composite Dispersion (5yrs)
Prescient Positive Return
10.92%
11.34%
11.27%
0.15%
0.27%
0.27%
SIM CPI + 3%
9.60%
9.77%
9.69%
0.09%
*
*
SIM CPI + 3% Global
10.15%
10.51%
10.31%
0.13%
0.08%
*
* Data not available.
Headline CPI + 4% Absa Asset Management Absolute Global CPI + 4%
0.82%
Absa Asset Management Absolute Domestic CPI + 4%
2.13%
Coronation Absolute Fund
0.11%
Coronation Absolute Fund
0.13%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
Minimum Return
Maximum Return
Median Composite Return
Composite Dispersion (1yr)
Composite Dispersion (3yrs)
Composite Dispersion (5yrs)
Absa Asset Management Absolute Global CPI+4%
7.18%
9.15%
8.29%
0.82%
0.82%
1.19%
Absa Asset Management Absolute Domestic CPI+4%
4.92%
11.12%
8.02%
2.13%
1.22%
0.79%
Argon Absolute Return Global CPI+ 4%
9.86%
10.07%
9.97%
0.11%
*
*
Coronation Absolute Fund
8.13%
8.55%
8.40%
0.13%
0.10%
0.04%
Headline CPI + 4%
* Data not available.
120
SECTION 3
Composite Dispersion of Absolute Return Manager Watch™ Survey 1 Year to 31 December 2019 Headline CPI + 5% 0.02%
Argon Absolute Return CPI+5%
0.57%
OMIG Wealth Defender Prudential Domestic Real Return Plus 5%
0.12% 0.15%
Prudential Real Return Plus 5% 0.07%
SIM CPI + 5%
0.18%
SIM CPI + 5% Global
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
Minimum Return
Maximum Return
Median Composite Return
Composite Dispersion (1yr)
Argon Absolute Return CPI+5%
11.48%
11.52%
11.50%
0.02%
*
*
OMIG Wealth Defender
8.72%
10.06%
10.02%
0.57%
0.51%
0.29%
Prudential Domestic Real Return Plus 5%
6.04%
6.33%
6.26%
0.12%
*
*
Prudential Real Return Plus 5%
7.84%
8.14%
7.99%
0.15%
*
*
SIM CPI + 5%
10.30%
10.44%
10.37%
0.07%
0.04%
0.03%
SIM CPI + 5% Global
10.93%
11.63%
11.32%
0.18%
0.33%
0.28%
Headline CPI + 5%
Composite Dispersion (3yrs)
Composite Dispersion (5yrs)
* Data not available.
Headline CPI + 6% Investec Opportunity
0.29%
Prudential Domestic Inflation Plus 6%
0.14%
SIM CPI + 6%
0.18% 0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
0.35%
Headline CPI + 6%
Minimum Return
Maximum Return
Median Composite Return
Composite Dispersion (1yr)
Composite Dispersion (3yrs)
Composite Dispersion (5yrs)
Investec Opportunity
13.51%
14.59%
14.05%
0.29%
0.29%
0.20%
Prudential Domestic Real Return Plus 6%
6.30%
6.66%
6.39%
0.14%
*
*
SIM CPI + 6% Global
11.35%
11.78%
11.55%
0.18%
*
*
* Data not available.
121
MANAGER WATCH™ SURVEY
Targeted Development Investments Manager Watch™ Survey Investment data to the end of December 2019 – Performance Data 1 Year Investment Managers
Classification
3 Years (p.a.)
Fund Size Fund (R m)
Rank
Target Return/ Benchmark
Fund
Rank
5 Years (p.a.) Target Return/ Benchmark
Fund
Rank
Target Return/ Benchmark
Balanced Aeon Balanced Fund (CPI + 5%)
Pooled
92
9.89%
2
8.57%
7.42%
2
9.75%
7.22%
2
9.82%
Mergence SRI Fund
Pooled
24
9.54%
3
6.57%
9.69%
1
7.45%
9.15%
1
7.94%
Momentum Investments Supernation Fund
Pooled
26
10.42%
1
8.72%
6.05%
3
5.73%
5.46%
3
5.15%
Aeon Active Equity Fund
Pooled
11 230
8.96%
4
9.32%
6.67%
3
5.39%
5.78%
3
4.78%
Element Earth Equity
Unit trust
225
8.58%
5
12.05%
7.46%
2
7.43%
5.62%
4
6.40%
Futuregrowth Development Equity Composite
Pooled
2 926
9.85%
3
13.57%
9.12%
1
14.45%
11.10%
1
14.94%
Mergence ESG Equity Fund
Segregated
347
4.67%
6
9.32%
2.42%
6
5.39%
3.05%
6
4.78%
Oasis Crescent Equity Fund
Pooled
5 449
10.68%
2
10.57%
4.95%
4
6.47%
4.32%
5
5.18%
Oasis Crescent International Feeder Fund Pooled
1 677
17.73%
1
21.97%
4.45%
5
12.96%
6.07%
2
12.04%
Segregated
11 488
13.53%
1
10.57%
14.41%
1
11.45%
14.20%
1
11.94%
Futuregrowth Infrastructure & Development Bond Fund
Pooled
15 436
11.26%
1
10.45%
10.71%
4
8.81%
9.46%
3
7.40%
Equity
Alternative OMIG Alternative Investments IDEAS Fund Fixed Interest
Futuregrowth Power Debt Composite
Pooled
8 425
9.90%
4
7.28%
10.76%
3
7.35%
10.96%
1
7.18%
Mergence Infrastructure & Development Debt Fund
Pooled
242
10.58%
3
6.57%
10.83%
2
7.45%
10.52%
2
7.94%
OMIG Community Growth Gilt Fund
Unit Trust
10
9.14%
5
9.70%
8.90%
5
8.78%
7.38%
4
7.14%
Prescient Clean Energy Fund
Segregated
563
11.11%
2
6.57%
11.72%
1
7.45%
*
4 515
9.40%
1
7.75%
11.79%
1
8.52%
15.32%
*
Property Futuregrowth Community Property Fund Pooled Total
62 678
Statistics Alexander Forbes SA Best Investment View Average
7.57%
4.54%
4.61%
Alexander Forbes SA Equity Average
7.16%
3.08%
3.26%
Alexander Forbes SA Bond Average
11.58%
10.60%
8.99% 4.94%
Consumer Price Inflation (Headline CPI) [I-Net code: AECPI]
3.56%
4.45%
FTSE/JSE Capped SWIX All Share Index
6.75%
3.46%
*
S&P South Africa (DSW) Capped ESG
3.64%
4.27%
2.95%
Dow Jones Sustainability SA Composite Diversified
16.79%
8.38%
4.47%
*No performance history. #Inflation figures in this table are lagged by one month
122
1
8.98%
SECTION 3
Targeted Development Investments Manager Watch™ Survey Investment Data to the end of December for the past 5 Calendar years 2018 Investment Managers
2017
Portfolio
Benchmark
Portfolio
Benchmark
2016 Portfolio
2015
Benchmark
Portfolio
2014
Benchmark
Portfolio
Benchmark
3 Year Volatility
Rank
Balanced Aeon Balanced Fund (CPI + 5%)
-1.58%
10.18%
14.61%
10.76%
0.21%
10.61%
14.06%
9.67%
8.87%
9.11%
7.53%
3
Mergence SRI Fund
7.65%
8.18%
11.93%
7.62%
9.31%
10.12%
7.39%
7.77%
10.14%
8.80%
1.14%
1
Momentum Investments Supernation Fund
-5.09%
-4.86%
13.79%
14.27%
10.41%
7.90%
-0.92%
0.78%
11.16%
12.55%
6.85%
2
5
Equity Aeon Active Equity Fund
-11.46%
-11.67%
25.79%
21.21%
1.86%
4.13%
7.14%
3.62%
13.48%
15.42%
11.44%
Element Earth Equity
-1.39%
-8.52%
15.89%
20.95%
25.57%
4.26%
-15.64%
5.49%
1.27%
10.49%
8.66%
3
Futuregrowth Development Equity Composite
12.83%
15.18%
4.83%
14.62%
5.89%
16.62%
23.00%
14.79%
19.17%
15.81%
6.10%
1
Mergence ESG Equity Fund
-11.18%
-11.67%
15.57%
21.21%
2.90%
4.13%
5.12%
3.62%
16.79%
15.42%
10.32%
4
Oasis Crescent Equity Fund
-0.76%
-0.25%
5.24%
9.59%
8.42%
12.93%
-1.43%
-6.72%
9.58%
5.28%
8.65%
2
Oasis Crescent International Feeder Fund
-3.11%
5.80%
-0.09%
11.70%
-9.27%
-5.30%
29.82%
29.34%
16.44%
12.06%
13.87%
6
16.20%
12.18%
13.51%
11.62%
12.84%
13.10%
14.92%
11.97%
17.91%
12.82%
6.96%
Alternative OMIG Alternative Investments IDEAS Fund Fixed Interest Futuregrowth Infrastructure & Development Bond Fund
9.12%
5.82%
11.75%
10.22%
16.63%
15.44%
-0.71%
-3.92%
12.80%
10.15%
5.64%
5
Futuregrowth Power Debt Composite
11.16%
7.23%
11.22%
7.54%
11.99%
7.39%
10.54%
6.47%
*
*
0.47%
2
Mergence Infrastructure & Development Debt Fund
10.48%
8.18%
11.45%
7.62%
11.85%
10.12%
8.29%
7.77%
11.18%
8.80%
0.43%
1
OMIG Community Growth Gilt Fund
7.67%
7.07%
9.91%
9.59%
15.07%
14.81%
-3.91%
-4.49%
9.94%
9.49%
5.42%
4
Prescient Clean Energy Fund
11.62%
8.18%
12.42%
7.62%
13.74%
10.89%
*
*
*
*
0.81%
3
11.97%
9.18%
14.05%
8.62%
24.31%
10.61%
17.44%
8.77%
9.00%
10.81%
2.24%
Property Futuregrowth Community Property Fund Statistics & Market Indices Alexander Forbes SA Best Investment View Average
-5.55%
12.46%
8.62%
10.07%
14.60%
6.92%
Alexander Forbes SA Equity Average
-10.30%
13.91%
7.10%
10.13%
20.64%
10.43%
Alexander Forbes SA Bond Average
8.57%
11.67%
15.23%
7.53%
3.01%
4.50%
Consumer Price Inflation (Headline CPI) [I-Net code: AECPI]
1.03%
5.18%
4.62%
6.61%
5.80%
5.35%
Dow Jones Sustainability SA Composite Diversified
-7.53%
17.86%
2.41%
-4.57%
13.57%
FTSE/JSE Capped SWIX All Share Index
-10.94%
16.49%
S&P South Africa (DSW) Capped ESG
-10.79%
15.64%
11.52% 10.51%
6.28%
1.51%
15.38%
11.56%
*No performance history. #Inflation figures in this table are lagged by one month
123
MANAGER WATCH™ SURVEY
Targeted Development Investments Manager Watch™ Survey Volatility vs Return – TDI Balanced, Equity, Absolute, Alternative & Property Portfolios 3 years ended 31 December 2019 15.60% OMIG Alternative Investments IDEAS Fund
14.40% 13.20%
Annualised Return
12.00%
Futuregrowth Community Property Fund
10.80% Mergence SRI Fund
9.60%
Futuregrowth Development Equity Composite
8.40% Aeon Balanced Fund (CPI + 5%)
7.20%
Element Earth Equity Aeon Active Equity Fund
Momentum Investments Supernation Fund
6.00%
Oasis Crescent Equity Fund
4.80%
Alexander Forbes SA Best Investment View Average
Oasis Crescent International Feeder Fund
3.60% Alexander Forbes SA Equity Average Mergence ESG Equity Fund
2.40% 0.0%
1.28%
2.55%
5.10%
6.38%
7.65%
8.93%
10.20%
11.48%
12.75%
14.03%
Annualised Risk
Volatility vs Return – TDI Fixed Interest Portfolios 3 years ended 31 December 2019 11.97% 11.69%
Prescient Clean Energy Fund
11.40% 11.12% Mergence Infrastructure & Development Debt Fund
Annualised Return
10.83%
Futuregrowth Infrastructure & Development Bond Fund
Futuregrowth Power Debt Composite
Alexander Forbes SA Bond Average
10.55% 10.26% 9.98% 9.69% 9.41% 9.12%
OMIG Community Growth Gilt Fund
8.84% 0.0%
0.53%
1.05%
1.58%
2.10%
2.63%
3.15%
Annualised Risk
124
3.68%
4.20%
4.73%
5.25%
5.78%
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MANAGER WATCH™ SURVEY
Fund of Hedge Funds Manager Watch™ Survey Objective: The portfolios in this survey show the performance of fund of hedge fund (FoHF) managers. FoHF managers select a number of underlying single hedge fund managers to provide diversification across a range of alternative strategies.
Investment Data to the end of December 2019 Fund Status Open / Closed
Inception Date
AF Investments Moderate QI Hedge Fund of Funds
Open
Mar-00
1626.25
30% FTSE/JSE CAPPED SWIX ALSI + 70% STeFI
AF Investments Performance QI Hedge Fund of Funds
Open
Jan-06
6727.44
Jan-06
Investment Manager
Fund Size (R m)
3 Years
5 Years
Calendar Year 2018
Calendar Year 2017
Calendar Year 2016
11.50%
7.52%
7.57%
3.60%
7.60%
1.95%
40% FTSE/JSE CAPPED SWIX ALSI + 60% STeFI
10.53%
6.63%
6.29%
1.67%
7.88%
3.60%
15% FTSE/JSE CAPPED 1547.19 SWIX ALSI + 85% STeFI
Return Objectives
1 Year
Multi Strategy
AF Investments Stable QI Hedge Fund of Funds
Open
9.92%
7.76%
8.28%
7.58%
5.82%
8.73%
6.34%
4.03%
3.86%
3.82%
1.77%
3.92%
Alpha Cautious Hedge Fund
Open
Mar-04
CPI + (4% - 6%) net 116.38 of fees
Mayibentsha Focused Fund of Hedge Funds
Open
Dec-08
443.92 CPI + 4.5%
6.60%
4.02%
3.35%
3.16%
1.95%
-2.87%
Mayibentsha Moderate Fund of Hedge Funds
Open
Apr-03
393.92 CPI + 3.5%
7.07%
5.52%
5.99%
4.76%
4.17%
2.01%
Mayibentsha Neutral Fund of Hedge Funds
Open
Apr-08
412.82 CPI + 2.5%
8.22%
7.09%
7.15%
6.61%
5.86%
5.33%
Momentum Investments ZAR Diversified Fund
Open
Nov-07
574.72 STeFI + 4% net of fees
14.87%
8.62%
7.68%
6.08%
5.17%
5.94%
RCIS THINK Growth QI Hedge Fund
Open
Nov-14
130.92 STeFI + 3%
10.95%
6.11%
*
1.67%
5.91%
-0.94%
27four Long Short Equity Prescient QI Fund of Hedge Funds
Open
Feb-09
89.21 STeFI + 4%
7.93%
4.02%
4.03%
1.09%
3.16%
-2.32%
AF Investments Focus QI Hedge Fund of Funds
Open
Feb-11
Alpha Equity Hedge Fund
Open
Nov-07
Alpha Fixed Income Blend of Funds
Open
Jan-06
Edge RCIS Matador Retail Hedge Fund
Open
May-04
TriAlpha Enhanced Fixed Income Fund
Open
Aug-07
Specialist Mandates
65% FTSE/JSE CAPPED SWIX ALSI + 35% STeFI
10.85%
4.71%
5.00%
-0.61%
4.21%
0.75%
9.78%
5.13%
6.05%
2.66%
3.37%
2.38%
3.88%
3.95%
3.35%
1.44%
6.10%
7.98%
10.37%
2.69%
3.92%
-7.64%
6.23%
-0.26%
8.22%
8.37%
7.95%
7.89%
9.02%
8.55%
Highest
14.87%
8.62%
8.28%
7.89%
9.02%
8.73%
Median
9.78%
5.52%
6.02%
3.16%
5.82%
2.38%
Average
9.13%
5.75%
5.75%
2.92%
5.22%
2.98%
Lowest
3.88%
2.69%
3.35%
-7.64%
1.77%
-2.87%
15
15
14
15
15
15
Fund Size Total
1058.78
306.94 JSE All Share Index 22.69 CPI + 3% net of fees 236.51
FTSE/JSE SWIX All Share Index
208.03 STeFI + 2% 13 895.72
Statistics
Number of participants Market Statistics
FTSE/JSE All Share Index
12.05%
7.42%
5.99%
-8.53%
20.95%
2.63%
STeFI
7.29%
7.36%
7.19%
7.25%
7.54%
7.39%
All Bond Index
10.32%
9.40%
7.75%
7.69%
10.22%
15.45%
Consumer Price Inflation (Headline CPI) [I-Net code: AECPI]
3.56%
4.45%
4.94%
5.18%
4.62%
6.61%
*No performance history. #Inflation figures in this table are lagged by one month
126
SECTION 3
Fund of Hedge Funds Manager Watch™ Survey Objective: The portfolios in this survey show the performance of fund of hedge fund (FoHF) managers. FoHF managers select a number of underlying single hedge fund managers to provide diversification across a range of alternative strategies.
Investment Data to the end of December 2019 – Quantitative Analysis 1 Year Investment Manager
Percentage of positive months
Worst month
3 Years Standard Deviation
Percentage of positive months
Worst month
Max Drawdown
Standard Deviation
Multi Strategy AF Investments Moderate QI Hedge Fund of Funds
91.67%
-1.07%
3.24%
80.56%
-1.43%
-1.43%
3.19%
AF Investments Performance QI Hedge Fund of Funds
83.33%
-1.83%
4.01%
72.22%
-2.01%
-3.49%
4.12%
AF Investments Stable QI Hedge Fund of Funds
91.67%
-0.11%
1.60%
86.11%
-0.97%
-1.39%
1.91%
Alpha Cautious Hedge Fund
83.33%
-0.96%
2.24%
66.67%
-1.67%
-2.86%
3.44%
Mayibentsha Focused Fund of Hedge Funds
75.00%
-0.61%
2.34%
61.11%
-1.67%
-2.11%
3.18%
Mayibentsha Moderate Fund of Hedge Funds
83.33%
-0.46%
1.92%
77.78%
-1.45%
-2.19%
2.56%
Mayibentsha Neutral Fund of Hedge Funds
91.67%
-0.06%
1.29%
88.89%
-0.47%
-0.47%
1.58%
Momentum Investments ZAR Diversified Fund
91.67%
-0.98%
4.13%
72.22%
-2.20%
-4.63%
4.58%
RCIS THINK Growth QI Hedge Fund
75.00%
-0.52%
3.79%
66.67%
-2.12%
-5.01%
3.94%
75.00%
-1.20%
3.64%
63.89%
-4.33%
-5.89%
4.94%
Specialist Mandates 27four Long Short Equity Prescient QI Fund of Hedge Funds AF Investments Focus QI Hedge Fund of Funds
83.33%
-2.73%
5.30%
66.67%
-4.19%
-7.59%
6.21%
Alpha Equity Hedge Fund
83.33%
-0.50%
3.17%
63.89%
-1.96%
-2.46%
4.03%
Alpha Fixed Income Blend of Funds
66.67%
-0.42%
1.66%
63.89%
-2.02%
-3.63%
2.85%
Edge RCIS Matador Retail Hedge Fund
66.67%
-4.27%
9.22%
58.33%
-6.61%
-12.37%
8.84%
TriAlpha Enhanced Fixed Income Fund
100.00%
0.06%
1.00%
97.22%
-0.50%
-0.50%
1.26%
Statistics Highest
100.00%
0.06%
9.22%
97.22%
-0.47%
-0.47%
8.84%
Median
83.33%
-0.61%
3.17%
66.67%
-1.96%
-2.86%
3.44%
Average
82.78%
-1.04%
3.24%
72.41%
-2.24%
-3.73%
3.78%
Lowest
66.67%
-4.27%
1.00%
58.33%
-6.61%
-12.37%
1.26%
15
15
15
15
15
15
15
Number of participants #Inflation figures in this table are lagged by one month
127
128 Daily
FTSE/JSE All Property Index (Prior to Oct 2018 the benchmark was FTSE/ JSE SA Listed Property)
Total
Futuregrowth Community Property Fund
0% - 74% Listed Property
Total
STANLIB Property Income Fund
Annually
Daily
N/A
CPI + 4%
Daily
FTSE/JSE SA Listed Property
FTSE/JSE All Property Index (Prior to July 2018 the benchmark was FTSE/ JSE SA Listed Property)
SIM Property Fund
STANLIB MM PROPERTY
Daily
FTSE/JSE All Property Index (Prior to July 2018 the benchmark was FTSE/ JSE SA Listed Property)
Sesfikile Property Composite
V
Daily
Fund Weighted average of SA Listed Property Index and All Property Index (Prior to October 2018 the benchmark was FTSE/JSE SA Listed Property)
V
Prudential Enhanced SA Property Tracker Fund
Daily
FTSE/JSE All Property Index (Prior to 1 July 2018 the benchmark was FTSE/JSE SA Listed Property)
V
OMIG Quoted Property Portfolio
Daily Daily
FTSE/JSE SA Listed Property
FTSE/JSE SA Listed Property
C
Investec Property Equity Fund
N/A
Daily
FTSE/JSE All Property Index (Prior to Oct 2018 the benchmark was FTSE/ JSE SA Listed Property)
V
Coronation Property Equity
Momentum Investments Property
Daily
FTSE/JSE All Property Index (Prior to August 2018 the benchmark was FTSE/JSE SA Listed Property)
V
Catalyst FM Composite SA Listed Property Index Funds
Momentum Investments Diversified Property
Daily
Weighted average of SA Listed Property Index and All Property Index (Prior to May 2018 the benchmark was FTSE/JSE SA Listed Property)
Daily
Valuation Frequency
Daily
FTSE/JSE SA Listed Property
Benchmark Description
FTSE/JSE SA Listed Property
V
GIPS™ (Verified / Compliant)
Alexander Forbes Investments Property Fund
Absa Asset Management Domestic Property
75% - 100% Listed Property
Investment Managers
General information
Monthly
Daily
N/A
Daily
Daily
Daily
N/A
Daily
Daily
Daily
Daily
Daily
N/A
Daily
Cash Flow Frequency in IRR Calc
0%
50%
97%
90%
90%
95%
85%
80%
95%
80%
50%
95%
85%
75%
Minimum Listed Property Allocation
10%
50%
3%
10%
10%
5%
15%
20%
5%
20%
50%
5%
15%
25%
Maximum Cash Exposure Allowed
Up to 3 years
48 hours
48 hours
24 hours
48 hours
24 hours
48 hours
24 hours
48 hours
24 hours
24 hours
24 hours
24 hours
48 hours
Disinvestment Notice Period
N/A
48 hours
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Lock-in Period
N/A
1
N/A
1
45
3
1
1
N/A
N/A
N/A
15
N/A
8
No. of Funds in Composite
70 453
4 515
65 937
6 620
1 979
6 947
15 380
3 236
4 390
1 441
4 107
4 590
1 445
9 613
2 551
3 639
Portfolio Size (R m)
MANAGER WATCH™ SURVEY
SA Property Manager Watch™ Survey
1 Year
1.92%
0.40%
-0.40%
-0.40%
1.92%
1.92%
1.92%
1.60%
-0.39%
1.92%
-0.40%
-0.40%
4.30%
1.23%
0.53%
1.01%
2.03%
2.08%
2.86%
0.86%
3.97%
0.23%
2.05%
2.26%
14
16.55%
*No performance history. #Inflation figures in this table are lagged by one month
14
9.17%
Number of Participants
Range
11.79% -1.50% -2.23% -1.46% -3.32% -4.76%
-6.54%
-3.92%
9.40% 2.85% 2.07% 2.54% 1.07% 0.23%
*
-6.99%
-0.40%
-2.15%
-3.72%
11.79%
-4.76%
-3.50%
-3.77%
0.19%
-4.53%
-0.77%
-2.39%
-2.22%
-2.80%
-1.87%
-2.24%
-1.38%
-2.19%
3 Years (p.a.)
1.92%
Statistics Highest Upper Quartile Median Average Lower Quartile Lowest
Market Statistics FTSE/JSE SA Listed Property Index FTSE/JSE All Property Index S&P South Africa Composite Property S&P South Africa Composite Property Capped
7.75%
1.92%
Benchmark
2.81%
0% – 74% Listed Property Futuregrowth Community Property 9.40% Fund
Absa Asset Management Domestic Property Alexander Forbes Investments Property Fund Catalyst FM Composite SA Listed Property Index Funds Coronation Property Equity Investec Property Equity Fund Momentum Investments Diversified Property Momentum Investments Property OMIG Quoted Property Portfolio Prudential Enhanced SA Property Tracker Fund Sesfikile Property Composite SIM Property Fund STANLIB MM PROPERTY STANLIB Property Income Fund
75% – 100% Listed Property
Specialist Property
Investment Managers
8.52%
-5.20%
-5.36%
-3.72%
-5.36%
-3.94%
-3.72%
-3.72%
-3.72%
-5.20%
-5.08%
-4.45%
-3.72%
-3.72%
Benchmark
14
14.00%
15.32% 3.69% 2.93% 3.87% 2.09% 1.32%
-1.89%
-3.05%
*
1.21%
15.32%
1.32%
2.04%
1.47%
4.98%
1.40%
3.20%
2.40%
3.42%
2.27%
2.66%
3.73%
3.54%
6.39%
5 Years (p.a.)
Investment Data to the end of December 2019
8.98%
0.27%
0.18%
1.21%
0.17%
1.07%
1.21%
1.21%
1.21%
0.27%
0.35%
0.75%
1.21%
1.21%
Benchmark
13
7.73%
13.68% 7.92% 7.29% 7.91% 6.43% 5.96%
4.05%
3.15%
*
5.53%
13.68%
6.01%
6.43%
6.03%
9.32%
5.96%
7.43%
6.80%
*
6.74%
7.29%
7.92%
7.57%
11.62%
7 Years (p.a.)
9.25%
4.83%
4.76%
5.53%
4.76%
5.43%
5.53%
5.53%
*
4.83%
4.89%
5.19%
5.53%
5.53%
Benchmark
9
2.18%
12.41% 12.29% 12.17% 11.79% 11.33% 10.23%
9.82%
8.21%
*
10.83%
12.29%
11.33%
*
10.23%
*
11.22%
12.17%
*
*
11.81%
12.41%
12.41%
12.22%
*
10 Years (p.a.)
9.21%
10.32%
*
10.46%
*
10.76%
10.83%
*
*
10.32%
10.36%
10.58%
10.83%
*
Benchmark
14
11.97% -20.08% -23.02% -20.48% -23.84% -29.55%
-20.48%
-23.02%
-20.08%
11.97%
11.97%
-27.42%
-23.22%
-23.36%
-19.38%
-25.16%
-17.48%
-24.00%
-22.82%
-23.25%
-18.76%
-22.17%
-22.17%
-29.55%
Portfolio
9.18%
-27.00%
-27.35%
-25.26%
-27.35%
-25.54%
-25.26%
-25.26%
-25.26%
-27.00%
-26.72%
-25.85%
-25.26%
-25.26%
Benchmark
2018
14
29.20% 18.69% 17.27% 17.87% 15.39% 14.05%
17.87%
17.27%
18.69%
29.20%
14.05%
16.39%
14.69%
16.01%
19.98%
15.29%
15.09%
19.87%
18.72%
18.44%
15.71%
18.59%
18.15%
29.20%
Portfolio
8.63%
17.15%
17.15%
17.15%
17.15%
17.15%
17.15%
17.15%
17.15%
17.15%
17.15%
17.17%
17.15%
17.15%
Benchmark
2017
14
24.31% 11.58% 10.77% 11.04% 9.65% 5.04%
11.04%
10.77%
11.58%
24.31%
24.31%
13.02%
9.79%
11.88%
10.37%
11.17%
5.04%
8.30%
10.67%
6.83%
9.60%
10.87%
10.96%
11.72%
Portfolio
10.61%
10.20%
10.20%
10.20%
10.20%
10.20%
10.20%
10.20%
10.20%
10.20%
10.20%
10.20%
10.20%
10.20%
Benchmark
Calendar Year Returns 2016
14
30.40% 14.74% 13.07% 13.93% 11.06% 7.88%
13.93%
13.07%
14.74%
30.40%
17.44%
9.33%
12.10%
7.88%
14.87%
10.81%
14.04%
11.79%
14.35%
14.04%
10.11%
15.96%
11.83%
30.40%
Portfolio
8.77%
7.99%
7.99%
7.99%
7.99%
7.99%
7.99%
7.99%
7.99%
7.99%
7.99%
7.99%
7.99%
7.99%
Benchmark
2015
14
42.30% 29.20% 28.49% 27.88% 27.24% 9.00%
27.88%
28.49%
29.20%
42.30%
9.00%
28.55%
27.94%
27.53%
29.22%
27.11%
28.65%
26.79%
29.22%
28.43%
27.14%
29.27%
29.15%
42.30%
Portfolio
10.81%
26.64%
26.64%
26.64%
26.64%
26.64%
26.64%
26.64%
26.64%
26.64%
26.64%
26.64%
26.64%
26.64%
Benchmark
2014
SECTION 3
SA Property Manager Watch™ Survey
129
130
-4.53%
Prudential Enhanced SA Property Tracker Fund
-2.23%
-1.46%
-3.32%
-4.76%
Median
Average
Lower Quartile
Lowest
#Inflation figures in this table are lagged by one month
14
-1.50%
Number of participants
11.79%
Upper Quartile
11.79%
Highest
Statistics
Futuregrowth Community Property Fund
0% – 74% Listed Property
-4.76%
-0.77%
OMIG Quoted Property Portfolio
-3.50%
-2.39%
Momentum Investments Property
STANLIB Property Income Fund
-2.22%
Momentum Investments Diversified Property
STANLIB MM PROPERTY
-2.80%
Investec Property Equity Fund
0.19%
-1.87%
Coronation Property Equity
-3.77%
-2.24%
Catalyst FM Composite SA Listed Property Index Funds
SIM Property Fund
-1.38%
Alexander Forbes Investments Property Fund
Sesfikile Property Composite
-2.19%
3 Year Return
13
10
11
1
12
2
8
6
9
4
7
3
5
Rank
14
2.24%
11.21%
11.96%
12.28%
13.06%
18.77%
2.24%
14.27%
11.83%
12.99%
10.73%
12.78%
10.40%
13.29%
13.08%
11.59%
11.08%
12.74%
11.63%
18.77%
Volatility (Risk)
12
6
9
2
8
1
11
10
4
3
7
5
13
Rank
14
-0.58%
1.37%
2.00%
2.04%
2.81%
5.55%
3.27%
0.44%
1.86%
-0.04%
5.55%
-0.58%
2.95%
1.33%
1.50%
2.40%
3.22%
2.21%
2.34%
1.53%
Active Return
Calculated on 3 Year Performance Returns
Absa Asset Management Domestic Property
75% – 100% Listed Property
Specialist Property
Investment Managers
Investment Data to the end of December 2019 Volatility vs Return
11
7
12
1
13
3
10
9
4
2
6
5
8
Rank
14
1.06%
1.32%
3.07%
2.85%
3.70%
9.25%
2.63%
3.06%
2.31%
1.57%
3.56%
1.23%
4.66%
1.24%
1.06%
3.74%
3.10%
1.15%
4.36%
9.25%
Tracking Error
14
-0.48
0.26
0.76
0.72
1.20
1.93
1.24
0.15
0.80
-0.03
1.56
-0.48
0.63
1.08
1.42
0.64
1.04
1.93
0.54
0.17
Information Ratio
11
6
12
2
13
8
4
3
7
5
1
9
10
Rank
14
1.32%
2.09%
3.87%
2.93%
3.69%
15.32%
15.32%
1.32%
2.04%
1.47%
4.98%
1.40%
3.20%
2.40%
3.42%
2.27%
2.66%
3.73%
3.54%
6.39%
5 Year Return
13
10
11
2
12
6
8
5
9
7
3
4
1
Rank
14
6.54%
11.73%
12.29%
12.52%
12.92%
16.75%
6.54%
13.72%
11.85%
12.92%
11.69%
12.91%
11.03%
13.25%
12.88%
12.03%
11.41%
12.66%
12.37%
16.75%
Volatility (Risk)
12
4
10
3
9
1
11
8
5
2
7
6
13
Rank
14
0.26%
1.36%
2.49%
2.10%
2.82%
6.33%
6.33%
1.04%
1.86%
0.26%
4.80%
0.33%
1.99%
1.19%
2.21%
2.00%
2.31%
2.99%
2.33%
5.18%
Active Return
Calculated on 5 Year Performance Returns
11
9
13
2
12
8
10
6
7
5
3
4
1
Rank
14
1.25%
1.61%
3.23%
2.73%
4.03%
7.91%
6.77%
2.64%
2.63%
1.47%
3.02%
1.25%
4.42%
1.58%
1.47%
3.23%
2.82%
1.69%
4.30%
7.91%
Tracking Error
14
0.18
0.47
0.80
0.68
0.91
1.76
0.94
0.40
0.71
0.18
1.59
0.26
0.45
0.75
1.50
0.62
0.82
1.76
0.54
0.65
Information Ratio
11
6
13
2
12
10
5
3
8
4
1
9
7
Rank
MANAGER WATCH™ SURVEY
SA Property Manager Watch™ Survey Risk
SECTION 3
Composite Dispersion of SA Property Watch™ Survey 1 Year to 31 December 2019 Absa Asset Management Domestic Property
0.19% 0.42%
Ashburton SA Property Catalyst FM Composite SA Listed Property
0.52% 2.08%
Meago Composite 0.47%
Prudential Property 0.18%
SIM CPI + 5% Global
0.00%
0.50%
1.50%
2.00%
2.50%
Minimum Return
Maximum Return
Median Composite Return
Composite Dispersion (1yr)
Composite Dispersion (3yrs)
Composite Dispersion (5yrs)
Absa Asset Management Domestic Property
2.33%
2.98%
2.60%
0.19%
0.12%
*
Ashburton SA Property
0.32%
1.49%
1.04%
0.42%
*
*
Catalyst FM Composite SA Listed Property
0.19%
2.05%
1.21%
0.52%
0.60%
0.29%
Meago Composite
-0.19%
9.04%
2.09%
2.08%
1.13%
0.90%
Prudential Property
0.04%
1.11%
0.93%
0.47%
*
*
SIM CPI + 5% Global
10.93%
11.63%
11.32%
0.18%
0.33%
0.28%
Property
* Data not available.
131
132
Portfolio
1 Year
Benchmark
Active Return
Rank
Portfolio
3 Years Benchmark
Active Return Rank Portfolio
5 Years Benchmark
Active Return Rank Portfolio
7 Years
*No performance history. #Inflation figures in this table are lagged by one month.
6.61%
8.51%
11.97%
9.39%
10.50%
14.20%
3.03%
6.57%
7.23%
6.53%
7.57%
9.61%
8.83%
9.60%
7.63%
8.79%
11.27%
1.26%
7.63%
8.22%
2.78%
3.46%
3.70%
4.03%
3.08%
1.16%
0.59%
1.62% 1.35%
7.29% 7.27%
8.91% 8.62%
1.41%
6.92%
8.33%
Market Data FTSE / JSE All Share Index (Free Float) 12.05% FTSE / JSE SWIX All Share Index 9.32% All Bond 10.32% Short Term Fixed Interest Rate Index 7.29% Consumer Price Inflation (Headline 3.56% CPI) [I-Net code: AECPI]
Medical Aid Mandates Alexander Forbes Investments Medical Schemes Real Return Focus
Old Mutual Multi-Managers Money Market STANLIB MM Enhanced Yield Sygnia Money Market Fund Absolute Return Mandates Alexander Forbes Investments Real Return Focus Local Alexander Forbes Investments Real Return Focus Portfolio Alexander Forbes Investments Stable Focus Momentum Investments Absolute Strategies Momentum Investments Real Return Old Mutual Multi-Managers Defensive Balanced fund SMM Moderate Absolute Fund STANLIB Multi-Manager Real Return Fund
3
2
1
5
6
4
7
8
2 5
4
6.55%
*
*
7.09%
7.49%
6.27%
6.73%
7.04%
6.40%
8.61% 8.32%
7.85%
4.94%
5
7
6
1
8
2
3
4
2 4
5
4.45%
-0.51%
-1.75%
-1.99%
-1.82%
0.94%
-2.16%
0.14%
-1.15%
-1.46%
1.68% 1.31%
1.16%
5.99% 4.78% 7.75% 7.19%
7.48%
9.43%
10.62%
8.31%
7.45%
8.45%
7.45%
8.49%
8.49%
7.35% 7.35%
7.02%
7.42% 5.39% 9.40% 7.36%
6.97%
7.68%
8.63%
6.50%
8.40%
6.29%
7.59%
7.34%
7.03%
9.03% 8.66%
8.18%
8.15%
*
*
8.86%
7.94%
8.94%
8.13%
9.15%
9.15%
6.41% 7.18%
6.83%
-1.60%
*
*
-1.78%
-0.45%
-2.68%
-1.40%
-2.11%
-2.75%
2.19% 1.14%
1.02%
3
1
5
2
4
6
1 4
5
5.12%
8.77% 8.41% 7.04% 6.72%
7.41%
*
*
8.94%
8.07%
6.66%
7.36%
8.53%
7.59%
* *
7.34%
Equity Mandates Benchmark Cognisant Alexander Forbes Investments Pure 5.36% 6.75% -1.39% 5 2.12% 3.78% -1.67% 5 2.33% 3.82% -1.49% 4 6.21% Equity Local Momentum Investments 10.60% 6.75% 3.85% 1 5.70% 5.22% 0.48% 2 5.10% 4.68% 0.43% 1 8.82% Classic Equity Momentum Investments Target Equity 9.78% 6.75% 3.03% 2 6.03% 5.23% 0.80% 1 * * * * STANLIB Multi-Manager 9.21% 6.75% 2.46% 3 4.47% 4.12% 0.35% 3 3.52% 4.02% -0.50% 2 7.26% SA Equity Fund Sygnia Core Equity Fund 9.30% 9.32% -0.02% 4 3.85% 5.39% -1.54% 4 3.35% 4.78% -1.43% 3 * Non Benchmark Cognisant Sygnia Absolute Focus Equity Fund 11.70% 9.32% 2.38% 4.78% 5.39% -0.61% 5.62% 4.78% 0.85% * Bond Mandates Alexander Forbes Investments Pure 10.32% 10.32% 0.00% 1 10.13% 9.41% 0.72% 2 8.69% 7.75% 0.94% 1 8.10% Fixed Interest Local Momentum Investments Moderate 10.18% 10.32% -0.14% 3 9.65% 9.40% 0.25% 3 8.11% 7.75% 0.36% 2 7.45% Bond FOF STANLIB Multi-Manager Bond 10.22% 10.32% -0.10% 2 10.24% 9.40% 0.84% 1 * * * * Money Market Mandates Alexander Forbes Investments Banker 8.72% 6.64% 2.08% 1 8.78% 6.70% 2.07% 1 8.53% 6.55% 1.99% 2 7.98% Momentum Investments Diversified 8.71% 7.29% 1.42% 3 9.02% 7.36% 1.66% 3 8.63% 7.19% 1.45% 3 7.96% Money Market
Investment Managers
Investment Data to the end of December 2019 – Performance Data
* -0.59% * * 1.06% 0.41% * 1.85% 1.24%
* 7.84% * * 7.04% 7.04% * 6.13% 6.72%
8.55%
*
*
9.17%
8.12%
9.12%
8.54%
9.57%
9.56%
* *
-1.14%
*
*
-0.24%
-0.06%
-2.47%
-1.18%
-1.04%
-1.97%
* *
0.88%
0.48%
6.46%
-1.48%
7.70% 8.33%
Benchmark
Active Return
2
1
6
4
3
5
3
2
1
2
1
2
1
3
5.11%
10.78% 11.09% 8.87% 6.52%
8.02%
*
*
9.71%
7.72%
6.80%
8.11%
9.10%
8.49%
* *
7.21%
*
7.71%
*
9.33%
9.71%
*
*
*
*
11.20%
9.09%
Rank Portfolio
10 Years
8.74%
*
*
10.15%
8.12%
9.12%
8.73%
9.87%
9.86%
* *
6.34%
*
5.95%
*
8.87%
8.85%
*
*
*
*
11.03%
10.58%
Benchmark
-0.72%
*
*
-0.44%
-0.39%
-2.32%
-0.62%
-0.77%
-1.38%
* *
0.87%
*
1.76%
*
0.46%
0.86%
*
*
*
*
0.17%
-1.49%
Active Return
2
1
6
3
4
5
2
1
2
1
1
2
365
1 195
479
729
590
1 225
3 387
5 206
7 571
1 732 1 005
857
200
19 881
3 192
130
4 281
3 663
3 726
8 757
520
15 593
10 622
Portfolio Rank Size (R M)
MANAGER WATCH™ SURVEY
Multi-Manager Watch™ Survey (Specialist Mandates)
Portfolio
Benchmark
Calendar Year 2018
Active Return Rank
Benchmark
Calendar Year 2017 Portfolio
Active Return Rank
Benchmark
Calendar Year 2016 Portfolio
Active Return
20.95% 21.21% 10.22% 7.54% 4.62%
-8.53% -11.67% 7.69% 7.25%
5.18%
*No performance history. #Inflation figures in this table are lagged by one month.
Market Data FTSE / JSE All Share Index (Free Float) FTSE / JSE SWIX All Share Index All Bond Short Term Fixed Interest Rate Index Consumer Price Inflation (Headline CPI) [I-Net code: AECPI]
6.61%
2.63% 4.13% 15.45% 7.39%
8.93% * * 8.69%
7.38% 6.73% 6.99% 7.21% 3.28% 8.06% 4.53% 4.91% 5.34% 12.15% * * 4.12%
3 5 1 4 2 5 4 3 1 7 8 6
4.77%
5.13% 3.62% -3.93% 6.47%
8.69% 8.77% 7.77%
7.38%
2
-3.93%
9.69%
9.69%
6.06% 6.43% 6.46%
6.47%
5.79%
-3.93% *
-2.56% -3.48% *
1
3.62%
11.68%
3 2
3.62% * 3.62% 3.62%
1.11% 2.58% * 0.40% 3.42%
3 1 2 4 5
3.62%
Benchmark
Calendar Year 2015 Rank Portfolio
Equity Mandates Benchmark Cognisant Alexander Forbes Investments Pure -12.28% -10.93% -1.34% 5 15.21% 17.57% -2.36% 2 4.20% 4.13% 0.07% Equity Local Momentum Investments Classic Equity -9.55% -10.93% 1.38% 2 18.06% 22.51% -4.45% 3 5.89% 4.13% 1.76% Momentum Investments Target Equity -11.50% -10.90% -0.60% 4 22.67% 22.51% 0.16% 1 4.63% 4.13% 0.50% STANLIB Multi-Manager SA Equity Fund -8.53% -10.94% 2.40% 1 14.14% 18.71% -4.57% 4 3.85% 4.13% -0.28% Sygnia Core Equity Fund -12.06% -11.67% -0.40% 3 16.51% 21.21% -4.70% 5 1.82% 4.13% -2.31% Non Benchmark Cognisant Sygnia Absolute Focus Equity Fund -8.70% -11.67% 2.97% 12.80% 21.21% -8.42% 2.34% 4.13% -1.79% Bond Mandates Alexander Forbes Investments Pure Fixed 8.73% 7.74% 0.99% 2 11.35% 10.19% 1.16% 1 16.53% 15.42% 1.11% Interest Local Momentum Investments Moderate Bond FOF 8.12% 7.69% 0.44% 3 10.68% 10.22% 0.46% 3 16.02% 15.45% 0.57% STANLIB Multi-Manager Bond 9.15% 7.69% 1.46% 1 11.36% 10.22% 1.15% 2 16.24% 15.45% 0.78% Money Market Mandates Alexander Forbes Investments Banker 8.80% 6.61% 2.19% 1 8.81% 6.86% 1.95% 1 8.97% 6.82% 2.15% Momentum Investments Diversified 9.10% 7.25% 1.85% 2 9.24% 7.54% 1.71% 3 8.74% 7.39% 1.34% Money Market Old Mutual Multi-Managers Money Market 8.00% 6.99% 1.00% 5 8.21% 7.16% 1.05% 5 8.01% 7.02% 0.98% STANLIB MM Enhanced Yield 8.90% 7.25% 1.65% 3 9.28% 7.51% 1.77% 2 8.96% 3.64% 5.32% Sygnia Money Market Fund 8.52% 7.25% 1.27% 4 8.85% 7.54% 1.31% 4 8.40% 7.39% 1.01% Absolute Return Mandates Alexander Forbes Investments Real Return 1.28% 9.21% -7.93% 5 11.85% 8.62% 3.23% 1 7.70% 10.61% -2.91% Focus Local Alexander Forbes Investments Real Return 3.29% 9.21% -5.92% 3 10.05% 8.62% 1.43% 4 5.16% 10.61% -5.45% Focus Portfolio Alexander Forbes Investments Stable Focus 4.07% 8.21% -4.14% 2 9.19% 7.62% 1.57% 3 6.38% 9.61% -3.23% Momentum Investments Absolute Strategies 0.47% 9.18% -8.71% 6 9.84% 8.62% 1.22% 5 7.56% 10.61% -3.05% Momentum Investments Real Return 6.37% 8.18% -1.81% 1 9.25% 7.62% 1.63% 2 6.97% 9.61% -2.64% Old Mutual Multi-Managers Defensive 0.27% 9.37% -9.10% 7 8.25% 8.42% -0.17% 7 3.96% 10.49% -6.53% Balanced fund SMM Moderate Absolute Fund 3.94% 10.79% -6.85% 4 7.99% 10.58% -2.59% 8 2.15% 11.57% -9.41% STANLIB Multi-Manager Real Return Fund 1.04% 10.18% -9.14% 8 10.35% 9.61% 0.75% 6 3.18% 9.40% -6.22% Medical Aid Mandates Alexander Forbes Investments Medical 2.42% 8.21% -5.79% 9.26% 7.62% 1.64% 7.73% 9.61% -1.88% Schemes Real Return Focus
Investment Managers
Investment Data to the end of December for the past 5 Calendar years
-4.57%
* *
3.22%
-4.16% -3.86% -2.43%
-1.63%
-6.41%
0.66% 0.57% 0.75%
0.92%
1.58%
0.45% *
1.37%
8.06%
-1.04% * -3.22% -0.20%
-2.51%
Active Return
1
5 4 3
2
6
4 5 3
2
1
2
1
4 1
2
3
Rank
10.52%
5.80%
10.88% 15.42% 10.15% 5.91%
9.26%
* *
10.14%
8.98% 8.41% 8.51%
10.01%
10.33%
6.22% * 6.01%
6.33%
6.74%
10.22% *
11.08%
17.35%
12.34% * 11.70% *
9.81%
* *
9.82%
9.81% 9.80% 8.80%
10.81%
10.81%
5.91% * 5.90%
5.91%
5.42%
10.15% *
10.15%
15.42%
15.42% * 15.42% *
15.42%
Benchmark
Calendar Year 2014 Portfolio
-0.54%
* *
0.32%
-0.83% -1.40% -0.29%
-0.80%
-0.48%
0.31% * 0.10%
0.42%
1.32%
0.08% *
0.93%
1.92%
-3.08% * -3.72% *
-4.90%
Active Return
1
5 6 2
4
3
4
3
2
1
2
1
2
1
3
Rank
SECTION 3
Multi-Manager Watch™ Survey (Specialist Mandates)
133
MANAGER WATCH™ SURVEY
Multi-Manager Watch™ Survey Risk (Specialist Mandates) Investment Data to the end of December 2019 – Volatility vs Return 3 Year Return (p.a.)
Rank
Risk (Volatility)
Rank
Active Return
Alexander Forbes Investments Pure Equity Local
2.12%
5
10.22%
1
Momentum Investments Classic Equity
5.70%
2
10.84%
3
Momentum Investments Target Equity
6.03%
1
11.54%
STANLIB Multi-Manager SA Equity Fund
4.47%
3
Sygnia Core Equity Fund
3.85%
4
Investment Managers
Rank
Tracking Error
Information Ratio
Rank
-1.67%
5
1.89%
-0.88
4
0.48%
2
2.36%
0.20
2
5
0.80%
1
1.70%
0.47
1
10.39%
2
0.35%
3
3.08%
0.11
3
11.33%
4
-1.54%
4
0.94%
-1.65
5
3.32%
-0.18
Benchmark Cognisant
Non Benchmark Cognisant Sygnia Absolute Focus Equity Fund
4.78%
11.47%
-0.61%
Bond Mandates Alexander Forbes Investments Pure Fixed Interest Local
10.13%
2
5.44%
1
0.72%
2
0.74%
0.97
1
Momentum Investments Moderate Bond FOF
9.65%
3
5.82%
3
0.25%
3
0.38%
0.67
3
STANLIB Multi-Manager Bond
10.24%
1
5.61%
2
0.84%
1
1.01%
0.83
2
Alexander Forbes Investments Banker
8.78%
3
0.16%
1
2.07%
1
0.09%
23.88
1
Momentum Investments Diversified Money Market
9.02%
2
0.20%
4
1.66%
3
0.18%
9.44
2
Old Mutual Multi-Managers Money Market
8.18%
5
0.17%
2
1.16%
5
0.16%
7.20
5
STANLIB MM Enhanced Yield
9.03%
1
0.21%
5
1.68%
2
0.20%
8.52
3
Sygnia Money Market Fund
8.66%
4
0.19%
3
1.31%
4
0.16%
8.14
4
Alexander Forbes Investments Real Return Focus Local
7.03%
6
3.63%
3
-1.46%
4
3.91%
-0.37
6
Alexander Forbes Investments Real Return Focus Portfolio
7.34%
5
3.98%
4
-1.15%
3
4.05%
-0.28
4
Alexander Forbes Investments Stable Focus
7.59%
4
1.91%
1
0.14%
2
2.37%
0.06
2
Momentum Investments Absolute Strategies
6.29%
8
4.27%
5
-2.16%
8
4.56%
-0.51
8
Momentum Investments Real Return
8.40%
2
2.44%
2
0.94%
1
2.86%
0.29
1
Old Mutual Multi-Managers Defensive Balanced fund
6.50%
7
5.39%
7
-1.82%
6
5.43%
-0.37
5
SMM Moderate Absolute Fund
8.63%
1
4.79%
6
-1.99%
7
4.88%
-0.41
7
STANLIB Multi-Manager Real Return Fund
7.68%
3
6.33%
8
-1.75%
5
6.34%
-0.28
3
3.28%
-0.15
Money Market Mandates
Absolute Return Mandates
Medical Aid Mandates Alexander Forbes Investments Medical Schemes Real Return Focus
6.97%
2.96%
Market Indices & Statistics FTSE / JSE All Share Index (Free Float)
7.42%
12.00%
FTSE / JSE SWIX All Share Index
5.39%
11.75%
All Bond
9.40%
6.05%
Short Term Fixed Interest Rate Index
7.36%
0.07%
Consumer Price Inflation (Headline CPI) [I-Net code: AECPI]
4.45%
1.03%
#Inflation figures in this table are lagged by one month.
134
-0.51%
SECTION 3
Multi-Manager Watch™ Survey (Balanced Mandates) Fixed Asset Allocation: Managers included in the survey typically make use of fixed asset allocations, which means that they balance the asset allocation back to the strategic long-term asset allocation target (from time to time, according to predefined strategies) with no intention to enhance returns from an asset allocation point of view. However, while some of these managers adhere rigidly to these fixed asset allocations, others may allow these allocations to drift slightly within certain margins. Strategic Asset Allocation: Although managers included in the survey may have long-term strategic asset allocation targets, they actively manage the asset allocation in an attempt to enhance returns. The different categories above (Low Volatility, Best Investment View and Dynamic) represent the different risk profiles of the funds. The Low Volatility category represents the manager’s most conservatively managed portfolio while the Dynamic category represents the manager’s most aggressively managed portfolio, according to the manager’s discretion.
Investment Data to the end of December 2019 – Performance Data 1 Year Investment Managers
Portfolio
3 Years
5 Years
Benchmark
Active Return
Rank
Portfolio
Benchmark
Active Return
Rank
Portfolio
Benchmark
Active Return
Rank
6.99% 8.08%
1.04% 1.00%
1 2
6.44% 5.96%
5.61% 5.92%
0.83% 0.04%
1 2
6.38% 6.46%
5.70% 6.16%
0.68% 0.30%
1 2
8.86% 7.53% 8.33%
2.72% 0.42% 1.24%
2 5 3
6.61% 5.91% 6.33%
6.35% 5.61% 6.07%
0.26% 0.29% 0.26%
3 2 4
7.26% 5.96% 6.73%
6.54% 5.72% 6.27%
0.72% 0.24% 0.46%
2 5 4
Fixed Asset Allocation Equity Band: 15% – 34% (Local & International Equity) Alexander Forbes Investments Low Equity 8.03% Momentum Investments Enhanced Factor 3 9.08% Equity Band: 35% – 44% (Local & International Equity) 27four CPI+3% Fund 11.58% Alexander Forbes Investments 37.5% Equity 7.95% Momentum Investments Enhanced Factor 4 9.57% Old Mutual Multi-Managers Inflation Plus 12.44% 1-3% Sygnia Signature 40 Fund 11.52% Equity Band: 45% – 54% (Local & International Equity) 27four CPI+5% Fund 11.58% Alexander Forbes Investments Medium Equity 8.60% Momentum Investments Classic Factor 5 10.67% Momentum Investments Enhanced Factor 5
10.63%
Old Mutual Multi-Managers Inflation Plus 12.02% 3-5% SMM 50 11.58% Sygnia Signature 50 Fund 12.00% Equity Band: 55% – 69% (Local & International Equity) 27Four CPI +7% Fund 12.16% Alexander Forbes Investments 62.5% Equity 8.82% Momentum Investments Classic Factor 6 12.07% Momentum Investments Enhanced Factor 6 11.82% Old Mutual Multi-Managers Inflation Plus 12.12% 5-7% SMM 60 12.24% Sygnia Signature 60 Fund 12.47% Equity Band: 70% – 75% (Local & International Equity) Alexander Forbes Investments High Equity 9.36% Momentum Investments Classic Factor 7 12.14% Momentum Investments Enhanced Factor 7 12.12% Momentum Investments Target Factor 7 12.45% Sanlam Lifestage Accumulation 12.22% SMM 70 12.24% Sygnia Signature 70 Fund 13.03%
6.57%
5.87%
1
8.19%
6.36%
1.84%
1
7.69%
6.21%
1.47%
1
10.51%
1.01%
4
8.27%
8.15%
0.12%
5
8.25%
7.70%
0.56%
3
9.42% 8.14% 9.14%
2.16% 0.46% 1.53%
3 7 4
6.26% 5.83% *
6.15% 5.69% *
0.11% 0.15% *
4 3
6.95% 5.69% *
6.29% 5.74% *
0.66% -0.04% *
1 5
9.14%
1.49%
5
6.42%
6.04%
0.39%
2
6.82%
6.30%
0.52%
2
8.57%
3.46%
1
7.33%
9.45%
-2.13%
6
7.32%
9.94%
-2.63%
6
8.73% 10.96%
2.85% 1.04%
2 6
7.34% 7.98%
6.86% 7.98%
0.48% 0.00%
1 5
6.62% 7.98%
6.51% 7.50%
0.11% 0.48%
4 3
9.82% 8.91% 10.76% 10.76%
2.34% -0.09% 1.31% 1.06%
3 7 4 6
5.78% 5.72% 6.97% 6.80%
6.06% 5.90% 6.38% 6.38%
-0.29% -0.18% 0.59% 0.42%
6 4 1 2
6.69% 5.56% 7.05% 6.91%
6.25% 5.90% 6.55% 6.55%
0.44% -0.34% 0.50% 0.36%
2 6 1 3
9.57%
2.56%
2
6.63%
10.45%
-3.83%
7
6.75%
10.94%
-4.19%
7
9.29% 11.40%
2.95% 1.07%
1 5
7.15% 7.70%
6.89% 7.89%
0.26% -0.19%
3 5
6.32% 7.74%
6.46% 7.46%
-0.14% 0.28%
5 4
9.97% 10.92% 10.92% 10.92% 10.86% 9.76% 11.83%
-0.61% 1.22% 1.20% 1.53% 1.35% 2.47% 1.20%
7 4 5 2 3 1 6
5.77% 6.84% 6.72% 6.97% 6.95% 6.92% 7.39%
6.20% 6.16% 6.16% 6.16% 6.63% 6.77% 7.70%
-0.43% 0.68% 0.55% 0.80% 0.31% 0.15% -0.31%
7 2 3 1 4 5 6
5.61% 6.91% 6.75% * 6.22% 6.02% 7.49%
6.03% 6.32% 6.32% * 6.53% 6.37% 7.24%
-0.42% 0.59% 0.43% * -0.31% -0.35% 0.25%
6 1 2 4 5 3
Strategic Asset Allocation Low Volatility Alexander Forbes Investments (Conserver) 10.06% 8.30% 1.76% 3 8.22% 6.88% 1.34% 1 7.32% 6.57% 0.75% 1 Nedgroup Investments XS Guarded Fund 9.91% 6.66% 3.25% 1 7.41% 7.58% -0.18% 2 7.64% 8.09% -0.46% 2 of Funds STANLIB Multi-Manager Defensive 9.48% 6.53% 2.95% 2 6.86% 7.44% -0.58% 3 * * * Balanced Fund Best Investment View Alexander Forbes Investments (Performer) 10.94% 10.88% 0.06% 6 7.23% 6.56% 0.67% 2 7.46% 6.35% 1.11% 1 Alexander Forbes Investments (Spectrum) 10.91% 10.87% 0.04% 7 6.66% 6.49% 0.17% 6 6.33% 5.98% 0.35% 4 Momentum Investments Flexible Factor 6
12.57%
10.76%
1.82%
2
6.67%
6.38%
0.29%
5
6.85%
6.55%
0.30%
5
Momentum Investments Flexible Factor 7 Nedgroup Investments XS Diversified Fund of Funds Old Mutual Multi Managers Managed STANLIB Multi Manager Balanced Fund
13.20%
10.92%
2.28%
1
7.04%
6.16%
0.88%
1
6.91%
6.32%
0.59%
3
9.20%
8.73%
0.47%
4
5.77%
9.67%
-3.90%
7
6.14%
10.19%
-4.05%
7
12.58% 11.85%
10.88% 11.70%
1.70% 0.15%
3 5
7.12% 7.27%
6.63% 6.88%
0.49% 0.38%
3 4
6.67% 7.09%
6.41% 6.44%
0.26% 0.66%
6 2
*No performance history. #Inflation figures in this table are lagged by one month.
135
MANAGER WATCH™ SURVEY
Multi-Manager Watch™ Survey (Balanced Mandates) Fixed Asset Allocation: Managers included in the survey typically make use of fixed asset allocations, which means that they balance the asset allocation back to the strategic long-term asset allocation target (from time to time, according to predefined strategies) with no intention to enhance returns from an asset allocation point of view. However, while some of these managers adhere rigidly to these fixed asset allocations, others may allow these allocations to drift slightly within certain margins. Strategic Asset Allocation: Although managers included in the survey may have long-term strategic asset allocation targets, they actively manage the asset allocation in an attempt to enhance returns. The different categories above (Low Volatility, Best Investment View and Dynamic) represent the different risk profiles of the funds. The Low Volatility category represents the manager’s most conservatively managed portfolio while the Dynamic category represents the manager’s most aggressively managed portfolio, according to the manager’s discretion.
Investment Data to the end of December 2019 – Performance Data 7 Years Investment Managers
Portfolio
10 Years Benchmark
Active Return
Rank
Portfolio
Benchmark
Active Return
Rank
Portfolio Size (R M)
Equity Allocation
Fixed Asset Allocation Domestic
International
Equity Band: 15% – 34% (Local & International Equity) Alexander Forbes Investments Low Equity
7.72%
Momentum Investments Enhanced Factor 3
7.34%
7.08% 7.36%
0.64% -0.02%
1 2
8.93% *
8.33% *
0.59% *
1
17.53% 17.09%
11.21%
28.48%
13.26%
24.78%
10.38%
6.61%
Equity Band: 35% – 44% (Local & International Equity) 27four CPI+3% Fund
9.60%
8.36%
1.24%
3
*
*
*
Alexander Forbes Investments 37.5% Equity
7.89%
7.65%
0.24%
4
9.35%
9.19%
0.16%
Momentum Investments Enhanced Factor 4
8.00%
7.79%
0.21%
5
*
*
*
25.67%
12.39%
Old Mutual Multi-Managers Inflation Plus 1-3%
10.05%
5.97%
4.09%
1
*
*
*
6.67%
15.82%
Sygnia Signature 40 Fund
10.55%
9.13%
1.42%
2
*
*
*
24.91%
18.58%
39.02%
15.34%
29.47%
14.71% 15.84%
1
Equity Band: 45% - 54% (Local & International Equity) 27four CPI+5% Fund
10.08%
8.76%
1.32%
2
*
*
*
Alexander Forbes Investments Medium Equity
8.18%
8.21%
-0.02%
6
9.83%
10.09%
-0.26%
*
*
*
*
*
*
41.13%
Momentum Investments Enhanced Factor 5
8.67%
8.33%
0.34%
4
*
*
*
37.54%
15.34%
Old Mutual Multi-Managers Inflation Plus 3-5%
10.47%
10.12%
0.35%
3
*
*
*
32.82%
27.76%
SMM 50
8.79%
8.46%
0.33%
5
10.13%
9.98%
0.15%
Sygnia Signature 50 Fund
10.74%
9.38%
1.37%
1
*
*
*
Momentum Investments Classic Factor 5
2
1
33.41%
18.42%
32.24%
21.10%
49.36%
16.74%
35.30%
19.80%
46.74%
23.70%
41.26%
24.14%
44.03%
28.46%
36.56%
20.83%
39.91%
23.27%
39.06%
26.93%
48.30%
25.07%
43.45%
25.11%
Equity Band: 55% – 69% (Local & International Equity) 27Four CPI +7% Fund
10.40%
9.31%
1.09%
2
*
*
*
Alexander Forbes Investments 62.5% Equity
8.47%
8.78%
-0.32%
6
10.15%
10.68%
-0.53%
Momentum Investments Classic Factor 6
10.06%
9.62%
0.45%
3
*
*
*
Momentum Investments Enhanced Factor 6
9.84%
9.62%
0.22%
4
11.40%
11.28%
0.12%
Old Mutual Multi-Managers Inflation Plus 5-7%
10.71%
11.12%
-0.41%
7
*
*
*
SMM 60
8.63%
8.80%
-0.17%
5
10.15%
10.41%
-0.25%
Sygnia Signature 60 Fund
10.97%
9.86%
1.11%
1
*
*
*
3 1 2
Equity Band: 70% – 75% (Local & International Equity) Alexander Forbes Investments High Equity
8.78%
9.21%
-0.43%
5
10.48%
11.18%
-0.70%
Momentum Investments Classic Factor 7
10.43%
9.83%
0.60%
2
*
*
*
3
Momentum Investments Enhanced Factor 7
10.23%
9.83%
0.40%
3
11.88%
11.63%
0.25%
Momentum Investments Target Factor 7
*
*
*
*
*
*
43.40%
24.16%
Sanlam Lifestage Accumulation
*
*
*
*
*
*
46.35%
22.92%
SMM 70
9.11%
9.10%
0.01%
4
10.53%
10.68%
-0.15%
45.63%
25.83%
Sygnia Signature 70 Fund
11.23%
10.01%
1.22%
1
*
*
*
48.11%
25.85%
Alexander Forbes Investments (Conserver)
8.44%
8.12%
0.31%
2
9.42%
9.38%
0.04%
25.08%
7.45%
Nedgroup Investments XS Guarded Fund of Funds
9.50%
8.29%
1.22%
1
*
*
*
25.10%
13.83%
STANLIB Multi-Manager Defensive Balanced Fund
*
*
*
*
*
*
21.17%
17.88%
Alexander Forbes Investments (Performer)
10.45%
9.28%
1.17%
1
11.90%
10.90%
0.99%
1
38.89%
21.86%
Alexander Forbes Investments (Spectrum)
9.08%
8.83%
0.25%
2
10.71%
10.57%
0.14%
2
41.70%
22.58%
Momentum Investments Flexible Factor 6
9.65%
9.62%
0.03%
3
*
*
*
36.59%
21.21%
Momentum Investments Flexible Factor 7
9.86%
9.83%
0.02%
4
*
*
*
37.69%
22.59%
Nedgroup Investments XS Diversified Fund of Funds
*
*
*
*
*
*
53.03%
17.36%
Old Mutual Multi Managers Managed
*
*
*
*
*
*
43.52%
27.01%
STANLIB Multi Manager Balanced Fund
*
*
*
*
*
*
47.57%
24.86%
1
2
Strategic Asset Allocation Low Volatility 1
Best Investment View
*No performance history. #Inflation figures in this table are lagged by one month.
136
Portfolio
-1.96% -2.08% -6.21% -7.81%
10.44%
-1.96% -2.32%
-1.20%
-3.01% -1.21%
8.16%
1.86%
-0.71% -2.15% -3.27% -2.75%
2.22%
8.34%
4.45%
4.25%
*No performance history. #Inflation figures in this table are lagged by one month.
Best Investment View Alexander Forbes Investments (Performer) Alexander Forbes Investments (Spectrum) Momentum Investments Flexible Factor 6 Momentum Investments Flexible Factor 7 Nedgroup Investments XS Diversified Fund of Funds Old Mutual Multi Managers Managed STANLIB Multi Manager Balanced Fund
Strategic Asset Allocation Low Volatility Alexander Forbes Investments (Conserver) Nedgroup Investments XS Guarded Fund of Funds STANLIB Multi-Manager Defensive Balanced Fund
-3.65% -7.82% -7.81% -7.81% -5.63% -4.44% -2.91%
-1.04% 1.11%
-11.64%
1.25% -0.07% 2.93% 5.06%
-6.30%
-4.09%
2.23%
-0.35% 1.77% 2.08% 0.75% 0.06% -0.14% 0.23%
-0.72% -0.45% 1.67% 2.05%
-3.76% -2.52% -6.22% -6.21%
Equity Band: 70% - 75% (Local & International Equity) Alexander Forbes Investments High Equity -4.00% Momentum Investments Classic Factor 7 -6.05% Momentum Investments Enhanced Factor 7 -5.73% Momentum Investments Target Factor 7 -7.06% Sanlam Lifestage Accumulation -5.58% SMM 70 -4.58% Sygnia Signature 70 Fund -2.68%
-0.57% 0.36%
-1.03% 0.35%
-0.42% 0.21%
-14.10%
10.18%
-17.42%
1.25% 1.37%
-4.35% -4.31%
-2.71% -1.03%
0.01%
11.18%
-0.27%
-1.77%
0.27%
2.27%
-2.20%
1.29%
-6.11%
7.28%
0.17%
-0.67%
-1.83%
-0.74%
-0.07%
0.84% 0.92%
Active Return
Equity Band: 55% - 69% (Local & International Equity) 27Four CPI +7% Fund -4.48% Alexander Forbes Investments 62.5% Equity -2.97% Momentum Investments Classic Factor 6 -4.54% Momentum Investments Enhanced Factor 6 -4.15% Old Mutual Multi-Managers Inflation Plus -6.23% 5-7% SMM 60 -3.13% Sygnia Signature 60 Fund -0.82%
Equity Band: 45% - 54% (Local & International Equity) 27four CPI+5% Fund -2.46% Alexander Forbes Investments -1.76% Medium Equity Momentum Investments Classic Factor 5 -3.10% Momentum Investments Enhanced Factor 5 -2.94% Old Mutual Multi-Managers Inflation Plus -3.92% 3-5% SMM 50 -1.59% Sygnia Signature 50 Fund 0.71%
Equity Band: 35% – 44% (Local & International Equity) 27four CPI+3% Fund -0.82% Alexander Forbes Investments -0.51% 37.5% Equity Momentum Investments Enhanced Factor 4 -0.53% Old Mutual Multi-Managers Inflation 1.17% Plus 1-3% Sygnia Signature 40 Fund 2.54%
0.65% -0.60%
Benchmark
Calendar Year 2018
Fixed Asset Allocation Equity Band: 15% - 34% (Local & International Equity) Alexander Forbes Investments Low Equity 1.49% Momentum Investments Enhanced Factor 3 0.32%
Investment Managers
Performance Data
6 4
7
3 5 2 1
3
2
1
7 2 1 3 5 6 4
4 3
7
6 5 2 1
6 3
7
2 1
4
5
2
5
1
3
4
2 1
Rank
12.56% 11.70%
9.67%
11.93% 11.81% 11.47% 11.41%
9.41%
8.13%
10.26%
12.70% 15.75% 14.99% 17.11% 15.44% 14.12% 12.59%
13.15% 11.98%
15.31%
10.46% 11.91% 14.43% 13.66%
12.63% 11.62%
14.85%
* 12.25%
11.12%
10.24%
10.98%
11.34%
10.31%
10.60%
9.50%
9.99% 8.70%
Portfolio
11.53% 11.92%
9.85%
11.30% 11.22% 15.89% 17.02%
7.62%
7.76%
10.29%
13.04% 17.02% 17.02% 17.02% 15.89% 16.04% 15.06%
14.87% 13.90%
10.62%
12.89% 11.87% 15.89% 15.89%
13.39% 13.06%
9.62%
* 14.16%
11.14%
11.78%
11.92%
5.27%
12.21%
10.30%
10.57%
9.37% 10.60%
Benchmark
Calendar Year 2017
Investment Data to the end of December for the past 5 Calendar years
1.03% -0.21%
-0.18%
0.63% 0.58% -4.42% -5.61%
1.79%
0.38%
-0.02%
-0.34% -1.27% -2.03% 0.09% -0.45% -1.92% -2.47%
-1.71% -1.92%
4.69%
-2.43% 0.04% -1.46% -2.23%
-0.76% -1.44%
5.23%
* -1.90%
-0.02%
-1.54%
-0.95%
6.07%
-1.91%
0.30%
-1.07%
0.62% -1.89%
Active Return
1 5
4
2 3 6 7
1
2
3
2 4 6 1 3 5 7
4 5
1
7 2 3 6
3 4
1
6
2
5
3
1
5
2
4
1 2
Rank
4.03% 3.24%
4.87%
5.05% 4.48% 3.22% 2.86%
3.77%
6.43%
5.31%
2.29% 4.76% 3.96% 3.14% 3.69% 4.58% -0.27%
5.51% 0.89%
2.77%
1.17% 2.38% 4.49% 4.15%
5.70% 1.44%
3.86%
* 5.19%
3.97%
2.53%
2.26%
5.31%
5.79%
5.37%
3.76%
6.55% 6.07%
Portfolio
3.23% 3.46%
11.95%
3.58% 3.74% 3.25% 3.00%
9.79%
9.81%
5.06%
1.89% 3.00% 3.00% 3.00% 4.10% 4.73% 3.25%
5.44% 4.07%
12.61%
4.12% 2.24% 3.25% 3.25%
5.35% 5.19%
11.61%
* 4.76%
3.56%
5.01%
6.09%
6.76%
6.00%
4.75%
6.02%
5.71% 6.43%
Benchmark
Calendar Year 2016
0.80% -0.23%
-7.08%
1.47% 0.74% -0.03% -0.14%
-6.02%
-3.38%
0.25%
0.40% 1.76% 0.96% 0.14% -0.41% -0.16% -3.52%
0.07% -3.19%
-9.84%
-2.94% 0.15% 1.24% 0.90%
0.36% -3.75%
-7.75%
* 0.43%
0.40%
-2.48%
-3.84%
-1.45%
-0.21%
0.62%
-2.26%
0.84% -0.36%
Active Return
2 6
7
1 3 4 5
3
2
1
3 1 2 4 6 5 7
4 6
7
5 3 1 2
3 5
6
1
2
4
5
3
2
1
4
1 2
Rank
8.02% 10.55%
8.57%
10.64% 7.21% 11.19% 10.72%
*
9.55%
6.65%
8.56% 9.31% 9.72% * 6.62% 4.81% 16.19%
4.65% 15.22%
11.28%
15.46% 8.33% 9.89% 10.07%
5.41% 14.96%
10.86%
* 9.69%
7.01%
13.78%
14.55%
8.57%
8.90%
6.71%
12.91%
6.03% 8.38%
Portfolio
9.03% 8.12%
10.00%
8.58% 6.76% 10.48% 10.24%
*
7.91%
7.17%
9.81% 10.24% 10.24% * 8.72% 6.82% 9.94%
6.18% 9.64%
10.77%
9.00% 9.70% 10.48% 10.48%
6.62% 8.42%
9.77%
* 8.65%
8.10%
8.03%
7.95%
5.23%
7.12%
7.01%
7.64%
5.98% 6.63%
Benchmark
Calendar Year 2015
-1.01% 2.42%
-1.43%
2.06% 0.45% 0.70% 0.48%
*
1.65%
-0.52%
-1.25% -0.94% -0.53% * -2.09% -2.01% 6.25%
-1.53% 5.58%
0.52%
6.45% -1.36% -0.60% -0.41%
-1.21% 6.54%
1.09%
* 1.04%
-1.09%
5.75%
6.60%
3.34%
1.78%
-0.29%
5.26%
0.05% 1.75%
Active Return
6 1
7
2 5 3 4
1
2
6 5 1
4 3 2
7 2
3
1 6 5 4
6 1
3
4
5
2
1
3
4
5
2
2 1
Rank
11.36% *
11.29%
11.50% 10.27% 13.19% 12.73%
*
11.34%
7.93%
11.08% 13.87% 13.55% * 12.59% 11.75% 14.78%
11.22% 13.80%
13.54%
15.54% 11.03% 12.89% 12.65%
10.88% 12.75%
12.91%
* 11.93%
10.96%
14.82%
12.18%
12.40%
10.79%
10.70%
13.45%
10.09% 9.92%
Portfolio
11.61% *
11.09%
11.68% 10.15% 14.91% 15.82%
*
8.98%
10.73%
13.92% 15.82% 15.82% * 14.80% 13.43% 13.80%
12.97% 13.13%
11.80%
14.28% 13.36% 14.91% 14.91%
12.08% 12.32%
10.80%
* 13.84%
12.80%
13.31%
11.70%
5.31%
12.49%
11.92%
12.23%
10.80% 11.46%
Benchmark
Calendar Year 2014
-0.25% *
0.20%
-0.18% 0.11% -1.72% -3.09%
*
2.36%
-2.80%
-2.84% -1.95% -2.27% * -2.21% -1.69% 0.98%
-1.75% 0.67%
1.73%
1.26% -2.33% -2.01% -2.26%
-1.20% 0.43%
2.11%
* -1.91%
-1.85%
1.51%
0.47%
7.09%
-1.70%
-1.21%
1.22%
-0.71% -1.55%
Active Return
4
1
3 2 5 6
1
2
4 2 1
6 3 5
4 3
1
2 7 5 6
4 3
1
6
5
2
3
1
5
4
2
1 2
Rank
SECTION 3
Multi-Manager Watch™ Survey (Balanced Mandates)
137
MANAGER WATCH™ SURVEY
Multi-Manager Watch™ Survey Risk (Balanced Mandates) Fixed Asset Allocation: Managers included in the survey typically make use of fixed asset allocations, which mean that they balance the asset allocation back to the strategic long-term asset allocation target (from time to time, according to predefined strategies) with no intention to enhance returns from an asset allocation point of view. However, while some of these managers adhere rigidly to these fixed asset allocations, others may allow these allocations to drift slightly within certain margins. Strategic Asset Allocation: Although managers included in the survey may have long-term strategic asset allocation targets, they actively manage the asset allocation in an attempt to enhance returns. The different categories above (Low Volatility, Best Investment View and Dynamic) represent the different risk profiles of the funds. The Low Volatility category represents the manager’s most conservatively managed portfolio while the Dynamic category represents the manager’s most aggressively managed portfolio, according to the manager’s discretion.
Investment Data to the end of December 2019 – Volatility vs Return Risk vs Return (Calculated on 3 Year Performance) Investment Managers 3 Year Return (p.a.) Fixed Asset Allocation Equity Band: 15% - 34% (Local & International Equity)
Rank
Risk (Volatility)
Rank
Active Return
Rank
Tracking Error
Information Ratio
Rank
Alexander Forbes Investments Low Equity
6.44%
1
3.08%
1
0.83%
1
0.80%
1.03
1
Momentum Investments Enhanced Factor 3
5.96%
2
3.88%
2
0.04%
2
1.60%
0.03
2
Equity Band: 35% - 44% (Local & International Equity) 27four CPI+3% Fund Alexander Forbes Investments 37.5% Equity Momentum Investments Enhanced Factor 4 Old Mutual Multi-Managers Inflation Plus 1-3% Sygnia Signature 40 Fund
6.61% 5.91% 6.33% 8.19% 8.27%
3 5 4 2 1
4.72% 4.23% 4.93% 3.37% 4.80%
3 2 5 1 4
0.26% 0.29% 0.26% 1.84% 0.12%
3 2 4 1 5
1.97% 0.95% 1.56% 3.58% 1.10%
0.13 0.31 0.17 0.50 0.11
4 2 3 1 5
Equity Band: 45% - 54% (Local & International Equity) 27four CPI+5% Fund Alexander Forbes Investments Medium Equity Momentum Investments Enhanced Factor 5 Old Mutual Multi-Managers Inflation Plus 3-5% SMM 50 Sygnia Signature 50 Fund
6.26% 5.83% 6.42% 7.33% 7.34% 7.98%
5 6 4 3 2 1
6.04% 5.44% 6.59% 6.59% 5.89% 6.10%
3 1 6 5 2 4
0.11% 0.15% 0.39% -2.13% 0.48% 0.00%
4 3 2 6 1 5
2.23% 1.18% 1.67% 6.66% 1.49% 1.36%
0.05 0.12 0.23 -0.35 0.32 0.00
4 3 2 6 1 5
Equity Band: 55% - 69% (Local & International Equity) 27Four CPI +7% Fund Alexander Forbes Investments 62.5% Equity Momentum Investments Classic Factor 6 Momentum Investments Enhanced Factor 6 Old Mutual Multi-Managers Inflation Plus 5-7% SMM 60 Sygnia Signature 60 Fund
5.78% 5.72% 6.97% 6.80% 6.63% 7.15% 7.70%
6 7 3 4 5 2 1
7.18% 6.63% 8.09% 8.00% 7.90% 6.75% 7.05%
4 1 7 6 5 2 3
-0.29% -0.18% 0.59% 0.42% -3.83% 0.26% -0.19%
6 4 1 2 7 3 5
2.41% 1.22% 1.46% 1.74% 7.96% 1.57% 1.27%
-0.12 -0.15 0.41 0.24 -0.51 0.17 -0.15
4 5 1 2 7 3 6
Equity Band: 70% - 75% (Local & International Equity) Alexander Forbes Investments High Equity Momentum Investments Classic Factor 7 Momentum Investments Enhanced Factor 7 Momentum Investments Target Factor 7 Sanlam Lifestage Accumulation SMM 70 Sygnia Signature 70 Fund
5.77% 6.84% 6.72% 6.97% 6.95% 6.92% 7.39%
7 5 6 2 3 4 1
7.62% 8.73% 8.74% 8.66% 8.23% 7.76% 8.08%
1 6 7 5 4 2 3
-0.43% 0.68% 0.55% 0.80% 0.31% 0.15% -0.31%
7 2 3 1 4 5 6
1.32% 1.59% 1.86% 1.03% 1.13% 1.52% 1.36%
-0.33 0.43 0.30 0.78 0.28 0.10 -0.23
7 2 3 1 4 5 6
Strategic Asset Allocation Low Volatility Alexander Forbes Investments (Conserver) Nedgroup Investments XS Guarded Fund of Funds STANLIB Multi-Manager Defensive Balanced Fund
8.22% 7.41% 6.86%
1 2 3
4.23% 4.29% 4.07%
2 3 1
1.34% -0.18% -0.58%
1 2 3
1.16% 4.33% 4.07%
1.16 -0.04 -0.14
1 2 3
Best Investment View Alexander Forbes Investments (Performer) Alexander Forbes Investments (Spectrum) Momentum Investments Flexible Factor 6 Momentum Investments Flexible Factor 7 Nedgroup Investments XS Diversified Fund of Funds Old Mutual Multi Managers Managed STANLIB Multi Manager Balanced Fund
7.23% 6.66% 6.67% 7.04% 5.77% 7.12% 7.27%
2 6 5 4 7 3 1
7.51% 7.05% 7.42% 7.79% 7.11% 7.81% 7.71%
4 1 3 6 2 7 5
0.67% 0.17% 0.29% 0.88% -3.90% 0.49% 0.38%
2 6 5 1 7 3 4
1.16% 0.39% 2.38% 2.99% 7.12% 1.26% 1.15%
0.58 0.45 0.12 0.29 -0.55 0.39 0.33
1 2 6 5 7 3 4
#Inflation figures in this table are lagged by one month.
138
SECTION 3
Multi-Manager Watch™ Survey (Balanced Mandates) Excess Return vs Tracking Error Scatterplot – Multi-Managers Fixed & Strategic Asset Allocation 3 Years ended 31 December 2019 8.50%
Old Mutual Multi-Managers Inflation Plus 1-3% Sygnia Signature 40 Fund
Sygnia Signature 50 Fund Sygnia Signature 60 Fund Old Mutual Multi Managers Man
Alexander Forbes Investments (Conserver)
Momentum Investments Flexible Factor 7
8.00%
Sygnia Signature 70 Momentum Invest Classic Factor 7
Nedgroup Investments XS Guarded Fund of Funds
Return (p.a)
7.50%
Momentum Invest Target Factor 7
Old Mutual Multi-Managers Inflation Plus 3-5% SMM 50 SMM 60 STANLIB Multi-Manager Defensive Balanced Fund Alexander Forbes Investments (Performer) STANLIB Multi Manager Balanced Fund
7.00%
SMM 70 Alexander Forbes Investments (Spectrum)
27four CPI+3% Fund
6.50%
Momentum Invest Enhanced Factor 7
Momentum Investments Flexible Factor 6
Alexander Forbes Investments Low Equity Momentum Investments Enhanced Factor 4
Momentum Investments Enhanced Factor 5 27Four CPI +5% Fund 27Four CPI +7% Fund Nedgroup Investments XS Diversified Fund of Funds Momentum Investments Enhanced Factor 3
6.00%
Sanlam Lifestage Accumulation Momentum Invest Classic Factor 6
Alexander Forbes Investments 37.5% Equity Alexander Forbes Investments Medium Equity
Momentum Investments Enhanced Factor 6
Alexander Forbes Investments 62.5% Equity Alexander Forbes Investments High Equity
5.50% 3.00%
4.00%
6.00%
5.00%
7.00%
Old Mutual Multi-Managers Inflation Plus 5-7%
8.00%
9.00%
Active Risk (p.a)(tracking error)
Volatility vs Return – Multi-Managers Fixed & Strategic Asset Allocations 3 years ended 31 December 2019 2.00%
1.00%
STANLIB Multi Manager Balanced Fund Momentum Investments Target Factor 7
Alexander Forbes Investments (Conserver) Alexander Forbes Investments (Performer) Old Mutual Multi-Managers Inflation Plus 1-3% Old Mutual Multi Managers Managed SMM 60 Momentum Investments Classic Factor 6 SMM 50 Momentum Investments Enhanced Factor 4 Momentum Investments Flexible Factor 7 Momentum Investments Classic Factor 7 Momentum Investments Flexible Factor 6
Return (p.a)
0.00%
Nedgroup Investments XS Guarded Fund of Funds 27four CPI+7% Fund 27four CPI+5% Fund STANLIB Multi-Manager Defensive Balanced Fund 27four CPI+3% Fund Momentum Investments Enhanced Factor 7 Momentum Investments Enhanced Factor 6 Momentum Investments Enhanced Factor 5 Momentum Investments Enhanced Factor 3 SMM70 Sygnia Signature 50 Fund Sygnia Signature 70 Fund Old Mutual Multi-Managers Inflation Plus 3-5% Alexander Forbes Investments High Equity Sygnia Signature 60 Fund Alexander Forbes Investments 62.5% Equity Alexander Forbes Investments Medium Equity Sanlam Lifestage Accumulation Sygnia Signature 40 Fund Alexander Forbes Investments 37.5% Equity Alexander Forbes Investments Low Equity Old Mutual Multi-Managers Inflation Plus 5-7% Alexander Forbes Investments (Spectrum) Nedgroup Investments XS Diversified Fund of Funds
-1.00%
-2.00%
-3.00%
-4.00% 0.0%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
Active Risk (p.a)(tracking error)
139
MANAGER WATCHâ„¢ SURVEY
SA Medical Aid Manager WatchTM Survey Objective: The portfolios in this survey are targeted at medical aids and are bound by the restrictions imposed by Regulation 30 of the Medical Schemes Act.
General information Investment Managers
Fund Classification
Benchmark Description
Pooled
Headline CPI +3%
No. of funds in composite
Portfolio Size (R m)
Absolute Return Funds Alexander Forbes Investments Medical Schemes Real Return Focus
N/A
365
Argon Absolute Return Medical Fund
Segregated
Headline CPI+4%
1
325
Coronation Medical Absolute
Pooled
Headline CPI +3%
N/A
454
OMIG MacroSolutions Medical Aid Portfolio
Segregated
Headline CPI +4% (CPI +5% prior Dec 14)
2
833
Prescient Positive Return Medical Aid Fund
Segregated
CPI + 3% (CPIX +3% prior Jan 09)
3
414
Prudential Medical Aid Fund
Segregated
Headline CPI +5%
3
2 499
SIM Absolute Return Medical Fund
Pooled
Headline CPI +5%
5
2 294
STANLIB Medical Investment Fund
Unit trust
Headline CPI +5%
1
405
Money Market Funds ALUWANI Medical Aid Savings Money Market
Segregated
STeFI
2
491
Cadiz Money Market
Segregated
STeFI
1
170
Coronation Medical Cash
Pooled
STeFI
N/A
225
Investec Stable Money Fund
Pooled
STeFI
1
1 243
Nedgroup Investments Corporate Money Market Fund
Unit trust
STeFI Call
1
29 726
Taquanta Core Cash
Segregated
STeFI
9
11 531
Allan Gray Life Stable Medical Portfolio
Pooled
Headline CPI +3%, Alexander Forbes 3 month Deposit Index plus 2%
N/A
2539
Foord Medical
Segregated
Nedbank Daily Call Rate + 2% (Currently)
2
336
Balanced Funds
Total
140
53 849
7.43%
9.92%
6.17%
Prudential Medical Aid Fund
SIM Absolute Return Medical Fund
STANLIB Medical Investment Fund
8.15%
8.35%
8.53%
7.97%
9.18%
Cadiz Money Market
Coronation Medical Cash
Investec Stable Money Fund
Nedgroup Investments Corporate Money Market Fund
Taquanta Core Cash
9.72%
Foord Medical
9.40%
6.75%
7.29%
10.32%
FTSE/JSE Capped SWIX All Share Index
Short Term Fixed Interest Rate Index
*No performance history. #Inflation figures in this table are lagged by one month.
Number of participants
16
9.32%
All Bond Index
7.36%
12.05%
FTSE / JSE All Share Index (Free Float)
FTSE / JSE SWIX All Share Index
16
3.46%
5.39%
7.42%
5.42%
3.56%
4.75%
4.45%
5.34%
7.82%
9.38%
8.07%
8.66%
8.45%
8.58%
8.22%
5.82%
7.86%
6.32%
8.76%
6.06%
5.24%
7.09%
6.97%
Portfolio
Medical Consumer Price Inflation
12.80%
6.57%
7.29%
6.60%
7.29%
7.29%
7.29%
7.29%
8.57%
8.57%
8.57%
6.57%
7.57%
6.57%
7.57%
6.57%
Benchmark
1 Year
Consumer Price Inflation (Headline CPI) [I-Net code: AECPI]
Statistics
7.04%
Allan Gray Life Stable Medical Portfolio
Balanced Funds
8.15%
ALUWANI Medical Aid Savings Money Market
Money Market Funds
6.31%
11.03%
7.47%
Coronation Medical Absolute
Prescient Positive Return Medical Aid Fund
9.52%
OMIG MacroSolutions Medical Aid Portfolio
9.39%
Argon Absolute Return Medical Fund
Portfolio
Alexander Forbes Investments Medical Schemes Real Return Focus
Absolute Return Funds
Investment Managers
Investment Data to the end of December 2019 – Performance Data
8.12%
7.45%
7.36%
6.69%
7.36%
7.36%
7.36%
7.36%
9.45%
9.45%
9.45%
7.45%
8.45%
7.45%
8.45%
7.45%
Benchmark
3 Years (p.a)
6.05%
0.07%
10.51%
11.75%
12.00%
3.34%
1.03%
4.68%
3.73%
0.29%
0.08%
0.21%
0.09%
0.31%
0.10%
3.58%
3.18%
5.24%
3.01%
4.07%
3.58%
3.73%
2.96%
Volatility
16
7.75%
7.19%
*
4.78%
5.99%
5.48%
4.94%
5.44%
8.58%
8.95%
7.84%
8.29%
8.27%
8.31%
8.00%
6.35%
8.01%
6.81%
7.80%
5.65%
5.03%
6.90%
6.55%
Portfolio
7.30%
7.94%
7.19%
6.53%
7.19%
7.19%
7.19%
7.19%
9.94%
9.94%
9.94%
7.94%
8.94%
7.94%
8.94%
8.13%
Benchmark
5 Years (p.a)
7.49%
0.12%
11.46%
11.50%
3.29%
1.27%
4.60%
3.56%
0.30%
0.15%
0.25%
0.15%
0.30%
0.17%
3.72%
3.24%
4.95%
3.00%
4.47%
3.97%
3.89%
3.18%
Volatility
16
7.04%
6.72%
*
8.41%
8.77%
5.44%
5.12%
7.29%
8.64%
8.27%
7.28%
7.60%
7.64%
7.70%
7.43%
7.44%
8.84%
8.15%
8.44%
6.70%
6.51%
7.79%
7.41%
8.58%
8.12%
6.72%
6.09%
6.72%
6.72%
6.72%
6.72%
10.12%
10.12%
10.12%
8.12%
9.40%
8.12%
9.12%
8.54%
Benchmark
7 Years (p.a) Portfolio
12
8.87%
6.52%
*
11.09%
10.78%
5.58%
5.11%
9.01%
8.66%
8.01%
*
7.40%
*
7.32%
*
7.91%
9.76%
10.33%
8.00%
8.54%
8.44%
*
8.02%
9.69%
8.12%
6.52%
*
6.52%
*
6.52%
*
10.12%
10.12%
10.12%
8.12%
9.61%
8.12%
*
8.71%
Benchmark
10 Years (p.a) Portfolio
SECTION 3
SA Medical Aid Manager WatchTM Survey
141
142
SA BIV Median Inflation
Global LMW Median
Domestic Balanced Funds Kagiso Balanced Fund Prescient Domestic Balanced Global Balanced Funds
Kagiso Global Balanced Fund
FTSE/JSE SWIX All Share Index FTSE/JSE SWIX All Share index FTSE/JSE SWIX All Share index FTSE/JSE SWIX 40 FTSE/JSE Capped SWIX All Share Index FTSE/JSE SWIX All Share index Capped All Share Index (J303) FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE SWIX All Share Index
FTSE/JSE Capped Index (CAPI)
FTSE/JSE SWIX All Share Index CAPI CAPI, SWIX and Capped SWIX combined JSE/FTSE Capped SWIX less SAPY South Africa OE (ASISA) Domestic Equity General FTSE/JSE SWIX All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE Africa Top 40 Index FTSE/JSE Capped SWIX All Share Index FTSE/JSE SWIX All Share Index
Equity Funds Aeon Active Equity Fund All Weather Capital SWIX Equity Fund All Weather Capital SWIX Equity Fund Aluwani - Equity Benguela SA Equity Capped SWIX Fund Benguela SA Equity SWIX Fund Cachalia Capital C Value Fund Excelsia Capital Aggressive Equity Excelsia Capital Core Equity Kagiso Core Equity Capped SWIX Fund Kagiso Managed Equity Capped SWIX Kagiso Managed Equity Fund Lima Mbeu SA Equity fund Mazi Asset Management Equity CAPPED SWIX Composite Mazi Asset Management SWIX Composite
Mergence CAPI Fund
Mergence SWIX Fund Mianzo Active Equity CAPI Mianzo Active Equity Fund Mianzo Enhanced Equity Fund Oasis Specialist Domestic Equity Perpetua Equity Prescient Core Equity Prescient Equity Top 40 VunaniFM Active Capped SWIX VunaniFM Core Equity Fund Total
*No performance history. #Inflation figures in this table are lagged by one month.
FTSE/JSE All Share Index FTSE/JSE SWIX All Share FTSE/JSE SWIX 40 FTSE/JSE Capped SWIX All Share Index All Bond Index Short Term Fixed Interest Index STeFI Call Deposit Index
Consumer Price Inflation (Headline CPI) [I-Net code: AECPI]
Market Statistics
CPI + 6%
Prescient Global (Absolute) Balanced
Prescient Balanced Composite
Lima Mbeu Multi-Asset Portfolio
CPI + 5%
Vunani Global Absolute Return Constrained (CPI+5%)
44% FTSE/JSE Capped SWIX; 8% FTSE/JSE SA Property index;25% ALBI;5% STeFI;4% LIBID USD 7 Days;7% MSCI World Index;7% Citigroup Group of Seven (G7) Index 55.25% FTSE/JSE SWIX 40 [15h00] + 17% ALBI + 12.75% STeFi + 9.75% MSCI World + 5.25% US 1 Mth TB all Total Return
CPI + 3%
CPI + 3% CPI+3%
CPI + 6%
Mianzo Global Absolute Return - CPI+6%
Prescient Absolute Defensive
CPI + 5% (Prior to Jan 2018 it was STEFI + 3%) CPI + 3% CPI + 5% CPI + 5% CPI + 3%
Absolute Return Funds Aeon Balanced Fund (CPI + 5%) Balondolozi Absolute Return Fund Kagiso Protector Fund Mergence CPI +5% Fund Mianzo Absolute Return Fund
Prescient Positive Return Fund Taquanta True Absolute
Benchmark
Investment Managers
Investment Data to the end of December 2019
Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic
Domestic
Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic
Domestic and Global Domestic and Global
78.75% 78.75% 100.00% 100.00% 100.00% 100.00% 88.41% 53.80% 53.80% 100.00% 100.00%
2 469.3 311.9 668.5 1 438.0 8 676.1 2 939.4 2 023.9 123.4 1 312.2 260.7 73 105.8
1 160.8
11 230.5 6 58.8 6 58.8 4 10.9 2 0 85.5 1 28.4 1 17.7 3 03.3 932.7 2 007.6 3 377.3 1 541.8 1 02.7 12 055.8 1 312.0
147.4
53.80% 96.00% 55.00% 53.80% 67.15% 62.40% 62.40% 100.00% 100.00% 100.00% 61.71% 61.71% 61.71% 85.00% 89.00% 89.00%
627.9
106.9
1 751.4
159.2 141.8
1 721.7
2 529.8 4 017.8
342.8
399.7
92.5 383.5 140.7 1 195.3 1 039.5
Fund Size (R m)
53.80%
85.00%
61.71%
Domestic and Global Domestic and Global
61.71% 53.80%
100.00%
53.80% 57.96%
53.80%
100.00%
96.00% 57.85% 61.71% 78.75% 100.00%
Total empowerment Shareholding (%)
Domestic Domestic
Domestic Domestic Domestic Domestic Domestic Domestic and Global Domestic and Global Domestic Domestic Domestic and Global
Global / Domestic Mandate
1 Year
3.56% 12.05% 9.32% 8.65% 6.75% 10.32% 7.29% 6.64%
6.01% 9.33% 5.46% 5.81% 7.39% 3.73% 10.06% 12.96% 5.22% 9.03%
8.27%
8.96% 5.38% 5.38% 9.46% 3.15% 6.28% 17.02% 7.78% 7.08% 9.85% 22.93% 24.60% 7.99% 2.66% 5.37%
12.42%
11.71%
8.29%
19.94%
18.36% 9.03%
7.56%
11.25% 11.81%
9.58%
15.22%
9.89% 12.47% 16.49% 8.47% 11.86%
Fund
9.32% 10.52% 7.57% 7.47% 8.33% 9.33% 9.32% 12.41% 6.75% 9.32%
10.52%
9.32% 9.34% 9.34% 8.65% 6.75% 9.32% 10.52% 9.32% 6.73% 6.73% 6.73% 9.32% 6.75% 6.75% 9.32%
9.57%
9.71%
8.14%
10.88%
8.57% 4.66%
8.57%
6.57% 6.57%
6.57%
9.57%
8.57% 6.57% 8.57% 8.57% 6.57%
Benchmark
3 Years
4.45% 7.42% 5.39% 5.79% 3.46% 9.40% 7.36% 6.70%
3.48% 7.00% 4.51% 4.61% 3.78% 0.41% 5.80% 8.55% * 5.56%
4.92%
6.67% 5.68% 5.68% 6.81% 2.77% 4.27% 9.27% 1.39% * * 9.77% 10.65% * * 2.71%
7.54%
8.47%
*
11.42%
10.68% 6.25%
6.44%
7.63% 12.28%
*
8.76%
7.42% 9.81% 10.88% 6.72% 8.02%
Fund
5.39% 6.40% 4.44% 5.09% 3.57% 5.39% 5.39% 8.25% * 5.39%
6.41%
5.39% 5.40% 5.40% 5.79% 3.46% 5.45% 6.46% 5.39% * * 3.46% 5.39% * * 5.39%
10.45%
7.92%
*
6.56%
5.15% 5.05%
9.45%
7.45% 7.45%
*
10.45%
9.75% 7.45% 9.45% 9.45% 7.45%
Benchmark
5 Years
4.94% 5.99% 4.78% 4.55% * 7.75% 7.19% 6.55%
4.47% 5.39% 3.85% * 3.05% 1.47% 5.25% 6.22% * 5.72%
5.40%
5.78% 6.49% 6.49% 6.20% * * 6.37% * * * * 6.50% * * 3.51%
5.41%
7.33%
*
8.76%
6.82% 5.40%
6.35%
7.10% 11.79%
*
*
7.22% * 8.58% 6.12% 7.74%
Fund
4.78% 5.66% 4.37% * 2.96% 4.78% 4.78% 6.06% * 4.78%
5.66%
4.78% 4.78% 4.78% 4.55% * * 5.69% * * * * 4.78% * * 4.78%
10.94%
6.86%
*
6.35%
5.13% 5.53%
9.94%
7.94% 7.94%
*
*
9.82% * 9.94% 9.94% 7.94%
Benchmark
MANAGER WATCH™ SURVEY
BEE Manager Watch™ Survey – Performance Figures
Objective: The purpose of the BEE Manager Watch™ Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons across SA BEE asset managers.
STeFI
STeFI
Taquanta Cash Fund
Taquanta Core Cash
Domestic
FTSE/JSE Property Index
50% 0-3 yrs Bonds, 25% Real estate Development & Services (J863) and 25% Real Estate Investment Trusts (J867)
Prescient Property
Vunani Property Income Fund
100.00%
955.6
7.29% 6.64%
All Bond Index
Short Term Fixed Interest Index
STeFI Call Deposit Index
*No performance history. #Inflation figures in this table are lagged by one month.
6.75% 10.32%
FTSE/JSE Capped SWIX All Share Index
9.32% 8.65%
FTSE/JSE SWIX All Share
FTSE/JSE SWIX 40
3.56%
7.57%
1.98%
1.88%
9.18%
8.74%
7.76%
8.70%
8.18%
7.45%
8.48%
8.59%
8.15%
8.64%
11.98%
9.44%
10.57%
8.84%
10.33%
9.73%
12.38%
12.05%
72 922.3
134.6
785.3
2 853.8
11 530.7
7 154.5
88.5
7 033.6
6 854.6
141.1
73.5
1 024.3
491.1
11 409.2
5 723.3
2 600.2
365.3
5 072.5
247.7
295.9
10.81%
10.39%
5.84%
1.92%
1.92%
7.29%
7.29%
6.64%
7.29%
7.29%
6.62%
7.29%
7.29%
7.29%
7.29%
10.32%
8.29%
10.32%
10.32%
10.32%
5.90%
10.32%
10.32%
10.32%
6.70%
7.36%
9.40%
3.46%
5.79%
5.39%
7.42%
4.45%
0.33%
-3.62%
-3.06%
9.38%
9.08%
7.82%
8.83%
8.26%
7.51%
8.50%
8.67%
8.22%
8.96%
10.78%
9.77%
9.83%
9.65%
9.80%
9.73%
10.66%
10.54%
9.97%
3 Years Fund
Fund
Benchmark
1 Year
Consumer Price Inflation (Headline CPI) [I-Net code: AECPI]
100.00%
53.80%
100.00%
57.96%
57.96%
51.00%
53.80%
53.80%
100.00%
100.00%
57.85%
67.15%
67.15%
100.00%
53.80%
53.80%
100.00%
1 750.9
6 336.3
Fund Size (R m)
FTSE/JSE All Share Index
Market Statistics
Total
Domestic
FTSE/JSE South African Listed Property Index (J253) Domestic
Domestic
Domestic
Domestic
Domestic
Domestic
Domestic
Meago Composite
Property Funds
STeFI
STeFI
Prescient Money Market Composite
STeFI Call
South Africa OE (ASISA) Domestic FI Money Market
Oasis Money Market Fund
Prescient Yield Quantplus Fund
Domestic
STeFI
JM BUSHA CashPlus
SNN Money Market Fund
Domestic
STeFI
Balondolozi Cash Fund
Domestic
Alexander Forbes Money Market Index/STEFI
STeFI
Aluwani Cash Plus
Domestic
Domestic
ALUWANI Medical Aid Savings Money Market
Money Market Funds
All Bond Index
51.00%
VunaniFM Active Bond Fund
100.00%
Domestic Domestic and Global
All Bond Index
STeFI+1%
Prowess Corporate Bond Portfolio
Domestic Domestic
All Bond Index
All Bond Index
Prescient Bond Quant
Prescient Bond QuantPlus
Sanlam Select Strategic Income Fund*
Domestic Domestic
All Bond Index
South Africa OE (ASISA) Domestic FI Bond
JM BUSHA BondPlus
Oasis Bond Unit Trust Fund
57.85%
Domestic
All Bond Index
67.15%
Total empowerment Shareholding (%)
ALBI+1%
Domestic
Global / Domestic Mandate
ALUWANI Active Bond
Benchmark
Balondolozi Bond Fund
Bond Funds
Investment Managers
Investment Data to the end of December 2019
2.96%
-3.72%
-3.72%
7.36%
7.36%
6.70%
7.36%
7.36%
7.40%
7.36%
7.36%
7.36%
7.36%
9.40%
8.37%
9.40%
9.40%
9.40%
7.45%
9.40%
9.40%
9.40%
Benchmark
5 Years
6.55%
7.19%
7.75%
*
4.55%
4.78%
5.99%
4.94%
2.74%
*
2.35%
8.95%
8.71%
*
8.58%
8.00%
7.43%
7.99%
*
8.00%
8.63%
8.99%
8.99%
8.27%
8.57%
8.30%
8.52%
8.92%
9.50%
8.33%
Fund
4.35%
*
1.21%
7.19%
7.19%
*
7.19%
7.19%
7.29%
7.19%
*
7.19%
7.19%
7.75%
8.19%
7.75%
7.75%
7.75%
6.82%
7.75%
7.75%
7.75%
Benchmark
SECTION 3
BEE Manager Watch™ Survey – Performance Figures (continued)
Objective: The purpose of the BEE Manager Watch™ Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons across SA BEE asset managers.
143
144
61.71%
89.00%
100.00%
78.75%
100.00%
100.00%
88.41%
53.80% 100.00%
57.96%
51.00%
100.00%
Meago Asset Managers
Mergence Investment Managers (Pty) Ltd
Mianzo Asset Management Pty(Ltd)
Oasis Group Holdings (Pty) Ltd
Perpetua Investment Managers
Prescient Investment Management Prowess Investment Managers (Pty) Ltd
Taquanta Asset Managers (Pty) Ltd
Terebinth Capital
Vunani Fund Managers (Pty) Ltd
62.40% 100.00% 100.00%
Benguela Global Fund Managers Cachalia Capital Excelsia Capital
Kagiso Asset Management
67.15%
ALUWANI Capital Partners
Mazi Asset Management (Pty) Ltd
96.00%
Total empowerment Shareholding (%)
Aeon Investment Management
Manager
100.00% 70.00% 30.00%
57.56% 1.52% 40.92%
85.00% 15.00% 100.00% 100.00%
Perpetua staff RMI Investment Managers Prescient Holdings (Pty) Ltd Ms. Kelebogile Moloko DEC Investment Holding Company (Pty) Ltd Taquanta Black Staff Work Biz Trading (Pty) Ltd Nomathibana Matshoba Vunani Capital Vunani Fund Managers Share Trust
55.00%
100.00%
66.67%
71.43%
60.00% 10.00%
80.00%
100.00%
55.00% 45.00% 100.00%
100.00%
100.00%
100.00%
83.33%
80.00% 66.00% 100.00%
77.80%
60.00%
66.67%
33.33%
33.33% 20.00%
100.00%
100.00%
55.00%
60.00%
100.00%
75.00%
75.00%
66.67% 100.00% 67.00%
77.80%
66.00%
75.00%
90.91%
77.14% 70.00%
63.64%
73.00%
45.00%
82.00%
87.50%
96.15%
68.29%
92.31% 100.00% 57.00%
69.23%
Staff and Management (Empowerment) Board Staff (excl Executives Members management) (%) (%) (%) 100.00% 100.00% 71.43%
26.51% 73.49%
100.00% 100.00% 100.00% 49.90% 50.10% 100.00% 9.00% 10.00% 27.00% 27.00% 27.00%
100.00% 40.00% 20.00% 40.00%
Empowerment shareholding (%)
Oasis Group Holdings (Pty) Ltd
Aeon Black Staff ALUWANI Management Partners(Pty)Ltd Main Street 1413 (Pty) Ltd MMI Strategic Investments (Pty) Ltd Benguela Global Staff Ms Mashuda Cassim Rajay Ambekar Kagiso Asset Management staff Kagiso Tiso Holdings Mazi Staff Anas Madhi Empowerment Shareholding Jay Padayatchi Sharif Hoosen Thabo Ramushu 5x senior staff members black (Male) Founding partner/s and staff black (Male) Luvo Tyandela Mianzo Employee Trust
Ownership/Partner(s)
Empowerment Shareholding
Details of Empowerment Shareholding as at 31 December 20195
100.00%
100.00%
0.00%
75.00% 10.00%
83.33%
56.00%
0.00%
77.78%
75.00%
93.30%
42.11%
83.33% 100.00% 60.00%
37.50%
62.50%
Investment Analyst (%)
50.00%
33.33%
50.00%
57.10% 20.00%
50.00%
100.00%
14.85%
62.50%
100.00%
83.33%
15.79%
50.00% 100.00% 50.00%
12.50%
Portfolio Manager (%) 66.67%
50.00%
66.67%
28.57%
40.00% 20.00%
20.00%
28.58%
0.00%
25.00%
20.00%
40.00%
33.33%
40.00% 66.00% 0.00%
66.67%
60.00%
66.67%
0.00%
33.33% 28.57%
25.00%
75.00%
0.00%
0.00%
0.00%
0.00%
25.00%
33.33% 100.00% 0.00%
55.56%
40.00%
50.00%
59.09%
34.29% 57.14%
54.55%
35.00%
14.85%
55.26%
62.50%
51.00%
51.22%
53.85% 0.00% 43.00%
61.54%
Staff and Management (Female) Board Staff (excl Executives Members management) (%) (%) (%) 50.00% 0.00% 57.14%
50.00%
50.00%
0.00%
50.00% 0.00%
66.67%
22.00%
0.00%
44.44%
25.00%
40.00%
15.79%
16.67% 0.00% 40.00%
25.00%
50.00%
Investment Analyst (%)
10.00%
33.33%
60.00%
7.14% 14.29%
12.50%
0.00%
14.85%
12.50%
0.00%
0.00%
5.26%
0.00% 100.00% 0.00%
6.25%
Portfolio Manager (%) 0.00%
MANAGER WATCH™ SURVEY
BEE Manager Watch™ Survey – Empowerment Details
Objective: The purpose of the BEE Manager Watch™ Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons across SA BEE asset managers.
75.00%
71.43%
87.50%
100.00%
60.00%
67.39%
90.00%
91.67%
79.00%
45.00%
73.00%
69.23%
72.97%
76.92%
71.05%
57.14%
75.00%
ALUWANI Capital Partners
Benguela Global Fund Managers
Cachalia Capital
Excelsia Capital
Kagiso Asset Management
Mazi Asset Management (Pty) Ltd
Meago Asset Managers
Mergence Investment Managers (Pty) Ltd
Mianzo Asset Management Pty(Ltd)
Oasis Group Holdings (Pty) Ltd
Perpetua Investment Managers
Prescient Investment Management
Prowess Investment Managers (Pty) Ltd
Taquanta Asset Managers (Pty) Ltd
Terebinth Capital
Vunani Fund Managers (Pty) Ltd
Total Staff Empowerment (%)
Aeon Investment Management
Manager
50.00%
57.14%
52.63%
58.33%
35.14%
61.54%
36.00%
14.85%
42.00%
41.67%
43.30%
50.00%
30.00%
50.00%
50.00%
60.00%
50.00%
Total Staff Female (%)
Level 1
Level 2
Level 2
Level 1
Level 1
Level 2
Level 1
Level 1
Level 2
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Empowerment Rating (if available)
64.60%
29.00%
100.00%
46.30%
57.46%
35.90%
49.60%
77.35%
46.00%
64.60%
43.00%
65.00%
44.82%
33.80%
50.00%
41.00%
47.21%
Use of black brokerages as a percentage of total brokerages used (by volume)
SECTION 3
BEE Manager Watch™ Survey – Empowerment Details (continued)
Objective: The purpose of the BEE Manager Watch™ Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons across SA BEE asset managers.
145
LDI MANAGER WATCH™ SURVEY
How to interpret and use this survey LDI is a complex area of investment. Alexander Forbes strongly recommends that investors obtain professional assistance in determining whether a specific LDI strategy or LDI manager is appropriate for them. The guide below is not sufficiently comprehensive to enable most investors to reliably choose an LDI manager without further assistance. The guide will help investors appreciate the drivers of differential performance between managers and strategies at specific times in the market.
General The LDI survey reports on the outperformance LDI asset managers deliver relative to a liability based benchmarks. The survey provides simple numerical measures that encapsulate the risk these managers have exposed clients to as well as the outperformance they have acheived. The survey reports on the performance of ‘composites’, or groups of portfolios with similar characteristics.
146
Most LDI hedging techniques are based on algorithmic solutions (or rules based mathematical techniques), suggesting that ineffective hedging techniques will very rapidly show up in this survey. The skillset of managers offering low risk solutions, tracking liabilities closely with tight mandate restrictions will generally show up over even short periods such as one year. However, it is always preferable to evaluate these managers over a longer period if this is available. The period used for analysis should include at least one large shift in yield curves. More than one large shift in yields has occurred during the last twelve months, the short history available in this survey is hence adequate for judging manager’s ability to create effective hedges. In addition to focusing on tracking liabilities, some managers target outperformance of liabilities by investing in riskier asset classes such as credit (and potentially view taking on the markets). An evaluation of the approach used and the skills of each manager is required to access how likely these managers are to deliver alpha in the future.
SECTION 3
The past performance of these managers can be used as part of this evaluation. Longer periods will be required to accurately form a view of how good the manager is at choosing and managing credit. The exact length will depend on the strategy used, but may require five years or longer. Many LDI managers don’t have a track record this long. It is useful in such cases to look at the manager’s performance in ordinary credit portfolios. Investors also need to consider the time frame over which they measure risk when choosing a manager and more importantly, in setting their mandates, mandate restrictions and portfolio targets. For example, listed companies may need to manage pension fund or other sinking fund risks over a very short period to match their reporting requirements. Pension funds that are valued once every three years, with a larger risk appetite and a desire to target growth could use a longer evaluation period such as three years.
Specific measures Liability outperformance shows how much value, in excess of the growth in liabilities, the manager was able to add for their client. All else being equal, a larger outperformance is preferable. Investors should consider a sufficiently long performance period to smooth over interest, credit and inflation cycles if they are primarily concerned with the longer term performance of their liability hedging activities. For example, certain investors may require close tracking on a monthly basis, while others may be more concerned with longer term value add. Investors should therefore give adequate attention to manager performance over periods that match their own reporting, risk evaluation and risk tolerance frequency. Consideration should be given to all the stakeholders associated with the liability in reaching this decision. Liability convexity and duration are technical measures of certain liability characteristics. In general, the larger these quantities are, the more difficult it is to create an effective hedge. These measures can hence be seen as one of the constraining factors governing managers’ efficacy in hedging and adding outperformance. Performance is therefore not necessarily comparable between managers with vastly different liability durations and convexities. A typical defined benefit pensioner liability increasing with full inflation annually has a duration of between nine and twelve years at current yields. The “% exposure to credit assets” measures the exposure to risky assets, excluding government-linked bonds and some forms of cash. All else equal, the larger this percentage is, the greater one would expect the long-term outperformance of liabilities to be. This figure may also reflect mandate constraints regarding the inclusion of credit.
The “% unlisted exposure” shows the proportion of the portfolio which is invested in unlisted instruments. Unlisted instruments may (but are not necessarily) subject to poor valuations or infrequent valuations by the manager. Many unlisted instruments such as swaps may be valued independently by a counterparty bank, partially mitigating this risk. A brief description of the benchmark used is given for each composite. Only similar composites should be compared directly. For example, swap based and bond based benchmarks are not directly comparable. Portfolio as a percentage of liability shows the size of the assets managed by the manager relative to the size of the liability the manager is mandated to hedge. For example, a pension fund with a R100 liability that gives their LDI manager R50 and invests R50 into the equity market would have a proportion of 50%. All else being equal, the larger this portion is, the easier it is to hedge a liability. This is hence an additional constraining factor on managers. Portfolios in the survey have been grouped into bands expected to offer similar hedging efficacy. The minimum funding level shows the lowest funding level that would have applied over various time periods, assuming the investor’s liabilities and assets were equal at the start of the period. Assuming all else is equal, larger minimum funding levels are preferable. A minimum funding level is an important risk measure in evaluating how well a manager can manage downside risk relative to the investor’s liability. Tracking error shows the dispersion of portfolio returns relative to the investor’s liability. All else being equal, a lower tracking error is preferable. Unfortunately tracking error captures outperformance (desirable) as well as underperformance (undesirable). Where close liability tracking is not essential, the minimum funding level is a superior measure of risk. For example, a manager providing a high degree of outperformance and high minimum funding levels may be a suitable choice even if this manager has a high tracking error. The risk adjusted outperformance shows the extent to which managers outperform liabilities, adjusted for the tracking error or risk they have introduced. All else equal, a larger risk adjusted return is preferable. The risk adjusted return may, however, be an inappropriate measure for certain investors with specific liability objectives. For example, some risk tolerant investors wish to maximise long-term outperformance of liabilities. Such investors should focus on outperformance of liabilities in choosing a manager. Other risk averse investors may wish to track their liabilities as closely as possible. Such investors should focus on choosing a manager based on tracking error.
147
MANAGER WATCH™ SURVEY
LDI Specific Measures
148
1
Liability outperformance shows how much value, in excess of the growth in liabilities, the manager was able to add for their client.
2
Liability convexity and duration are technical measures of certain liability characteristics.
3
% exposure to credit assets measures the exposure to risky assets, excluding governmentlinked bonds and some forms of cash.
4
% unlisted exposure shows the proportion of the portfolio which is invested in unlisted instruments.
5
Portfolio as a percentage of liability shows the size of the assets managed by the manager relative to the size of the liability the manager is mandated to hedge.
6
The minimum funding level shows the lowest funding level that would have applied over various time periods, assuming the investor’s liabilities and assets were equal at the start of the period.
7
Tracking error shows the dispersion of portfolio returns relative to the investor’s liability.
8
The risk adjusted outperformance shows the extent to which managers outperform liabilities, adjusted for the tracking error or risk they have introduced.
SECTION 3
General Nominal bond yields fluctuated dramatically across the quarter in response to a stream of market relevant news flows. The key news items for the quarter were: 1. The Medium-Term Budget Policy Statement (MTBPS) Market commentators have praised the frank and realistic disclosure of South Africa’s financial position; however, concern has been raised about the limited progress that has been made. Themes of “urgency” and “risk” appear to be ubiquitous in commentary (including that by National Treasury itself). While some progress has been made, many politically unpalatable decisions are still required. 2. Eskom continues to face challenges South Africa continued to face load-sheading, with dire implications for the economy. In addition, the financial support required by Eskom continued to put additional pressure on government finances. 3. The Moody’s ratings change In relation to the negativity around the MTBPS and Eskom, Moody’s altered its outlook of the South African sovereign from stable to negative on 1 November 2019, while keeping the investment grade credit rating at Baa3. 4. US–China trade dispute Internationally, the US–China trade dispute added to global growth concerns. There was optimism regarding the possibility of a “Phase 1” trade deal between the US and China being signed before the end of the year. However, President Trump’s support for the Hong Kong protests and his signing of the Hong Kong Human Rights and Democracy Act raised concerns about a further delay to any resolution to the US–China trade dispute. 5. Brexit The exit of the United Kingdom from the European Union commonly known as “Brexit” continued to raise growth concerns. The UK had an election on 12 December 2019 and Boris Johnson had a decisive victory, adding some certainty to the Brexit impasse. The rich flow of market relevant data drove volatility in nominal yields (both in level and shape), creating a testing environment for bond managers.
Equities performed reasonably, with the ALSI rising 4.63% and 12.05% across the quarter and year respectively. This bodes well for liability-driven investment (LDI) hedging, all things being equal. The reason is that numerous defined benefit funds choose to combine interest and inflation hedging with growth assets, blending the liability risk reduction and growth characteristics of these assets. Large increases in the equities market, all things being equal, assist funds in their investment objectives by providing real returns and in granting inflation-linked pension increases to pensioners.
Inflation-linked bond section Real yields remain elevated at around 3.9% at the long end of the curve at December 2019, showing a growth of around 8% over the quarter. High real yields present an opportunity for funds which have not been able to hedge in the past to do so now. It may be worth revisiting this topic if you are a decision-making agent for an entity with defined liabilities (such as a defined benefit retirement fund) without existing LDI assets. However, this opportunity would need to be weighed against the loss of higher expected returns (due to reduced equity allocations).We recommend discussing this with an LDI expert or your valuator. Higher yields also benefit funds transitioning unhedged active members into a hedged pensioner pool, as the transfer (and subsequent expansion of the LDI hedge) occurs at a higher yield than previously possible. Manager returns were diverse over the quarter and the calendar year. This is not unexpected, given the broad range of characteristics seen in the participant composites. For example, the credit allocations and benchmark durations vary significantly.
Nominal bond section Long dated nominal bond yields rose marginally over the quarter, in addition to the curve also reshaping. Participant managers coped well with the challenging environment, but we caution that limited conclusions can be drawn from the small sample of participants.
149
150
3rd Party Assets
Yes
STANLIB Composite 2
2.25%
7.29%
STeFi
*No performance history.
10.32%
Barclays - BESA SA Inflation Linked Index
1.06%
0.00%
0.07%
5.23%
1.25%
1 Year
All Bond Index
Market Indices & Statistics
Total
Yes
Investec
Nominal Bond Yield Curve Benchmarking
STANLIB Composite 3
Yes
Yes
Ashburton
STANLIB Composite 1
Inflation-Linked Bond Yield Curve Benchmarking
Investment Managers
Investment Data to the end of December 2019
7.36%
1.58%
9.40%
0.82%
0.00%
0.16%
4.67%
-0.64%
3 Years (p.a.)
7.19%
2.92%
7.75%
0.89%
0.00%
*
4.28%
*
5 Years (p.a.)
7.36
3.30
13.22
8.36
13.47
Liability Benchmark Duration
89.07
6.00
283.52
119.42
221.41
Liability Benchmark Convexity
Liability Characteristics
–
4.00%
0.00%
100.00%
1.70%
% exposure to credit assets
0.00%
0.00%
0.00%
0.00%
0.00%
% unlisted exposure Benchmark
10 210.58
338.97 Liability benchmark, -25bps spread
7 694.93 Liability benchmark, zero spread
986.42 Liability benchmark, zero spread
690.61 Liability benchmark, zero spread
499.64 Liability benchmark, zero spread
Portfolio Size (R M)
Portfolio Characteristics
MANAGER WATCH™ SURVEY
LDI Manager Watch™ Survey
Objective: The portfolios included in this survey represent liability-driven investment funds with benchmarks expressly referencing investor liabilities.
<25%
–
STANLIB Composite 3
–
STANLIB Composite 2
*No performance history.
–
Investec
Nominal Bond Yield Curve Benchmarking
–
–
Ashburton
STANLIB Composite 1
Inflation-Linked Bond Yield Curve Benchmarking
Investment Managers
–
–
–
–
–
25-50%
–
–
–
P
PE
50-75%
LDI portfolio as a percentage of liability (P = Physical / E = Effective)
Investment Data to the end of December 2019
PE
PE
PE
E
–
>75%
100.01%
100.00%
99.81%
100.39%
99.92%
1 Year
100.36%
100.00%
99.95%
100.41%
95.07%
3 Years
99.71%
100.00%
*
100.05%
*
5 Years
Minimum funding level assuming an artificial starting level of 100% at the start of the period
Risk Statistics
0.29%
0.00%
0.50%
1.04%
0.48%
Quarter
0.35%
0.00%
0.31%
1.43%
0.99%
1 Year
Tracking Error (Annualised)
0.66%
0.00%
0.43%
1.20%
3.89%
3 Years
0.62%
0.00%
*
1.20%
*
5 Years
SECTION 3
LDI Manager Watch™ Survey
Objective: The portfolios included in this survey represent liability-driven investment funds with benchmarks expressly referencing investor liabilities.
151
MANAGER WATCHâ&#x201E;˘ SURVEY
LDI Manager Watchâ&#x201E;˘ Survey Objective: The portfolios included in this survey represent liability-driven investment funds with benchmarks expressly referencing investor liabilities.
Investment Data to the end of December 2019 Investment Managers
1 Year
3 Years (p.a.)
5 Years (p.a.)
Inflation-Linked Bond Yield Curve Benchmarking Ashburton
1.27
-0.16
*
STANLIB Composite 1
3.66
3.88
3.58
STANLIB Composite 3
0.22
0.37
*
Zero tracking error
Zero tracking error
Zero tracking error
3.03
1.24
1.43
Nominal Bond Yield Curve Benchmarking Investec STANLIB Composite 2 *No performance history.
152
MANAGER WATCH™ SURVEY
Shari’ah Manager WatchTM Survey Objective: The portfolios in this survey represent Shari’ah compliant portfolios with various benchmarks. No carve-outs are reflected.
General information Investment Managers
Benchmark Description
Portfolio Size (R m)
Balanced Mandates 27four Shari'ah Balanced Prescient FoF
Average of South African - Multi Asset - High Equity Funds (net of fees)
297.1
27four Shari'ah Multi-Managed Balanced Fund
27four Bespoke Shariah Benchmark
787.9
27four Shari'ah Wealth Builder Fund
27four Bespoke Shariah Benchmark
347.2
Alexander Forbes Investments Shari’ah Medium Growth
40.0% Shari'ah Equity Index, 40.0% STeFI Composite - 1%, 10.0% MSCI World Islamic Index, 5.0% DJ Sukuk Index, 5.0% Shari'ah Local Property
Alexander Forbes Investments Shari'ah High Growth
Alexander Forbes Investments Bespoke Shariah Benchmark
Element Islamic Balanced
Average of all Shariah Balanced unit trust funds with a min track record of 1 year
Kagiso Islamic Balanced
Mean of South African - Multi Asset - High Equity Funds
Oasis Crescent Balanced High Equity
Headline CPI + 3%
168.0
Oasis Crescent Balanced Progressive
Headline CPI + 1%
1 424.4
Oasis Crescent Balanced Stable
Headline Inflation
Old Mutual Shari'ah Balanced
Old Mutual Bespoke Shariah Benchmark
Sentio SCI Hikma Shari'ah Balanced
ASISA Category Average: SA - Multi Asset - High Equity
SMM Nur Balanced Portfolio
Average of Peer group of Shariah Balanced funds
STANLIB Multi-Manager Shari'ah Balanced
STANLIB Bespoke Shariah Benchmark
51.2 662.1 73.1 1 468.5
633.5 2 851.6 141.6 224.6 1 375.8
Equity Mandates - Domestic 27four Shari'ah Active Equity
South Africa - Equity - General Category Average
271.6
Element Islamic Equity
Average of all Shariah Equity funds with a min track record of 1 year
142.1
Kagiso Islamic Equity Fund
Mean of South African - Equity - General Funds
Oasis Crescent Equity Fund
Average South African Shariah Equity General Portfolio
5 449.4
Old Mutual Shari'ah Equity
Old Mutual Bespoke Shariah Benchmark
2 134.9
Sentio SCI Hikma Shari’ah General Equity
ASISA Category Average: SA-Equity-General
925.6
324.5
Equity Mandates - Global Element Islamic Global Equity
Dow Jones Islamic Market World Index
Old Mutual Global Islamic Equity
S&P Developed Markets Large and Mid-Cap Shariah Index
Total *No performance history.
154
82.3 611.1 20 447.8
1 Year
10.52%
STANLIB Multi-Manager Shari'ah Balanced
15.51%
10.67% 7.83%
Old Mutual Shari'ah Equity
Sentio SCI Hikma Shari'ah General Equity
7.29% 29.83% 7.73% -20.39% 19.86%
Short Term Fixed Interest Rate Index
Dow Jones Islamic Titans Index TR
Dow Jones Sukuk Index TR
NSE Lotus Islamic Index
MSCI World Islamic GR
*No performance history. #Inflation figures in this table are lagged by one month.
1.92% 3.57%
FTSE/JSE SA Listed Property Index
9.32%
Headline Inflation
12.05%
FTSE/JSE All Share Index
FTSE/JSE SWIX All Share Index
Indices
18.68% 20.48%
Element Islamic Global Equity
Old Mutual Global Islamic Equity
Equity Mandates – Global
7.96% 10.57%
11.97% 10.68%
Kagiso Islamic Equity Fund
Oasis Crescent Equity Fund
28.56%
25.49%
8.73%
8.03%
5.52% 13.77%
27four Shari'ah Active Equity
10.50%
13.79%
8.79%
8.74%
11.65%
3.57%
4.57%
6.57%
11.88%
Element Islamic Equity
Equity Mandates – Domestic
7.51% 9.79%
10.08%
Old Mutual Shari'ah Balanced
Sentio SCI Hikma Shari'ah Balanced
9.35%
SMM Nur Balanced Portfolio
10.16%
Oasis Crescent Balanced Progressive
Oasis Crescent Balanced Stable
9.51%
11.54% 10.28%
Kagiso Islamic Balanced
9.23%
12.98% 11.67%
Alexander Forbes Investments Shari'ah High Growth
Element Islamic Balanced
9.42%
11.78% 11.07%
27four Shari'ah Wealth Builder Fund
Alexander Forbes Investments Shari’ah Medium Growth
15.55%
11.31% 13.63%
8.94% 11.17%
Oasis Crescent Balanced High Equity
3 Years (p.a.)
*
-4.25%
5.57%
17.91%
7.36%
4.45%
-3.72%
5.39%
7.42%
13.56%
7.81%
3.09%
4.69%
4.95%
9.02%
9.62%
3.09%
7.03%
6.45%
4.74%
6.45%
6.06%
5.47%
5.55%
7.88%
9.55%
*
*
6.38%
6.65%
5.67%
Benchmark Portfolio
27four Shari'ah Balanced Prescient FoF
Portfolio
27four Shari'ah Multi-Managed Balanced Fund
Balanced Mandates
Investment Managers
Investment Data to the end of December 2019
5.34%
17.37%
14.86%
3.73%
8.20%
6.47%
3.36%
3.88%
4.96%
8.61%
4.65%
4.88%
7.86%
4.45%
5.45%
7.45%
5.09%
5.22%
*
*
7.16%
6.97%
6.05%
*
-13.15%
*
*
7.19%
4.94%
1.21%
4.78%
5.99%
13.04%
9.05%
*
5.75%
4.32%
7.67%
6.35%
4.96%
*
5.65%
*
7.12%
6.41%
5.34%
5.32%
6.74%
8.28%
*
*
6.41%
6.76%
4.99%
15.35%
13.79%
*
5.57%
5.18%
2.87%
3.46%
3.85%
*
4.09%
*
6.52%
4.94%
5.94%
7.94%
4.83%
4.90%
*
*
5.21%
5.42%
7.81%
*
*
*
*
6.72%
5.12%
5.53%
8.41%
8.77%
*
14.99%
*
8.55%
7.63%
9.67%
6.46%
9.35%
*
*
*
8.62%
8.73%
8.12%
8.16%
8.78%
8.47%
*
*
9.46%
9.35%
7.29%
*
18.59%
*
8.60%
7.09%
6.14%
5.84%
6.86%
*
*
*
8.29%
5.12%
6.12%
8.12%
7.30%
7.32%
*
*
6.87%
6.63%
*
*
*
*
*
6.52%
5.12%
10.83%
11.09%
10.78%
*
*
*
11.43%
9.30%
*
6.81%
*
*
*
*
*
*
9.36%
*
*
*
*
*
*
*
*
*
*
9.09%
8.49%
*
7.66%
*
*
*
*
*
*
6.12%
*
*
*
*
*
*
*
*
Benchmark
10 Years (p.a.)
Benchmark Portfolio
7 Years (p.a.)
Benchmark Portfolio
5 Years (p.a.) Benchmark Portfolio
SECTION 3
Shari’ah Manager WatchTM Survey
Objective: The portfolios in this survey represent Shari’ah compliant portfolios with various benchmarks. No carve-outs are reflected.
155
156
6.65%
6.38%
9.55%
7.88%
5.55%
5.47%
6.06%
6.45%
4.74%
6.45%
7.03%
27four Shari'ah Wealth Builder Fund
Element Islamic Balanced
Kagiso Islamic Balanced
Oasis Crescent Balanced High Equity
Oasis Crescent Balanced Progressive
Oasis Crescent Balanced Stable
Old Mutual Shari'ah Balanced
Sentio SCI Hikma Shari'ah Balanced
SMM Nur Balanced Portfolio
STANLIB Multi-Manager Shari'ah Balanced
9.62%
9.02%
4.95%
4.69%
3.09%
Element Islamic Equity
Kagiso Islamic Equity Fund
Oasis Crescent Equity Fund
Old Mutual Shari'ah Equity
Sentio SCI Hikma Shari'ah General Equity
Old Mutual Global Islamic Equity
5.39%
-3.72%
4.45%
7.36%
17.91%
5.57%
-4.25%
*
FTSE/JSE SA Listed Property Index
Headline Inflation
Short Term Fixed Interest Rate Index
Dow Jones Islamic Titans Index TR
Dow Jones Sukuk Index TR
NSE Lotus Islamic Index
MSCI World Islamic GR
*No performance history. #Inflation figures in this table are lagged by one month.
7.42%
FTSE/JSE SWIX All Share Index
1
2
5
4
3
2
1
6
3
6
12
5
8
11
10
2
1
7
4
9
Rank
FTSE/JSE All Share Index
Market Indices & Statistics
7.81%
13.56%
Element Islamic Global Equity
Equity Mandates - Domestic
3.09%
27four Shari'ah Active Equity
Equity Mandates - Domestic
5.67%
27four Shari'ah Multi-Managed Balanced Fund
3 year return
9
10
6
11
12
3
1
5
7
2
8
4
Rank
2
1
3
4
5
6
2
1
*
25.96%
16.14%
16.50%
0.07%
1.03%
13.35%
11.75%
12.00%
Lower volatility = higher ranking
14.63%
14.87%
8.78%
8.73%
8.65%
7.84%
8.95%
9.40%
Lower volatility = higher ranking
6.00%
5.65%
6.14%
5.60%
5.35%
6.97%
7.10%
6.29%
6.10%
7.04%
6.01%
6.42%
Volatility (Risk)
-3.81%
-7.05%
-0.65%
-3.51%
-1.52%
5.66%
5.75%
-1.88%
-1.58%
1.80%
-0.13%
-1.42%
1.61%
0.02%
-1.91%
2.79%
4.33%
-0.78%
-0.33%
0.34%
Active Return
Calculated on 3 year performance returns
27four Shari'ah Balanced Prescient FoF
Balanced Mandates
Investment Managers
1
2
3
6
4
2
1
5
11
3
7
10
4
6
12
2
1
9
8
5
Rank
Investment Data to the end of December 2019 – Volatility vs Return
3.08%
4.26%
6.34%
7.75%
3.61%
5.03%
4.86%
5.72%
3.69%
1.23%
4.51%
3.86%
5.34%
6.97%
7.12%
2.25%
3.44%
5.12%
3.94%
2.86%
Tracking Error
-1.24
-1.65
-0.10
-0.45
-0.42
1.12
1.18
-0.33
-0.43
1.46
-0.03
-0.37
0.30
0.00
-0.28
1.24
1.26
-0.15
-0.08
0.12
Information Ratio
1
2
3
6
5
2
1
4
12
1
7
11
4
6
10
3
2
9
8
5
Rank
*
4
1
5
3
7
1
2
3
5
1
2
4
8
2
6
9
10
-13.15%
*
*
7.19%
4.94%
1.21%
4.78%
5.99%
13.04%
9.05%
*
5.75%
4.32%
7.67%
6.35%
4.96%
*
5.65%
*
7.12%
6.41%
5.34%
5.32%
6.74%
8.28%
6.41%
6.76%
6.05%
Rank
6
9
10
4
2
3
1
5
8
7
Rank
2
1
3
5
2
1
4
*
30.77%
*
*
0.12%
1.27%
13.46%
11.46%
11.50%
Lower volatility = higher ranking
14.75%
15.26%
*
9.59%
9.28%
9.89%
11.00%
9.41%
Lower volatility = higher ranking
*
6.51%
*
5.90%
5.07%
7.06%
7.36%
7.20%
7.48%
6.68%
5.92%
6.09%
Volatility (Risk)
-2.31%
-4.74%
*
0.18%
-0.87%
4.80%
2.89%
1.11%
*
1.57%
*
0.60%
1.46%
-0.60%
-2.63%
1.90%
3.38%
1.20%
1.34%
1.06%
Active Return
Calculated on 5 year performance returns 5 Year Return
1
2
4
5
1
2
3
3
8
4
9
10
2
1
6
5
7
Rank
3.83%
4.46%
*
7.79%
3.99%
6.71%
5.85%
7.03%
*
2.02%
*
4.12%
5.06%
7.01%
7.32%
3.82%
4.31%
5.21%
4.01%
3.08%
Tracking Error
-0.60
-1.06
*
0.02
-0.22
0.72
0.49
0.16
*
0.78
*
0.15
0.29
-0.09
-0.38
0.50
0.78
0.23
0.34
0.34
Information Ratio
1
2
4
5
1
2
3
2
8
6
9
10
3
1
7
5
4
Rank
MANAGER WATCH™ SURVEY
Shari’ah Manager WatchTM Survey
Objective: The portfolios in this survey represent Shari’ah compliant portfolios with various benchmarks. No carve-outs are reflected.
SECTION 3
Shari’ah Manager WatchTM Survey Risk vs Return Scatterplot on Shari’ah Compliant Portfolios – Balanced and Equity mandates 3 Years ended 31 December 2019 14.30% Old Mutual Global Islamic Equity
13.20% 12.10%
SMM Nur Balanced Portfolio 27four Shari’ah Multi-Managed Balanced Fund
11.00%
STANLIB Multi-Manager Shari’ah Balanced
Return (p.a)
9.90%
Element Islamic Equity
Element Islamic Balanced
Kagiso Islamic Equity Fund
8.80% 7.70%
Kagiso Islamic Balanced
6.60%
27four Shari’ah Wealth Builder Fund 27four Shari’ah Wealth Builder Fund
Element Islamic Global Equity
Oasis Crescent Balanced High Equity
5.50%
Oasis Crescent Equity Fund Old Mutual Shari’ah Equity Oasis Crescent Balanced Progressive Sentio SCI Hikma Shari’ah Balanced
4.40%
Old Mutual Shari’ah Balanced
3.30%
Sentio SCI Hikma Shari’ah General Equity 27four Shari’ah Active Equity
Oasis Crescent Balanced Stable
2.20% 5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
11.00%
12.00%
13.00%
14.00%
15.00%
Active Risk (p.a)(tracking error)
Excess Return vs Tracking Error Scatterplot – Shariah Compliant Portfolios – Balanced and Equity Mandates 3 Years ended 31 December 2019 6.50% Element Islamic Equity
5.20% SMM Nur Balanced Portfolio
3.90%
Kagiso Islamic Equity Fund
Element Islamic Balanced Oasis Crescent Balanced Progressive
Kagiso Islamic Balanced
2.60%
Sentio SCI Hikma Shari’ah Balanced
Return (p.a)
1.30%
27four Shari’ah Balanced Prescient FoFs
0.00%
Oasis Crescent Balanced Stable 27four Shari’ah Active Equity
27four Shari’ah Multi-Managed Balanced Fund Oasis Crescent Equity Fund
-1.30%
Sentio SCI Hikma Shari’ah General Equity
27four Shari’ah Active Equity STANLIB Multi-Manager Shari’ah Balanced Oasis Crescent Balanced High Equity 27four Shari’ah Balanced Old Mutual Shari’ah Equity Old Mutual Global Islamic Equity
-2.60% -3.90% -5.20% -6.50%
Element Islamic Global Equity
-7.80% 0.70%
1.40%
2.10%
2.80%
3.50%
4.20%
4.90%
5.60%
6.30%
7.00%
7.70%
8.40%
Volatility (p.a)(tracking error)
157
SUSTAINABLE INVESTING: AN AFRICA OUTLOOK David Moore
Head of Alternatives â&#x20AC;&#x201C; Alexander Forbes Investments
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Africa continues to be prime for institutional grade, private sector investment, with its backdrop of high rates of GDP growth and a rapidly urbanising consumer who is embracing technology in accessing goods and services.
However, Africa’s growth potential remains constrained by:
its widening infrastructure deficit a legacy of recurring conflict
widespread instances of corruption in public office
The infrastructure deficit alone, which spans sub-sectors such as information communication technology, power, transport and water, is estimated at more than USD100 billion a year.1 In order for Africa to realise its inherent growth potential, it is in dire need of truly sustainable investment initiatives. “Sustainable investment” in Africa refers to the integration of priorities other than commercial return into the investment processes of practitioners. These priorities are governance, climate change, human rights, job creation and education. Local and international development finance institutions have led the charge in this regard, having deployed most of the USD25 billion of sustainable investment over 2012–2017 through the private market asset class.2 Private market investment affords practitioners and investors the ability to more meaningfully integrate the priorities of a sustainable investment thesis per asset, given the positions of control held and longer than average holding periods relative to the traditional asset class managers. Africa abounds with success stories of assets accessed through a sustainable investment lens. 1 African Infrastructure Investment Managers Marketing Presentation Q2 2018 2 AVCA 2017 Annual Private Equity Data Tracker
159
MANAGER WATCH™ SURVEY
Case study: Western Mali A case in point can be found near the remote village of Medine in Western Mali in the form of Albatros Energy (Albatros), the country’s first independent power producer (IPP) project to feed into the national grid.3 Mali’s power grid is grossly inadequate to provide sufficient, reliable power for its population. Mali is among the world’s 25 poorest countries and only 25.6% of its 17.6 million people have access to electricity, with this level falling to 15% in rural areas.
Albatros Energy in Western Mali Albatros, a thermal-power plant completed in late 2018, provides enough energy to power just short of one million households and represents over a quarter of the country’s base load capacity. The Albatros investment held sustainability front and centre as part of its investment thesis, considering the following over and above commercial return: ■ Economic impact: Albatros is one of the lowest-cost thermalpower producers supporting long-term reductions in overall cost of energy for the national utility and providing a platform for increased economic activity in compliance with international environmental guidelines. ■ Governance: As Mali’s first IPP, the project created an effective blueprint of engagement for all future IPPs in Mali, which has already begun to bear fruit with two solar plants being developed on the back of the Albatros success story. ■ Job creation: During construction, Albatros employed 139 people from the local community (25% of workforce). ■ Social impact: The Albatros project facilitated the upgrade of a range of social infrastructure in the surrounding community, which included upgrading the local dispensary, creating a maternity facility and purchasing a 4x4 ambulance. South Africa brings with it its own challenges that warrant investment through a truly sustainable investment lens. An unemployment rate close to 30%, an ailing power sector as well as widespread corruption within many public and private enterprises are stifling the nation’s ability to grow.
3 AIIM/AIIF 3 Albatros Energy Case Study
160
However, here once again one can demonstrate that private market investments successfully integrate these competing sustainability-focused priorities such as job creation, human rights and good corporate governance into their investment processes. In so doing, they create compelling development and social impact whilst achieving institutional grade return outcomes. We need to look no further than the logistics truck passing us by in traffic every morning to see a sustainable investment at work.
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Case study: South Africa Laser Logistics (Laser), an empowered South African-owned small and medium-sized enterprise (SME) is a multi-line logistics company with over 130 branches across the country. Laser employs almost 2 000 semi-skilled workers and around 500 unskilled workers nationwide, most of whom are outside the major metros and in more rural areas by virtue of their branch locations.
Laser Logistics in South Africa
Retail Capital in South Africa
Laser Logistics (Laser), an empowered South African-owned small and medium-sized enterprise (SME) is a multi-line logistics company with over 130 branches across the country.4 Laser employs almost 2 000 semi-skilled workers and around 500 unskilled workers nationwide, most of whom are outside the major metros and in more rural areas by virtue of their branch locations. Laser has pioneered a pilot project with the National Department of Health to facilitate the delivery of chronic medicines to consumers in remote, rural areas who canâ&#x20AC;&#x2122;t just drop in at their local pharmacy to collect their prescription, but rather have to travel vast distances to collect essential medicines at huge personal cost. Laser, through this project, is facilitating the handout of approximately 50 000 prescriptions a month to patients, addressing a basic human right (access to critical therapeutic medicines) whilst expanding its revenue base by adding a high-growth business line.
SMEs like Laser are the lifeblood and growth engine of any developing economy and are in dire need of support from both public and private sector practitioners in South Africa. A great example of a privately-backed SME-focused business is Retail Capital, a merchant cash advance business that provides innovative working capital and growth finance solutions sustainably to SMEs.5 Retail Capital purchases the future income streams from debit and credit card transactions completed by retailers in return for upfront cash advances, which these SMEs can then use to make meaningful capital investments to grow their businesses. Over and above an attractive commercial return, investing in a business such as Retail Capital aids in driving economic growth owing to its niche, SME-focused business model coupled with explicit job creation benefit of approximately 15 000 new jobs created over a nineyear period since its inception. Sustainable investment in Africa is not only a topical investment theme but more over a critically required one. Solving the pervasive infrastructure deficits and governance failures continent wide can only be achieved through multi-faceted investment approaches that target both commercial returns and some if not all of the sustainability metrics discussed. Let us hope that case studies such as these can serve to catalyse both local and international institutional funds to allow Africa to become a force to be reckoned with in the global economy.
4 PAPE Fund 3 Case Study 5 Sustainable Investing Case Studies â&#x20AC;&#x201C; Sanlam
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2020 INVESTMENT OUTLOOK Key themes:
Global economic growth expected to improve | Weak economic domestic growth | Inflation forecast remains stable | Financial markets performance and outlook
Global outlook â&#x20AC;&#x201C; slightly more supportive Global economic growth has stabilised but the recovery remains sluggish. The slowdown in the United States and China is expected to be more than offset by improvement in some large emerging markets, the euro area and the United Kingdom. Inflation expectations remain stable, at or below targets in advanced economies and trending lower in emerging markets. Consequently, monetary policy in many advanced economies is expected to remain loose, which will support global growth.
Figure 1: Global baseline growth forecasts show stabilisation 2.3 2.9
3.3
2.0
6.1
1.7 1.2
Average
2019e
2020f
2021f
2.7
2.9
3.1
2.4
2.5
2.7
2019e
1.3
1.4
1.5
2019e
2020
2021
3.4
2020f
2019e
2020
2021
2019e
United States
2021f
3.4
2019e
2020
1.4
2020
2021
Euro area 5.6
3.3
1.3
5.8
2021
2019e
5.8
2020
2021
China
5.9
3.5
Sub-Saharan Africa
2019e
United Kingdom
6.0
2020
2021
0.8
2.8
3.2
2019e
2020
2021
Emerging and developing Asia
Middle East and Central Asia
0.1
1.6
2.3
2019e
2020
2021
Latin America and The Caribbean
Sources: IMF WEO, World Bank and Alexander Forbes Investments
The direction of the US dollar has a disproportionate impact on the global economy as global trade is priced in US dollars to a large extent. The US dollar is expected to weaken against major currencies, which implies that the emerging market exchange rate driving inflationary pressures will remain muted. This will help emerging market economies and global economic growth.
Figure 2: Global financial conditions have improved, while the US dollar is expected to weaken The US dollar is expected weaken against major currencies
Global financial conditions have loosened Index, 100 =January 2017 102
1.8
GBPUSD
1.6
101
1.4 100
1.2
99
1.0 Q1 2020
98
Q1 2022
Q1 2023
Q1 2024
Q1 2025
Q1 2026
1.35
EURUSD
1.30
97 Jan 17
Q1 2021
Jun 17
Nov 17
Apr 18
Sep 18
Feb 19
Jul 19
Dec 19
1.25 1.20
Advanced economies excluding United Sates
EMDEs excluding China
Sources: Bloomberg and Alexander Forbes Investments
162
United Sates
1.15 1.10 Q1 2020
Q1 2021
Q1 2022
Q1 2023
Q1 2024
Q1 2025
Q1 2026
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Domestic outlook – lifting economic growth With a marginally supportive global outlook, we would have expected South Africa’s economic growth to pick up as well. However, domestic constraints remain binding. Electricity shortages, a weak consumer demand, and a constrained fiscus all contribute to weak economic growth outlook of about 1.0% this year and 1.5% in 2021.
Figure 3: Inflation forecast remains stable Stable inflation outlook well within that of the SARB 6.5% 6.0% 5.5%
To improve this growth outlook, three things are needed:
5.0% 4.5%
IMPROVE GROWTH OUTLOOK Re-establish fiscal credibility This requires National Treasury to achieve the budget targets they set.
4.0% 3.5% 3.0% 2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Government CPI and private sector CPI y/y %
Implement structural economic reforms The required structural reforms have been discussed at length – what remains is faster implementation, which has marginally improved so far.
10.0 9.0 8.0 7.0 6.0
Attract fixed investment The success of implementing economic reforms will attract fixed investment, which will ultimately lift economic growth.
5.0 4.0 3.0 2.0 2014
2015
Government CPI
2016
2017
Headline excluding government CPI
2018
2019 Headline CPI
Source: Bloomberg and Alexander Forbes Investments
Inflation remains benign Inflation outcomes have surprised on the downside for most of 2019 and the outlook remains benign. The South African Reserve Bank has cut rates by 25 basis points to 6.25% to boost consumer demand; however, the impact of this rate cut on economic growth is negligible. There is still room for more cuts but the risk of credit rating downgrade from Moody’s keeps the SARB cautious. The credit rating downgrade is largely priced in by financial markets such that the impact on asset prices will likely be limited. However, the macroeconomic adjustment, following the downgrade to sub-investment, is usually painful and lasts for a very long time depending on the speed and extent of policy response.
Financial market performance and outlook Global asset class returns have performed relatively well in 2019 compared to 2018. Developed market equities, driven by US equities, outperformed emerging markets and local equities.
Global bonds underperformed other global asset classes, which is a reversal of 2018 market dynamics where bonds performed better than equities. Domestic equity markets performed in line with emerging markets but domestic economic issues capped the performance. Resources, largely the gold and platinum sector, performed well, while financials had poor returns. The longer term trend has seen moderating returns, which is the low investment return theme we have highlighted over the past few years. However, for 2020, emerging markets equities appear cheap and with stronger fundamentals. In similar fashion, domestic equities also appear cheap, which should benefit investors who have added holdings of local equities in their portfolios. Local bonds also continue to offer attractive real yields, particularly in an environment where global bonds offer negative or close to zero yields.
163
TRANSFORMATION IN RETIREMENT FUNDS We feature perspectives of three black-owned asset managers on some issues of transformation in the investment industry.
164
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Aluwani
Q&
A
Tell us about your company? Founded in 2015, ALUWANI Capital Partners is an independent black-owned investment management business. Our focus is to build a transformative black-owned and controlled business of scale that aims to make a lasting impact in the environment in which it operates.
What important traits should a fund manager have? A fund manager needs to be decisive with the confidence to display conviction in their views and not be afraid to express those views. The individual also needs to be a good risk manager and display sound judgement when managing active portfolios. From a soft skills perspective, humility is a key trait as it means an individual will: ■ be open to different views and perspectives ■ will learn continuously but also admit mistakes and then take appropriate action thereafter. Our values drive our business culture and every facet of our engagement with external stakeholders. These are accountability, empathy, frankness, good citizenship and teamwork. These values are also important traits for a fund manager. We believe that team-based funds create more sustainable returns as teamwork: ■ fosters frank debate ■ allows individuals to be held accountable ■ builds a robust process by removing individual biases or blind spots from the investment decision-making process.
What makes you different from other asset managers – what is it that you do differently? We don’t seek to be different for the sake of it or because the market seems to expect this. What is important to us is that we strive to be the best we can be and to manage money responsibly. 165
MANAGER WATCH™ SURVEY
Having said that, the following are distinguishing features of our business: ■ We are good risk managers. Our robust, diversified and risk-cognisant portfolio construction process and methodology have ensured sustainable active returns at acceptable risk levels. ■ We see ourselves as fiduciary managers. We always consider our clients’ perspectives and expectations (hence our active benchmark-cognisant approach). ■ We are long-term managers We believe this allows us to deliver robust returns over the long term. ■ We are generally style-agnostic across our strategies ● Within fixed income, we construct portfolios after having assessed all opportunities and the phase of the cycle to ensure the best or most appropriate views are in the portfolio at a particular time. ● Within equities, we follow a bottom-up process and believe that fundamental analysis is one of the key drivers of sustained long-term outperformance.
Within our investment process we have developed an environmental, social and governance (ESG) assessment model as a tool to assist our investment professionals in considering ESG risks and wider sustainability factors in their investment analysis. This allows us to make ESG consideration a key feature of our investment decision-making process.
It’s often been said that past performance is not indicative of future performance, so how should one choose the best managers for their fund beyond historical performance?
Large managers have earned clients’ trust in them over time and only over time of extended under delivery can this trust be eroded to a point where clients would consider a switch. Given the enormity of the responsibility that comes with preserving and growing the country’s savings pool, we believe that this approach is acceptable and do not see any reason that it should change.
When choosing a manager, the focus should be on the manager’s investment process and whether it is robust. If it is, it will result in consistent returns during various market cycles. The manager’s world view, and their view of market inefficiencies and potential opportunities, also indicates whether the manager is forward-looking and proactive rather than overly focused on the past. It is also important to look at the team supporting the manager as opposed to the manager in isolation. The quality of the investment team and the quality of the operational team ensure that the manager can focus purely on market opportunities and can move quickly to take advantage of these opportunities. A supportive management team and culture that brings out the best in the investment team is also important.
How do you incorporate responsible investing practices into your portfolios? As a business we have a strong focus on sustainability and creating sustainable practices and relationships. This culture ensures that it permeates every area of our operation and therefore becomes the over-arching theme that guides our decision-making across the business. We have integrated responsible investing practices across our portfolios and think about sustainability when assessing companies and potential market opportunities.
166
We have collectively identified six characteristics that are likely to make for a good quality investment within our assessment tool and we then use these as a filter when assessing ESG factors within our investment analysis. Our custom approach allows us to practically implement responsible investing practices consistently across our portfolios and have a mechanism that allows for uniform comparison across the companies we invest in.
Historically, the South African retirement fund market has allocated predominantly to large or well-known asset managers. In your view, what are the reasons for this and do you expect it to change?
However, we have observed that this trust, if not regularly vetted, can cloud clients’ judgement. We have observed how sometimes investors would overreact if a newer, maybe even small manager underperforms the benchmark in the short term. At the same time they would underreact where the established firms underperform for extended periods. We think the allocation to large managers, especially those with South African focused mandates will change over time. At a certain size, within equities, managers get too big to offer clients outperformance above the benchmark sustainably and they can end up delivering beta. Clients are getting closer to this point and with the advent of passive funds, they have realised that they can get beta cheaper if that is what they are solving for.
What is the biggest challenge you have faced in the retirement fund industry as a black asset manager? What can trustees and asset consultants do better? As a black manager and new entrant to the South African asset management landscape, we have had to deal with perceptions and biases but this is slowly starting to change. Our challenges are often exaggerated and success underplayed. We are often perceived to be a riskier allocation. As a result, we have to work significantly harder relative to our mainstream competitors to remain relevant in clients’ minds.
SECTION 3
Generally, there is resistance towards moving away from the status quo. Trustees are sometime not even aware of our business’s successes and our capabilities. Asset consultants could do more to create a level playing field and to create more opportunities for new entrants to showcase their capabilities and position their value proposition to trustees to eliminate perception biases as mentioned.
Are there any barriers to entry that are hindering the growth of black asset managers within the retirement fund industry? We do not believe that there are barriers to entry to the asset management space that are unique to black asset managers. In fact, setting up, getting licenced and getting operational seems to be relatively even. This is displayed by the large number of asset managers in existence. From our observations, the challenge is in breaking through to the mainstream and creating large and sustainable black owned asset management firms. We accept that a lot of factors influences a firm’s ability to break through some of which are internal. It does however, raise concerns that of the current, approximately 51 black owned firms, the oldest firm being 23 years old has approximately R3.3 billion in AuM (assets under management) and the largest Black player with a 20year track record has a little over R160 billion in AuM versus mainstream peers with similar years of existence have multiples of that from an AuM perspective.
Ngwedi Tell us about your company? Ngwedi Investment Managers Proprietary Limited (“Ngwedi”) was launched in August 2018 as one of the premium core investment management companies in South Africa. Ngwedi’s goal is to consistently deliver market-leading investment performance through progressive fixed-income, multi-asset, equity and alternative investment solutions.
What important traits should a fund manager have? 1. A well-articulated investment philosophy and a sound investment process which based on tried and tested investment principles. 2. Client centricity which results in unique and innovative solutions that meet the client’s needs. 3. A culture of operational excellence with a focus on open communication and fairness for all stakeholders. 4. Stability and longevity through exceptional governance standards and structures, ingrained ethical standards.
What is your take as a company on the B-BBEE scorecard for retirement funds? We believe that retirements funds, as well as asset managers, have a significant role to play in contributing towards economic development, either from how they select their service providers and/ or the type of investments they pursue. Therefore, our understanding of the scorecard is that it seeks to encourage retirement funds to actively apply themselves on how they contribute towards building a diverse and well represented financial services industry. We operate in such a regulated environment so much so that compliance is second nature to us. Our view however is that the scorecard is a compliance requirement and it therefore does not tell the whole story and rarely acts as a differentiator anymore. Intensions around the scorecard therefore need to more prescriptive and clear so that it moves away from being a box ticking exercise and goes to the heart of what it is that one is looking to address.
Q&
A
What makes you different from other asset managers – what is it that you do differently? 1. Ngwedi has built a proprietary investment process that drives our alpha generation. Our investment process combines both quantitative and qualitative factors. 2. We believe in partnering with our clients to achieve the best possible investment solutions for them. 3. The Ngwedi investment team follows a collaborative decisionmaking approach to reach the best investment strategy for our clients. 4. Ngwedi has long standing relationships and an extensive network of independent information sources. 5. We make use of superior technology and risk management systems, which feed into our investment process. 6. We have strong and differentiated access to best execution via a network of counterparties. 7. The team also assists in securing favorable terms and constructing attractive investments for our clients. 8. Our team is experienced with a strong track record of outperformance across various asset classes with less risk through rising and falling markets. 167
MANAGER WATCH™ SURVEY
It’s often been said that past performance is not indicative of future performance, so how should one choose the best managers for their fund beyond historical performance?
What is the biggest challenge you have faced in the retirement fund industry as a black asset manager? What can trustees and asset consultants do better?
We believe that a good investment manager is the one that can clearly articulate their offering and process, consider client investment needs and design effective solutions to meet those needs.
The biggest challenge that we face as a black asset manager is getting past the gatekeepers and being given an opportunity to compete in the asset manager selection process. Asset owners look to their investment consultants for guidance and often it appears that the asset owners don’t have all the necessary information on black managers before deciding on their investments and allocations.
Historically, the South African retirement fund market has allocated predominantly to large or well-known asset managers. In your view, what are the reasons for this and do you expect it to change? In our view there are at least three main reasons why the South African retirement fund market has traditionally allocated to large and well-known managers: 1. Funds tend to go with the larger and more wellknown managers for protection against the risk of underperformance. 2. Funds also tend to display a perception bias in favour of larger managers. The smaller or emerging managers are perceived to have greater operational risks, key-person risk and generally lack the required infrastructure to compete with the more established houses.
Are there any barriers to entry that are hindering the growth of black asset managers within the retirement fund industry? Yes, we believe that the following barriers are hindering growth for black asset managers: 1. The means to do business in a way that the black manager can compete with established managers; most emerging managers do not have the necessary infrastructure to scale their offering. 2. The lack of a balance sheet which is required to enable the manager to trade optimally with counterparties.
3. Funds generally want track record, both individually and as a firm, meaning that most emerging managers only start attracting assets in their third year of being operational.
What is your take as a company on the B-BBEE scorecard for retirement funds?
There are reasons to believe that this situation is changing (although slowly) and we expect this trend to continue as emerging managers demonstrate the fallibility of the reasons highlighted. There are more and more emerging managers with both the operational capabilities and the track record (individual and firm track record) to rival those of the largest industry players.
There is a case for the B-BBEE scorecard for retirement funds to be more prescriptive in terms of quotas of assets that should be allocated to emerging managers. These quotas will allow a more distributive wealth effect and skills transfer in the industry and country.
Q&
Perpetua
A
Tell us about your company?
What important traits should a fund manager have?
Perpetua Investment Managers (Perpetua) is an independent, owner-managed, South African-based investment management firm that has been in operation since 2012. We exist to help improve the quality of our clients’ lives by adding meaningful value to their hard-earned savings over the long term. We approach investing as a professional endeavour and see ourselves therefore as stewards of our clients’ savings. We also aim to improve the quality of the lives of our staff and stakeholders by operating a purpose-driven, values-based, sustainable, inclusive and merit-based firm.
Important traits of a fund management firm:
168
■ Clear investment proposition, which is client-centric, repeatable and enduring ■ Ownership structure that minimises risk of short-term business pressures on the investment team, particularly in periods of underperformance ■ Focus on long-term business sustainability ■ Well-balanced, accountable operational structure that supports investment capability
SECTION 3
■ Recognition that organisational culture is key and ensuring people are hired and retained who resonate with, prosper in and expand the desired culture positively ■ Fair and sensible incentives, including ownership, for high impact on people ■ Well-conceived product mix – neither too narrow nor too broad. Important traits of investment team members and fund managers:
Nature
■ Curious, with a clear, analytical, questioning mind ■ Natural intellect, patience, diligence, humility, earnestness and care ■ Choosing analysis over defensiveness ■ Seeking learning over simply being right ■ Achieving the difficult balance between developing and exhibiting convictions in a non-consensus view, yet also being willing to change their view as warranted when the facts or new assumptions require and justify this ■ Having emotional resilience to handle errors when they are made.
Attitude
■ Drive and desire to succeed while pursuing investing as a calling and passion and not purely as an intellectual exercise ■ Pushing for continuous improvement and excellence ■ Exhibiting natural self-drive, accountability and productivity ■ Engage willingly in direct, clear and uncomplicated communication ■ An innately competitive streak to want to outperform for the sake of clients and not for the sake of personal ego, profile or reward.
Manner
■ Relating constructively to colleagues ■ Displaying emotional intelligence ■ Exhibiting self-awareness ■ Understanding individual core competencies and where their knowledge and skill base is optimised or limited.
What makes you different from other asset managers – what do you do differently? We summarise our key differentiators as follows: ■ Differentiation in how our firm and team is constituted, and run ■ Differentiation in how we seek to deliver an investment proposition. Firm and team differentiators: ■ We are a values-based firm which has been built and centred on our purpose and mission, and not simply the pursuit of a singular profit motive. ■ We value diversity as a core and intentional identifier. ■ We intentionally seek out individuals who exhibit IQ and EQ. ■ We ensure the independence of investment team insights is protected from business pressures.
■ We deliberately seek to ensure investment staff we hire and retain approach investing from a sense of purpose, and not simply as an intellectual endeavour. We believe in the importance of courageous conversations to protect the core mission of the firm. ■ We invest based on our convictions and fundamental analysis We are not benchmark cognisant in portfolio construction of our core equity franchise. We are genuinely active managers and invest based on our convictions and fundamental analysis, not simply based on what is popular or defensible. ■ Our approach is value-oriented We have an unequivocal, disciplined and all-encompassing value-oriented approach which we term “true value” investing. This approach ensures we can exploit a range of value-oriented investment theses – in a small market like South Africa this means we are not limiting ourselves only to “deep value” or only to “quality value”. This approach is also enduring and one we are committed to into perpetuity as a firm. ■ We exploit value-oriented opportunities We do this across the size curve of companies and can invest a greater proportion of our portfolio in mid- and small-cap value-oriented companies. ■ As investors, we buy businesses, not shares or instruments We care about the underlying fundamentals of an entity and its sustainable value of the business or entity, not simply where the asset price might be going or has been. In this way we innately and explicitly ensure we are responsible investors in how we invest client funds.
It’s often been said that past performance is not indicative of future performance, so how should one choose the best managers for their fund beyond historical performance? A good and reliable indicator of future performance could be past performance over a long enough time period generated from a firm, team, investment approach and investing environment that is constant, persistent and broadly unchanged. However, this is not a realistic scenario, as people change, firms change and the broader investing environment changes. One ingredient that could remain relatively constant over time, however, is the investment approach (the ideology, philosophy and process). In our opinion the most essential assessment of an investment manager is their investment approach and the way that the outcomes generated from the investment approach are predictable. The investment approach should be assessed for its clarity, transparency, repeatability, how well internalised it is by all within the firm, steadfast application and pursuit (even if minor refinements are justifiable) and longevity. The investment approach should be specifically documented, inculcated into the team and capable of being transferred inter-generationally over time.
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How do you incorporate responsible investing practices into your portfolios? As long-term investors who act as stewards over our clients’ savings, at Perpetua we believe that we have a fiduciary duty to understand the impact that key aspects, such as ESG, may have on a company’s long-term sustainability and enduring viability. Accordingly we are both value-oriented and values-oriented in our overall Responsible Investing (RI) approach in this regard. We believe that ESG considerations form part of our key RI obligations, but responsible investing extends beyond ESG. We systematically consider ESG issues in order to lead to more complete investment analysis and make better-informed investment decisions. Perpetua is a signatory of the United Nations-supported Principles for Responsible Investment (UNPRI), a supporter of the United Nations Environment Programme Finance Initiative (UNEP FI), espouse the principles of CRISA and The Generation Foundation’s statement on investor obligations. At a practical level we demonstrate our RI actions in a clear and progressive strategy, which accounts not simply for current but also future evolutions and obligations of investors. We incorporate it in the following broad manner: ■ ESG considerations and integration ESG assessments at a company level remain firmly integrated within our investment approach and we complete a thorough and proprietary scorecard for each potential investee company. The ESG analysis is carried out at a research level but the assigned company/instrument analyst and portfolio managers are also essential in assessing the ESG analysis as part of the investment approval and review process. ■ Active ownership This includes not only proxy voting, but also where we have sought to influence investee boards to ensure independent and fit-for-purpose boards; and capital allocation decisions. Engagement is a key action outcome from both our ESG research outcomes and as part of our commitment to be active owners. ■ Investing for positive impact We believe we are now in the evolution of the final stage of the process where we perceive that the ESG connotation will shift from being negative to having more positive impact, including the prospect of generating new ideas.
Historically, the South African retirement fund market has allocated predominantly to large or well-known asset managers. In your view, what are the reasons for this and do you expect it to change? The asset managers of retirement fund assets in the South African retirement fund industry are directly related to the process by which these assets are and have been historically allocated: most retirement funds by number use some form of asset allocator to assist them in determining how to allocate to underlying asset managers. 170
These asset allocators or intermediaries take the following form primarily: ■ advice-only investment or asset consultants ■ investment or asset consultants who provide implemented advice ■ multi-managers These intermediaries follow their own respective assessment processes to enable them to recommend or use whom they deem to be appropriate asset managers for a specific retirement fund. An assessment of these processes, along with its outcomes and managers predominantly used, reveals the following: Retirement fund assets where intermediaries are used tend to allocate predominantly to large or well-known asset managers. This appears to occur for the following reasons: ■ Time and resource constraints Intermediaries (whether asset consultants or multi-managers) assess asset managers through a variety of mechanisms but these processes can be time-consuming. This results in the tendency of intermediaries to allocate most of the constrained time and resources to the assessment of larger well-known managers, leaving little scope to assess smaller, lesser known managers. ■ Minimising career-risk The investment industry is built on trust, which is often equated with something that is time-tested. In this vein, tried and tested asset managers are favoured for consideration due to their long existence, irrespective of whether they deliver positive investment outcomes or not, or have the propensity to continue to deliver these outcomes. Using larger or wellknown asset managers therefore reduces the “career-risk” of the intermediary who is unlikely to be vulnerable in their appointment by the retirement fund. ■ Potential for unconscious bias The investment industry globally and domestically has been dominated by a specific social demographic in terms of individuals in key decision-making positions at both intermediaries and asset managers, specifically white, male individuals. Significant empirical research has now been published which reveals the extent to which this reality (across many industries) has caused the establishment and perpetuation for trust and innate upfront belief in competencies to be connected to these familiar demographics, while unconscious bias penalises individuals not falling within these familiar demographics (such as people of colour or women). This implies that to the extent that smaller firms are more representative of people of colour and women, these firms could struggle to even be considered as potentially competent in the first place. ■ Lack of pressure from the client Intermediaries exist to deliver a service to their retirement fund clients, which is to ensure investment returns are delivered in a way that meets the funds’ liabilities. Intermediaries therefore concern themselves mainly in delivering this objective in what they believe is the lowest risk manner possible. For reasons listed above, this can tend
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to favour larger, known asset managers, creating an inert loop. To catalyse intermediaries looking beyond the standard line-up of asset managers might require the retirement fund clients to expand the intermediaries’ objectives to widen the asset managers considered to provide an investment management service. To date this kind of pressure and requirement from retirement funds has been negligible across the board. We should point out that a number of larger retirement funds in South Africa, like the Eskom Pension and Provident Fund and the Government Employees Pension Fund, might use asset consultants and intermediaries but are directly and integrally involved in the manager selection decisions. In these situations, the funds have established policies for manager selection, which have resulted in allocation outcomes being quite different from the intermediated retirement funds. The former funds have made conscious use of smaller investment managers, particularly black investment managers. We believe a meaningful or even moderate reduction in the concentration of large, incumbent asset managers in terms of their share of retirement fund assets will likely occur in the following circumstances: ■ Retirement funds establish clearly stated policies, requiring the consideration and use of smaller managers. ■ Retirement funds establish stated diversity targets and timelines, requiring intermediaries to assist in achieving them. ■ Retirement funds assume the responsibility for the manager selection or become more actively involved. ■ Asset consultants and intermediaries allocate more time to assessing smaller managers. ■ Some form of legislation requires retirement funds to select smaller and more diverse (specifically black-owned) managers. ■ Industry bodies evolve their scope and influence to ensure their actions serve the interests of the investment industry value chain as a whole in terms of a balanced, well-diversified investment industry that we should look to achieve.
What is the biggest challenge you have faced in the retirement fund industry as a black asset manager? What can trustees and asset consultants do better? As outlined in terms of the systemic factors in the industry, the biggest challenge Perpetua has faced is the inability for us as a black and small asset manager to be provided with sufficient formal opportunities for engagement and assessment by some of the industry’s largest intermediaries. This has in turn prevented us from being given the opportunity to present our investment firm, capabilities and differentiators to several retirement funds, minimising our ability to build a platform of awareness, understanding and ultimately trust. As a black asset manager, we seek the opportunity to build, expand and deepen trust with asset allocators and asset owners.
We believe this can be achieved as follows: ■ Asset consultants must create and maintain opportunities to engage with all asset management firms, but especially black asset management firms who might have been overlooked. ■ There should be transparency over the methodology employed by an asset consultant in the assessment and review process of asset managers. This should include the process outline, clarity over roles of who performs what assessment tasks at the asset consultant or trustee, timelines and the management of realistic expectations. ■ There should exist a constructive and open feedback loop between the asset consultant and asset manager following periodic assessments and reviews. ■ The asset manager should be provided with an opportunity for direct exposure to retirement fund trustees, as has been afforded to many large asset managers repeatedly over years. ■ There should be minimal short-term cycling of flows from black asset management firms in a way that threatens business sustainability. (Assets should be allocated for at the very least a five-year period if the business proposition remains materially the same as at appointment). ■ Given inertia in the allocations over the past two decades, retirement funds need to implement explicit, mandatory, diversity policies to ensure minimum allocations to qualified black asset managers (firms and individuals). Following the implementation of these minimum allocations, progression must be planned such that it is also necessary to ensure black asset managers are not only restricted to being allocated assets in terms of these minimum allocations but through the overall inclusive allocation process of the fund.
Are there any barriers to entry that are hindering the growth of black asset managers within the retirement fund industry? Most retirement funds by number use some form of asset allocator to assist them in determining how to allocate to underlying asset managers. These intermediaries follow their own respective assessment processes to enable them to recommend or use whom they deem to be appropriate asset managers for a specific retirement fund.
What is your take as a company on the B-BBEE scorecard for retirement funds? We would support a scorecard for retirement funds with high percentage weightings to the following factors: ■ Black trustees and fund senior management ● Black trustees on the investment committee and procurement committees ● Investment decision-making roles made by the fund itself ■ Enterprise development of black investment managers, consultants and stockbrokers ■ Transformation credentials of the final investment decision-makers of the fund 171
FEES
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INVESTMENT MANAGEMENT FEES Investment management fees are intended to compensate investment managers for their time and skill to manage the assets of a fund, and are usually in the form of a percentage of the assets managed.
The main types of investment fees are annual base fees, with some funds charging an additional performance fee. Fees can be quoted on a fixed basis or a sliding scale. A fixed fee is a constant % fee charged irrespective of the value of the assets being managed. A sliding scale fee is a structure where the % fee charged reduces as the value of assets managed increases. The performance fee is generally charged when the manager outperforms its specified benchmark. The manager therefore earns a percentage of the investment profits (often both realised and unrealised). In simple terms we can define performance fees as the managerâ&#x20AC;&#x2122;s share of the fundâ&#x20AC;&#x2122;s profits but not in their losses.
Alexander Forbes Fee Study The purpose of the Alexander Forbes Fee Survey is to create transparency and visibility of fees charged by the investment industry for institutional pension fund mandates. The main benefit is to provide trustees, asset consultants, and advisors with a framework to benchmark the fees that they are being charged. The fee survey utilised data over a five year time period (i.e. 2015 to 2019) to show fee trends if any in the industry. Data was obtained through liaising and collecting data from asset managers and the validity thereof was checked. The Survey was conducted as at November 2019 across nine popular pension fund mandates: Multi Asset Class Mandates
Single Asset (Specialist) Mandates
Global Mandate, BIV*, Segregated Portfolio
Domestic Equity Mandate
Domestic Mandate, BIV*, Segregated Portfolio
Domestic Fixed Income Mandate
Global Mandate, BIV*, Pooled Portfolio
Domestic Money Market Mandate
Domestic Mandate, BIV*, Pooled Portfolio Global Absolute Mandate Domestic Absolute Mandate
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The managers were asked to break down their fee structure into a standardised sliding scale framework using distinct Asset under Management bands: R0-50 million R51-100 million R101-150 million R151-250 million R251-500 million R500 + million
Limitations of study: 1. The universe was restricted to asset managers that participate in the Alexander Forbes Surveys. 2. Participation in the survey was voluntary, and therefore selection may be biased 3. The standardisation of fees in AuM categories may not reflect an individual manager’s fee scale.
Where relevant the fee charged for international assets was collected.
To access the full fee survey including analysis:
*B est Investment View Balanced Portfolios.
https://www.alexanderforbes.co.za/ research/publications
ASSETS UNDER MANAGEMENT IN EXCESS OF
R170 BILLION
CONSISTENT CLIENT RETURNS... YIELDING CONSISTENT GROWTH IN AUM Average AUM R’Billion
SOUTH AFRICA’S LARGEST INDEPENDENT BLACK-OWNED INVESTMENT MANAGER Call us or visit our website for more information T: +27 21 681 5100 E: CRM@taquanta.co.za www.taquanta.co.za
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Base Fees – Indicative Range
Multi–Asset Class Mandates Global Mandate, BIV, Segregated Portfolios Average fee per band Fee Band
Average fee per band Average Fee(%)
0-50 million 0.65% 51-100 million 0.65% 101-150 million 0.65% 151-250 million 0.65% 251-500 million 0.62% 500 + million 0.58% International 0.52% Highest and Lowest per fee band Fee Band High 0-50 million 0.85% 51-100 million 0.85% 101-150 million 0.85% 151-250 million 0.85% 251-500 million 0.85% 500 + million 0.85% International 0.60%
Participants per Fee Band 3 3 3 3 3 3 3 Low 0.50% 0.50% 0.50% 0.50% 0.50% 0.40% 0.45%
Domestic Mandate, BIV, Segregated Portfolios Average fee per band Fee Band 0-50 million 51-100 million 101-150 million 151-250 million 251-500 million 500 + million Performance fees Fee Band 0-50 million 51-100 million 101-150 million 151-250 million 251-500 million 500 + million
Global Mandate, BIV, Pooled Portfolios
Fee Band
Average Fee(%)
0-50 million 0.75% 51-100 million 0.75% 101-150 million 0.75% 151-250 million 0.75% 251-500 million 0.75% 500 + million 0.75% International 0.62% Highest and Lowest per fee band Fee Band High 0-50 million 0.85% 51-100 million 0.85% 101-150 million 0.85% 151-250 million 0.85% 251-500 million 0.85% 500 + million 0.85% International 0.85%
Participants per Fee Band 11 11 11 11 11 11 11 Low 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35%
Domestic Mandate, BIV, Pooled Portfolios Average fee per band
Average Fee(%) 0.51% 0.49% 0.46% 0.46% 0.43% 0.41% High 0.85% 0.85% 0.85% 0.85% 0.85% 0.85%
Participants per Fee Band 7 7 7 7 7 7 Low 0.20% 0.20% 0.20% 0.20% 0.15% 0.10%
Fee Band
Global Absolute Mandate, BIV, Segregated Portfolios Average fee per band Fee Band
Average Fee(%)
0-50 million 0.70% 51-100 million 0.70% 101-150 million 0.70% 151-250 million 0.68% 251-500 million 0.65% 500 + million 0.60% International 0.43% Highest and Lowest per fee band Fee Band High 0-50 million 0.95% 51-100 million 0.95% 101-150 million 0.95% 151-250 million 0.95% 251-500 million 0.95% 500 + million 0.95% International 0.55%
Participants per Fee Band 4 4 4 4 4 4 4 Low 0.50% 0.50% 0.50% 0.50% 0.45% 0.40% 0.30%
Domestic Absolute Return Mandate Average fee per band
Average Fee(%)
0-50 million 0.83% 51-100 million 0.79% 101-150 million 0.75% 151-250 million 0.73% 251-500 million 0.69% 500 + million 0.66% Highest and Lowest per fee band Fee Band High 0-50 million 1.15% 51-100 million 1.15% 101-150 million 1.15% 151-250 million 1.15% 251-500 million 1.05% 500 + million 1.05%
Participants per Fee Band 19 19 19 19 19 19 Low 0.40% 0.40% 0.35% 0.35% 0.35% 0.35%
Fee Band
Average Fee(%)
0-50 million 0.69% 51-100 million 0.64% 101-150 million 0.61% 151-250 million 0.60% 251-500 million 0.57% 500 + million 0.55% Highest and Lowest per fee band Fee Band High 0-50 million 0.95% 51-100 million 0.95% 101-150 million 0.95% 151-250 million 0.95% 251-500 million 0.95% 500 + million 0.95%
Participants per Fee Band 21 21 21 21 21 21 Low 0.50% 0.50% 0.35% 0.35% 0.35% 0.35%
Single Asset (Specialist) Mandate Specialist Domestic Equity Mandate Average fee per band Fee Band
Average fee per band Average Fee(%)
0-50 million 0.66% 51-100 million 0.62% 101-150 million 0.60% 151-250 million 0.60% 251-500 million 0.57% 500 + million 0.54% Highest and Lowest per fee band Fee Band High 0-50 million 1.10% 51-100 million 1.10% 101-150 million 1.10% 151-250 million 1.10% 251-500 million 1.00% 500 + million 1.00%
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Specialist Domestic Fixed Interest Mandate
Participants per Fee Band 30 30 30 30 30 30 Low 0.35% 0.35% 0.35% 0.35% 0.30% 0.30%
Fee Band
Specialist Domestic Money Market Mandate Average fee per band
Average Fee(%)
0-50 million 0.38% 51-100 million 0.36% 101-150 million 0.36% 151-250 million 0.34% 251-500 million 0.32% 500 + million 0.37% Highest and Lowest per fee band Fee Band High 0-50 million 0.60% 51-100 million 0.60% 101-150 million 0.57% 151-250 million 0.57% 251-500 million 0.57% 500 + million 0.57%
Participants per Fee Band 34 34 34 34 34 34 Low 0.20% 0.20% 0.20% 0.20% 0.15% 0.10%
Fee Band
Average Fee(%)
0-50 million 0.24% 51-100 million 0.21% 101-150 million 0.20% 151-250 million 0.20% 251-500 million 0.19% 500 + million 0.17% Highest and Lowest per fee band Fee Band High 0-50 million 0.50% 51-100 million 0.50% 101-150 million 0.50% 151-250 million 0.50% 251-500 million 0.50% 500 + million 0.50%
Participants per Fee Band 27 27 27 27 27 27 Low 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
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Base Fees plus Performance Fees â&#x20AC;&#x201C; Indicative Ranges
Multiâ&#x20AC;&#x201C;Asset Class Mandates Global Mandate, BIV, Segregated Portfolios
Average fee per band
Average fee per band Fee Band
Average Fee(%)
0-50 million 0.68% 51-100 million 0.68% 101-150 million 0.68% 151-250 million 0.65% 251-500 million 0.65% 500 + million 0.63% Performance fees 8.93% Highest and Lowest per fee band Fee Band High 0-50 million 1.00% 51-100 million 1.00% 101-150 million 1.00% 151-250 million 1.00% 251-500 million 1.00% 500 + million 1.00% Performance fees 20.00%
Participants per Fee Band 5 5 5 5 5 5 5 Low 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.35%
Domestic Mandate, BIV, Segregated Portfolios Average fee per band Fee Band 0-50 million
Global Mandate, BIV, Pooled Portfolios
Fee Band
Average Fee(%)
0-50 million 0.73% 51-100 million 0.73% 101-150 million 0.73% 151-250 million 0.70% 251-500 million 0.70% 500 + million 0.67% Performance fees 15.00% Highest and Lowest per fee band Fee Band High 0-50 million 1.00% 51-100 million 1.00% 101-150 million 1.00% 151-250 million 1.00% 251-500 million 1.00% 500 + million 1.00% Performance fees 20.00%
Participants per Fee Band 3 3 3 3 3 3 3 Low 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 10.00%
Domestic Mandate, BIV, Pooled Portfolios Average fee per band
Average Fee(%)
Participants per Fee Band
0.78%
4
51-100 million 0.78% 101-150 million 0.77% 151-250 million 0.77% 251-500 million 0.75% 500 + million 0.73% Performance fees 16.67% Highest and Lowest per fee band Fee Band High 0-50 million 1.00% 51-100 million 1.00% 101-150 million 1.00% 151-250 million 1.00% 251-500 million 1.00% 500 + million 1.00% Performance fees 20.00%
4 4 4 4 4 4 Low 0.60% 0.60% 0.55% 0.55% 0.50% 0.45% 15.00%
Fee Band
Global Absolute Mandate, Biv, Segregated Portfolios Average fee per band Fee Band
Average Fee(%)
0-50 million 0.75% 51-100 million 0.75% 101-150 million 0.75% 151-250 million 0.75% 251-500 million 0.75% 500 + million 0.75% Performance fees 10.00% Highest and Lowest per fee band Fee Band High 0-50 million 1.00% 51-100 million 1.00% 101-150 million 1.00% 151-250 million 1.00% 251-500 million 1.00% 500 + million 1.00% Performance fees 10.00%
Participants per Fee Band 2 2 2 2 2 2 2 Low 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 10.00%
Domestic Absolute Return Mandate Average fee per band
Average Fee(%)
0-50 million 0.91% 51-100 million 0.88% 101-150 million 0.88% 151-250 million 0.88% 251-500 million 0.88% 500 + million 0.88% Performance fees 18.75% Highest and Lowest per fee band Fee Band High 0-50 million 1.20% 51-100 million 1.20% 101-150 million 1.20% 151-250 million 1.20% 251-500 million 1.20% 500 + million 1.20% Performance fees 20.00%
Participants per Fee Band 5 5 5 5 5 5 5 Low 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 10.00%
Fee Band
Average Fee(%)
0-50 million 0.91% 51-100 million 0.86% 101-150 million 0.86% 151-250 million 0.84% 251-500 million 0.84% 500 + million 0.84% Performance fees 18.33% Highest and Lowest per fee band Fee Band High 0-50 million 1.15% 51-100 million 1.15% 101-150 million 1.15% 151-250 million 1.15% 251-500 million 1.15% 500 + million 1.15% Performance fees 20.00%
Participants per Fee Band 4 4 4 4 4 4 4 Low 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 10.00%
Single Asset (Specialist) Mandate Specialist Domestic Equity Mandate Average fee per band Fee Band
Specialist Domestic Fixed Interest Mandate Average fee per band
Average Fee(%)
0-50 million 0.65% 51-100 million 0.63% 101-150 million 0.62% 151-250 million 0.62% 251-500 million 0.59% 500 + million 0.55% Performance fees 13.20% Highest and Lowest per fee band Fee Band High 0-50 million 1.10% 51-100 million 1.00% 101-150 million 1.00% 151-250 million 1.00% 251-500 million 1.00% 500 + million 1.00% Performance fees 20.00%
Participants per Fee Band 25 25 25 25 25 25 25 Low 0.40% 0.40% 0.40% 0.40% 0.35% 0.30% 0.35%
Fee Band
Average Fee(%)
0-50 million 0.40% 51-100 million 0.40% 101-150 million 0.33% 151-250 million 0.32% 251-500 million 0.27% 500 + million 0.24% Performance fees 13.40% Highest and Lowest per fee band Fee Band High 0-50 million 0.50% 51-100 million 0.50% 101-150 million 0.40% 151-250 million 0.35% 251-500 million 0.30% 500 + million 0.25% Performance fees 20.00%
Participants per Fee Band 3 3 3 3 3 3 3 Low 0.35% 0.35% 0.30% 0.30% 0.25% 0.23% 0.20%
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INVESTMENT SURVEY GLOSSARY
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Investment Survey Glossary Absolute Return Investment Strategy
Benchmark
An actively managed investment objective that seeks consistent, positive returns regardless of whether markets are rising or falling; and without reference to a benchmark index for comparison. While not all absolute return strategies are alike, typically, the goal is to produce returns in excess of the inflation rate and/or cash that can be measured by the consumer price index (CPI) while protecting against capital losses.
An independently constructed reference (usually a publicly available index) that sets an objective rate of return (the neutral position) that should be used to test the effective implementation of an investment strategy. A good benchmark will also be representative of the asset class or mandate and is investable itself.
Active Fund Management
A particular tendency, trend, or opinion, especially one that is preconceived or unreasoned
An investment approach that relies on the belief that it is possible to outperform the market. Typically an actively managed fund would select asset classes and investment securities that are expected to perform better than the market or benchmark.
Active Return The difference in returns between a fund and its benchmark at each point in time.
ALBI A popular index used to benchmark performance for South African fixed income (bond) portfolios. This index represents a weighted basket of the top 20 South African bonds ranked dually by market capitalisation and liquidity.
Alpha Alpha is a measurement of the performance of an investment portfolio against a benchmark. The alpha is the return the fund or portfolio makes, relative to the return of the benchmark.
ALSI A popular index used to benchmark performance for South African equity portfolios. This index represents a weighted basket of 99% of the full market capitalisation of all eligible companies listed on the main board of the JSE subject to free float and liquidity criteria. The index can be divided by size into the Top 40, Mid Cap and Small Cap Indices.
Asset Class Categories of investments that behave similarly and are subject to similar market forces. Major asset classes include equities (shares), fixed income (bonds and cash), commodities and property.
Assets Under Management The market value of assets held by an investment manager on behalf of clients.
Balanced Fund Strategy An actively managed investment framework where the asset allocation, strategies employed and risk assumed to achieve the specified investment objective is delegated to the investment manager.
Bias
Bonds Debt issued by a government or a company, typically promising regular payments of coupons (interest) on specified dates with a final capital payment on the maturity date. It can be viewed as a loan given to bond issuers by bond holders.
Capped SWIX A popular index used to benchmark performance for South African equity portfolios. This index includes 99% of the full market cap of eligible JSE listed companies. The constituents are weighted by applying a SWIX free float which represents the proportion of a constituent’s share capital on the South African share register. In addition each constituent weight is capped at 10% at each quarterly review.
Cash A major category of asset class, which is commonly used to represent short-term deposits, NCD’s and other negotiable instruments (usually held in a bank) that can be readily exchanged into coins and banknotes. This is usually considered the risk-free asset.
Composite A group of similarly managed portfolios within a single investment manager and typically defined within the investment managers’ GIPS™ policy.
Composite Dispersion The extent to which the returns of all portfolios within a composite differ. It can be measured in different ways, including: the difference between the maximum and the minimum return (range); the difference between the 1st and 3rd quartile (inter-quartile range); the standard deviation of returns, or mean absolute deviation.
Compound Rate of Return A compound rate of return that expresses the relationship between the initial investment and the returns earned on that investment, incorporating future returns which are earned on past returns. For most investors, this is the most accurate way to calculate their returns as most investors will leave their returns in an investment.
Coupon Rate A bond’s coupon rate is the rate used to calculate the periodic interest payments paid by the issuer of a bond to its owner at the time of payment. It is set when the bond is issued and is usually related to the nominal value of the bond at the time of issuance. 180
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Consumer Price Index
Emerging Markets
CPI is an estimate of the inflation rate measuring the price of goods and services in the economy.
Emerging markets are economies that show some of the traits of developed economies but aren’t quite at the same level yet.
Credit
Equities
A type of bond issued by a non-governmental entity. These bonds typically carry a higher risk than government guaranteed bonds, e.g. bonds issued by companies.
Credit Risk Credit risk refers to the risk that a bond issuer will default on any type of debt by failing to make required payments, i.e. probability that the bond issuer will make debt payments late.
CRISA The Code for Responsible Investing in South Africa (CRISA) gives guidance on how the institutional investors should execute investment analysis and investment activities and exercise rights so as to promote sound governance. The CRISA code requires asset managers that adopt it to publicly disclose their policies and methods of incorporating ESG factors into the investment process.
Cumulative Returns The cumulative return for a portfolio or an asset is the cumulative compound return over the full length of a specified time period. The percentage measure of this return is not annualised and as such represents the actual total return of the portfolio or asset over the period. By annualising the percentage figure, one can calculate the average annual return of the portfolio or asset over the period.
Defined Contribution
A major category of asset class, which is a commonly used name for ordinary shares, representing ownership in a company. The owner of the share (shareholder) will generally be able to vote on company issues; and will be entitled to dividends declared.
ESG Environmental, social and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.
Fixed Income A major category of asset class that includes cash, nominal bonds, inflation linked bonds and credit instruments.
Frontier Markets Frontier markets are less advanced capital markets in the developing world. Frontier markets are countries that are more established than the least developed countries (LDCs) but still less established than the emerging markets. Frontier markets are also known as “pre-emerging markets.
GIPS™
Employer and employee contribute an agreed amount every month. When the employee retires, the accumulated capital amount and growth are used to purchase a pension from a third-party supplier.
The Global Investment Performance Standards (GIPS) is a set of standardized, industry-wide ethical principles that guide investment firms on how to calculate and present their investment results to prospective clients.
Developed Markets
Halaal
A developed or an advanced market in investing terms is a country that is most developed in terms of its economy and financial markets.
Diversification A portfolio strategy to reduce exposure to risk by investing in various instruments or asset classes, such as equities, bonds and property that are unlikely to move in the same direction at the same time. In other words, the process of spreading investments among different instruments or markets to reduce the overall risk or loss if one performs poorly.
Duration Duration is a measure of interest rate risk for a bond or portfolio of bonds. It measures the sensitivity of the value of a bond – or collection of bonds – to a change in interest rates.
Effective Interest Rate The effective rate converts the compounding rate of return into a simple rate of return. This means that the effective rate of return can simply be multiplied by the investment period to calculate the cumulative rate of return.
Halal refers to something that is permissible according to Islamic law. To be considered acceptable, a business transaction must be based on an Islamic contract form, distribute risk and return among the parties to the contract, and avoid unacceptable activities, including interest and uncertainty. To determine whether a stock is halal, Muslim investors evaluate companies based on levels of debt, interest income, and liquidity, as well as participation in prohibited activities.
Haram Haram describes anything that is unacceptable under Shari’ah law. It is considered inappropriate for a Muslim investor to profit from any activity that violates Islamic principles. Certain industries, including alcohol, pornography, gambling, pork, and conventional financial services, are inherently haram.
Hedge Funds These are usually absolute return investment strategies that use alternate investment techniques (e.g. short positions, leverage, etc.). The funds can be used in a Regulation 28 strategy but are not compliant as standalone products.
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MANAGER WATCH™ SURVEY
Inflation
Lower Quartile
The increase in the general price level in the economy. The inflation rate is calculated by defining a basket of goods and services that a typical consumer would consume and calculating a weighted average of the prices of those goods to arrive at a single percentage number, e.g. CPI.
A statistical measure representing the bottom 25% of observations in a ranked set of data.
Inflation Linked Bonds
Maximum Drawdown A risk of loss measure that is calculated as the maximum loss incurred by an investment over a stated time horizon.
An inflation linked bond is a type of bond where the final capital payment is adjusted by the inflation rate for the term of the bond.
Market Capitalisation
Information Ratio
Mean Absolute Deviation
A risk-adjusted measure of return calculated by dividing the active return of a fund by the tracking error of the fund.
Inter-quartile Range A statistical measure representing the difference between the medians of the upper half and the lower half of a ranked set of data.
International Monetary Fund The International Monetary Fund (IMF) is an international organization that aims to promote global economic growth and financial stability, encourage international trade, and reduce poverty.
Investment Manager An organisation that invests assets on behalf of third parties for a fee.
Investment Philosophy A framework of principles and way of thinking about markets that underlies the beliefs and approach of an investment manager. It drives which asset classes and investment securities to include in the investment portfolio. It can be used to describe the style of a manager.
JSE Currently the only South African Exchange which offers a centralised trading platform to capital markets across a diverse set of investment securities, in particular, equities, bonds, and derivatives.
King IV™
The value of a company’s issued share capital, i.e. share price multiplied by number of shares on the stock exchange.
A measure of dispersion calculated as the average of the absolute differences between each value and the mean in a data set.
Median A statistical measure representing the midpoint value in a ranked set of data.
Modified Duration Modified duration is a type of duration measure which measures the approximate sensitivity of the value of a bond – or collection of bonds - to a change in interest rates, assuming the cash flows remain unchanged. As such, it is only appropriate for bonds with no embedded options.
Money Market Market for short-term loans and deposits with a maturity less than one year.
Money Weighted Return Measures internal rate of return, to identify when cash flows are entering or exiting an investment by discounting cash flows to the beginning value.
Murabahah Murabahah refers to an instalment credit agreement for the sale of tangible goods. The seller acquires an asset, which the buyer agrees to purchase at some point in the future. The seller is entitled to a profit, as long as the exact mark-up is disclosed in the contract. Payments may be spread out over time.
MSCI World Index
King IV™ is structured as a Report that includes a Code, with additional, separate sector supplements for SME’s, NPO’s, State-Owned Entities, Municipalities and Retirement Funds. The King Code™ contains both principles and recommended practices aimed at achieving governance outcomes.
The Morgan Stanley International World Index is maintained by MSCI Inc., formerly Morgan Stanley Capital International, and is used as a common benchmark for ‘world’ or ‘global’ stock funds intended to represent a broad cross-section of global markets. The index includes a collection of stocks of all the developed markets in the world, as defined by MSCI.
Long Position
Peer Group
It is a positive holding in a portfolio that results from buying investments in the portfolio. This is done when the manager believes that the value of this investment security will increase in the future and he will be able to sell it for a higher price and create a profit. This is directly opposite to a short position.
Usually refers to a set of similarly managed investment mandates.
Leverage It is a holding in a portfolio that results from using complex alternate trading techniques that allows the manager to buy investment securities with money borrowed or by utilising collateral as a means of payment. 182
Passive Investing An implementation approach of a specialist fund strategy where the need to outperform the benchmark is not required in order to meet the investment objective. The specialist investment strategy is invested in passive funds. Not to be confused with Passive Fund Management.
SECTION 5
Passive Fund Management
Sector
An investment approach that seeks to replicate the performance and risk of an investable benchmark/index. Typically the investment portfolio will mirror the holdings of a market index. Passive managers believe that this is a more efficient and cost effective way of accessing the risk and return profile of an asset class or investment style.
All instruments within a particular area of activity or industry for an asset class. The JSE defines sectors as Financials, Basic Materials, Oil and Gas Producers, Industrials, Consumer Goods, Healthcare, Consumer Services, Telecommunications and Technology. The Bond sectors are Government, Parastatals, State Owned Enterprises, Corporates and Other.
Pooled Portfolio
Shari’ah
Funds from many individual investors that are aggregated for the purposes of investment, as in the case of a retirement fund. Investors in pooled fund investments benefit from economies of scale, which allow for lower trading costs, diversification and professional fees. Pooled funds are generally backed by a policy of insurance.
Shari’ah is the divine law of Islam, derived from the Qur’an and other holy texts, which serves as a moral guide to Muslims. The Shari’ah sets guidelines for what is right and wrong in everyday life, including standards for food, family life, and business transactions.
Purification
Simple Rate of Return
Purification in a Shari’ah investing context refers to getting rid of unacceptable profits. Shariah prohibits Muslims from profiting, even indirectly, from unacceptable practices, so investors are expected to account for and give away any income derived from riba or other haram sources.
A simple rate of return that expresses the relationship between the initial investment and the rate at which returns are earned on that investment, ignoring any ability for further returns to be earned on past returns. This is only an accurate reflection of the investor’s return when all returns are paid out from the portfolio when they are earned.
Purchasing Power Parity
Segregated Portfolio
Purchasing power parity (PPP) is an economic theory that compares different countries’ currencies through a “basket of goods” approach. According to this concept, two currencies are in equilibrium or at par when a basket of goods (taking into account the exchange rate) is priced the same in both countries.
Segregated portfolios are not pooled with those of other investors and so the performance and expenses of an investment account are not affected by the activities of any other investors in the portfolio.
Range A statistical measure representing the difference between the maximum and minimum values in a ranked set of data.
Real Return Portfolios
Sharpe Ratio Risk adjusted return ratio of return per unit of risk. It is calculated as excess return (over the risk-free return) divided by volatility.
Short Position
Investment limits set by the Pensions Fund Act on retirement funds to protect against imprudent investment decisions.
It is a negative holding in a portfolio that results from using complex alternate trading techniques that allows the sale of an investment security that is not owned. This is done when the manager believes that the value of this investment security will decrease in the future and he will be able to buy it back later for a lower price and create a profit. This is directly opposite to a long position.
Risk
Sortino Ratio
An alternate name for a portfolio using an absolute return investment strategy.
Regulation 28
Risk is a very generic term used to calculate either variation in returns or as a measure of losses. E.g. Volatility is usually used as a proxy for risk that measures variation. Maximum Drawdown is usually used as a proxy of risk that measures loss.
A risk adjusted return measure similar to the Sharpe ratio. The Sortino ratio measures risk as the volatility of the returns below a certain target (0% in the case of Capital Loss and inflation in the case of Inflation).
Risk Premium
Socially Responsible Investing
The return differential between the risk-free asset (cash) and a risky asset.
Rolling Return A time series of a rate of return with the same time horizon for a portfolio, asset class or investment security. It represents a realistic way of reporting returns which takes into account different market and economic environments.
Scatter plot A diagram illustrating the relationship between two sets of quantities using dots that can be used to generate a line of best fit.
Socially responsible investing is the practice of investing money in companies and funds that have positive social impacts. Investors should keep in mind that socially responsible investments are still investments, and be sure to weigh the potential for return into their decisions.
Specialist Fund Strategy An investment approach where the asset allocation, investment strategies employed and risk assumed to achieve the specified investment objective are explicitly defined and not delegated to the investment manager. A specialist investment strategy may be implemented actively or passively.
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MANAGER WATCH™ SURVEY
Specialist Mandate
Time-Weighted Rate Of Return
A mandate given to an investment manager to manage specific asset classes (equities, bonds, etc.) or investment strategies (hedge funds, impact investing, etc.) as part of a specialist fund strategy.
The compound rate of return over a stated evaluation period of one unit of money initially invested in the portfolio or strategy.
STeFI
The time period relating to the rate of return measurement calculation. It can also reference the time set to meet a certain investment objective or goal.
A popular index used to benchmark performance for South African cash portfolios. This index represents a weighted basket of money market instruments of different investment maturities such as NCDs and Call Deposits.
Time Horizon
Top 40
An investment technique that sets the medium to long term allocation to asset classes which will primarily meet the investment objectives within a defined level of risk. Used primarily in specialist fund strategies.
A popular index used to benchmark performance for South African large equity portfolios. This index represents a weighted basket of the forty largest companies which are constituents of the FTSE/ JSE All Share Index, ranked by full market capitalization. Interestingly the number of constituents can exceed 40, as some companies issue multiple share types (e.g. Investec, Mondi).
Sustainability
Tracking Error
Strategic Asset Allocation
Sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs. The concept of sustainability is composed of three pillars: economic, environmental, and social—also known informally as profits, planet, and people.
Sustainable Development Goals The Sustainable Development Goals are a collection of 17 global goals designed to be a “blueprint to achieve a better and more sustainable future for all”. The SDGs, set in 2015 by the United Nations General Assembly and intended to be achieved by the year 2030, are part of UN Resolution 70/1, the 2030 Agenda.
SWIX A popular index used to benchmark performance for South African equity portfolios. This index represents a shareholder weighted basket of companies listed on the main board of the JSE with all constituents down weighted by applying an alternate free float known as the SWIX free float.
Sukuk Sukuk are asset-backed securities designed to provide a relatively fixed stream of investment income without violating the Islamic prohibition on interest. Instead of interest payments, sukuk investors receive a pass-through of income generated by the underlying assets. Sukuk are a Shari’ah-compliant tool for raising capital and may be structured around a variety of Islamic contracts.
Tactical Asset Allocation An investment technique that periodically adjusts the SAA to take advantage of opportunities in the market in order to enhance returns in the short term; and maximise risk adjusted returns.
Term To Maturity The time remaining on the life of a bond, i.e. time remaining for the bond to be fully repaid.
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Measure of variability of returns relative to benchmark or index. It is usually expressed as an annualised standard deviation of active returns.
UN Principles for Responsible Investment UN Principles for Responsible Investment (PRI) are a set of six principles that provide a global standard for responsible investing as it relates to environmental, social and corporate governance (ESG) factors. Organizations follow these principles to meet commitments to beneficiaries while aligning investment activities with the broader interests of society.
Upper Quartile The top 25% of observations in a ranked set of data.
Volatility Is a proxy for risk and is calculated as the annualised standard deviation of monthly returns.
Yield Return on a security usually expressed in percentage terms.
Yield Curve The relationship between time to maturity and yield to maturity of bonds.
Yield To Maturity An estimate of the rate of return that would be earned on a bond if the bond is held to its maturity date. It assumes that interest earned is reinvested in the bond.
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DIRECTORY OF SOUTH AFRICAN ASSET MANAGERS
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27four Investment Managers (Pty) Ltd www.27four.com
Company details
FAIS requirements
Investment mandates
FAIS FSP registration number: 31045 Switchboard: +27 11 442 2464 General email: info@27four.com Website: www.27four.com Address: Firestation Rosebank 5th Floor, 16 Baker Street, 2196 PO Box 522417, Saxonwold Johannesburg, 2132 Compliance officer name: Independent Compliance Services – Enrique Goosen +27 21 975 6597
Who is your FAIS complaints officer? Enrique Goosen Please provide the link to the complaints policy on your website: http://www.27four.com/legal-terms-andconditions/
What are your total assets under management? R23.81 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R21.59 billion Retail: R2.22 billion Life: – Other: –
Investment philosophy 27four focuses on building welldiversified portfolios that are linked to a broad spectrum of investor goals and appetites for risk. They believe that asset allocation is the primary determinant of variation in portfolio return and is the cornerstone of portfolio construction. Their skilled investment team is experienced in the application of quantitative techniques to identify the sources of asset class returns across different market cycles to derive their long-term asset allocation views. They invest in a combination of large, well-known managers and smaller untapped “boutiques” who they believe possess a distinct performance advantage as they are more nimble and opportunistic, especially in asset classes where the ability to take calculated risks and move swiftly is vital to success. Core to their investment philosophy is risk mitigation. Rigorous risk management and monitoring are applied at every level of their investment process and equal importance is given to business, compliance, operational and administrative risks as applied to investment performance risk.
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Ownership What is the ownership structure of the company? 60%: Fatima Vawda (founder & managing director), 40%: Staff (share ownership scheme) Who are the directors of the company? Fatima Vawda and Vic du Preez Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes. 100%
History When was the company established? 2007-09-01 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Honeycomb BEE Ratings Date of accreditation: 2019-08-26
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Key investment personnel Size of investment team: 13 Fatima Vawda Managing Director MSc (App Maths) 25 years of industry experience 12 years with the firm Claire Rentzke Chief Investment Officer BBusSci Hons, CFA 19 years of industry experience 8 years with the firm Rory Ord Head of Unlisted Investments BBusSci Hons (Finance) 16 years of industry experience 3 years with the firm Nadir Thokan Portfolio Manager BCom Hons 9 years of industry experience 9 years with the firm
36ONE Asset Management (Pty) Ltd www.36one.co.za
Company details
Ownership
Investment mandates
FAIS FSP registration number: 19107 Switchboard: +27 10 501 0250 Fax number: +27 10 501 0251 General email: support@36one.co.za Website: www.36one.co.za Address: 6A Sandown Valley Crescent Sandown, Sandton, 2196 Compliance officer name: External: Independent Compliance Services Internal: Grant Mann
What is the ownership structure of the company? 36ONE Asset Management (Pty) Ltd is owned by Cy Jacobs and Steven Liptz. Cy Jacobs is Head of Investments and Steven Liptz is Head of Operations. Who are the directors of the company? Cy Jacobs and Steven Liptz Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: All team members receive a modest base salary. Majority of compensation is derived from bonuses which are linked to the performance of the funds. Bonuses are paid quarterly.
What are your total assets under management? R16.6 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R11.62 billion Retail: R4.98 billion Life: – Other: –
Investment philosophy
History
Our investment approach is centred on the principle that the market does not efficiently price securities at all times. We therefore believe that stock selection through bottom-up fundamental analysis can outperform over time. We follow the same investment approach across all our funds. Although we focus primarily on bottom-up fundamental research, macroeconomic views play a supporting role in portfolio construction.
When was the company established? 2004 List of mergers that have taken place since being established: –
FAIS requirements Who is your FAIS complaints officer? External: Independent Compliance Services Internal: Grant Mann Please provide the link to the complaints policy on your website: https://www.36one.co.za/legal/ complaints-resolution-procedure
B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: –
Key investment personnel Size of investment team: 10 Cy Jacobs Chief Investment Officer BCom Hons, CA(SA) 23 years of industry experience 14 years with the firm Steven Liptz Head of Operations BCom 22 years of industry experience 14 years with the firm Evan Walker Portfolio Manager MBA, BCompt Hons 19 years of industry experience 7 years with the firm
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
189
Abax Investments (Pty) Ltd www.abax.co.za
Company details
History
Key investment personnel
FAIS FSP registration number: 856 Switchboard: +27 21 670 8987 General email: matthew@abax.co.za Website: www.abax.co.za Address: The Oval, 1 Oakdale Road Newlands, 7700 PO Box 23851, Claremont, 7735 Compliance officer name: Tim Howse (eComply) +27 21 671 8162
When was the company established? 2003 List of mergers that have taken place since being established: None
Size of investment team: 16
Investment philosophy We believe that markets are inefficient and that through research we can identify companies that will show superior earnings growth over the longer term which is not reflected in current valuations. Similarly we believe we can identify companies where current valuations overvalue their future earnings growth potential.
FAIS requirements Who is your FAIS complaints officer? Tim Howse (eComply) Please provide the link to the complaints policy on your website: Available on request
Ownership What is the ownership structure of the company? Abax is a standalone entity and is not part of a bigger group of companies. Abax is, however, an affiliate of Affiliated Managers Group (AMG), a US listed company. Who are the directors of the company? Executive: Anthony Sedgwick, Marius van Rooyen, Edel Little, Rashaad Tayob Alternate Directors (Executive): Omri Thomas, Steve Minnaar Independent Non-executive Director: Estelle Cloete Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, staff and management own or control 100% of the voting rights and an approximate 75% financial interest. 190
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 6 By whom have you been accredited? Acuity Verification Services Date of accreditation: 2019-06-09
GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R97.3 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R62 billion Retail: R33.4 billion Life: – Other: R1.9 billion
Steve Minnaar Chief Investment Officer / Head of Research PhD (Eng), B Com Hons, CFA 20 years of industry experience 10 years with the firm Rashaad Tayob Head of Fixed Income BBusSci, CFA 17 years of industry experience 7 years with the firm Marius van Rooyen Head of Equities MBA, BEng, BProc 20 years of industry experience 16 years with the firm Anthony Sedgwick Chief Executive Officer BBusSci 23 years of industry experience 16 years with the firm Omri Thomas Senior Equity Portfolio Manager CA(SA), CFA 20 years of industry experience 12 years with the firm Matthew de Wet Head of Product Development BSc (Act Science), CFA, CFP 20 years of industry experience 4 years with the firm Philip Liebenberg Head of Absolute Return Strategy PhD (Chem Eng), CFA 20 years of industry experience 2 years with the firm
Absa Asset Management (Pty) Ltd www.absainvestments.co.za
Company details
History
Key investment personnel
FAIS FSP registration number: 522 Switchboard: +27 11 243 4554 Fax number: +27 086 532 2607 General email: info@abam.co.za Website: www.absainvestments.co.za Address: Absa Sandton South Campus 15 Alice Lane, Sandton, 2146 Private Bag 291509, Melville, 2109 Compliance officer name: Carla Williams +27 11 243 4542
When was the company established? 1997 List of mergers that have taken place since being established: –
Size of investment team: 16
Investment philosophy We are active, pragmatic value investors aiming to consistently achieve excess risk-adjusted returns.
FAIS requirements Who is your FAIS complaints officer? Carla Williams Please provide the link to the complaints policy on your website: –
Ownership What is the ownership structure of the company? 100% owned by Absa Group Ltd Who are the directors of the company? Carel Gronum, Nomkita Nqweni, Armien Tyer, Elias Masilela, Ann Leepile Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: No
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Empowerdex Date of accreditation: 2019-03-11
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? Ernst & Young Date of verification: 2019-12-05 Expiry date of verification: 2020-12-31
Investment mandates What are your total assets under management? R132 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R130 billion Retail: – Life: R2 billion Other: –
James Turp Head of Fixed Income Franchise BEcon, SAIFM 27 years of industry experience 5 years with the firm Stephen Arthur Head of Equity Franchise BSc (Eng), CFA 30 years of industry experience 13 years with the firm Kurt Benn Head of Balanced Franchise BCom Hons, BBusSc, CFA 22 years of industry experience 4 years with the firm Godfrey Mwanza Head of Pan African Franchise BSc Hons (Econ) Hons, CFA 12 years of industry experience 5 years with the firm Fayyaz Mottiar Head of Property Franchise BEconSc, CFA 20 years of industry experience 10 years with the firm Eben Mare Head of Absolute Return Franchise PhD, MSc, BSc Hons, (FAIS) 26 years of industry experience 3 years with the firm
191
Absa Multi Management (a Subsidiary of Absa Investment Management Services) www.absainvestmentmanagement.co.za
Company details
History
Key investment personnel
FAIS FSP registration number: 523 Switchboard: +27 11 243 4437 Fax: +27 86 021 2123 General email: utenquiries@absa.co.za Website: www.absainvestmentmanagement.co.za Address: 15 Alice Lane, 2nd Floor, South Campus Building, Sandton Private Bag X10056, Sandton, 2146 Compliance officer name: Carla Williams Russell +27 11 243 4542
When was the company established? Absa Investment Management services in 1969, Absa Multi Management in 1999 List of mergers that have taken place since being established: –
Size of investment team: 11
Investment philosophy
GIPS
The Absa Multi Management portfolio management process is built on the five key investment disciplines of asset allocation, manager selection, strategy selection, blending and optimisation as well as risk management. In applying this multidimensional investment process, the interaction between the key contributors to superior performance is examined for each mandate.
Are you GIPS compliant? No Are you GIPS verified? – By whom have you been verified? – Date of verification: – Expiry date of verification: –
FAIS requirements
Investment mandates
Who is your FAIS complaints officer? Samantha Padayachee Please provide the link to the complaints policy on your website: www.absainvestmentmanagement.co.za
What are your total assets under management? R68.5 million Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R38.8 million Retail: R29.7 million Life: – Other: –
Ownership What is the ownership structure of the company? 100% owned by ABSA Group Who are the directors of the company? The directors are at Absa Group Level. Wendy Lucas Bull, Jason Quinn, Yolanda Cuba, Alex Darko, Maria Ramos, Colin Beegs, Daisy Naidoo, Francis Okomo Okello, Mark Merson, Mohamed Husain, Peter Matlare, Tasneem Abdool Samad, Daniel Hodge and Rene Van Wyk. Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: No 192
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Empowerdex Date of accreditation: 2018-10-03
Neville James Chief Investment Officer BCom, CFA 23 years of industry experience 13 years with the firm Mothepu Mothae Head of Research MBA, BBA 13 years of industry experience 9 years with the firm Jonel Mathee Managing Director MBA, BCom 19 years of industry experience 12 years with the firm Kwaku Koranteng Head of Institutional Business Bsc, FIA 15 years of industry experience 4 years with the firm Sheetal Rama Senior Portfolio Manager Bsc (Act) 15 years of industry experience 14 years with the firm
Aeon Investment Management (Pty) Ltd www.aeonim.co.za
Company details FAIS FSP registration number: 27126 Switchboard: +27 21 204 6061 General email: funds@aeonim.co.za Website: www.aeonim.co.za Address: 4th Floor, The Citadel 15 Cavendish Street Claremont, 7708 PO Box 24020, Claremont, 7735 Compliance officer name: Christelle De Jager (Independent Compliance Services) +27 21 975 6597
Investment philosophy Active Equity: Track record of 10 years. Style is that of Growth At a Reasonable Price (GARP). Their adaptation of the GARP style seeks to combine the best of growth and value investing, by buying companies with long-term sustainable growth rates greater than that implied by the company’s market valuation. Smart Multi-Factor Equity: Track record of 8 years. Uses systematically driven fundamental security selection and statistical trading models to manage a portfolio designed to outperform the SWIX benchmark. The portfolio is designed to add value in a risk-managed framework. Balanced Fund (Global Exposure): Track record of 6 years. Invests in a range of income and protected equity assets and strategies to protect 90% of capital over a rolling 12-month period and capture as much of the upside of equity and fixed income markets as possible. The fund invests in domestic and global equities, fixed income as well as derivatives instruments. It uses a systematic return modelling process and a disciplined investment methodology.
12-month period and capture as much of the upside of equity and fixed income markets as possible. The fund invests in domestic equities, fixed income as well as derivatives instruments. It uses a systematic return modelling process and a disciplined investment methodology.
FAIS requirements Who is your FAIS complaints officer? Asief Mohamed Please provide the link to the complaints policy on your website: http://www.aeonim.co.za/ complaintspolicy.asp
Ownership What is the ownership structure of the company? 90% owned by the ZAR Trust, 10% owned by Aeon IM Staff Who are the directors of the company? Asief Mohamed, Nocamagu (Cami) Mbulawa Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Staff and management own 27.2% of the shares. And, up to 30% of pre-tax profits is distributed to all staff every 6 months.
History When was the company established? 2005 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Sworn affidavit Date of accreditation: 2019-05-15
GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R11.41 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R11.09 billion Retail: R322.98 million Life: N/A Other: N/A
Key investment personnel Size of investment team: 8 Asief Mohamed Chief Investment Officer Bcom, CA(SA), CFA 31 years of industry experience 14 years with the firm Jay Vomacka Senior Portfolio Manager MSc (Ind Eng), BSc (Eng), Certified Financial Technician (IFTA, London), CFA 13 years of industry experience 7 years with the firm Zaid Paruk Portfolio Manager & Analyst BCom, CA(SA) 8 years of industry experience 1 year with the firm
Local Balanced Fund: Track record of 1 year. Invests in a range of income and protected equity assets and strategies to protect 90% of capital over a rolling 193
AFC Investment Management (Pty) Ltd www.afcinvestment.co.za
Company details
FAIS requirements
GIPS
FAIS FSP registration number: 706 Switchboard: +27 21 673 2620 Fax number: +27 21 683 2610 General email: dee@afcinvestment.co.za Website: www.afcinvestment.co.za Address: 3rd Floor Mill House, Boundary Terraces Corner Campground and Mariendahl Lane Newlands, 7700 Compliance officer name: Deon Harmse Moonstone +27 21 554 5745
Who is your FAIS complaints officer? DS Campouroglou Please provide the link to the complaints policy on your website: www.afcinvestment.co.za
Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment philosophy Philosophy and style AFC employs a multi-disciplinary approach to asset management, involving fundamental as well as behavioural (technical) forms of analysis. AFC believes that in excess of 90% of performance is derived from correct asset allocation and industry selection, so the majority of analysis time is spent on understanding the macroenvironment. The investment style is thematic, with stock selection reflecting those themes believed to be impacting the investment environment at any point in time. As thematic investing relies on understanding the changes within economies, its implementation will result in portfolio structures that are not carbon copies of market indices. A by-product of the thematic and behavioural approach is that views will sometimes be taken against market consensus, but resulting in superior performance at lower than average risk.
194
Ownership What is the ownership structure of the company? 100% owned by IA Mackenzie Family Trust Who are the directors of the company? DS Campouroglou, IA Mackenzie Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: No
History When was the company established? 1960s List of mergers that have taken place since being established: Independent until 1998 when acquired by Appleton/PSG. Sold on to T-Sec in 2003. Management buy-back in 2005
B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? None By whom have you been accredited? – Date of accreditation: –
Investment mandates What are your total assets under management? R820 million Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R400 million Retail: R420 million Life: – Other: –
Key investment personnel Size of investment team: 2 DS Campouroglou Chief Investment Officer BSc 40 years of industry experience 23 years with the firm IA Mackenzie Head of Equities BA (Econ) 35 years of industry experience 29 years with the firm
Afena Capital (Pty) Ltd www.afenacapital.com
Company details
Ownership
Investment mandates
FAIS FSP registration number: 25033 Switchboard: +27 21 657 6240 Fax number: +21 21 671 4658 General email: info@afenacapital.com Website: www.afenacapital.com Address: 5th Floor MontClare Place Corner Campground & Main Roads Claremont, 7708 PO Box 23883, Claremont, 7735 Compliance officer name: Zain Parker (Internal Compliance Officer) +27 21 657 6277 Tim Howse (External Compliance Officer) +27 21 671 8162
What is the ownership structure of the company? 100% owned by management and staff Who are the directors of the company? Zain Parker, Shoaib Vayej, Mila Mafanya and Xolisa Mpangoshe Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes. The management and staff of Afena Capital hold 100% of the equity shares of Afena Capital through directly held shares.
What are your total assets under management? R5.1 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R5.1 billion Retail: – Life: – Other: –
Investment philosophy Afena follows a valuation-based investment approach. Their investment philosophy is to buy businesses below their assessment of intrinsic value. They estimate the value of a business based on its normal through-the-cycle operating performance. This forces them to be patient long-term investors as they believe that share prices ultimately reflect a business’s true economics, and not its short-term performance. This also means they tend to favour businesses they understand with good long-term economics. Afena is a bottom-up stock-picking house with a strong commitment to insightful proprietary research. They are disciplined and consistent in the execution of their philosophy.
FAIS requirements Who is your FAIS complaints officer? Tim Howse Please provide the link to the complaints policy on your website: http://www.afenacapital.com/complaints. html
History When was the company established? 2005 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Sworn affidavit Date of accreditation: 2019-03-18
Key investment personnel Size of investment team: 7 Mila Mafanya Head of Equities, Interim CEO BBusSc, CFA 15 years of industry experience 8 years with the firm Shoaib Vayej Portfolio Manager, Head of Research BSc (Eng), CFA 15 years of industry experience 7 years with the firm Zahira Osman Portfolio Manager BBusSc, CFA 15 years of industry experience 14 years with the firm
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? eComply Date of verification: 2019-05-29 Expiry date of verification: 2020-05-28
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Alexander Forbes Investments www.alexanderforbesinvestments.co.za
Company details
Ownership
GIPS
FAIS FSP registration number: 711 Switchboard: +27 11 505 6000 Fax number: +27 11 263 2316 General email: AFInvestclientservices@aforbes.com Website: www.alexanderforbesinvestments.co.za Address: 115 West Street, Sandown Sandton, 2196 PO Box, 786055, Sandton, 2146 Compliance officer name: Amanda Erasmus +27 11 269 2244
What is the ownership structure of the company? Alexander Forbes Investments is a subsidiary of Alexander Forbes Who are the directors of the company? Independent Non-executive Director Ms Nonkululeko Merina Nyembezi Mr George Nigel Payne Ms Marilyn Ramplin Mr Mark Derrick Collier Executive Director: Chief Executive officer Mr David Jacobus De Villiers Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: No
Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment philosophy
History
At Alexander Forbes Investments our focus is on managing our clients’ financial goals. In pursuit of certainty we set out to understand your circumstances and risk tolerance to set our clear goals. We integrate your investment journey and outcome, as well as the overall client experience to break the cycle of not being able to retire comfortably, of disappointing investment outcomes and of indecisiveness, fear and anxiety around investment matters. Because investments are managed to achieve an outcome, the options available for implementation are vast, making our approach more flexible and adaptive to different market cycles than a traditional investment approach.
When was the company established? 1997 List of mergers that have taken place since being established: Superflex 1999
FAIS requirements Who is your FAIS complaints officer? Amanda Erasmus Please provide the link to the complaints policy on your website: www.alexanderforbesinvestments.co.za/ Risk-Compliance/Corporate.Governance
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B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Kopax BEE Solutions Date of accreditation: 2019-06-10
Investment mandates What are your total assets under management? R300.56 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R265.86 billion Retail: R3.63 billion Life: R31.07 billion Other: –
Alexander Forbes Investments Continued
Key investment personnel Size of investment team: 29 Gyongyi King Chief Investment Officer BSc (Econ), CFA 22 years of industry experience 10 years with the firm Makhosonke Madi Portfolio Manager BCom Hons 6 years of industry experience 6 years with the firm Suniti Naran Head: Analytics and Process BSc (Act Sc) 25 years of industry experience 16 years with the firm Senzo Langa Head: Portfolio Management MMFI (cum laude), BCom Hons, CFA 11 years of industry experience 8 years with the firm
Lebo Thubisi Head: Investment Research BBusSc Hons 11 years of industry experience 8 years with the firm Premal Ranchod Analyst: Investment Research BCom, HDip(Acc), CA(SA) 4 years of industry experience 4 years with the firm David Moore Head: Alternative Investments MBSc (Fin), MCom, BBusSc 9 years of industry experience 1 year with the firm Rob Price Head: Asset Allocation MCom (Econ), BCom Hons, CFA 8 years of industry experience 4 years with the firm
Ernest Mabaso Portfolio Manager MBA, BCom, CIMA (UK) 19 years of industry experience 11 years with the firm
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All Weather Capital www.allweather.co.za
Company details
Ownership
Key investment personnel
FAIS FSP registration number: 36722 Switchboard: +27 11 722 7382 General email: info@allweather.co.za Website: www.allweather.co.za Address: 9th Floor Katherine Towers 1 Park Lane, Wierda Valley Sandton, 2196 Compliance officer name: Independent Compliance Services +27 21 975 6597
What is the ownership structure of the company? 55% owned by Zava Financial Services, 45% owned by Shane Watkins Who are the directors of the company? Directors: John Oliphant, Shane Watkins Non-executive director: Fulu Makwetla Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 67% is owned by staff and management
Size of investment team: 7
Investment philosophy Our philosophy is based on the belief that the market continually and regularly misprices assets. Mispricings occur regularly because investors either underestimate risks or do not recognise potential. We try to understand these risks and appreciate the scale of opportunities better than the market does. Significant opportunities are created for those few who are diligent with the fundamentals. Our ambition is simply to buy a share where the market has undervalued it relative to intrinsic value or to sell a share when the prevailing price is far in excess of intrinsic value. We determine a company’s intrinsic value by forecasting cash flows through financial modelling. In everything we do we exercise caution and act conservatively. We express this by including a wide margin for error in forecasting and by limiting our exposure to unquantifiable risks.
FAIS requirements Who is your FAIS complaints officer? Shane Watkins Please provide the link to the complaints policy on your website: http://www.allweather.co.za/legal.html
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History When was the company established? 2014 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? EVS Date of accreditation: 2019-04-01
GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R6.04 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R6.02 billion Retail: R25.49 million Life: – Other: –
Shane Watkins Chief Investment Officer BBusSc (Fin), PGDA, CA(SA), CFA 25 years of industry experience 5 years with the firm Patsy David Head of Research MBA, FAIS 30 years of industry experience 3 months with the firm Sanelisiwe Tofile Deputy CIO BCom Hons, CFA 5 years of industry experience 5 months with the firm Prince Mopai Equity Analyst BSc (Min and Eng) 3 years of industry experience 2 months with the firm Dumisani Ndlovu Equity Analyst BCom Hons, CFA 2 years of industry experience 2 years with the firm Mmakgotso Mogoane Marketing and Business Development BCom 2 years of industry experience 1 year with the firm Mark Scholefield Operations Manager/Fund Accountant BCom, GCMA 10 years of industry experience 5 years with the firm Gomolemo Seete ESG Analyst BCom Hons 5 years of industry experience 1 year with the firm Chante Mntuyedwa Portfolio Assistant/Fund Accountant BCom Hons 2 years of industry experience 2 month with the firm Chris Willis Equity Analyst BCom Hons (CFA) 6 years of industry experience 5 years with the firm
Allan Gray (Pty) Ltd www.allangray.co.za
Company details
Ownership
Investment mandates
FAIS FSP registration number: 27145 Switchboard: +27 21 415 2300 Fax number: +27 21 415 2400 General email: info@allangray.co.za Website: www.allangray.co.za Address: 1 Silo Square, V&A Waterfront Cape Town, 8001 PO Box 51318, V&A Waterfront Cape Town, 8002 Compliance officer name: Ursuline Loubser +27 21 415 7471
What is the ownership structure of the company? Allan Gray is a privately owned company. Who are the directors of the company? Rob Formby, William Gray*, Andrew Lapping, Ian Liddle (Chairman)*, Teboho Mahuma*, Thando Mhlambiso, Khumo Morolo* (*Non-executive Directors) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Past and present executive directors are shareholders of Allan Gray Group Proprietary Limited. Additionally a 14% equity stake in Allan Gray Proprietary Limited has been reserved for current and future staff.
What are your total assets under management? R501.85 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R203.91 billion Retail: R297.94 billion Life: – Other: –
Investment philosophy
History
Andrew Lapping Chief Investment Officer, Portfolio Manager, Analyst BSc (Eng), BCom, CFA 18 years of industry experience 18 years with the firm
Allan Gray’s investment philosophy is valuation orientated which means that their research effort is focused on identifying good quality assets that are priced below intrinsic value. Intrinsic value is calculated using a number of methodologies but is usually defined as the discounted value of expected future cash flows. They typically buy shares when research and analysis indicate that the intrinsic value of the company far exceeds its market price, in anticipation of the price rising to its intrinsic value. This is in contrast to the “momentum” approach where a manager identifies an upward trend and follows this by purchasing stock in the belief that the trend will continue.
When was the company established? 1973 List of mergers that have taken place since being established: –
Duncan Artus Portfolio Manager, Analyst BBusSc, PGDA, CFA, CMT 19 years of industry experience 18 years with the firm
B-BBEE credentials
Mark Dunley-Owen Portfolio Manager, Analyst BBusSc, CFA 16 years of industry experience 10 years with the firm
FAIS requirements Who is your FAIS complaints officer? Frank Daubenton Please provide the link to the complaints policy on your website: https://www.allangray.co.za/globalassets/ legal/complaints-process.pdf
Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? AQRate Verification Services Date of accreditation: 2019-05-10
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? Ernst and Young Date of verification: 2019-07-11 Expiry date of verification: The assurance report confirms compliance with the Global Investment Performance Standards (GIPS) for the period from 1 January 2018 to 31 December 2018.
Key investment personnel Size of investment team: 24
Ruan Stander Portfolio Manager, Analyst BSc Hons, FIA, FRM (GARP) 11 years of industry experience 11 years with the firm Jacques Plaut Portfolio Manager, Analyst BSc Hons 11 years of industry experience 11 years with the firm Leonard Krüger Portfolio Manager, Analyst BSc Hons, FFA, FASSA 12 years of industry experience 12 years with the firm Nick Ndiritu Portfolio Manager, Analyst BSc (Eng), MBA 9 years of industry experience 9 years with the firm 199
Alpha Asset Management (Pty) Ltd www.aam.co.za
Company details
FAIS requirements
Investment mandates
FAIS FSP registration number: 534 Switchboard: +27 31 835 0400 Fax number: +27 31 566 1310 General email: hedgefund@aam.co.za Website: www.aam.co.za Address: Cape Town: 25 Protea Road, 2nd Floor The Terraces, Claremont 7708 Johannesburg: Alpha House, Ballywoods Office Park, 33 Ballyclare Drive, Bryanston Durban: Lincoln on The Lake, 2 The High Street, Parkside, Umhlanga Ridge, 4319 Mauritius: 4th Floor, Ebene Skies, Rue de l’Institut, Ebene, 80817, Mauritius Compliance officer name: Moonstone Compliance and Risk Management Kerusha Manikum for Alpha Asset Management kerusha@alphawealth.co.za
Who is your FAIS complaints officer? Kerusha Manikum for Alpha Asset Management Please provide the link to the complaints policy on your website: –
What are your total assets under management? R4 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R3 billion Retail: R1 billion Life: – Other: –
Investment philosophy Alpha Asset Management’s philosophy is to provide investors with an independent approach to managing traditional asset classes such as equity and fixed income. Their solutions are engineered through sophisticated fund management techniques and are actively managed by investment professionals with relevant experience and expertise. Resultant solutions focus on capital preservation and capital growth, which is achieved through rigorous bottom-up analysis of the key drivers of volatility in portfolios, and the blending of skilled practitioners. Alpha Asset Management’s investment strategies are highly specialised and require an understanding of both technical risk management and proactive fund management supported by a disciplined processes. Alpha Asset Management has developed a unique investment process and framework for analysing and monitoring fund managers. They recognise the importance of qualitative and quantitative factors which drive return, volatility and predictability. 200
Ownership What is the ownership structure of the company? Jacques Du Plessis and Flynn Robson Who are the directors of the company? Kerry West Fynn and James Duncan Gilfillan Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: No
History When was the company established? 2004 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: –
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Key investment personnel Size of investment team: 8 John Haslett Portfolio Manager CA(SA), FRM 10 years of industry experience 8 years with the firm Hazel Pillay Portfolio Manager BCom (Acc) 10 years of industry experience 10 years with the firm Nick Pawley Portfolio Manager BCom Hons, CFA 8 years of industry experience 8 years with the firm Jacques Du Plessis Chief Investment Officer CAIA 20 years of industry experience 16 years with the firm
Aluwani Capital Partners (Pty) Ltd www.aluwanicapital.co.za
Company details
Ownership
Investment mandates
FAIS FSP registration number: 46196 Switchboard: +27 21 204 3800 General email: aluwani@aluwanicapital.co.za Website: www.aluwanicapital.co.za Address: EPPF Office Park, 24 Georgian Crescent East, Bryanston East, Gauteng, 2152 Compliance officer name: Timothy Howse +27 21 671 8162
What is the ownership structure of the company? 40% management and staff, 40% MMI Holdings, 20% Main Street 1413 (Pty) Ltd (BEE consortium). Who are the directors of the company? Jabulani Moleketi, Sibusiso Mabuza Thabiso Foto, Gillian Raine, Warren Wheatley, Jeanette Cilliers, Lulama Booi, Mokgadi Maunatlala, Thuto Masasa Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 40% of the company is held by management and staff.
What are your total assets under management? R73.5 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R73 billion Retail: R495 million Life: – Other: –
Investment philosophy We seek to provide sustainable riskadjusted returns over the long term. The philosophy is based on three principles:: ■ Risk-adjusted returns can be maximised by actively extracting value from as many alpha sources as possible ■ Focused diversification of risk across these sources should generate consistent performance in all market conditions ■ Incremental, consistent alpha that compounds over time ensures a low volatility portfolio that generates competitive active return in a predictable fashion, through all stages of the investment cycle
FAIS requirements Who is your FAIS complaints officer? Timothy Howse Please provide the link to the complaints policy on your website: http://www.aluwanicapital.co.za/legal/
History When was the company established? 2015 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Renaissance SA Ratings Date of accreditation: 2018-11-09
Key investment personnel Size of investment team: 15 Patrick Mathidi Head of Equities, Multi Asset Class Strategies MSc (Fin), BCompt Hons 20 years of industry experience 4 years with the firm Conrad Wood Head of Fixed Income Strategies BCom (Econ), CFA 25 years of industry experience 4 years with the firm Mishnah Seth Head of Frontier Strategies CFA, BAcc Hons 15 years of industry experience 4 years with the firm
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
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Argon Asset Management (Pty) Ltd www.argonassetmanagement.co.za
Company details
Ownership
Investment mandates
FAIS FSP registration number: 835 Switchboard: +27 21 670 6570 Fax number: +27 21 671 8252 General email: information@argonasset.co.za Website: www.argonassetmanagement.co.za Address: 1st Floor, Colinton House, The Oval 1 Oakdale Road, Newlands, 7700 PO Box 23254, Claremont, 7735 Compliance officer name: Tim Howse, eComply +27 21 671 8162
What is the ownership structure of the company? Independent, no group structure Who are the directors of the company? Luyanda Joxo and Dr Manas Bapela Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 49% Staff, 51% Management
What are your total assets under management? R25.0 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R24.5 billion Retail: R471 million Life: N/A Other: N/A
Investment philosophy Argon Asset Management is a clientcentric investment management firm that is committed to internationally accepted best practices and global standards. They have a high-performance culture that filters through to the long-term sustainable success of their investment portfolios. They follow a bottom-up, fundamental research, valuation-based equity investment process. Multi-asset class investments follow an active tactical asset allocation approach, with a strong capital protection underpin and volatilityenhancing strategies that generate extra yield. They also follow a multi-strategy fixed income process, diversifying sources or risk and return with a mix of duration, credit and yield curve tactical trades.
FAIS requirements Who is your FAIS complaints officer? Tim Howse Please provide the link to the complaints policy on your website: http://www.argonassetmanagement. co.za/about-argon/regulatory-details/
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History When was the company established? 2005 List of mergers that have taken place since being established: â&#x20AC;&#x201C;
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Empowerdex Date of accreditation: 2018-11-23
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? eComply Date of verification: 2015-09-23 Expiry date of verification: Latest verification expected soon.
Key investment personnel Size of investment team: 16 Dr Manas Bapela Chief Executive Officer/Chief Investment Officer PhD (Maths), MSc (Maths) cum laude, Global Investment Risk Mgt 20 years of industry experience 9 years with the firm Krishna Sathee Head of Fixed Income BSc Hons (Stats) 23 years of industry experience 10 years with the firm Mark Ansley Head of Equities BCom Hons 25 years of industry experience 4 years with the firm Ruen Naidu Head of Macro Solutions BBus Sc Hons (Act Sc) 12 years of industry experience 3 years with the firm
Ashburton Fund Managers (Pty) Ltd www.ashburtoninvestments.co.za
Company details FAIS FSP registration number: 40169 Switchboard: +27 11 282 8800 Fax number: +27 11 282 1619 General email: query@ashburtoninvest.co.za. Website: www.ashburtoninvestments.co.za Address: 3rd Floor, 4 Merchant Place 1 Fredman Drive, Sandton, 2196 PO Box 650149, Benmore, 2010 Compliance officer name: Maria Boikanyo 011 282 4560
Investment philosophy A core belief of Ashburton Investments is to provide investors with access to more sources of return in order to more efficiently achieve their investment objectives. As such, we have multiple investment capabilities within our business that span both traditional and alternative strategies. For one of our core investment capabilities, the Multi-asset strategy, our investment philosophy is encapsulated below: ■ It is our belief that asset allocation delivers the bulk of a multi-asset portfolio return. We therefore follow a top-down approach as a first step in the investment process; ■ We focus on determining the key investment drivers across asset classes (themes). Thus there is a theme-driven bias to portfolio construction. A theme is an area of investment that will deliver superior or inferior market returns. The portfolio weightings are adjusted based upon the thematic overlay to the portfolio; ■ Within the equity asset class we are construction. A theme is an area of investment that will deliver superior or inferior market returns. The portfolio weightings are adjusted based upon the thematic overlay to the portfolio; ■ Within the equity asset class we are style agnostic. It is our contention that value, growth and momentum styles of investment vary through the business cycle. We are biased towards thematic drivers, more so than specific investment styles;
■ Within equity selection, we focus on growth at a reasonable value as we believe that the price paid and earnings growth over time translate into equity returns; ■ Investment decisions are taken with a three- to five-year investment horizon. ■ The philosophy is to identify the best businesses and management in particular sectors and hold these investments. Short-term share price movements can trigger buy or sell decisions; ■ We are benchmark aware but not benchmark driven. In this manner multi-asset portfolios are managed to generate alpha; ■ A caveat to the investment philosophy is that within equities we are highconviction investors. This is achieved through investing in concentrated portfolios of between18 and 30 shares; ■ It is our thesis that primary returns are obtained through asset allocation, then sector selection and lastly stock selection. Within the other traditional strategies, we follow both passive and active investment strategies that are domestically, regionally (e.g. pan Africa; West Africa; India; and China), and globally focused across a broad range of asset classes. Within the alternative strategies, our private equity, commercial real estate, hedge fund, infrastructure and credit solutions form a complementary suite that augments the traditional solutions on offer. Our investment teams in South Africa and Jersey spend a great deal of time analysing macro-economic, regional and company specific information to generate tangible value within their specific area of focus. Each one of these other complementary investment capabilities has its own unique investment philosophy and process that lead to superior riskadjusted returns for our clients.
FAIS requirements Who is your FAIS complaints officer? Maria Boikanyo Please provide the link to the complaints policy on your website: http://www.ashburtoninvestments. com/docs/default-source/documents/ legal/fais-complaints-resolution-policy. pdf?sfvrsn=2
Ownership What is the ownership structure of the company? Ashburton is 100% owned by the FirstRand Group Who are the directors of the company? Nkareng Mpobane, Marc Alvey, Isabella Mnisi, Rudigor Kelyn, Murry Anderson Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Ashburton is 100% owned by the FirstRand Group. Staff ownership is at FirstRand Group level
History When was the company established? Ashburton Investment’s history dates to the genesis of Ashburton Jersey in the early 1980s. FirstRand is committed to having a prominent asset manager as part of its financial service offering. Therefore, after RMB Asset Management was spun off to Momentum in 2010, a process was started to consolidate all remaining Group asset management and wealth management functions under Ashburton. Ashburton Investments was officially launched in June 2013 although the consolidation of the various Group entities continued for several years after that. The businesses that were initially consolidated under the Ashburton brand were the investment management arm of RMB Private Bank, BJM Multimanager, Ashburton Jersey and the retail stockbroking business of FNB. At the end of 2015 Ashburton acquired Atlantic Asset Management, a boutique Fixed Interest house, with a view to expanding on our Fixed Interest capabilities. The consolidation of Group asset and wealth management functions was completed in October of 2017 with the transfer of the Global Markets Fund Solutions business from RMB to Ashburton. This consolidation resulted in a common investment philosophy and common systems being applied across the various investment solutions.
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Ashburton Fund Managers (Pty) Ltd Continued
Having introduced efficiencies into the Wealth and Investment (WIM) business, this business, along with a large contingent of Ashburton staff, was returned to FNB in November 2017 to be closer to their clients. The WIM business, which comprises advice and platform capabilities, still relies on the input of Ashburton’s investment team in constructing solutions for their clients. In 2018, Ashburton entered a strategic partnership with Fidelity International whereby Fidelity will assist with the implementation of strategic asset allocation calls as well as instrument / fund selection in our offshore multi-asset class portfolios. Ashburton is now a pure asset management company offering solutions across the spectrum from passive solutions to private asset solutions to the retail and institutional markets. While its primary asset management office is in Johannesburg, it also has asset management operations in Cape Town, Namibia, Jersey and the UK. List of mergers that have taken place since being established: At the end of 2015 Ashburton Investments acquired Atlantic Asset Management.
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Sizwe Ntsaluba Gobodo Date of accreditation: 2019-09-18
GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
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Investment mandates What are your total assets under management? R103.671 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R36.449 billion Retail: R63.700 billion Life: N/A Other: N/A
Key investment personnel Size of investment team: 33 Ashley Benatar Head: Mezzanine Finance BCompt Hons, CA(SA) 18 years of industry experience 2 years with the firm Heather Jackson Head of Specialised Credit BA Hons, CFA 28 years of industry experience 4 years with the firm Corneleo Keevy Head Credit Risk Management BAcc Hons, CA(SA) 15 years of industry experience 6 years with the firm Chris Siriram Head of LDI BSc Hons, FASSA 8 years of industry experience 6 years with the firm
Neil Browner Head of Fund Solutions MBBCh, MBA, CFA, CAIA, FRM, CIPM 11 years of industry experience 2 years with the firm Lesiba Ledwaba Head of Property Portfolio Management BCom (Acc) 16 years of industry experience 6 years with the firm Mark Appleton Head of Multi Asset and Strategy BCom, CFA 38 years of industry experience 6 years with the firm Nico Els Multi-Asset Strategist & Senior Portfolio Manager BCom Hons 28 years of industry experience 3 years with the firm Arno Lawrenz Global Investment Strategist BSc Hons, CFA 28 years of industry experience 4 years with the firm
Aylett & Company (Pty) Ltd www.aylett.co.za
Company details
FAIS requirements
Investment mandates
FAIS FSP registration number: 20513 Switchboard: +27 21 673 1460 General email: admin@aylett.co.za Website: www.aylett.co.za Address: 5th Floor, Mariendahl House Newlands on Main, Main Road, 7708 P O Box 44414, Claremont, 7735 Compliance officer name: Gerry Grispos 087 897 6970
Who is your FAIS complaints officer? Bert Ellman Please provide the link to the complaints policy on your website: https://www.aylett.co.za/our-company/ compliance-and-policies#customercomplaints
What are your total assets under management? R5.81 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R2.2 billion Retail: R3.6 billion Life: – Other: –
Investment philosophy We have one philosophy that is applied across all our portfolios, “do what is rational”. We are fundamental, bottomup, stock pickers. We employ a business approach to investing, focusing on free cash flows to establish private market values for businesses. We invest in assets on behalf of clients that will preserve their purchasing power in real terms and earn a satisfactory return on that capital. Good investments are made irrespective of prevailing market conditions by investing wisely and on the right terms. This requires patience, investing intelligence and respect for the process. Our Philosophy: ■ Firstly, we don’t want to lose capital. ■ We are rational investors. ■ We buy listed businesses. ■ We build portfolios from the bottom-up. ■ We don’t care about the composition of the benchmark. ■ We are long-term focused. ■ We don’t try to make macro forecasts. Instead we focus on picking businesses that have a high probability of being successful investments. ■ We look for a good business first, mispricing second. That order matters. ■ We are cash flow focused. ■ We seek out disconfirming evidence. ■ We don’t cover the market. ■ We stick to our philosophy. Portfolios are built bottom-up with weightings derived from our conviction levels on each recommendation, and the allocation is a result of the number of ideas we have found.
Ownership What is the ownership structure of the company? Walter Aylett and Christopher Robin Trust – 66% Dagon Sachs and The Calvin Trust – 15% Justin Ritchie and The Blockhouse Trust – 15% Lady Mary Clancy – 4% Who are the directors of the company? Walter Aylett, Dagon Sachs Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 96% in total
History When was the company established? 2005 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: –
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Key investment personnel Size of investment team: 6 Walter Aylett Chief Investment Officer BCompt Hons, CA(SA) 25 years of industry experience 15 years with the firm Dagon Sachs Senior Investment Analyst BSc (Mech Eng), CFA 16 years of industry experience 15 years with the firm Justin Ritchie Senior Investment Analyst PGDA, BAcc, CA(SA), CFA 10 years of industry experience 8 years with the firm Corne van Zyl Investment Analyst B BAcc Hons 19 months of industry experience 19 months with the firm Alex Philippou Investment Analyst BCom Hons, CA(SA) 18 months of industry experience 18 months with the firm Murray Moore Research Assistant BCom Hons, (CFA) 1 months industry experience 1 month with the firm
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Balondolozi Investment Services www.balondolozi.co.za
Company details FAIS FSP registration number: 2010/007109/07 Switchboard: +27 861 262 270 Fax number: +27 861 267 789 General email: admin@balondolozi.co.za Website: www.balondolozi.co.za Address: 71 4th Street, Building 1, Houghton Estate, 2198 PO Box 542, Melrose Arch Melrose, 2076 Compliance officer name: Christelle De Jager
Investment philosophy All investments for their reward are subject to risk. Foremost to deliver on our mandate it is important to understand precisely the clients’ needs and risk tolerance for us to satisfactorily fulfil our obligation. In line with our name, Balondolozi, custodians and preservers of our clients’ investments, our philosophy is to produce superior risk-adjusted investment returns and provide investment solutions customised for our clients. Thus, all our investment strategies share an investment philosophy that centres on customised solutions where securities chosen for the portfolio can be mathematically blended in such a way that risk to the benchmark is reduced and there is good potential for superior returns.
FAIS requirements Who is your FAIS complaints officer? Christelle De Jager Please provide the link to the complaints policy on your website: –
Ownership What is the ownership structure of the company? Pedro Samuel Family Trust 40%, Balondolozi Employee Trust 30%, Royal Investment Services 30%. 206
Who are the directors of the company? Pedro Samuel, Fikile Ndlovu, Yolande Mokhantso, Fannuel Tigere, Thabo Ntseare, Zintle Mjali, Christopher Pratt and Bongisipho Mahlathi Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Staff hold 30% of the shares of the company
History When was the company established? 2010 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? – What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: –
GIPS Are you GIPS compliant? – Are you GIPS verified? – By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R5 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R5 billion Retail: – Life: – Other: –
Key investment personnel Size of investment team: 9 Fannuel Tigere Chief Investment Officer BBusSci (Act Sc), CFA 11 years of industry experience 8 years with the firm Bongisipho Mahlathi Trainee Fixed Income Portfolio Manager BCom (Econ) 4 years of industry experience 4 years with the firm Christopher Pratt Trainee Fixed Income Portfolio Manager BCom Hons (Inv Man) 4 years of industry experience 4 years with the firm Itumeleng Mojaki Trainee Money Market Portfolio Manager BCom Hons (Risk Man) 4 years of industry experience 4 years with the firm Sandelee Van Wyk Trainee Equities Portfolio Manager BCom Hons (Risk Man) 4 years of industry experience 4 years with the firm Tatum Naidoo Trainee Equities Portfolio Manager BCom (Inv Man) 4 years of industry experience 4 years with the firm Magdalene Baloyi Trainee Money Market Portfolio Manager BCom (Econ and Econom) 3 years of industry experience 3 years with the firm
Benguela Global Fund Managers (Pty) Ltd www.benguelaglobal.com
Company details FAIS FSP registration number: 45122 Switchboard: +27 10 596 8500 Fax number: +27 11 803 6063 General email: info@benguelaglobal.com Website: www.benguelaglobal.com Address: Unit 6, The Avenues North 6 Mellis Road, Rivonia, 2191 PO Box 1035, Rivonia, Johannesburg, 2128 Compliance officer name: Debra Lynn Carse +27 21 975 6597
Investment philosophy Our investment philosophy is premised on the belief that superior risk-adjusted returns can, over the long term, be achieved through investment in high-quality companies with sustainable growth prospects that are purchased at reasonable prices.
FAIS requirements Who is your FAIS complaints officer? Debra Lynn Carse Please provide the link to the complaints policy on your website: https://www.benguelaglobal.com/about
Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Management and staff own 100% of the company
History When was the company established? 2013 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? BEE Online (SANAS) Date of accreditation: 2019-01-30
GIPS
Investment mandates What are your total assets under management? R4.72 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R4.31 billion Retail: R414 million Life: – Other: –
Key investment personnel Size of investment team: 8 Zwelakhe Mnguni Chief Investment Officer BCom Hons (Fin Man) 17 years of industry experience 6 years with the firm Karl Gevers Director & Portfolio Manager BCom Hons, B Acc, CA(SA) 16 years of industry experience 6 years with the firm
Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Ownership What is the ownership structure of the company? Benguela Global Fund Managers is fully owned by management and staff Who are the directors of the company? Zwelakhe Mnguni, Karl Gevers, Sibongile Mpakanyiswa, Colin Clarke and Thuli Magubane
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Blue Alpha Investment Management www.bluealphafunds.com
Company details
Ownership
Investment mandates
FAIS FSP registration number: 118 Switchboard: +27 21 409 7100 Fax number: +27 21 425 6560 General email: info@bluealphafunds.com Website: www.bluealphafunds.com Address: 11th Floor, Convention Tower Cnr Heerengraght Street & Walter Sisulu Avenue Cape Town, 8001 PO Box 7601, Roggebaai Cape Town, 8012 Compliance officer name: Kirsty Wade +27 21 409 7103
What is the ownership structure of the company? BlueAlpha Investment Management is privately owned by senior partners and portfolio managers. Ownership is as follows: Uys Meyers: 30%, Richard Pitt: 25%, Gary Quinn: 25%, Walter Jacobs: 20% Who are the directors of the company? Uys Meyers and Richard Pitt Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, senior managers or portfolio managers each own a percentage of the business, as above.
What are your total assets under management? R4.7 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R3.7 billion Retail: R1.0 billion Life: – Other: –
Investment philosophy
When was the company established? 2003 List of mergers that have taken place since being established: –
We are primarily quality investors with a major focus on the earnings cycle. Therefore, valuation isn’t our starting point. Rather, we focus on three main pillars in our process: 1. Value Creation – or the ability and willingness of a company to create economic value (generally strong cash flow focus); 2. Growth Potential – whether a company has the broad ability to grow into the future; 3. Quant Signals – these in-house models are used as confirmation of our research, as well as a screening tool for new ideas or getting rid of old ideas. Valuation is assessed relative to peers and history, although we focus on using the appropriate metrics given the industry. As mentioned, our starting point is never valuation, but we would certainly avoid companies that we consider unable to justify multiples. We prefer cash flow multiples over accounting-based metrics.
FAIS requirements Who is your FAIS complaints officer? Kirsty Wade Please provide the link to the complaints policy on your website: Available on request 208
History
B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: –
GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Key investment personnel Size of investment team: 7 Gary Quinn Chief Investment Officer, Portfolio Manager MBA, BSc 20 years of industry experience 6 years with the firm Uys Meyer Chief Executive Officer, Director BAcc Hons 20 years of industry experience 16 years with the firm Richard Pitt Portfolio Manager, Director BBusSci, CFA 20 years of industry experience 16 years with the firm Walter Jacobs Portfolio Manager BCom Hons, CA(SA) 20 years of industry experience 2 years with the firm Kyle Rix Portfolio Manager, Quants & Risk Analyst BCom Hons, CFA 7 years of industry experience 5 years with the firm Willie de Beer Investment Analyst MBA, B Eng, CFA 6 years industry experience 4 years with firm Nicola Broekhuysen Research Analyst BSocSci, CFA Level 2 candidate 7 years industry experience 3 years with firm
Cadiz Funds (Pty) Ltd www.cadiz.co.za
Company details
FAIS requirements
GIPS
FAIS FSP registration number: 45442 Switchboard: +27 21 657 8300 Fax number: +27 21 670 4651 General email: info@cadiz.co.za Website: www.cadiz.co.za Address: Cadiz House, Alphen Estate Alphen Drive, Constantia, 7806 PO Box 44547, Claremont, 7735 Compliance officer name: Internal Compliance Officer: Rudi Kotze External Compliance Officer: Frits Rossouw (+27 21 558 9675)
Who is your FAIS complaints officer? Frits Rossouw Please provide the link to the complaints policy on your website: https://cadiz.co.za/wp-content/ uploads/2019/03/20160705-FAIS-ClientComplaint-Procedure-Manual.pdf
Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment philosophy Cadiz seeks to invest in predominantly good quality businesses with capable management and low financial risk when these businesses are trading at a price lower than our estimate of what the business is worth. We believe that markets can be inefficient in the short term driven by fear (over pessimism) and greed (over optimism). Cadiz strives to remain rational, dispassionate and exploit the opportunities that this investor behaviour creates, thereby generating superior returns for their clients. In order to identify the mispriced opportunities, Cadiz follows a sound, systematic and disciplined bottom-up fundamental approach. Cadiz studies the long-term performance and risk compensation metrics to normalise these trends and derive an appropriate valuation for the business. Cadiz is disciplined in buying assets only when we are convinced that there is an asymmetric pay-off profile for the investment. This limits the potential for permanent capital loss and enables Cadiz to generate superior returns for their clients with the least amount of risk.
Ownership What is the ownership structure of the company? Spirit Invest owns 100% of Cadiz Funds (Pty) Ltd Who are the directors of the company? Ian Kilbride, Adrian Meager, Sidney McKinnon, Rudi Kotze, Richard Rattue, John Rodney Reid, Christiaan Meyer Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Currently no staff ownership in the company.
History When was the company established? 1996 List of mergers that have taken place since being established: Spirit Invest acquired the asset management business of Cadiz in May 2018
B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: –
Investment mandates What are your total assets under management? R12.7 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R2.8 billion Retail: R6.5 billion Life: R1.2 billion Other: R2.2 billion
Key investment personnel Size of investment team: 13 Adrian Meager Managing Director 25 years of industry experience 13 years with the firm Razeen Dinath Head of Equity BCom, CA(SA) 13 years of industry experience 5 years with the firm Brian Munroe Head of Multi-Assets BSc, BCom Hons (Stats) 19 years of industry experience 19 years with the firm Alastair Sellick Joint Head of Fixed Income BBusSci (Act) 23 years of industry experience 4 years with the firm Sidney McKinnon Joint Head of Fixed Income BSc (Comp Sc and Maths) 23 years of industry experience 6 years with the firm 209
Cannon Asset Managers (Pty) Ltd www.cannonassets.co.za
Company details FAIS FSP registration number: 736 Switchboard: +27 11 407 3530/3533 General email: info@cannonassets.co.za Website: www.cannonassets.co.za Address: 1 Park Lane, Wierda Valley Sandton, 2196 Compliance officer name: Johan Van Zyl +27 61 491 1585
Investment philosophy Cannon Asset Managers has a 20-year track record built on an investment philosophy that is founded on three core principles. 1 Effective investment management must start with managing risk before considering returns. 2 Asset allocation is the single most important determinant of long-term investment results. 3 Gains in technology, gains in access to data and an ever-growing body of investment knowledge mean that capital markets are increasingly efficient, with the implication being that “owning the market” is generally the most effective and efficient way in which to achieve investment results. However, portfolio results can benefit in several ways from investment knowledge, including tactical asset allocation; portfolio construction; and the identification of mispriced individual assets, which makes a place for active management alongside passive management. We also recognise that the investment industry is in an almost-constant state of change, which means we never stop learning from our decisions, the experiences of others and the world at large. Being secured in a sound philosophy, with the ability to continuously develop our process
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through improved data, refined models or deeper knowledge, gives our investment team a strength that translates into sustainable investment results. In practice, these views lead to an investment process that recognised asset allocation as the dominant factor in ensuring the investment exposure and asset class diversification needed to deliver results. The most powerful factor is time, and long holding periods handsomely reward patient investors. Our clients know that the creation of long-term wealth is the reward for patience, persistence and resilience. The best place to invest most assets is a market portfolio. Yet, there is a place for active investing: the price you pay for an investment is the primary determinant of your investment return, and mispriced assets can create specific opportunities that are particularly handsome. Costs matter. We build effective investments by buying the right assets at the right price while keeping a keen eye on fees and portfolio management costs to ensure we deliver reliable results to all our clients across all our offerings. Significantly, our investment process and business model are not dependent on “personalities” or specific individuals to be successful, and our ownership structure enables us to maintain independence in our thinking, a feature that is uncommon – yet invaluable – in the world of investment management. All our portfolios carry these same chromosomes, although the emphasis may change from one investment to another, based on mandate directives such as tracking error constraints; geographic or industry bias; or an emphasis on a specific factor, such as company size, dividends or cash flow, to name a few examples. In this way, we offer each of our clients a robust, time-tested solution that suits their investment need.
FAIS requirements Who is your FAIS complaints officer? Johan Van Zyl Please provide the link to the complaints policy on your website: https://www.cannonassets.co.za/admin/ resources/complaints-policy.pdf
Ownership What is the ownership structure of the company? 100% owned by Bidvest Financial Services Who are the directors of the company? Chief Executive: Adrian Saville Chairman: Japie van Niekerk Non-executive Directors: Thinus Liebenberg, Kumeran Govender Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: –
History When was the company established? 1998 List of mergers that have taken place since being established: –
Cannon Asset Managers (Pty) Ltd Continued
B-BBEE credentials
Key investment personnel
Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? Empowerdex Date of accreditation: 2018-11-06
Size of investment team: 5
GIPS
Samantha Steyn Chief Investment Officer BCom Hons (Inv Man) 6 years of industry experience 5 years with the firm
Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R1.52 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R692 million Retail: R486 million Life: – Other: R345.4 million
Adrian Saville Founder and Chief Executive PhD (Econ), MCom (cum laude), BA Hons (cum laude) 23 years of industry experience 23 years with the firm
Yanga Nozibele Investment Associate BCom (Econ and Econom) 4 years of industry experience 10 months with the firm Tlotliso Phakisi Investment Analyst BSc (Prop Stud) 4 years of industry experience 4 years with the firm Wessel Joubert Portfolio Manager & Analyst BCom Hons (Inv Man) 5 years of industry experience 6 months with the firm
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Catalyst Fund Managers SA (Pty) Ltd www.catalyst.co.za
Company details
FAIS requirements
GIPS
FAIS FSP registration number: 36009 Switchboard: +27 21 657 5500 Fax number: +27 21 683 7579 General email: operations@catalyst.co.za Website: www.catalyst.co.za Address: 4th Floor Protea Place, Claremont, 7708 PO Box 44845, Claremont, 7735 Compliance officer name: Tim Howse (eComply) +27 21 671 8162
Who is your FAIS complaints officer? Michael Arbuthnot Please provide the link to the complaints policy on your website: https://www.catalyst.co.za/wp-content/ uploads/2019/04/Complaints Resolution Process.pdf
Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment philosophy Property – Income – Security Catalyst Fund Managers’ view is that real estate is a separate asset class, providing diversification benefits to a multi-asset class portfolio resulting in enhanced risk-adjusted returns. They are strong advocates of listed real estate as a long-term investment and follow a rigorous process in the analysis of listed real estate securities. The team follows a bottom-up approach in assessing the sustainability and growth of income streams by focusing primarily on key underpins, specifically considered to be the quality of property portfolios, management teams and the capital structure of the business. Their primary consideration in identifying intrinsic value is the total return profile for investors, comprised of capital appreciation as well as an income/yield component from regular dividends, which tend to grow closely with inflation over time. Their philosophy also drives their independent internal company research capability, which consolidates property knowledge with company-specific features. This, together with consistently applied valuation methodology designed specifically for listed property assessment, differentiates them from their competitors and allows them to add real value to their clients’ portfolios. 212
Ownership What is the ownership structure of the company? Catalyst Fund Managers 84.9%, Staff Trust 10.1% Who are the directors of the company? Directors: M Arbuthnot, Z Sulaiman, N Naidoo Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, Staff Trust 10.1%
History When was the company established? 2006 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? AQ Rate Verification Services Date of accreditation: 2019-03-01
Investment mandates What are your total assets under management? R10.8 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R8.8 billion Retail: R2 billion Life: – Other: –
Key investment personnel Size of investment team: 4 Zayd Sulaiman Portfolio manager CA(SA) 21 years of industry experience 13 years with the firm Mvula Seroto Portfolio manager CA(SA), CFA 6 years of industry experience 6 years with the firm
ClucasGray (Pty) Ltd www.clucasgray.co.za and www.cgam.co.za
Company details FAIS FSP registration number: 21117 Switchboard: +27 11 771 1960 Fax number: 086 260 0483 General email: ClientRelations@ClucasGray.co.za Website: www.clucasgray.co.za and www.cgam.co.za Address: Ground Floor, Dunkeld Place, 12 North Road, Dunkeld West, 2196 PO Box 413037, Craighall, 2024 Compliance officer name: Paul Carter +27 11 771 1960
Investment philosophy We believe: ■ in fundamental, in-depth company analysis ■ all investing requires a valuation discipline ■ in a collaborative approach to investing, leveraging the insights and diverse experience of the ClucasGray investment team ■ that macro analysis is an important supplement to fundamental analysis ■ in focused portfolios, expressing conviction in our views ■ a patient, long term approach to investing will lead to good returns over time.
FAIS requirements Who is your FAIS complaints officer? Paul Carter Please provide the link to the complaints policy on your website: –
Ownership What is the ownership structure of the company? 100% owner managed business Who are the directors of the company? Craig Clucas Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: ClucasGray (Pty) Ltd is a 100% owner managed business. All the key portfolio managers own equity in the business.
History When was the company established? 2005 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: –
GIPS Are you GIPS compliant? No, however the unit trusts are deemed to be GIPS compliant through our administrator Prescient, who verify returns and compliance. Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R10 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R917 million Retail: R1 056 million Life: R208 million Other: R7 819 million (Private Clients)
Key investment personnel Size of investment team: 10 Andrew Vintcent Senior Portfolio Manager and Analyst ClucasGray Asset Management CA(SA) CFA 19 years’ industry experience 4 years with firm
Grant Morris Senior Portfolio Manager and Analyst BCom, PDM, CFP 19 years industry experience 5 years with firm Guy MacRobert Senior Portfolio Manager and Analyst CA(SA) 23 years industry experience 5 years with firm James Clucas Senior Portfolio Manager and Analyst BCom 24 years industry experience 13 years with firm Paul Carter Senior Portfolio Manager and Analyst BSC (Inf Proc) 24 years industry experience 13 years with firm Brendon Hubbard Senior Portfolio Manager and Analyst MBA (Edinburgh Business School) 20 years industry experience 11 years with firm Kirsty Savin Portfolio Manager and Analyst BBusSci Finance (Hons), CFA, CFP 11 years industry experience 7 years with firm Mohammed Mayet Investment Analyst CA(SA) 3 years industry experience 3 years with firm Danie van Zyl Investment Analyst CA(SA) 3 years industry experience 3 years with firm Siphiwe Ziqubu Trading and Research BCom Finance 1 year industry experience 1 year with firm
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Colourfield Liability Solutions (Pty) Ltd www.colourfield.co.za
Company details
Ownership
Investment mandates
FAIS FSP registration number: 35113 Switchboard: 086 100 7656 General email: cls@colourfield.co.za Website: www.colourfield.co.za Address: Unit 16B, 3 Melrose Boulevard Melrose Arch, 2192 Compliance officer name: Elzabe Botha, Compli-Serve 087 897 6970 Elzabe@compliserve.co.za
What is the ownership structure of the company? Privately-owned company Who are the directors of the company? Nick Sennett, Costa Economou, Shaun Levitan, Bridget Radebe Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 71.7% owned by staff and management
What are your total assets under management? R47.7 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R47.7 billion Retail: – Life: – Other: –
Investment philosophy Colourfield is South Africa’s largest and only dedicated “liability driven” investment management business. As an LDI manager, Colourfield’s investment philosophy is built around the understanding and de-risking of liabilities. We use a scientific approach to portfolio construction that will track a liability-based benchmark irrespective of market circumstances. Unlike other investment managers that attempt to outperform a benchmark where the core components are known in advance, Colourfield has the objective of tracking the movement of a non-investable liability stream.
FAIS requirements Who is your FAIS complaints officer? Elzabe Botha Please provide the link to the complaints policy on your website: –
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History When was the company established? 2006 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? In progress What is your B-BBEE status? Level 2 B-BBEE rating By whom have you been accredited? AQRate Date of accreditation: 2019-04-02
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Key investment personnel Size of investment team: 6 Dr Nick Sennett Chief Investment Officer Actuary, PhD (Fin) 32 years of industry experience 11 years with the firm Troy du Plessis Trader Actuary, CFA, CAIA 32 years of industry experience 11 years with the firm Shaun Levitan Chief Operating Officer and Specialist Portfolio Structurer Actuary, MSc (Act Sci), CFA 18 years of industry experience 10 years with the firm
Coronation Asset Management (Pty) Ltd www.coronation.com
Company details
Ownership
GIPS
FAIS FSP registration number: 548 Switchboard: +27 21 680 2000 Fax number: +27 21 680 2100 General email: clientservice@coronation.co.za Website: www.coronation.com Address: 7th Floor MontClare Place Cnr Campground and Main Roads Claremont, Cape Town, South Africa PO Box 44684, Claremont, Cape Town, 7735 Compliance officer name: Mr Stephan Kemp +27 21 680 2809 Ms Jamie Rowland +27 21 680 7703
What is the ownership structure of the company? Coronation Asset Management (Pty) Ltd (“Coronation Asset Management”) is a wholly owned subsidiary of Coronation Fund Managers Limited (“Coronation Fund Managers”). Coronation Fund Managers is, in turn, a public company listed on the Johannesburg Stock Exchange. Any member of the public may therefore acquire shares in Coronation Fund Managers. Who are the directors of the company? Anton Pillay and Mary-Anne Musekiwa Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Staff in aggregate hold approximately 24% of the shares of Coronation Fund Managers, being the holding company of Coronation Asset Management-staff therefore do, indirectly, have an ownership interest in Coronation Asset Management.
Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? Ernst and Young Date of verification: 2019-05-10 Expiry date of verification: 2018-12-31
Investment philosophy All Coronation products are managed according to a single investment philosophy. It is based on two key tenets: using a long-term horizon to establish a company’s fair value and a disciplined valuation-driven approach, which drives buy and sell decisions.
FAIS requirements Who is your FAIS complaints officer? Jamie Rowland and Stephan Kemp Please provide the link to the complaints policy on your website: Available on request
Investment mandates What are your total assets under management? R579 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R334.5 billion Retail: R244.3 billion Life: – Other: –
History When was the company established? 1993 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Empowerdex Date of accreditation: 2019-02-08
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Coronation Asset Management (Pty) Ltd Continued
Key investment personnel Size of investment team: 67 Karl Leinberger Chief Investment Officer BBusSc, CA(SA), CFA 19 years of industry experience 19 years with the firm Sarah-Jane Alexander Portfolio Manager BBusSc, CFA 16 years of industry experience 11 years with the firm Neville Chester Senior Portfolio Manager BCom, CA(SA), CFA 23 years of industry experience 19 years with the firm Pallavi Ambekar Portfolio Manager BBusSc, CA(SA), CFA 17 years of industry experience 17 years with the firm Quinton Ivan Head of SA Equity Research Bcom Hons, BBusSc, CA(SA), CFA 15 years of industry experience 14 years with the firm Neill Young Portfolio Manager BBusSc, CA(SA), CFA 21 years of industry experience 21 years with the firm Charles de Kock Head of Absolute Return MCom, BCom Hons 34 years of industry experience 15 years with the firm Nishan Maharaj Head of Fixed Income MBA, BSc Hons 17 years of industry experience 7 years with the firm
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Gavin Joubert Head of Global Emerging Markets BBusSc, CA(SA), CFA 20 years of industry experience 20 years with the firm Suhail Suleman Portfolio Manager BBusSc, CFA 18 years of industry experience 12 years with the firm Peter Leger Head of Global Frontiers BCom Hons, BSc (Eng), CFA 22 years of industry experience 15 years with the firm Anthony Gibson Portfolio Manager BCom 39 years of industry experience 26 years with the firm Louis Stassen Head of Global Developed Markets BCom Hons, BSc, CFA 30 years of industry experience 26 years with the firm Neil Padoa Head of Global Developed Markets Research BEconSc, FFA 12 years of industry experience 7 years with the firm Mauro Longano Portfolio Manager BSc Hons (Eng), CFA 9 years of industry experience 6 years with the firm
Electus Fund Managers (Pty) Ltd www.electus.co.za
Company details
FAIS requirements
GIPS
FAIS FSP registration number: 46077 Switchboard: +27 21 680 7500 Fax number: +27 21 680 7501 General email: info@electus.co.za Website: www.electus.co.za Address: Ground Floor, Great Westerford 240 Main Road, Newlands, 7700 Compliance officer name: Gerry Grispos, Compli-Serve SA 0861 273 783
Who is your FAIS complaints officer? Tali Anderssen Please provide the link to the complaints policy on your website: http://www.electus.co.za/media/76123/ client_complaint_process_ draft_02_11_2015.pdf
Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment philosophy We invest in a consistently disciplined and focused manner, based on an unwavering investment philosophy of striving to buy into high-quality businesses at prices that are low compared to their long-term investment valuations. We construct concentrated, but welldiversified portfolios, normally holding ±30 shares. We manage portfolios with high conviction and choose shares in an unconstrained manner, giving clients the benefit of our proven stock-picking ability. Benchmarks are less relevant in the portfolio construction process as share weightings are determined based on our understanding of volatility, share liquidity and market leadership. We aim to identify companies that have sustainable competitive advantages within their industries, which should enable them to consistently earn returns on capital above their cost of capital. We also strive to identify mispriced companies through our disciplined, focused and opportunistic proprietary research and analysis. Our limited asset base is an advantage that enables us to invest across the broader SA stock market and we aim to deliver long-term relative outperformance supported by superior risk/return characteristics.
Ownership What is the ownership structure of the company? All staff have ownership. Who are the directors of the company? Neil Brown, Richard Hasson, Tali Anderssen and Andrew Möller (Non-executive Director). Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 70% owned by staff and management. Citadel Holdings has a 30% share.
History When was the company established? January 2007 List of mergers that have taken place since being established: Citadel Holdings has a 30% share in Electus Fund Manager.
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 4 By whom have you been accredited? DTI Date of accreditation: 2019-09-26
Investment mandates What are your total assets under management? R2.3 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R2.2 billion Retail: R96 million Life: – Other: –
Key investment personnel Size of investment team: 4 Neil Brown Co-Chief Investment Officer/ Portfolio Manager MBA (Fin), NDip (Bus Ad) 27 years of industry experience 13 years with the firm Richard Hasson Co-Chief Investment Officer/ Portfolio Manager BCom, CA(SA) CFA 22 years of industry experience 13 years with the firm
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Element Investment Managers www.elementim.co.za
Company details
Ownership
Investment mandates
FAIS FSP registration number: 663 Switchboard: +27 21 426 1313 Fax number: +27 21 426 0999 General email: info@elementim.co.za Website: www.elementim.co.za Address: 405 Manhattan Place, 130 Bree Street Cape Town, 8001 Compliance officer name: Independent Compliance Services +27 21 975 6597
What is the ownership structure of the company? Element Investment Team – 41% First South Group – 8% VC Investors and non-Investment Element Staff – 17% Private Equity Financial Services Investor – 31% Total BEE Shareholding > 36% Who are the directors of the company? Dr Anwah Nagia, Terence Craig, Jayendra Naidoo*, Tom Barlow* (*Non-executive Director) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 47%
What are your total assets under management? R1.2 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R100 million Retail: R1.1 billion Life: – Other: –
Investment philosophy Element Investment Managers believe that a disciplined long-term contrarian approach is the most reliable way to achieve superior absolute returns for investors over the long term. They are index agnostic as their aim is to research companies and assets and buy them when their current prices are below their long-term intrinsic values and have the discipline to hold them until these intrinsic values are realised. As a result of their long-term contrarian philosophy, it is likely that their portfolios will at times be materially different from other market participants or indices against which they are measured.
FAIS requirements Who is your FAIS complaints officer? Dr Anwah Nagia Please provide the link to the complaints policy on your website: www.elementim.co.za/institutions/riskmanagement-and-compliance
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Key investment personnel Size of investment team: 4
History
Terence Craig Chief Investment Officer BBusSc Hons, CA(SA), CFA 26 years of industry experience 19 years with the firm
When was the company established? 1998 List of mergers that have taken place since being established: –
Shamier Khan Portfolio Manager BCom, CA(SA), CFA 21 years of industry experience 7 years with the firm
B-BBEE credentials
Andrew Bishop Portfolio Manager BCom Hons, CA(SA), CFA 12 years of industry experience 12 years with the firm
Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Exempted Micro Enterprise Date of accreditation: 2019-01-17
GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Excelsia Capital (Pty) Ltd www.excelsia.co.za
Company details
FAIS requirements
GIPS
FAIS FSP registration number: 46756 Switchboard: +27 21 276 1740 General email: info@excelsia.co.za Website: www.excelsia.co.za Address: 3rd Floor, Sunclare Building 21 Dreyer Street, Claremont Cape Town, South Africa, 7708 Compliance officer name: Debbie Carse (Independent Compliance Services) +27 21 975 6597
Who is your FAIS complaints officer? Derek McDonald Please provide the link to the complaints policy on your website: http://www.excelsia.co.za/legal. html#Client
Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment philosophy Our investment philosophy is valuation based, focused on long-term thinking and assessing the key variables of what drives value in a business. We invest in businesses that we believe are selling at a discount to our assessment of their intrinsic value. Various valuation methods are used to determine the value of a business and normalisation of earnings forms a key part of assessing through-the-cycle intrinsic value. We also consider the probability of outcomes around our valuation and the possible timeframes over which value can be unlocked. Included in the valuation process are both quantitative and qualitative factors to help evaluate the key revenue drivers of the business, its risks/rewards and the industry dynamics in which the business operates. The key aspects of our philosophy include: ■ Taking a business approach; ■ Looking for a margin of safety; ■ Taking advantage of fear and greed; ■ Not basing investments on macro forecasting, and ■ Taking a long-term approach.
Ownership What is the ownership structure of the company? 100% owned by Rajay Ambekar Who are the directors of the company? Rajay Ambekar Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Not currently, but a staff shareholding scheme is planned in the near future.
History When was the company established? 2016 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Exempted Micro Enterprise– affidavit Date of accreditation: 2019-06-03
Investment mandates What are your total assets under management? R1.6 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R1.5 billion Retail: R100 million Life: – Other: –
Key investment personnel Size of investment team: 5 Rajay Ambekar Chief Investment Officer CA(SA) CFA 23 years of industry experience 3 years with the firm
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Fairtree Asset Management (Pty) Ltd www.fairtree.com
Company details
Ownership
GIPS
FAIS FSP registration number: 25917 Switchboard: 0861 760 760 Fax number: +27 21 914 3103 General email: c!ientservices@fairtree.com Website: www.fairtree.com Address: Willowbridge Place, Cnr Carl Cronje & Old Oak Road, Bellville, 7530 PO Box 4124, Tygervalley, 7536 Compliance officer name: Enrique Goosen Independent Compliance Services
What is the ownership structure of the company? 100% owned by staff Who are the directors of the company? Andre Malan, Kobus Nel, Bradley Anthony Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 100%
Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment philosophy Fairtree is a South African investment manager that manages alternative and long only investment portfolios for a diversified selection of local and offshore clients. Based in Cape Town, our commitment to a consistent and sound investment philosophy has continued to serve our investors well since the inception of our first fund in 2003. Our expert team of investment professionals manage R60 billion in award-winning portfolios in multiple asset classes, hedge funds, traditional unit trusts, and private equity real assets.
FAIS requirements Who is your FAIS complaints officer? Enrique Goosen – Independent Compliance Services Please provide the link to the complaints policy on your website: www.fairtree.com
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History When was the company established? 2006 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Projected L8 By whom have you been accredited? AQRate Date of accreditation: 2019-06-30
Investment mandates What are your total assets under management? R60 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R31.4 billion Retail: R25.2 billion Life: – Other: R3.4 billion
Fairtree Asset Management (Pty) Ltd www.fairtree.com
Key investment personnel Size of investment team: 30 Andre Malan Director MBA, BCom 25 years of industry experience 14 years with the firm Kobus Nel Director CA(SA), CFA 13 years of industry experience 13 years with the firm Bradley Anthony Director BA (Econ), CAIA 26 years of industry experience 8 years with the firm Ian Millard Portfolio Manager BCom 29 years of industry experience 10 years with the firm Stephen Brown Portfolio Manager MBA, BCom, CFA 22 years of industry experience 8 years with the firm Jacobus Lacock Macro Strategist/Portfolio Manager BCom (Fin Econ), CFA 15 yearsâ&#x20AC;&#x2122; industry experience 8 years with the firm Cor Booysen Portfolio Manager BEng 14 years of industry experience 7 years with the firm Louis Antelme Portfolio Manager CFA 30 years of industry experience 7 years with the firm
Paul Crawford Portfolio Manager MBA, BSc (Elec Eng), CFA 22 years of industry experience 7 years with the firm Rademeyer Vermaak Portfolio Manager M Eng (Elec), CFA 15 years of industry experience 7 years with the firm Joe Bester Portfolio Manager CA(SA) 9 years of industry experience 6 years with the firm Cephas Dube Portfolio Manager MCom (Econ), BCom Hons (Act Sc)) 13 years of industry experience 3 years with the firm Rob Hart Portfolio Manager BBusSci (Fin) 23 years of industry experience 3 years with the firm Deon Botha Portfolio Manager MCom (Econ) 7 years industry experience 6 years with firm Cornelius Zeeman Portfolio Manager CA(SA), CFA 5 years industry experience 5 years with firm Dane Merrick Portfolio Manager MSc & BSc Hons in (Mech Eng) Mechanical Engineering, CFA 4 years industry experience 4 years with firm
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First Avenue Investment Management (Pty) Ltd www.firstavenue.co.za
Company details FAIS FSP registration number: 42693 Switchboard: +27 11 772 2480 General email: admin@firstavenue.co.za Website: www.firstavenue.co.za Address: 21 Fricker Road, Ground Floor Cnr Chaplin and Fricker Road Illovo, 2196 PostNet Suite 92, Private Bag X11 Birnam Park, 2015 Compliance officer name: Deon Harmse +27 21 554 5745
Investment philosophy First Avenue focuses purely in long only equities as a specialist manager. Within equities, their research shows that investing in high-quality companies generates superior outcomes compared to any other strategy. This is because high-quality companies are able to produce persistently high and stable profits independent of market conditions by controlling ‘fundamental risk’. As the returns earned by equity holders are ultimately driven by corporate profits, this results in superior stock returns with lower ‘price risk’ or volatility. Modern corporate finance theory would expect investors to receive higher rates of return on investment for bearing greater risk. With this view of the world, high-quality companies appear to be an anomaly delivering higher returns with lower risk. High-quality companies possess sustainable competitive advantages that allow them to dominate the profit pool of an industry and earn returns above their cost of capital for extended periods. These advantages or economic moats enable a company to remain resilient throughout the entire economic cycle by leveraging unique attributes such as superior pricing power or cost control. Their research shows that this universe of companies has a high propensity to outperform the market and also offers greater downside protection during periods of distress.
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By restricting their universe to highquality companies only, their portfolio is inherently of lower fundamental risk. Their view is that risk (not valuation) is a continuum from low to extreme risk. As one moves up the continuum, the investment philosophy also shifts from a probabilistic exercise to pure speculation highly reliant on timing. Instead of trying to predict the turn of the economic cycle or movements in commodity prices and exchange rates, they study the sustainability of a company’s economic moat to arrive at an intrinsic value. In their world, the greatest risk is a loss of quality and earnings power through economic changes and deterioration of management as put forward by Benjamin Graham. They therefore aim for consistently high returns through the entire economic cycle.
FAIS requirements Who is your FAIS complaints officer? Deon Harmse Please provide the link to the complaints policy on your website: http://firstavenue.co.za/disclaimer/
Ownership What is the ownership structure of the company? 15% Sanlam Investment Holdings, 85% Staff Who are the directors of the company? Hlelo Giyose, Jorge Haynes, Nersan Naidoo, Nadim Mohamed Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 85% staff ownership
History When was the company established? 2010 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2
By whom have you been accredited? Qualifying Small Enterprise – Sworn affidavit Date of accreditation: 2015-05-20
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PricewaterhouseCoopers Date of verification: July 2016 Expiry date of verification: –
Investment mandates What are your total assets under management? R9.54 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R8.33 billion Retail: R1.21 billion Life: – Other: –
Key investment personnel Size of investment team: 3 Hlelo Giyose Chief Investment Officer/ Portfolio Manager MSc (Inv Man), BSc (Bus Adm) 23 years of industry experience 9 years with the firm Nadim Mohammed Investment Analyst MSc (Eng) (cum laude), MBA (cum laude) 12 years of industry experience 8 years with the firm Shirley Mabasa Investment Analyst BCom Hons, BCom 3 years of industry experience 1 year with the firm
Foord Asset Management (Pty) Ltd www.foord.co.za
Company details FAIS FSP registration number: 578 Switchboard: +27 21 532 6988 Fax number: +27 21 532 6999 General email: info@foord.co.za Website: www.foord.co.za Address: 8 Forest Mews, Forest Drive Pinelands, 7405 PO Box 135, Howard Place, 7450 Compliance officer name: Diane Behr +27 21 532 6916
Investment philosophy How Foord thinks about investments determines how they act. The tenets of their investment philosophy are the lights that guide what they do: Get the big calls right Meaningful investment returns are not earned by making incremental decisions. Superior long-term returns are generated by identifying and taking advantage of economic cycles. In the long term, it is never beneficial to invest in the fast hounds of the slow pack. Buy at the right price The price at which one purchases an investment dictates future returns: pay too dear, and future returns are compromised. “Cheap” or “dear” are concepts that crystallise with fundamental analysis of the future revenue streams and associated risks of an investment security. Investing with a margin of safety is critical to reducing the future risk of loss. Take a long-term view and be patient Speculation is a short-term activity with an inherently uncertain result. Investment is a long-term activity with a more certain result. Like the maturation of a good wine or the growing of a tree, an investment’s full potential realises over time. Ignore the benchmark when building portfolios A benchmark is often representative of what is in vogue or what is simply big.
Bigger isn’t always better and fashion is fickle. Portfolios should be constructed by applying objective, independent perspectives to their composition. To outperform the herd you have to be different from the herd. Diversify and manage risk Diversification offers possibly the only “free lunch” in the market – it affords the investor the chance to manage the risk of being wrong. Diversification should be used often, but not excessively. Where careful analysis gives an investor greater conviction, less diversification is needed – because the risk of being wrong is lower.
FAIS requirements Who is your FAIS complaints officer? Diane Behr Please provide the link to the complaints policy on your website: http://www.foord.co.za/foord/content/en/ foord-home
Ownership What is the ownership structure of the company? Privately owned company Who are the directors of the company? PE Cluer, B Africa, WL Fraser, P Desai Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 86%
GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R108 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R59 billion Retail: R49 billion Life: – Other: –
Key investment personnel Size of investment team: 20 Dave Foord Chief Investment Officer BCom, CA(SA) 41 years of industry experience 37 years with the firm
History
William Fraser Strategy, Portfolio Manager, Director BCom (Act), Cert (Fin Eng) 22 years of industry experience 13 years with the firm
When was the company established? 1981 List of mergers that have taken place since being established: –
Daryll Owen Deputy CIO BCom, CAIB(SA), AEP 33 years of industry experience 5 years with the firm
B-BBEE credentials
Nick Balkin Portfolio Manager and Head of Equity Research BCom Hons, CFA 16 years of industry experience 13 years with the firm
Are you B-BBEE accredited? Yes What is your B-BBEE status? Non-compliant By whom have you been accredited? AQ Rate Date of accreditation: 2018-12-21
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Futuregrowth Asset Management (Pty) Ltd www.futuregrowth.co.za
Company details FAIS FSP registration number: 520 Switchboard: +27 21 659 5300 Fax number: +27 21 659 5400 General email: info@futuregrowth.co.za Website: www.futuregrowth.co.za Address: 3rd Floor, Great Westerford, Main Road Rondebosch, 7700 Private Bag X6, Rondebosch, 7725 Compliance officer name: Ryan Kieser +27 21 659 5447
Investment philosophy Futuregrowth’s fixed interest investment philosophy is to maximise long-term investment returns by identifying, measuring and managing all valueadding components of interest-bearing investments. This can be broadly broken down into two core areas. Firstly, the interest rate process involves the determination of the most likely future direction of interest rates, followed by the most appropriate allocation to money market, nominal and inflation-linked bonds as well as yield curve positioning across all three of these broad interest rate asset classes. The interest rate strategy is expressed mainly by utilising the most liquid RSA government bond market. The process endeavours to identify market anomalies by finding balance between economic fundamental analysis (top down) and market valuation (bottom up). They frequently find a mismatch which enables them to express their view, preferably against a well-priced market consensus.
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Along with the intense scrutiny they pay to the interest rate process, they channel substantial efforts into asset selection. The core of the asset selection process is the creation of diversified portfolios with substantial yield enhancement through a robust credit/analysis process. As a result the portfolio’s running yield should produce long-term, stable outperformance. In terms of market anomalies, Futuregrowth believe that they can add alpha through focused exploitation of market inefficiencies. They use well practised quantitative processes to select high credit quality and high yielding assets. They do realise that in the course of earning higher yields the portfolio is exposed to both default risk and widening credit spreads. These risks are minimised in a number of ways that include: ■ Using a rigorous fundamental process that screens good assets for inclusion in the portfolio ■ Ensuring diversity by credit exposure limits (issuer, credit class, sector) ■ Negotiating strong lender covenants, security and protections which reduce the likelihood of default and also increase our estimated recovery rates in an event of default ■ Actively monitoring and managing these assets ■ Pricing appropriately for credit risk
FAIS requirements Who is your FAIS complaints officer? Ryan Kieser Please provide the link to the complaints policy on your website: http://www.futuregrowth.co.za/legal-andpolicies/complaints-procedure/
Ownership What is the ownership structure of the company? As at August 2018 the dispersion of Futuregrowth shares was as follows: Old Mutual Investment Group (SA) (Pty) Ltd 75.9%, OMIGSA Black Management Trust 6.80%, OMIGSA Management Trust 12%, Imfundo SP Holdings (Pty) Ltd 5.3% Who are the directors of the company? Henk Beets, Andrew Canter, Paul Rackstraw, Dinao Lerutla, Hywel George, Gcinikhaya Gobodo Interest in ownership? Please provide the percentage held by staff and management: 18.8%
History When was the company established? 2000 List of mergers that have taken place since being established: 2008 – OMIGSA became the majority shareholder
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? AQRate Date of accreditation: 2019-05-28
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? E-Comply Date of verification: 2018-08-08 Expiry date of verification: 2017-12-31
Futuregrowth Asset Management (Pty) Ltd Continued
Investment mandates What are your total assets under management? R194.1 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R81.1 billion Retail: R40.7 billion Life: R72.7 billion Other: â&#x20AC;&#x201C;
Key investment personnel Size of investment team: 45 (Includes Specialist Investment Administration team) Andrew Canter Chief Investment Officer, Head of Fixed Income BSc, CFA 28 years of industry experience 17 years with Futuregrowth Wikus Furstenberg Portfolio Manager MCom 28 years industry experience 19 years with OMIG/Futuregrowth
Daphne Botha Portfolio Manager B Com Hons, Diploma in Financial Markets 22 years of industry experience 17 years with Futuregrowth Michael van Rensburg Head: Dealing, Portfolio Manager B Com 29 years industry experience 19 years with OMIG/Futuregrowth Jason Lightfoot Portfolio Manager / Credit Analyst BA, B Com Hons 21 years of industry experience 17 years with Futuregrowth Rhandzo Mukansi Portfolio Manager BCom (Hons) 6 years of industry experience 6 years with Futuregrowth Paul Semple Portfolio Manager B Com, CAIB (SA) 20 years industry experience 11 years with Futuregrowth
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Granate Asset Management (Pty) Ltd www.granate.co.za
Company details
FAIS requirements
Investment mandates
FAIS FSP registration number: 2015/090537/07 Switchboard: +27 21 446 9428 General email: info@granate.co.za Website: www.granate.co.za Address: 23rd Floor, Portside Building 5 Buitengracht Street, Cape Town Western Cape, South Africa, 8001 Compliance officer name: Christelle De Jager +27 21 975 6597
Who is your FAIS complaints officer? Ismail Vinoos Please provide the link to the complaints policy on your website: http://www.granate.co.za/governance/
What are your total assets under management? R2.01 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R1.275 billion Retail: R741 million Life: – Other: –
Investment philosophy The Granate Fixed Interest philosophy is focused on maximising risk-adjusted returns by actively extracting value from a range of sources within the Fixed Interest market. Our philosophy avoids forecasting and uses the concept of risk compensation as its central pillar. The domestic fixed interest market, like all capital markets, is not fully efficient at times. This, together with the segmented nature of this market, creates opportunities for extracting value across a range of aspects, including choice of asset class, duration management, yield curve positioning, credit exposure, sector rotation and security selection. Both our investment philosophy and process are geared towards seeking opportunities arising from mispricing and we believe we have the capability, experience and research depth to be able to implement this philosophy and process successfully across a variety of different mandates. This philosophy has been in place since 2006 and there have been no significant changes to the philosophy over time.
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Ownership What is the ownership structure of the company? Staff and management of Granate Asset Management own 70%. The remainder is owned by RMI Affiliates 2. Who are the directors of the company? Directors: PJ Bosman, HP Vermaak, AFV Rousseau, AR De Swardt Interest in ownership? Please provide the percentage held by staff and management: Staff and management own 70% of the company.
History When was the company established? 2015 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 4 By whom have you been accredited? AQrate (Pty) Ltd Date of accreditation: 2019-07-01
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Key investment personnel Size of investment team: 6 Bronwyn Blood Portfolio Manager/Credit Analyst BCom Hons 19 years of industry experience 4 years with the firm Vaneshen Naidoo Portfolio Manager/Property Analyst MSc (Eng), CFA 12 years of industry experience 4 years with the firm Tyron Green Equity Analyst CA(SA) MBA 12 years of industry experience 6 months with the firm Dalya Abromowitz Credit Analyst BBusSc Hons, CFA 6 years of industry experience 3 years with the firm Paul Bosman Portfolio Manager/Equity Analyst BCom Hons, CFA 15 years of industry experience 6 months with the firm Henno Vermaak Portfolio Manager/Equity Analyst BCom Hons, FFA, CFA 11 years of industry experience 6 months with the firm
Investec Asset Management (Pty) Ltd www.investecassetmanagement.com
Company details FAIS FSP registration number: 587 Switchboard: +27 21 416 2000 General email: natalie.phillips@investecmail.com Website: www.investecassetmanagement.com Address: 36 Hans Strijdom Avenue Foreshore, Cape Town, 8000 PO Box 1655, Cape Town, 8000 Compliance officer name: Sizo Mabaso +27 21 416 1932
Investment philosophy Investec Asset Management is a multi-specialist investment manager with core offerings in equities, fixed income, alternatives and multi-asset management. IAM does not have an over-arching house style. Instead we choose to allow the heads of our specialist investment teams the freedom to operate according to their investment beliefs, with complete discretion over their own teams.
FAIS requirements Who is your FAIS complaints officer? Sizo Mabaso Please provide the link to the complaints policy on your website: http://goo.gl/9zWKRJ
Ownership What is the ownership structure of the company? Investec Asset Management (Pty) Ltd is a wholly owned subsidiary of Investec Asset Management Holdings (Pty) Ltd. Investec Asset Management Holdings (Pty) Ltd is owned 80% (plus one share) by Investec Ltd, with the other 20% (less one share) being held by senior employees of Investec Asset Management.
Who are the directors of the company? Board of Directors: Investec Asset Management (Pty) Ltd John Green: Executive Director Thabo Khojane: Executive Director Nazmeera Moola: Executive Director Khadeeja Bassier: Executive Director Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, key employees own 20% (less one share) of the company.
History When was the company established? 1991 List of mergers that have taken place since being established: Investec Asset Management acquired Guinness Flight Hambro in 1998
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Premier Verification (Pty) Ltd Date of accreditation: 2019-07-31
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? KPMG Date of verification: 2018-12-31 Expiry date of verification: –
Investment mandates What are your total assets under management? R592.4 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R444.39 billion Retail: R148.02billion Life: – Other: –
Key investment personnel Size of investment team: 234 South Africa (76), Botswana (3), Namibia (2), USA (7), UK (136), Hong Kong (7) , Singapore (2), Europe (1) John McNab Co-Chief Investment Officer BEng Industrial (Cum Laude), MEng Industrial (Cum Laude), CFA 24 years industry experience 24 years with firm Mimi Ferrini Co-Chief Investment Officer BCom, CFA 31 years industry experience 28 years with firm Nazmeera Moola Deputy Managing Director IAM SA, Head of SA Investments BBusSc (Hons.) Economics, Finance & Management Studies, CFA 19 years industry experience 6 years with firm Chris Freund Co-Head of SA Equity & Multi-Asset BCompt Hons (Acc), BCom, CA(SA), CFA 29 years of industry experience 14 years with the firm Hannes van Den Berg Co-Head of SA Equity & Multi-Asset CA(SA), CFA 15 years of industry experience 2 years with the firm
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Investec Asset Management (Pty) Ltd Continued
Unathi Loos Portfolio Manager MBA (cum laude) 11 years of industry experience 11 years with the firm
Simon Howie Co-Head of SA & Africa Fixed Income MBA, B (Arch), CFA 21 years of industry experience 21 years with the firm
John Stopford Head of Multi-Asset Income BA (Chem), CFA 29 years of industry experience 26 years with the firm
Samantha Hartard Portfolio Manager BCom Hons (Fin) 11 years of industry experience 6 years with the firm
Malcolm Charles Portfolio Manager, SA Rates BCom (Acc, Bus Adm & Com Law) 23 years of industry experience 18 years with the firm
Jeff Boswell Head of Developed Market Credit BCom Hons, CA(SA), CFA 18 years of industry experience 5 years with the firm
Grant Irvine Smith Portfolio Manager MBA, BSc (Civ Eng), CFA 19 years of industry experience 19 years with the firm
Peter Eerdmans Head of Fixed Income and Co-Head of Emerging Market Sovereign & FX MSc (Econom) 24 years of industry experience 14 years with the firm
Clyde Rossouw Co-Head of Quality BSc (Stats & Act Sc), CAT, CFI, CFA 25 years of industry experience 20 years with the firm
RĂźdiger Naumann Portfolio Manager MCom, BCom Hons 15 years of industry experience 15 years with the firm Rhynhardt Roodt Co-Head of 4Factor MCom (Fin Man) (cum laude), BCom Hons (Inv Man) (cum laude), CFA 16 years of industry experience 9 years with the firm Mark Breedon Co-Head of 4Factor BA (Econ) 42 years of industry experience 17 years with the firm Greg Kuhnert Co-Head of 4Factor BCom, BAcc, CA(SA), CFA 24 years of industry experience 20 years with the firm Peter Kent Co-Head of SA & Africa Fixed Income MSc Finance, BCom Hons (Acc), CA(SA), CFA 19 years of industry experience 7 years with the firm
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Werner Gey Van Pittius Co-Head of Emerging Market Sovereign & FX MSc (App Stats), BCom Hons (Fin Econ), BCom (Ins Sc), CFA 16 years of industry experience 16 years with the firm Peter Schmid Head of Private Markets CA(SA) 23 years of industry experience 6 months with the firm James Elliot Head of Multi-Asset BA Hons 23 years of industry experience 6 months with the firm Philip Saunders Co-Head of Multi-Asset Growth BA (Hist) 38 years of industry experience 38 years with the firm Michael Spinks Co-Head of Multi-Asset Growth BA Hons (Maths & Econ), CFA 23 years of industry experience 7 years with the firm
Simon Brazier Co-Head of Quality BA Hons (Econ & French), IIMR 21 years of industry experience 5 years with the firm Sumesh Chetty Portfolio Manager, Quality BBusSc Hons (Act Sc), PG Dip (Act Sc), FIA 17 years of industry experience 13 years with the firm Duane Cable Portfolio Manager CA(SA), CFA 29 years of industry experience 19 years with the firm John Biccard Portfolio Manager, SA Value BCom Hons, (Econ), CFA 29 years of industry experience 19 years with the firm
JM Busha Asset Managers (Pty) Ltd www.jmbusha.com
Company details
Ownership
Investment mandates
FAIS FSP registration number: 730 Switchboard: +27 11 325 2027 Fax number: +27 11 325 2047 General email: invest@jmbusha.com Website: www.jmbusha.com Address: 28 Bompas Road, Dunkeld West Johannesburg, 2196 PO Box 31250, Braamfontein, 2017 Compliance officer name: Joseph Makamba Busha +27 11 325 2027
What is the ownership structure of the company? JM Busha Investment Group – 70% Staff Equity Program – 20% Social Investment Program – 10% Who are the directors of the company? M.M. Kabi, J.M. Busha (Managing), T.C. Musiyambiri (Chairperson)* *Non-executive Directors Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 20% Staff Equity Program
What are your total assets under management? R5.2 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R5.1 billion Retail: R118 million Life: – Other: –
Investment philosophy ■ Disciplined strategic investment process based on thorough quantitative research drives performance. Strategic asset allocation. ■ Risk minimisation through well-defined procedures and controls, diversified portfolios. ■ Tactical Asset Allocation (TAA) strategies enhance performance. Bottom-up stock driven. ■ Deliver chosen benchmark returns as minimum. Performance is everything.
FAIS requirements Who is your FAIS complaints officer? Joseph Makamba Busha Please provide the link to the complaints policy on your website: www.jmbusha.com
History When was the company established? 2000 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? – Date of accreditation: 2017-10-06
Key investment personnel Size of investment team: 4 Joseph Makamba Busha Chief Investment Officer MSc (Deriv), MPhil (Fin), BSc Hons 25 years of industry experience 17 years with the firm Farai Mapfinya Head: Equity Research BCom Hons, BSc (IT) 14 years of industry experience 4 years with the firm
GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
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Kagiso Asset Management (Pty) Ltd www.kagisoam.com
Company details
The future is never certain
B-BBEE credentials
FAIS FSP registration number: 784 Switchboard: +27 21 673 6300 Fax number: 086 675 8501 General email: info@kagisoam.com Website: www.kagisoam.com Address: 5th Floor, MontClare Place, Cnr Main & Campground Roads, Claremont, 7708 PO Box 1016, Cape Town, Compliance officer name: Sanchia Sobotker-Johnson +27 21 673 6326
Kagiso Asset Management recognises that there is considerable danger in operating with the comfort of a false sense of certainty and the accompanying behavioural reinforcement cycles that lead to a distorted evaluation of new information. As a result, they understand that despite their best efforts, they cannot possibly know all the facts.
Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? AQRate Date of accreditation: 2018-12-07
Investment philosophy Kagiso Asset Management makes investment decisions based on mispricings they observe in the market. Simply put, they buy investments that are priced well below their considered assessment of intrinsic values and avoid those that they believe are overpriced. Opportunities arise when market prices deviate from intrinsic value. All investments represent a set of future cash flows, which can be valued with reasonable accuracy. Over time, this intrinsic value progresses at a fairly stable pace. Asset prices, however, fluctuate considerably through time. This is largely due to self-reinforcing cycles of investor enthusiasm or negativity, often fuelled by an excessive focus on nearterm data and news flow. Their aim is to identify and exploit mispricings in the markets. They therefore buy investments at prices well below their estimation of intrinsic value and hold them while they deliver strong cash returns and until they can be sold above this value. Once sold, Kagiso Asset Management avoids such overvalued investments for as long as the market price is above the intrinsic value.
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This drives them to think more deeply, to work harder and to be more alert. They view the future in terms of probabilities, explore alternative scenarios, diversify their positions, hedge risk and seek out potential asymmetries.
FAIS requirements Who is your FAIS complaints officer? Sanchia Sobotker-Johnson Please provide the link to the complaints policy on your website: http://www.kagisoam.com/legal/
Ownership What is the ownership structure of the company? 50.1% owned by Kagiso Tiso Holdings 49.9% owned by management and staff Who are the directors of the company? Danisa, RG Greaver, Y Mahlangu, GJ Wood, T Scott, SP Sepeng Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes – 49.9%
History When was the company established? 2001 List of mergers that have taken place since being established: –
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PriceWaterhouseCooper Date of verification: 2018-12-12 Expiry date of verification: –
Investment mandates What are your total assets under management? R27.7 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R23 billion Retail: R4.1 billion Life: – Other: –
Key investment personnel Size of investment team: 19 Gavin Wood Chief Investment Officer BBusSc, FFA, CFA 24 years of industry experience 18 years with the firm Abdul Davids Portfolio Manager BCom, CFA 21 years of industry experience 12 years with the firm
Laurium Capital (Pty) Ltd www.lauriumcapital.com
Company details FAIS FSP registration number: 34142 Switchboard: +27 11 263 7700 General email: laurium@lauriumcapital.com Website: www.lauriumcapital.com Address: 9th Floor, 90 Grayston, 90 Grayston Drive, Sandown, Johannesburg, 2196 4th Floor, The Citadel, 15 Cavendish Street, Claremont, Cape Town, 7708 Compliance officer name: Independent Compliance Services; Enrique Goosen +27 21 975 6597
Investment philosophy Laurium uses value driven, fundamental bottom-up research combined with a macro, top-down overlay to generate a concentrated portfolio of investments that should generate attractive returns over time. Given the relative lack of liquidity and inefficiencies still prevalent on many of the African exchanges, a broad, flexible mandate is believed to be the most effective way to invest in the region. All of our funds are underpinned by a common investment philosophy. Bottom-up fundamental research and valuations – the core of our philosophy: We seek to identify companies whose share prices differ materially from our intrinsic valuations, based on longer term, through-the-cycle cash flows and earnings. However, we acknowledge that there are material deviations of share prices from intrinsic valuations for extended periods, and these must be taken into consideration in the risk management of a valuation-driven stock-picking process.
Top-down views – an important overlay: Identifying and taking advantage of economic cycles and market trends is an important contributor to the generation of superior long-term investment returns and is complementary to bottom-up research. However, cycles and trends are often unpredictable and are subject to change. Therefore, the risk of being wrong must be acknowledged and managed. Trading – a part of both bottom-up and top-down research: The market is right most of the time, but regular inefficiencies arise in the short term. Shorter-term inefficiencies may present trading opportunities, irrespective of a company’s intrinsic value. These opportunities often arise due to large flows of money, news flow and emotions, structural inefficiencies, corporate actions, and other special situations or events. We believe that our strategy will perform best in times following abnormal market volatility, because during the volatile periods, prices tend to overshoot fundamental valuations, which provides opportunities to take positions in those stocks. During strong bull markets, our performance is likely to lag on a relative basis. During periods of range trading, our performance is likely to be worst on a relative basis.
Ownership What is the ownership structure of the company? The company was started in August 2008 with Murray Winckler and Gavin Vorwerg (founders) each owning 41.6% and Artha Capital Management owning the remaining 9.2%. In 2014, Craig Sorour was appointed as a director of Laurium capital and acquired 7.5% ownership of the company. All existing shareholders were diluted pro rata. Other key staff have a combination of phantom equity and ordinary equity, aligning them with the business. Refer below the shareholding of the business if phantom shares were to be included in the calculation of all shares issued. Who are the directors of the company? Murray Winckler 37.5%, Gavin Vorwerg 37.5%, Craig Sorour 7.0% Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 18%
History When was the company established? 2008 List of mergers that have taken place since being established: –
FAIS requirements
B-BBEE credentials
Who is your FAIS complaints officer? Mark Preston Please provide the link to the complaints policy on your website: http://www.lauriumcapital.com/assets/ Complaints-2af1a0bf6771d597bad9fb7 2d26bcb47.pdf
Are you B-BBEE accredited? – What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: –
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Laurium Capital (Pty) Ltd continued
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? No Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R22.5 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R15.08 billion Retail: R7.13 billion Life: R292 million Other: –
Key investment personnel Size of investment team: 13 Murray Winckler Chief Investment Officer and Portfolio Manager (Co-Founder) CA(SA), CFA 37 years of industry experience 11 years with the firm
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Craig Sorour Head of Research CA(SA), CFA 21 years of industry experience 11 years with the firm JP du Plessis Head of Fixed Income BCom, CFA 22 years of industry experience 1 year with the firm Gavin Vorwerg Head of Equities and Portfolio Manager (Co-Founder) CA(SA), CFA 22 years of industry experience 11 years with the firm Brian Thomas Portfolio Manager BBusSci Hons, CA(SA), ACA, CFA 19 years of industry experience 2 years with the firm
Lima Mbeu Investment Managers (Pty) Ltd www.limambeu.co.za
Company details FAIS FSP registration number: 49018 Switchboard: +27 10 023 0113 Fax: +27 86 415 5280 General email: invest@limambeu.co.za Website: www.limambeu.co.za Address: 2nd Floor, Fredman Towers 13 Fredman Drive, Sandton, 2196 Postnet Suite 189, Private Bag X9 Benmore, 2010 Compliance officer name: Germa Beukes +27 82 894 5148
Investment philosophy We believe that disciplined growth investing is the best way to build wealth and capital in the long term The four key components of our philosophy are as follows: Active Management: We believe that although the market is hard to beat consistently, it is still inefficient. There are opportunities for skilled investors to generate excess returns, and it is for this reason that we believe in active management. Therefore, we actively manage our investment portfolios with a benchmark-cognisant mindset. Growth Investing: We believe that buying companies whose earnings are growing much faster than average leads to the outperformance of the market in the long run. We concentrate on finding companies that have a clear prospect of unusually rapid increases in earnings, as we believe that this presents the best way to outperform the market. Process: We believe that long-term success comes only from the most rigorous pursuit of disciplines designed to neutralise the emotional pressures that arise when one is responsible for investing other people’s money. We believe that a process that combines human foresight with the discipline of a quantitative framework is likely to generate relatively better investment returns.
Risk Control: We believe in building highly diversified portfolios as this enhances the probability of outperformance through various cycles. The best way to build wealth is through the compounding of consistent absolute and relative investment returns. Therefore, risk management is embedded within our investment processes to create portfolios that have low to moderate active risk.
FAIS requirements Who is your FAIS complaints officer? Ndinavhushavhelo Rabali Please provide the link to the complaints policy on your website: http://www.limambeu.co.za/sites/ default/files/downloads/4.%20 COMPLAINTS%20RESOLUTION%20 PROCEDURES.pdf
Ownership What is the ownership structure of the company? Staff (50%). African Rainbow Capital Financial Services Holdings (Pty) Ltd (50%) Who are the directors of the company? Board of Directors: Investec Asset Management (Pty) Ltd Ndinavhushavhelo Rabali, Sereku Daisy Lebepe, Thabo Stanley Seopa and Adv. Lindelani Patience Sigogo Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 50%
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R459.3 million Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R457.7 million Retail: R1.6 million Life: – Other: –
Key investment personnel Size of investment team: 4 Ndinavhushavhelo Rabali Chief Investment Officer MSc (Fin Maths) (cum laude) 15 years of industry experience 2 years with the firm
History
Teboho Tsotetsi Portfolio Manager MSc (Quant Risk Man) 15 years of industry experience 2 years with the firm
When was the company established? 2017 List of mergers that have taken place since being established: –
Bhekinkosi Khuzwayo Portfolio Manager MCom (Stats) (cum laude) 13 years of industry experience 2 years with the firm
B-BBEE credentials
Thobile Ngcobo Investment Analyst CA(SA) 6 years of industry experience 1 year with the firm
Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? A sworn affidavit Date of accreditation: 2019-04-16
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Matrix Fund Managers www.matrixfundmanagers.co.za
Company details
History
FAIS FSP registration number: 44663 Switchboard: +27 21 673 7800 General email: info@matrixfm.co.za Website: www.matrixfundmanagers.co.za Address: The Terraces, 2nd Floor, 25 Protea Road, Claremont, Cape Town, 7708 Compliance officer name: Roushana Dean +27 21 673 7821
When was the company established? 2006 List of mergers that have taken place since being established: –
Investment philosophy We are a boutique asset management firm with extensive experience in alternative and traditional investments. We are pragmatic in our investment philosophy, focusing on capital growth and limited drawdowns. We combine bottom-up stock selection with tactical asset allocation, which we manage dynamically as informed by our strong market timing skills and macro research.
FAIS requirements Who is your FAIS complaints officer? Ms D Wahl Please provide the link to the complaints policy on your website: www.matrixfundmanagers.co.za/ complaints-resolutions-process/
Ownership What is the ownership structure of the company? Matrix Fund Managers is 52% owned by management and 48% by external investors. Who are the directors of the company? Lourens Pretorius (Chair and CIO), Robert Coombe (COO), Roushana Dean (CFO), Nersan Naidoo (Non-executive Director) and Reece Briesies (Non-executive Director) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 52% held by staff and management
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? Renaissance SA Ratings Date of accreditation: 2018-07-16
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R9.2 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R6.9 billion Retail: R2.3 billion Life: – Other: –
Key investment personnel Size of investment team: 11 Lourens Pretorius Chief Investment Officer / Head of Fixed Income BCom Hons 25 years of industry experience 15 years with the firm Bruce Mommsen Head of Research and Equities BBusSci, CA(SA), CFA 19 years of industry experience 13 years with the firm
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Lourens Pretorius Head of Fixed Income BCom (Hons) 25 years of industry experience 15 years with the firm Konstantin Egorov Fixed Income Investment Manager MSc (Phys) 23 years of industry experience 15 years with the firm Sollie Van Der Linde Fixed Income Investment Manager BCom (Hons) 13 years of industry experience 8 years with the firm Craig le Riche Fixed Income Investment Manager BSc (Hons) (Adv Maths of Fin) 12 years of industry experience 1 year with the firm Chris-Sandra Klaasen Fixed Income Investment Manager BSc (Hons), BCom (Hons) 18 years of industry experience 2 years with the firm Carmen Nel Fixed Income Economic Strategist BSc, CFA, FRM 17 years of industry experience 2 years with the firm Leon Michaelides Equity Investment Manager BCom (Hons), CA(SA) 19 years of industry experience 4 years with the firm Anthony de la Cour Equity Senior Analyst MA, MBA, CFA 13 years of industry experience 1 year with the firm Ndumiso Ndebele Equity Analyst MPhil (Fin Maths), BBusSci (Act Sci), CFA 8 years of industry experience 4 years with the firm Mellany Spark Equity Analyst PhD (Astr), BSc (Hons) (Astr & Phy) 5 years of industry experience 6 months with the firm
Mazi Asset Management (Pty) Ltd www.mazi.co.za
Company details
FAIS requirements
GIPS
FAIS FSP registration number: 46405 Switchboard: +27 10 001 8300 Fax: +27 10 001 8599 General email: clientservice@mazi.co.za Website: www.mazi.co.za Address: 4th Floor, North Wing 90 Rivonia Road Sandton, 2196 PO Box 784583, Sandton, 2196 Compliance officer name: Bonolo Boikanyo (internal) and Anel Naude CompliServe (external) +27 10 001 8322
Who is your FAIS complaints officer? Anel Naude, Compliserve Please provide the link to the complaints policy on your website: http://www.mazi.co.za/wp-content/ uploads/2017/08/Complaints-.pdf
Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment philosophy Our investment objective is two-fold – return of capital as well as return on capital (to grow the long-term value of our client’s capital). The investment philosophy is therefore founded on thorough understanding of businesses and disciplined research to value such businesses. We employ a longterm fundamental approach to asset valuation. Valuation investing means really asking what the “real” values of an asset is, and not assuming that because a company looks expensive that it is, or assuming that because a stock is down in price and trades at low multiples that it is a bargain. A good investment has the following attributes: ■ A sustainable business model; ■ Is managed and led by an experienced and competent management team, including the board of directors; ■ Boasts of a healthy financial position; and offers clarity on how the company makes or will make its cash profits – current and future; ■ Offers downside characteristics during tough economic periods.
Ownership What is the ownership structure of the company? 100% staff owned Who are the directors of the company? Board of Directors: Investec Asset Management (Pty) Ltd Isaac Shongwe: Independent Non-executive Director and Chairman Nwabisa Pike: Independent Non-Exec Director Malungelo Zilimbola: Executive Director Kgapu Mphahlele: Executive Director Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 100%
Investment mandates What are your total assets under management? R47.9 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R43.9 billion Retail: R2.8 billion Life: R1.1 billion Other: –
History When was the company established? 2006 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Empower Logic Date of accreditation: 2019-04-16
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Mazi Asset Management (Pty) Ltd Continued
Key investment personnel Size of investment team: 4 Malungelo Zilimbola Chief Investment Officer/CEO BSc Hons, BCom Hons (Harvard) 20 years of industry experience 12 years with the firm Seth Boakye-Dankwah Head of Research MA, BSc Hons 29 years of industry experience 5 years with the firm Luxolo Mehlomakulu Head of Trading BCom, SAIFM 25 years of industry experience 5 years with the firm Kopano Makhu Portfolio Manager BSc Hons 13 years of industry experience 3 years with the firm Chris Reddy Portfolio Manager BBusSc, CFA 13 years of industry experience 3 years with the firm Keonethebe Bosigo Portfolio Manager BCom Hons, CAIA, CFA 12 years of industry experience 8 years with the firm
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Asanda Notshe Portfolio Manager BBusSc, FIA, FFASSA 14 years of industry experience 8 years with the firm Francois Olivier Portfolio Manager BCom Hons, CA(SA) CFA 19 years of industry experience 5 years with the firm Khanyisa Ngesi Research Analyst MSc (Stat), BSc Hons 11 years of industry experience 12 years with the firm Shawn Bruyns Research Analyst BCom, CFA 15 years of industry experience 12 years with the firm
Meago (Pty) Ltd www.meago.co.za
Company details
Ownership
Investment mandates
FAIS FSP registration number: 24919 Switchboard: +27 11 646 2944 General email: thabor@meago.co.za Website: www.meago.co.za Address: 73 Oxford Road, Saxonwold, 2196 PO Box 1180, Edenvale, 1610 Compliance officer name: Thabo Ramushu +27 11 646 2944
What is the ownership structure of the company? Jay Padayatchi 30%, Thabo Ramushu 30%, Sharif Hoosen 30% and Anas Madhi 10% Who are the directors of the company? Jay Padayatchi, Anas Madhi, Thabo Ramushu and Sharif Hoosen Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Meago is 100% owned by management and staff
What are your total assets under management? R12.79 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R12.79 billion Retail: – Life: – Other: –
Investment philosophy
History
Meago uses an active investment strategy within agreed upon client restrictions. Portfolios are constructed to reflect Meago’s fundamental investment principles: ■ Attractive recurring income at acceptable risk level ■ Be overweight with companies with reasonable valuations relative to investment alternatives ■ Continually recycle its position by selling outperforming and fully valued assets and buying undervalued shares at an opportune time ■ Invest in companies with sustainable cash flow and strong balance sheet that can grow and support the dividend payout ■ Companies with assets in strong and growing nodes ■ Invest in companies with good corporate governance and are conscious on social and environmental issues
When was the company established? 2004 List of mergers that have taken place since being established: –
Jay Padayatchi Chief Investment Officer HDip (Tax), Bcom Hons, BSc (Quant Surv), CA(SA) 19 years of industry experience 15 years with the firm
FAIS requirements Who is your FAIS complaints officer? Sharen Gerald Please provide the link to the complaints policy on your website: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Exempted Micro Enterprise Date of accreditation: –
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Key investment personnel Size of investment team: 7
Anas Madhi Portfolio Manager MBBCH, MBA (cum laude) 17 years of industry experience 13 years with the firm Thabo Ramushu Portfolio Manager MSc (Real Estate) 19 years of industry experience 15 years with the firm Ryan Eichstadt Head of Research BCompt (Acc), CA(SA) 6 years of industry experience 1 year with the firm Bongwa Mthembu Investment Analyst BCom Hons (Fin Man) 4 years of industry experience 4 years with the firm Lerato Mtshali Investment Analyst BCompt (Acc), CA(SA) 1 years industry experience 1 year with the firm Sanelisiwe Memela Graduate BBusSc (Fin) 4 months of industry experience 4 months with the firm 237
Mergence Investment Managers (Pty) Ltd www.mergence.co.za
Company details FAIS FSP registration number: 16134 Switchboard: +27 21 433 2960 Fax number: +27 21 433 0675 General email: info@mergence.co.za Website: www.mergence.co.za Address: 2nd Floor, Dockside Cruise Terminal V&A Waterfront, Cape Town, 8002 PO Box 8275, Roggebaai, 8012 Compliance officer name: Gerry Grispos (outsourced to CompliServe +27 86 127 3783
Investment philosophy Mergence Investment Managers is an independent asset management company founded in 2004. Mergence has a pragmatic approach or philosophy to investing, which means that they attempt to understand how the world really works rather than how they think it should work, especially concerning markets and investing. They manage listed investments, listed equity and multi-asset class portfolios, as well as unlisted equity and debt mandates with a particular bias toward infrastructure and development investing.
FAIS requirements Who is your FAIS complaints officer? Andy Howard Please provide the link to the complaints policy on your website: http://www.mergence.co.za/wp-content/ uploads/2018/10/POL180622-MergenceComplaints-Policy-Mar-2018.pdf
Ownership What is the ownership structure of the company? Mergence Investment Managers is a subsidiary of the Mergence Group.
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Who are the directors of the company? Masimo Magerman, Fabian de Beer, Bongani Jack and Amanda Allie (non-executive director) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 42% is owned by staff directly (excluding founding partner)
History When was the company established? 2004 List of mergers that have taken place since being established: â&#x20AC;&#x201C;
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Authentic Rating Solutions Date of accreditation: 2019-02-18
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PwC Date of verification: 2018-11-30 Expiry date of verification: 2019-11-29
Investment mandates What are your total assets under management? R32.25 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R31.08 billion Retail: R0.20 billion Life: R0.96 billion Other: â&#x20AC;&#x201C;
Key investment personnel Size of investment team: 20 Fabian de Beer Director: Investments BCom, HDipEd 33 years of industry experience 13 years with the firm Bradley Preston Head: Listed Investments MSc (Fin Maths), BSc Hons 14 years of industry experience 14 years with the firm Peter Takaendesa Portfolio Manager MCom (Econ), MCom (Fin & Econ) 13 years of industry experience 6 years with the firm Patric Ho Head: Absolute Return Funds BCom Hons, CA(SA) 34 years of industry experience 7 years with the firm Dirk Steyn Portfolio Manager MSc (Fin Maths), BSc, B Eng 15 years of industry experience 13 years with the firm Grace Debeila Co-Portfolio Manager BEconSc (Act Sci) 18 years of industry experience 2 months with the firm Mark van Wyk Head: Unlisted Investments BCom Hons, CA(SA) 20 years of industry experience 9 years with the firm Kasief Isaacs Portfolio Manager BCom Hons, CA(SA) 26 years of industry experience 5 years with the firm
Mianzo Asset Management (Pty) Ltd www.mianzo.co.za
Company details
FAIS requirements
B-BBEE credentials
FAIS FSP registration number: 43114 Switchboard: +27 21 552 3555 General email: info@mianzo.co.za Website: www.mianzo.co.za Address: The Forum, EG01, Vesta House Northbank Lane, Century City, 7441 PO Box 1210, Milnerton, 7442 Compliance officer name: Deon Harmse – Moonstone +27 21 554 5745
Who is your FAIS complaints officer? Thembeka Sobekwa and Faldie Isaacs Please provide the link to the complaints policy on your website: info@mianzo.co.za
Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Sworn Affidavit – Qualifying Small Enterprise Date of accreditation: 2018-09-12
Investment philosophy We hold ourselves accountable for the investment decisions we make by being innovative, professional and having a strong sense of integrity and discipline through continuous and consistent excellence. Our equity philosophy is based on the belief that superior investment performance is achieved by investing in companies that are priced below their intrinsic value with a sufficient margin of safety. Our intrinsic value is calculated by looking at what the company is currently worth based on sustainable earnings or net asset value. Our equity philosophy is centred on assembling the following: ■ VALUATION: The current value of the business. ■ QUALITY: The quality of the business. ■ MARKET EXPECTATIONS: The market’s expectation on the business.
Ownership What is the ownership structure of the company? Mianzo Asset Management is a black owned and managed third-party Investment Management Company. ■ Luvo Tyandela 55% ■ Mianzo Employee Share Trust 45% Who are the directors of the company? Luvo Tyandela (Executive Director) and Pieter Joubert (Non-executive Director) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Staff in aggregate hold 45% of the shares being Mianzo Asset Management, being the holding company of Mianzo Asset Management. Staff therefore do, indirectly, have an ownership interest in Mianzo Asset Management.
History When was the company established? 2010 List of mergers that have taken place since being established: –
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R5.47 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R5.47 billion Retail: – Life: – Other: –
We blend both fundamental and quantitative investment approaches to gain a more comprehensive perspective of business.
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Mianzo Asset Management (Pty) Ltd Continued
Key investment personnel Size of investment team: 9 Luvo Tyandela Chief Executive Officer BSc (Stats), PGDM, MBA 18 year of industry experience 9 years with the firm Mark Lamohr Head of Equities and Portfolio Manager BSc (Maths & App Maths) 21 years of industry experience 6 years with the firm Thembeka Sobekwa Portfolio Manager BBusSci (Act Sc) 10 years of industry experience 9 years with the firm Mohamed Shafee Loonat Portfolio Manager BCompt Hons and Advanced Taxation, PGD (Islamic Banking & Insurance), BCom (Econ), CA(SA); CFA 21 years industry experience 1 year with the firm Zukile Thamsanqa Business Development Manager BSc Hons (Maths) and PGD (Fin Pl & Ins) 13 years industry experience 6 months with the firm
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Jami Jepthas Equity Analyst BBusSci (Fin) 3 years of industry experience 3 years with the firm Nkanyezi Mwelase Equity Analyst Masterâ&#x20AC;&#x2122;s (Fin & Inv), BCompt Hons (Acc Sc), BCom (Acc), CA(SA) 2 years of industry experience 2 years with the firm Yanda Mxinwa Junior Analyst BCom (Acc) 2 years of industry experience 6 months with the firm Mpho Mashishi Junior Analyst BSc (Min Eng) Graduate â&#x20AC;&#x201C; no industry experience 6 months with the firm
Momentum Investments (Pty) Ltd www.momentuminv.co.za
Company details
FAIS requirements
B-BBEE credentials
FAIS FSP registration number: 19840 Switchboard: +27 86 153 8732 Fax number: +27 86 573 7384 General email: InvestmentsComms@momentum.co.za Website: www.momentuminv.co.za Address: 268 West Avenue, Centurion, 0157 PO Box 7400, Centurion, 0046 Compliance officer name: Bernard Pieterse
Who is your FAIS complaints officer? Shital Jeeva Please provide the link to the complaints policy on your website: http://www.momentuminv.co.za/ Libraries/Legal_Documents/Complaints_ Resolution_Policy_and_Procedure.sflb. ashx
Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? National Empowerment Rating Agency Date of accreditation: 2018-05-31
Investment philosophy Momentum Investments follows an Outcomes-based investment philosophy. They have adapted their unique value proposition to create investment portfolios that centre on their clients and increase the likelihood of reaching their investment goal. Their unique value proposition is to understand clients’ goals and their attitudes and capacities to take on risk. They recognise and understand market forces and human behaviour (for example, the herd mentality – investors making the wrong investment decisions at times of stress). They craft investment solutions for clients by considering their liabilities or needs, defining a goal, risk tolerance and appropriate time frame and then diversifying across multiple asset classes, investment strategies and mandates to match and deliver on the objectives that have been set. Momentum executes robust solutions by blending asset classes and strategies in the most efficient and optimal manner through modern financial engineering techniques. They help clients understand and articulate their needs and solve for appropriate investment outcomes. Their investment team remains focused on the right outcome and makes this journey as comfortable as possible.
Ownership What is the ownership structure of the company? Momentum Metropolitan Holdings (MMH) Who are the directors of the company? Frans Truter, Johan van Reenen, Neil Krige, Syd Muller, Jeanette Marais Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: No
History When was the company established? 2004 List of mergers that have taken place since being established: Momentum Investments includes all the investments-related businesses of MMH Limited and offers a wide spectrum of investment services and solutions to individual and institutional investors. Momentum Investments includes the businesses previously known as Momentum Outcome-Based Solutions, Momentum Asset Management, Momentum Alternative Investments, Momentum Global Investment Management and the Eris Property Group.
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R399.3 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R276.6 billion Retail: R122.7 billion Life: – Other: –
The investment capabilities are Portfolio Solutions, Research & Insights, Alternatives, Fixed income, Listed property, Indexation, Smart Beta and Global Equity Balanced, Systematic Strategies & structuring (indexation capabilities) and Global Investment Management.
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Momentum Investments (Pty) Ltd Continued
Key investment personnel Size of investment team: 57 Sonja Saunderson Chief Investment Officer MCom (cum laude), BCom Hons, BSc 19 years of industry experience 19 years with the firm Michael Adsetts Deputy Chief Investment Officer – Investment Strategy MBA, BSc Hons, CFA 16 years of industry experience 12 years with the firm Eugene Botha Deputy Chief Investment Officer –OBI Research MSc, BSc Hons 14 years of industry experience 14 years with the firm Pelo Manyeneng Head of Property BCom, CAIA, RPE 10 years of industry experience 10 years with the firm Motlatsi Mutlanyane Head: Alternatives MBA, BSc Hons, FIA, FASSA 24 years of industry experience 11 years with the firm Wayne Dennehy Head: Systematic Strategies & Structuring and Head of Distribution BSc Hons, BCom, Fellow of the Institute of Actuaries, FRM 26 years of industry experience 4 years with the firm
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Nina Saad Head of Corporate Portfolio Solutions BSc, CFA 23 years of industry experience 2 years with the firm Jako de Jager Head of Retail Portfolio Solutions BCom Hons 18 years of industry experience 18 years with the firm Herman van Papendorp Head: Research & Insights M Com (Econom) (cum laude), B Com Hons (Econ) BCom (Act Sc) 27 years of industry experience 7 years with the firm James Klempster Head of Global Investment Management MA (Oxford), CFA, IMC 15 years of industry experience 12 years with the firm Ian Scott Head of Fixed Income B Com Hons (Inv Man) 21 years’ industry experience 1 year with the firm
Nedgroup Investments (Pty) Ltd www.nedgroupinvestments.co.za
Company details
Ownership
Investment mandates
FAIS FSP registration number: N/A Switchboard: +27 86 012 3263 Fax number: +27 86 011 9733 General email: institutional@nedgroupinvestments.co.za Website: www.nedgroupinvestments.co.za Address: 2nd Floor, Nedbank Clocktower Clocktower Precinct, V&A Waterfront Cape Town, 8001 PO Box 1510, Cape Town, 8000 Compliance officer name: Liezel Momberg +27 21 416 6204
What is the ownership structure of the company? Wholly owned subsidiary of Nedbank Group Ltd Who are the directors of the company? NA Andrew, CE Sevenaoks, I Ruggiero Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: No
What are your total assets under management? R259.6 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R110.7 billion Retail: R148.9 billion Life: – Other: –
Investment philosophy We offer individual and institutional investors access to a range of South African and offshore unit trust portfolios to meet their investment needs. These portfolios are managed by a range of Best of Breed™ investment managers that they actively monitor and review, so that clients don’t have to.
FAIS requirements Who is your FAIS complaints officer? – Please provide the link to the complaints policy on your website: http://www.nedgroupinvestments.co.za
History When was the company established? 1997 List of mergers that have taken place since being established: 2003 – African Harvest, BoE, FTNIB, NIBi and Nedbank Unit Trusts merged to form Nedcor Collective Investments. Changed to Nedgroup Collective Investments in 2005
B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? Level 1 By whom have you been accredited? Sizwe Ntsaluba Gobodo Date of accreditation: 2019-02-20
Key investment personnel Size of investment team: 26 Nic Andrew Executive Head, Asset Management BCom, CA(SA), PG Dip (Tax Law), CFA, AMP (Insead) 26 years of industry experience 21 years with the firm Trevor Garvin Head of Investments & Multimanagement MBA, MCom (Finance), BCom Hons (Econ), Dip FMI (cum laude), SAFEX, ACIBM, CAIA 24 years of industry experience 17 years with the firm
GIPS Are you GIPS compliant? No Are you GIPS verified? – By whom have you been verified? – Date of verification: – Expiry date of verification: –
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Ngwedi Investment Managers (Pty) Ltd www.ngwedi.com
Company details FAIS FSP registration number: 46668 Switchboard: +27 21 000 1900 General email: monei@ngwedi.com Website: www.ngwedi.com Address: Suite 4b, 1st Floor, Madison Place Alphen Office Park, Constantia Main Road, Constantia, 7848 Compliance officer name: Deon Harmse Moonstone Compliance +27 21 554 5745
Investment philosophy At Ngwedi, our investment philosophy is centered around capital preservation in absolute or relative terms. Our overriding belief is that by minimising capital losses while compounding positive returns, we can ensure superior, consistent, stable returns over the long term. The compounded effect of steady positive returns over time leads to long-term wealth creation. We are committed to generating above absolute or relative benchmark returns through a careful blend of fundamental and quantitative analysis of investment opportunities over market cycles. The long-term sustainability of our investment offerings rests on four key investment pillars, namely; At Ngwedi, our investment philosophy is centered around capital preservation in absolute or relative terms. Our overriding belief is that by minimising capital losses while compounding positive returns, we can ensure superior, consistent, stable returns over the long term. The compounded effect of steady positive returns over time leads to longterm wealth creation.
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We are committed to generating above absolute or relative benchmark returns through a careful blend of fundamental and quantitative analysis of investment opportunities over market cycles. The long-term sustainability of our investment offerings rests on four key investment pillars, namely; Capital Preservation ■ We believe that a balanced risk-return approach that emphasises stable returns and capital preservation will provide greater and more consistent returns to our investors and the management teams that operate our businesses. ■ Thus, rather than merely searching for prospective profits, we place the highest priority on preventing losses. It is our overriding belief that if we avoid the losers, the winners will take care of themselves over the long run. Long-Term Horizon ■ We believe a long-term strategy is the best way to build and preserve our client’s financial security. ■ Taking the long-term view is possible because of the way our company is organized and managed. ■ Ngwedi is Privately owned by the founders and focused exclusively on asset management, Ngwedi provides the ideal environment for investment professionals to maintain a longterm perspective when pursuing investment opportunities. No Point Forecasting ■ We do not believe in the predictive ability required to correctly time markets. It is a well-known fact that point forecasting is notoriously difficult and easily prone to noise. Instead of making use of point forecasting we allocate a considerable amount of time building scenario analysis. ■ We evaluate the most likely macroeconomic and monetary policy scenarios and select those asset classes that perform reasonably well for most scenarios under consideration.
Diversification ■ While diversification cannot always protect our client’s investments against a loss, it is one way we can help reduce risk and protect our client assets. ■ Given an investment opportunity set we will always prefer building a portfolio that includes different types of investments strategies or asset classes that may perform differently over various business cycles.
FAIS requirements Who is your FAIS complaints officer? Daniel Acres (COO) Please provide the link to the complaints policy on your website: https://ngwedi.com/legal/#legal
Ownership What is the ownership structure of the company? Ngwedi Investment Managers and Ngwedi Alternative Investment are 100% owned by Ngwedi Capital Holdings, which has 51% Black ownership and 51% Black economic interest. Who are the directors of the company? Exexcutive: Monei Pudumo–Roos, Farzana Bayat, Daniel Acres Non-executive chairman: Terence Gregory Non-executive: Dudu Garekwe and Ryan Kruger Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 51%
Ngwedi Investment Managers (Pty) Ltd Continued
History
Key investment personnel
When was the company established? August 2018 List of mergers that have taken place since being established: None
Size of investment team: 4
B-BBEE credentials Are you B-BBEE accredited? We currently have a sworn affidavit What is your B-BBEE status? Level 2 By whom have you been accredited? We signed a sworn affidavit Date of accreditation: 2019-08-01 to 2020-07-31
GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Farzana Bayat Chief Investment Officer BBusSci (Actuarial), CFA 17 years industry experience 1.5 years with firm Raphael Nkomo Head of Research and Strategy PhD, MSc, BSc 19 years industry experience 1.5 years with firm Teresa Lu Portfolio Manager PhD, MSc, BSc 10 years industry experience 1.5 years with firm Ryan van Breda Portfolio Manager MCom (Finance), FRM 13 years industry experience 1.5 years with firm
Investment mandates What are your total assets under management? R4.75 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R4.655 billion Retail: R95 million Life: – Other: –
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Northstar Asset Management (Pty) Ltd https://northstar.co.za/
Company details
FAIS requirements
Investment mandates
FAIS FSP registration number: 601 Switchboard: +27 21 810 8400 Fax number: +27 21 794 2885 General email: info@northstar.co.za Website: www.northstar.co.za Address: Suite 1A, Madison Place Alphen Office Park, Constantia, 7806 Postnet Suite 784, Private Bag x16 Constantia, 7848 Compliance officer name: Independent Compliance Services Enrique Goosen +27 21 975 6597
Who is your FAIS complaints officer? Enrique Goosen Please provide the link to the complaints policy on your website: https://northstar.co.za/legal-information/
What are your total assets under management? R5.6 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R1.3 billion Retail: R4.3 billion Life: – Other: –
Investment philosophy Northstar’s philosophy centres around long-term exposure to quality assets where value exceeds price. In short, we are Quality Investing at a reasonable price. We identify this by screening for companies which have a strategic competitive advantage, evident in superior and sustainable return on invested capital (ROIC) and free-cash-flow (FCF) measures. We believe that our proprietary research and portfolio construction process gives us a competitive edge in both the onshore and offshore space. Our highly structured, in-house research model enables us not only to run our own branded funds well, but to apply institutional levels of research to our segregated fund mandates and direct retail clients. Our fixed income portfolios are managed to continually optimise positions, ensuring the highest possible return at a point in time, without incurring the risk of underperforming the benchmark. Our business principles are: ■ Delivery of long-term investment returns to clients ■ Focused fundamental research produces consistent long-term returns ■ Class-leading client service delivery ■ Integrity and honesty as the bedrock of our value system. 246
Ownership What is the ownership structure of the company? 70% privately owned, 30% RMI Investment Managers Who are the directors of the company? A Clayton, M Seymour, M Barbieri, R Spangenberg, M Bertram, A De Swardt, A Rousseau (Alternate) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes – 63%
History When was the company established? 1996 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: –
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Key investment personnel Size of investment team: 9 Adrian Clayton Chief Investment Officer BSocSc (Econ) 24 years of industry experience 7 years with the firm Marco Barbieri Head of Local Equities BSc Hons (Chem), BCom Hons (Fin Acc), CFA 11 years of industry experience 7 years with the firm Mark Seymour Head of Fixed Income BSc Eng 18 years’ industry experience 7 years with the firm Rory Spangenberg Head of Global Equities BCom (Econ) 20 years of industry experience 3 years with the firm
Oasis Asset Management Ltd www.oasiscrescent.com
Company details
Ownership
Investment mandates
FAIS FSP registration number: 603 Switchboard: +27 21 413 7860 Fax number: +27 21 413 7900 General email: Clients@za.oasiscrescent.com Website: www.oasiscrescent.com Address: Oasis House, 96 Upper Roodebloem Road, University Estate Cape Town, 7925 PO Box 1217, Cape Town South Africa, 8000 Compliance officer name: Nazeem Ebrahim +27 21 413 7860
What is the ownership structure of the company? The company is 100% owned by Oasis Group Holdings (Pty) Ltd Who are the directors of the company? Mohamed Shaheen Ebrahim, Adam Ebrahim, Nazeem Ebrahim, Roshin Ebrahim (Non-executive Director) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Oasis staff incentive scheme is based on profit participation rather than ownership interest.
What are your total assets under management? R18.3 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: Not disclosed Retail: Not disclosed Life: Not disclosed Other: Not disclosed
Investment philosophy Oasis Asset Management Ltd strives to provide unrivalled world-class financial services to its clients and is responsible for every aspect of collective investment schemes, property management, retail retirement funds, institutional investment funds and linked investment insurance policies. The products offered are designed to protect clientsâ&#x20AC;&#x2122; assets through the application of a low volatility fund management philosophy. The application of this philosophy is epitomised in the focused management of financial assets through the utilisation of proven stock selection skills that leverage off a meticulous research process.
FAIS requirements Who is your FAIS complaints officer? Nazeem Ebrahim Please provide the link to the complaints policy on your website: Available on request
History When was the company established? 1997 List of mergers that have taken place since being established: â&#x20AC;&#x201C;
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? SAB & T Date of accreditation: 2019-12-02
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? SAB & T Date of verification: 2019-01-30 Expiry date of verification: 2020-01-31
Key investment personnel Size of investment team: 24 Adam Ebrahim Chief Investment Officer CA(SA), CFA 37 years of industry experience 23 years with the firm Mohamed Shaheen Ebrahim Strategist AltX Dip 47 years of industry experience 23 years with the firm Nazeem Ebrahim Strategist BSocSci, BProc 39 years of industry experience 23 years with the firm Micheal Swingler Senior Analyst CA(SA), CFA 26 years of industry experience 23 years with the firm Yusuf Ebrahim Senior Analyst 14 years of industry experience 14 years with the firm Zahrah Dutton Analyst PGDA, BBusSci (Law), CA(SA) 5 years of industry experience 4 years with the firm Bint Nur Cassim Analyst BBusSci (Fin and Acc) 4 years of industry experience 4 years with the firm 247
Oasis Crescent Capital (Pty) Ltd www.oasiscrescent.com
Company details
Ownership
Investment mandates
FAIS FSP registration number: 796 Switchboard: +27 21 413 7860 Fax number: +27 21 413 7900 General email: Clients@za.oasiscrescent.com Website: www.oasiscrescent.com Address: Oasis House, 96 Upper Roodebloem Road, University Estate Cape Town, 7925 Oasis Crescent Capital (Pty) Ltd. PO Box 1217, Cape Town South Africa, 8000 Compliance officer name: Nazeem Ebrahim +27 21 413 7860
What is the ownership structure of the company? The company is 100% owned by Oasis Group Holdings (Pty) Ltd Who are the directors of the company? Mohamed Shaheen Ebrahim, Adam Ebrahim, Nazeem Ebrahim, Roshin Ebrahim ( Non Executive Director) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Oasis staff incentive scheme is based on profit participation rather than ownership interest.
What are your total assets under management? R24 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: Not disclosed Retail: Not disclosed Life: Not disclosed Other: Not disclosed
Investment philosophy Oasis Asset Management Ltd strives to provide unrivalled world-class financial services to its clients and is responsible for every aspect of collective investment schemes, property management, retail retirement funds, institutional investment funds and linked investment insurance policies. The products offered are designed to protect clientsâ&#x20AC;&#x2122; assets through the application of a low volatility fund management philosophy. The application of this philosophy is epitomised in the focused management of financial assets through the utilisation of proven stock selection skills that leverage off a meticulous research process.
FAIS requirements Who is your FAIS complaints officer? Nazeem Ebrahim Please provide the link to the complaints policy on your website: Available on request
248
History When was the company established? 2002 List of mergers that have taken place since being established: â&#x20AC;&#x201C;
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? SAB & T Date of accreditation: 2019-12-02
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? SAB & T Date of verification: 2019-01-30 Expiry date of verification: 2020-01-31
Key investment personnel Size of investment team: 24 Adam Ebrahim Chief Investment Officer CA(SA), CFA 37 years of industry experience 23 years with the firm Mohamed Shaheen Ebrahim Strategist AltX Dip 47 years of industry experience 23 years with the firm Nazeem Ebrahim Strategist BSocSci, BProc 39 years of industry experience 23 years with the firm Micheal Swingler Senior Analyst CA(SA), CFA 26 years of industry experience 23 years with the firm Yusuf Ebrahim Senior Analyst 14 years of industry experience 14 years with the firm Zahrah Dutton Analyst PGDA, BBusSci (Law), CA(SA) 5 years of industry experience 4 years with the firm Bint Nur Cassim Analyst BBusSci (Fin and Acc) 4 years of industry experience 4 years with the firm
Old Mutual Investment Group (Pty) Ltd www.oldmutualinvest.com
Company details
FAIS requirements
B-BBEE credentials
FAIS FSP registration number: 604, 520, 721, 592, 45255 Switchboard: +27 21 509 5022 Fax number: +27 21 509 5025 General email: listening@oldmutualinvest.com Website: www.oldmutualinvest.com Address: West Campus Entrance 1, Mutual Park Jan Smuts Drive, Pinelands Cape Town, 7405 PO Box 878, Cape Town 8000 Compliance officer name: Shaheed Mohamed +27 21 504 7296
Who is your FAIS complaints officer? Shaheed Mohamed Please provide the link to the complaints policy on your website: http://ww2.oldmutual.co.za/docs/defaultsource/about-us-docs/complaints-policyomig-aug-2015-final.pdf
Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? AQRate Date of accreditation: 2019-04-30
Investment philosophy Our investment capabilities are managed by a range of independent investment boutiques. This gives their clients a single point of access to world-class, specialist expertise in a comprehensive range of listed and unlisted investment capabilities. Our investment professionals are invested experts because they have meaningful equity ownership stakes in their investment businesses and are invested alongside their clients in the funds they manage. This allows them to be independent and entrepreneurial and offers them a powerful incentive to deliver strong performance. The multi-boutique structure also gives them the agility to seize market opportunities and the ability to use distinctly different investment approaches and styles. The accolades they have achieved and performance track records they have built up over decades are confirmation that Old Mutual Investment Group have achieved the right formula for securing our clients’ long-term financial success.
Ownership What is the ownership structure of the company? Old Mutual Investment Group is majority owned by Old Mutual Investment Group Holdings, which is ultimately owned by Old Mutual Limited. Who are the directors of the company? The directors of Old Mutual Investment Group are: Peter De Beyer, Gcinikhaya Gobodo, Mike Willis, Lindiwe Mthimunye-Bakoro Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Old Mutual Investment Group has set aside 20% of each boutique to be owned over time by the teams in the business, with 8% of this 20% specifically reserved for black staff. The Imfundo Trust holds 5.3% with the remaining 74.7% ultimately being owned by Old Mutual.
History
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PricewaterhouseCoopers Date of verification: 2017-12-31 Expiry date of verification: –
Investment mandates What are your total assets under management? R663 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R148 billion Retail: R302 billion Life: R213 billion Other: –
When was the company established? 1993 List of mergers that have taken place since being established: –
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Old Mutual Investment Group (Pty) Ltd Continued
Key investment personnel Size of investment team: 207 Hywel George Director of Investments BSc (Econ) 31 years of industry experience 6 years with the firm Grant Watson Boutique Head: Customised Solutions MBA, BSc Hons, B Com, SAIS, CMMD 26 years of industry experience 16 years with the firm Paul Boynton Head: Alternative Investments B Com, BSc, Hons, MBA, CA(SA), FCMA 30 years of industry experience 24 years with the firm Peter Brooke Head: MacroSolutions BBusSc Hons (Fin) 24 years of industry experience 14 years with the firm Paul Rackstraw Head: Futuregrowth Asset Management CA(SA) 30 years of industry experience 30 years with the firm
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Siboniso Nxumalo Boutique Head: Old Mutual Equities MBA, BCom Hons 14 years of industry experience 14 years with the firm Neil Nothard Chief Executive Officer â&#x20AC;&#x201C; Marriot B Com, CA(SA) 33 years of industry experience 33 years with the firm Trevor Abromowitz Boutique Head: LDI MSc (Act Sc), FASSA, FIA, CFA 16 years of industry experience 7 years with the firm Lance Osburn Boutique Co-Head: Old Mutual Specialised Finance (OMSFIN) BBSc (Act Sc), FIA, CFA 16 years of industry experience 16 years with the firm Shaun Harris Boutique Co-Head: Old Mutual Specialised Finance (OMSFIN) BCom Hons, CA(SA), CFA 16 years of industry experience 12 years with the firm
Old Mutual Multi-Managers www.ommultimanagers.co.za
Company details
FAIS requirements
FAIS FSP registration number: 703 Switchboard: +27 21 524 4430 Fax number: +27 21 441 1199 General email:
Who is your FAIS complaints officer? Leah-Joy Williams Please provide the link to the complaints policy on your website: http://ww2.oldmutual.co.za/docs/defaultsource/about-us-docs/complaints-policyomig-aug-2015-final.pdf
ommmclientquery@ommm.co.za
Website: www.ommultimanagers.co.za Address: Mutualpark, Jan Smuts Drive Pinelands, Cape Town, 7405 PO Box 44604, Claremont, 7735 Compliance officer name: Leah-Joy Williams
Investment philosophy The primary focus of Old Mutual Multi-Managers is on ensuring that all our portfolios consistently outperform inflation. We are convinced that this is the single most important consideration for any investor, whether individual, corporate, or retirement fund. Then, with that key objective in place, our investment philosophy builds on this ‘inflation plus’ approach by clearly defining each portfolio’s target objectives and then working to deliver precisely on these objectives. Defining these target objectives ensures that our investment teams and asset managers have clear targets to work towards, which keeps them 100% focused and prevents them from being distracted by market shifts or investor sentiment. Our investment philosophy is underpinned by the three integrated pillars of: ■ a long-term investment horizon; risk diversification across asset classes and asset managers, and ■ a valuation-driven approach that informs all our asset manager and asset selection decisions.
Ownership What is the ownership structure of the company? Old Mutual Investment Group is majority owned by Old Mutual Investment Group Holdings, which is ultimately owned by Old Mutual Limited. Who are the directors of the company? TA Manuel (Chairman), I Williamson (CEO), CG Troskie (CFO), PC Baloyi, PG De Beyer, M Du Toit, AK Essien, I Kgaboesele, JR Lister, Dr S Magwentshu-Rensburg, NT Moholi, T Mokgosi-Mwantembe, N Molope, J Mwangi, BM Rapiya, S Van Graan EM Kirsten (Company Secretary) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Employees of Old Mutual Multi-Managers do not directly own any level of the multi-management business. Old Mutual Multi-Managers is a member of Old Mutual. Employees participate in the Old Mutual variable base scheme.
With more unit trusts in South Africa than there are shares listed on the JSE, the South African investment landscape can be complex and intimidating for many investors. Old Mutual Multi-Managers works to demystify this complex environment by offering a range of investment funds and strategies to suit the needs of all types of investors. We deliver specialised investment offerings and administration services for the corporate and institutional clients (including retirement funds) of Old Mutual Corporate and the individual clients of Old Mutual Wealth. Currently we have more than R100 billion in assets under management. List of mergers that have taken place since being established: Old Mutual Multi-Managers was formed through the business consolidation of SYm|mETRY Multi-Manager and the Acsis Research and Investment Management team. The consolidation process began in 2013.
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? AQ Rate Verification Services Date of accreditation: 2019-03-13
History
GIPS
When was the company established? Old Mutual Multi-Managers is a specialist investment boutique within the Old Mutual Group. The business was formed in 2013 through the merger of SYm|mETRY Multi-Manager and the Research and Investment Management team of Acsis. Our business was renamed Old Mutual Multi-Managers in 2014.
Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? Ernst & Young Date of verification: 2019 Expiry date of verification: 2020
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Old Mutual Multi-Managers Continued
Investment mandates What are your total assets under management? R100.7 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R47.6 billion Retail: R53.1 billion Life: â&#x20AC;&#x201C; Other: â&#x20AC;&#x201C;
Key investment personnel Size of investment team: 14 Monene Watson Chief Investment Officer BCom Hons, CFA, PGDip (Fin Plan), CFP 26 years of industry experience 17 years with the firm Trevor Pascoe Chief Executive Officer BSc Hons, FASSA, FIA 32 years of industry experience 10 years with the firm Andrew Salmon Senior Portfolio Manager BEcon, BCom Hons 36 years of industry experience 12 years with the firm Ameer Amod Head: Absolute & Fixed Interest MCom (Fin Man), MSc (Eng) 18 years of industry experience 8 years with the firm Andreea Bunea Head: Global Investments BCom Hons, CFA, CAIA 17 years of industry experience 12 years with the firm
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Stephen Brierley Portfolio Manager BCom (Econ) 20 years of industry experience 11 years with the firm
Craig Whitfield Investment Analyst BCom Hons, CFP 10 years of industry experience 8 years with the firm
Michael Dodd Head: Equities BBusSc Hons, FRM, CFA 13 years of industry experience 12 years with the firm
Izak Odendal Investment Strategist MPhil 15 years of industry experience 6 years with the firm
Nosibusiso Nqgondoyi Head: Property and Hedge BCom Hons(FAPM), BCom (Acc) 14 years of industry experience 2 years with the firm
Taj Badrodien Performance Analyst BCom Hons, PGD (Fin Plan) 13 years of industry experience 4 years with the firm
Shawn Thomas Performance Analyst MCom (Fin & Risk Man), BCom Hons (Fin & Inv), NDip (Cost Acc) 14 years of industry experience 5 years with the firm
Pumeza Nkenkana Performance Measurer BCom (Econ and Stats) 3 years of industry experience 2 years with the firm
Dave Mohr Chief Investment Strategist MCom (Econ) 36 years of industry experience 7 years with the firm Taruona Mhuru Product Manager MSc (Fin Maths), BSc Hons (Fin Mod) 13 years of industry experience 11 years with the firm Barry van Zyl Head: Quants BCom Hons, BSc 17 years of industry experience 17 years with the firm
Lance Newman Performance Analyst BCom (Econ) 12 years of industry experience 1 year with the firm
Perpetua Investment Managers (Pty) Ltd www.perpetua.co.za
Company details FAIS FSP registration number: 29977 Switchboard: +27 21 674 4274 Fax number: +27 21 674 4599 General email: info@perpetua.co.za Website: www.perpetua.co.za Address: 5th Floor, The Citadel 15 Cavendish Street, Claremont, 7708 PO Box 44367, Claremont, 7735 Compliance officer name: James George +27 86 127 3783
Investment philosophy Perpetua is a value-oriented investment manager with the belief that the best predictor of returns is the price paid for an investment relative to a determination of its true value. The investment philosophy is centred on the bottom-up, fundamental research of companies. Perpetua seeks out mispriced, undervalued companies and invests with a long-term and patient view. Our investment process ensures investments are made according to the convictions of our research, not to benchmarks. The firm is therefore unconstrained in its approach to portfolio management and is concerned with doing what is right for the long term, not simply what is popular for now. We pursue our own interpretation of value investing, termed True Value investing. True Value investing means that: ■ Undervalued shares can be uncovered due to more than one central thesis – from “mean reversion” on one end of what we refer to as Perpetua True Value Continuum to “quality at a reasonable price” at the other end.
■ Correctly determining the “value thesis” at the point of investment reduces the typical shortfalls of more one-dimensional value investors. Theses can and do change over the lifecycle of the investment. ■ Share attributes or metrics (low or high PE; low or high Price to Book) do not indicate fundamental under or over valuation in isolation.
FAIS requirements Who is your FAIS complaints officer? Logan Govender Please provide the link to the complaints policy on your website: www.perpetuaim.co.za/governance/
Ownership What is the ownership structure of the company? 85% of the shares in the company are held by directors and staff. The remaining 15% is held by RMI Investment Managers. Perpetua has granted them an option to acquire an additional 10% over the next two years. Who are the directors of the company? Delphine Govender, Logan Govender, Patrick Ntshalintshali, Raymond Ndlovu, Alida de Swardt Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Currently 76% of the shares are held by senior management while 9 % has been reserved for the Staff Share Incentive Scheme.
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Exempt as per blackowned QSE scorecard Date of accreditation: –
GIPS Are you GIPS compliant? No Are you GIPS verified? – By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R12.0 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R11.1 billion Retail: R0.9 billion Life: – Other: –
History When was the company established? 2012 List of mergers that have taken place since being established: –
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Perpetua Investment Managers (Pty) Ltd Continued
Key investment personnel Size of investment team: 14 Delphine Govender Chief Investment Officer CA(SA), CFA 21 years of industry experience 7 years with the firm Lonwabo Maqubela Head of Research and Portfolio Manager, SA Equity and Multi-Asset CA(SA), CFA 12 years of industry experience 6 years with the firm Patrick Ntshalintshali Portfolio Manager, SA Equity and Multi-Asset BCom Hons, EDP 23 years of industry experience 4 years with the firm Glen Heinrich Portfolio Manager, SA Equity and Multi-Asset PhD (Chem Eng), CFA 12 years of industry experience 2 years with the firm
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Christine Fourie Portfolio Manager, Income and Property B Econ Sc, FFA, FASSA 17 years of industry experience 1 year with the firm Graeme RonnĂŠ Co-Portfolio Manager, Perpetua Global Equity UCITS Fund B Econ Hons, CFA 13 years of industry experience 6 months with the firm Johannes Visser Co-Portfolio Manager, Perpetua Global Equity UCITS Fund BCom Hons, CFA 14 years of industry experience 1 year with the firm Mark Butler Co-Portfolio Manager, Perpetua Global Equity UCITS Fund CA(SA), CFA 22 years of industry experience 1 year with the firm
Prowess Investment Managers (Pty) Ltd www.prowessinvestments.com
Company details
Ownership
Key investment personnel
FAIS FSP registration number: 38318 Switchboard: +27 21 565 0065 Fax number: +27 86 614 7173 General email: precious@prowessinvestments.com Website: www.prowessinvestments.com Address: 20th Floor, Thibault Square 1 Long Street, Cape Town, 8001 Private Bag 15086, Vlaeberg, 8078 Compliance officer name: Debbi Carse +27 21 975 6597
What is the ownership structure of the company? Prowess is 100% owned by Kelebogile Moloko. Who are the directors of the company? Executive Director: Kelebogile Moloko, Non-executive Director: Janine De Bruyn, Renier Schonken and Pinkie Ncetezo Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: No.
Size of investment team: 6
Investment philosophy Given the efficiency of the South African bond market, we believe that excess returns can be generated by taking active long-term interest rate views while placing less emphasis on market timing. This then necessitates a focus on yield enhancement through identification of and investment in fixed income securities that offer higher value on a relative basis. Prowess’ active approach to fixed income investment management is built upon relative value investing, with the goal of producing excess returns over the long term while minimising volatility. Prowess seeks to build diversified portfolios through: a) active management of issues, sector, quality and yield curve positions; b) focus on yield enhancement through investments in assets that offer higher value on a relative basis; c) seeking credit quality through rigorous research and analysis, and management of credit risk through various credit trends; and d) management of interest rate risk by constraining duration around a client’s target benchmark.
FAIS requirements Who is your FAIS complaints officer? Kelebogile Moloko Please provide the link to the complaints policy on your website: Available on request
History When was the company established? 2008 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? BEE Empowered Date of accreditation: 2018-01-23
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Kelebogile Moloko Chief Investment Officer BCom Hons (Fin Anal & Port Man), BCom (Econ & Fin) 21 years of industry experience 10 years with the firm Jacques Simpson Senior Fixed Income Portfolio Manager M Econ, B Econ Hons, CFA Level 1 21 years of industry experience 2 years with the firm Shaun Namaseb Fixed Income Portfolio Manager B Econ, RPE 9 years of industry experience 5 months with the firm Bongani Mzimeli Investment Analyst BCom (Econ) 5 years of industry experience 5 years with the firm James Clayton Head of Investment Implementation BSc Hons (Eng) 33 years of industry experience 5 months with the firm Vishal Rama Graduate Trainee Quantitative Analyst BBusSSc (Act Sc) 5 months of industry experience 7 months with the firm
Investment mandates What are your total assets under management? R5.43 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R3.97 billion Retail: R261.74 million Life: R69.46 million Other: R1.13 billion 255
Prudential Investment Managers www.prudential.co.za
Company details
FAIS requirements
GIPS
FAIS FSP registration number: 45199 Switchboard: +27 21 670 5100 Fax number: +27 21 683 7156 General email: query@prudential.co.za Website: www.prudential.co.za Address: 5th Floor, Protea Place, Corner Dreyer Street and Protea Road, Claremont, 7708 PO Box 44813, Claremont, 7735 Compliance officer name: Kerry Horsley (Head of Risk and Compliance) +27 21 670 2858
Who is your FAIS complaints officer? Kerry Horsley Please provide the link to the complaints policy on your website: https://www.prudential.co.za/institutionalinvestor/terms-and-conditions
Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? EY Date of verification: 2018-12-31 Expiry date of verification: –
Investment philosophy Prudential are prudent, valuation- based investors who place a special emphasis on managing risk in their client portfolios. Prudential believe that market prices are broadly efficient over the long term, but can be very inefficient over shorter periods. Therefore, at any point in time, market prices may not reflect intrinsic values. Short-term inefficiencies are essentially driven by repeating behavioural errors by market participants, particularly an alternation between ‘greed and fear’. Prices do not stay at unrealistic levels indefinitely; sooner or later they reflect intrinsic values dictated by fundamental economic factors. Repeating behavioural errors and the eventual convergence of market prices to reflect fundamental values provide sustainable opportunities for active, long-term investors like Prudential to earn excess returns by investing in mispriced assets.
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Ownership What is the ownership structure of the company? Prudential Investment Management (South Africa) (Pty) Ltd (PIMSA) is 100% owned by Prudential Portfolio Managers (South Africa) (Pty) Ltd (PPMSA). Who are the directors of the company? Prudential Investment Management (South Africa) (Pty) Ltd (PIMSA) directors are the following BR Fick, VJW Theron and C Sickle. Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes. 28.01%
Investment mandates What are your total assets under management? R250 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R182 billion Retail: R68 billion Life: – Other: –
Key investment personnel
History
Size of investment team: 33
When was the company established? Prudential Plc was Founded in 1848. The South African business was opened in 1994. List of mergers that have taken place since being established: –
David Knee Chief Investment Officer MSc (Econ), BSc(Econ), ASIP 28 years of industry experience 21 years with the firm
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? AQRate Verification Services Date of accreditation: 2019-10-24
PSG Asset Management Holdings (Pty) Ltd www.psg.co.za/Asset-Management
Company details FAIS FSP registration number: 29524 Switchboard: +27 21 799 8000 Fax number: +27 21 799 8182 General email: psgassetmanagement@psg.co.za Website: www.psg.co.za/asset-management Address: 1st Floor, PSG House, Alphen Park Constantia Main Rd, Constantia Cape Town PBX3, Constantia, 7848 Compliance officer name: Elana Honiball elana.honiball@psg.co.za
Investment philosophy PSG puts risk first in all that they do. They look for investment opportunities that will provide them with a sufficient margin of safety and an asymmetrical pay-off range. This pay-off range should translate into little downside and sufficient upside. They believe that they will invest in any opportunity (equity or fixed income) provided that there is a sufficient margin of safety to ensure that they are not likely to incur permanent capital loss on that investment. In essence they compare ideas across a range of opportunities, both fixed income and equity, looking for the highest probability, real, risk-adjusted yields. This leads to an absolute rather than relative mindset. Their equity philosophy is guided by their simple checklist of the 3 Ms: Moats, Management and Margin of safety. They look to invest in companies with strong business models and management teams and a sufficient margin of safety.
They will, however, also invest in mean reverting type companies on a more opportunistic basis, provided there is a sufficient margin of safety. Their highest return ideas typically come from high-quality companies that have a large though fixable problem or temporary headwind, which has resulted in a depressed share price. They then are buying a compounder with strong mean reverting valuation properties.
FAIS requirements Who is your FAIS complaints officer? Elana Honiball Please provide the link to the complaints policy on your website: www.psg.co.za/support/ legal/#Complaints-Resolution-Procedure
Ownership What is the ownership structure of the company? 100% owned by PSG Konsult Ltd Who are the directors of the company? Anet Ahern, Greg Hopkins, Chris Henderson, Terence Collopy Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Not directly. Staff and management have shares in PSG Konsult Ltd.
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 8 By whom have you been accredited? AQRate Date of accreditation: 2019-05-30
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R45 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R7 billion Retail: R38 billion Life: – Other: –
History When was the company established? 1999 List of mergers that have taken place since being established: PSG Tanzanite (PTY) Ltd and Alphen Asset Management (Pty) Ltd merged into PSG Asset Management (Pty) Ltd in 2011
They prefer to invest in high-quality compounding return type companies with strong management teams and a long runway of future opportunities to invest in.
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PSG Asset Management (Pty) Ltd Continued
Key investment personnel Size of investment team: 16 Greg Hopkins Chief Investment Officer, Portfolio Manager BCom, CA(SA), CFA 23 years of industry experience 10 years with the firm Justin Floor Portfolio Manager MPhil, BBusSc Hons, CFA, FASSA 11 years of industry experience 1 year with the firm Phillip Worz Portfolio Manager BCom Hons, CFA 13 years of industry experience 13 years with the firm Kevin Cousins Head of Research BCom, CA(SA) 27 years of industry experience 5 years with the firm
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Lyle Sankar Portfolio Manager BBusSci (Fin), CA(SA), CFA 7 years of industry experience 6 years with the firm Shaun Le Roux Portfolio Manager BCom Hons, CA(SA), CFA 24 years of industry experience 21 years with the firm Dirk Jooste Assistant Portfolio Manager MCom, CFA 11 years of industry experience 2 years with the firm
Rezco Asset Management www.rezco.co.za
Company details
FAIS requirements
GIPS
FAIS FSP registration number: 702 Switchboard: +27 86 173 9468 Fax number: +27 86 532 8925 General email: info@rezco.co.za Website: www.rezco.co.za Address: Unit 33, 4th Floor, Katherine & West Building, 114 West Street, Sandton, 2196 146 Main Road, Port Elizabeth, 6001 Compliance officer name: Ronald Cape +27 82 888 7466
Who is your FAIS complaints officer? Ronald Cape Please provide the link to the complaints policy on your website: https://rezco.co.za/policies/complaintspolicy/
Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? ACA Compliance Services Inc. Date of verification: 2017-06-26 Expiry date of verification: 2016-12-31
Investment philosophy It is fundamental to their approach that capital must be protected. Rezco’s objective is to preserve capital during times of market weakness and to outperform the overall index during periods that are positive for equities. Their strategy is to acquire interests in well-managed companies for less than they are intrinsically worth, and to timeously position their clients in the correct asset classes. The Rezco investment philosophy combines the best aspects of value investing with superior sustainable earnings growth, primary trend analysis and measured market timing. They seek companies with attractive price:earnings ratios relative to their long-term growth prospects. Investments are intended for the long term but they recognise the changes in circumstances that can lead to altered risk levels, necessitating earlier adjustments to the portfolios.
Ownership What is the ownership structure of the company? Rezco Collective Investments Ltd is an FSCA registered Manco, 100% held by Rezco Investment Holdings Ltd, which is 100% held by Rezco Asset Management (Pty) Ltd. Who are the directors of the company? WJH Gray, RB Spanjaard, RR Cape, B Nackan, L Kaplan, J Krynauw and B du Plessis Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 77% owned by executive management.
History When was the company established? 2004 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Non-compliant By whom have you been accredited? Moore Stephens Date of accreditation: December 2018
Investment mandates What are your total assets under management? R5.8 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R0.6 billion Retail: R5.2 billion Life: – Other: –
Key investment personnel Size of investment team: 14 Rob Spanjaard Chief Investment Officer & CEO BCom, CTA 31 years of industry experience 20 years with the firm Simon Sylvester Head of Research & Co-Portfolio Manager BBusSc Hons, CFA, CIPM 7 years of industry experience 4 years with the firm
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Sanlam Investment Management (Pty) Ltd www.sanlaminvestments.com
Company details FAIS FSP registration number: 579 Switchboard: +27 21 950 2500 Fax number: +27 21 950 2916 General email: institutional@sanlaminvestments.com Website: www.sanlaminvestments.com Address: 55 Willie van Schoor Avenue Tyger Valley, Bellville Compliance officer name: Francis Hitchinson +27 21 950 2980
Investment philosophy SIM follows a pragmatic value investment philosophy. They believe that financial markets are inefficient and that they can add value relative to the general market indices as a result of this. Market inefficiency exists primarily because financial market participants are driven by human emotions, such as fear and greed. These emotions cause asset prices to move away from their fair values, which creates investment opportunities for patient investors. Also, as various market participants have different investment time frames and liquidity requirements, assets can become mispriced on a temporary basis. As all information is publicly available, SIM cannot claim to add value by trying to gain an information edge relative to our competitors. The markets are global and they compete against the best teams in London, New York and elsewhere. In light of this, SIM do not believe that it is possible to forecast economic variables and company earnings better than anybody else, and it is a feature of their approach that they do not rely on such forecasts. Rather, in terms of their pragmatic value approach, they believe that they can identify mispriced assets given current available information. The word “pragmatic” refers to the Charles Peirce School of investment philosophy, 260
which advocates taking a practical approach to matters with reference to historical events. For valuing assets, SIM use a fair value framework based on long-term historical asset returns. Opportunities arise when current prices differ from these long-term fair values. The assumption that assets revert to their long-term average real returns is fundamental to their approach. For example, they would assume that a company’s return on equity will return to its long run average over time. SIM’s approach works particularly well for assets with future cash flow streams. Valuing currencies and commodities are more difficult as economic factors, such as supply and demand, come into play.
FAIS requirements Who is your FAIS complaints officer? Francis Hitchinson Please provide the link to the complaints policy on your website: https://www.sanlam.co.za/contact/ complimentsandcomplaints/Pages/ default.aspx
Ownership What is the ownership structure of the company? SIM is a wholly owned subsidiary of Sanlam Ltd Who are the directors of the company? Thobeka Sishuba, Temba Mvusi, Nersan Naidoo, Karabo Nondumo, Robert Roux, Preston Speckmann, Johan van der Merwe, Thomas van Heerden Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: As SIM is a wholly owned subsidiary of Sanlam Ltd, staff and management have no direct ownership interest but rather have a shareholding at Sanlam Limited in the form of long-term incentives.
History When was the company established? 1967 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? AQRate Date of accreditation: 2019-04-05 Expiry date: 2020-04-04
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PwC Date of verification: 2019-09-20 Expiry date of verification: –
Investment mandates What are your total assets under management? R492.2 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R202.9 billion Retail: R68.6 billion Life: R220.7 billion Other: –
Sanlam Investment Management (Pty) Ltd Continued
Key investment personnel Size of investment team: 29 Azola Zuma Chief Executive MA (Int Bus), MBA (Int Bus & Man), BBusSc Hons (Fin) 15 years industry experience 3 years with the firm Andrew Kingston Head of Equity Research BCom, GDipAcc, CA(SA), CFA 29 years industry experience 20 years with the firm Cromwell Mashengete Senior Equity Strategist & Portfolio Manager MA, MBA, BA Hons (Eco) 22 years industry experience 2 years with the firm
Patrice Rassou Head of Equities MSc (Econ), MBA, CA(UK) 22 years industry experience 13 years with the firm Natasha Narsingh Head of Absolute Return MBA, BSc 18 years industry experience 12 years with the firm Fred White Head of Balanced Meng, MBA, CFA 21 years industry experience 16 years with the firm Mokgatla Madisha Head of Fixed Income BCom Hon (FAPM), BSc Eng 19 years industry experience 3 years with the firm
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Sanlam Multi-Manager International (Pty) Ltd www.sanlaminvestments.com
Company details FAIS FSP registration number: 845 Switchboard: +27 21 950 2600 Fax number: +27 21 950 2126 General email: Institutional@sanlaminvestments.com Website: www.sanlaminvestments.com Address: 55 Willie van Schoor Avenue Bellville, 7530 Private Bag X8, Tyger Valley, 7736 Compliance officer name: Francis Hitchinson +27 21 950 2690
Investment philosophy SMMI also believes the market is inefficient in the short term. For various reasons, the market may either underor overweight the importance of certain information and cause asset prices to deviate from their fair value in the short term. This creates the potential for superior investment managers to take advantage of this deviation between fair value and market price, and to outperform the general market or benchmark substantially over time. Anyone can pick a manager based on past performance. But as we all know, past performance is not an indication of future performance. SMMI’s skill lies in distinguishing between whether outperformance was due to luck, and is therefore unlikely to be repeated; or due to skill, and is therefore repeatable in future. SMMI also believes that not all managers perform equally well in all phases of the market cycle. At times the market favors a particular investment style, only for another style or bias to outperform at a different time in the cycle. SMMI’s world-class research enables it to distinguish between skillful managers and lucky managers, without being blinded by short term performance noise in the market that happen to favor their particular investment style.
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SMMI continuously analyses the performance characteristics of various managers and develops an understanding of their particular way of constructing portfolios. This provides them with insight into how their investment style differs, or where there may be overlaps with other managers. SMMI understands which manager combinations will lead to a concentration or under allocation of risk in the portfolio that ultimately jeopardizes the ability of the portfolio to meet the client’s performance expectations in the long run. When it comes to constructing portfolios, SMMI considers: ■ Who the skillful managers are, ■ The current market and economic environment, ■ How these conditions are likely to change in future. SMMI then tailor its clients’ portfolios to take advantage of this integrated view. What sets SMMI apart as an investment manager is the way in which they integrate disparate information into a cohesive whole and tilt its clients’ portfolios to take advantage of this whilst never losing sight of the client’s performance.
FAIS requirements Who is your FAIS complaints officer? Francis Hitchinson Please provide the link to the complaints policy on your website: https://www.sanlam.co.za/contact/ complimentsandcomplaints/Pages/ default.aspx
Ownership What is the ownership structure of the company? SMI is a wholly owned subsidiary of Sanlam Ltd Who are the directors of the company? Reece Briesies, Shaun Ruiters, Shaheem Jakoet, Thomas van Heerden, Selwyn Pillay, Nersan Naidoo Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: As SMMI is a wholly owned subsidiary of Sanlam Ltd, staff and management have no direct ownership interest.
History When was the company established? 2002 List of mergers that have taken place since being established: Merger between Sanlam Multi Manager International and Coris Capital
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? AQRate Date of accreditation: 2019-04-05 Expiry date: 2020-04-04
Sanlam Multi-Manager International (Pty) Ltd Continued
GIPS Are you GIPS compliant? No Are you GIPS verified? – By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R212.4 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R90.5 billion Retail: R70.2 billion Life: R51.7 billion Other: –
Key investment personnel Size of investment team: 20
Paul Wilson Chief Investment Officer BSc Hons (Act Math), CFA 15 years industry experience 7 years with firm David Galloway Head: Strategy & Market Research MCom, BBusSc Hons 26 years industry experience 13 years with firm Adam Bulkin Head: Manager Research LLB, BA Hons 17 years industry experience 1 year with firm Rafiq Taylor Head: Implemented Consulting BCom Hons 15 years industry experience 15 years with firm Lilian Lerm Portfolio Manager BCom Hons (Fin Analysis), BCom (Inv Man) 10 years industry experience 7 years with firm
Shaun Ruiters Chief Executive BCom Hons, PGDip Management 16 years industry experience 15 years with the firm
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Sasfin Asset Managers (Pty) Ltd www.sasfin.com
Company details FAIS FSP registration number: 2002/003307/07 Switchboard: +27 11 809 7500 General email: info@sasfin.com Website: www.sasfin.com Address: 23 Melrose Boulevard, Melrose Arch Johannesburg, 2196 Compliance officer name: Mrs S Appalsamy – +27 11 305 2323 Mrs N Jooste – +27 21 883 8000
Investment philosophy The foundation of the investment philosophy of Sasfin Asset management is built on four main pillars These are: ■ identifying global macro-economic themes; ■ appropriate asset allocation; ■ managing risk; and ■ controlling costs. The belief is that these are the “core drivers” necessary to achieve sustainable, compounding returns over the long term that will allow investors to achieve their required targets. Whilst the specialist portfolios have different risk and return profiles, the investment philosophy remain consistent across the portfolios. The principles that guide our investment philosophy remain consistent when applied to all asset classes both locally and globally. We do not subscribe to a single stylistic investment philosophy but rather to the core premise of remaining invested and being diverse. We advocate the need to be adaptive to changing market conditions as new information is being disseminated continuously. We are aware that financial markets are generally efficient, but opportunities will present themselves, driven by extreme human behaviour or sentiment. Also, as market participants have varying investment time frames and liquidity requirements, assets may become mispriced on a short-term basis, thereby creating investment 264
opportunities. We also understand that risk (objective dependent) and return are interrelated. Our investment process that combines global macro-economic analysis with fundamental analysis is applied across asset classes. The implementation of the process, however, may differ depending on the objective of the portfolio. (For example, a fixed income portfolio may have different exposures to individual bonds compared to the bonds held in a multi-asset class portfolio due to different investment mandates and objectives.)
B-BBEE credentials
FAIS requirements
Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Who is your FAIS complaints officer? Shaun Dhora Please provide the link to the complaints policy on your website: Available on request
Ownership What is the ownership structure of the company? Sasfin Asset Managers (Pty) Ltd is a wholly owned subsidiary of Sasfin Holdings Limited. Sasfin Holdings Limited is a public company listed on the Johannesburg Stock Exchange. Who are the directors of the company? Erol Zeki, Gloria Serobe and Roland Sassoon Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: –
History When was the company established? 2002 List of mergers that have taken place since being established: –
Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? AQRate Date of accreditation: 2019-02-13 Expiry date: –
GIPS
Investment mandates What are your total assets under management? R9.1 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R7.8 billion Retail: R1.3 billion Life: – Other: –
Sasfin Asset Managers (Pty) Ltd www.sasfin.com
Key investment personnel Size of investment team: 13 Philip Bradford Chief Investment Officer, Head of Multi-Asset Strategies & Portfolio Manager CFA 20 years of industry experience 5 years with the firm Errol Shear Portfolio Manager BBusSc, CA(SA), CFA 33 years of industry experience 2 years with the firm David Shapiro Portfolio Manager B Com, CA(SA), H Dip (BDP 46 years of industry experience 13 years with the firm
Veenesh Dhayalam Head of Asset Management Research MBA, BSc, HED 19 years of industry experience 1 year with the firm Riccardo Peretti Junior Portfolio Manager BCom Hons 5 years of industry experience 5 years with the firm Alec Abraham Senior Equity Analyst BCom 24 years of industry experience 6 years with the firm JP Maritz Equity Analyst BCom Hons 7 years of industry experience 5 years with the firm
Bradley Mitchell Head of Equity Research (Local & Global) & Portfolio Manager BSc (Act Sc & Stats) 20 years of industry experience 7 years with the firm
Nicholas Dakin Junior Equity Analyst MCom, BSc Hons 5 years of industry experience 4 years with the firm
Mike Haworth Investment Strategist MBL, BSc (Eng) 32 years of industry experience 7 years with the firm
Lwando Ngwane Junior Equity Analyst BSc (Eng) 1 year of industry experience 1 year with the firm
Bruce Ackerman Portfolio Manager MBA, BA Hons (Econ) 43 years of industry experience 2 years with the firm
Raphi Rootshtain Quantitative Analyst BSc 6 years of industry experience 6 years with the firm
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Schroder Investment Management Ltd www.schroders.com
Company details
Ownership
FAIS FSP registration number: 48998 Switchboard: +27 21 140 1508 General email: tanya.faber@schroders.com Website: www.schroders.com Address: 183 Albion Springs, Rondebosch Cape Town, 7700 Compliance officer name: Jan Scholtz +27 87 897 6970
What is the ownership structure of the company? Schroder Investment Management is a wholly owned, indirectly held subsidiary of Schroders plc. Within South Africa, Schroder Investment Management Ltd is an authorised financial services provider with a Category I licence. We have numerous funds approved by the FSCA for disctribution and have office presence in both Cape Town and Sandton. Who are the directors of the company? Peter Harrison, Richard Keers, Michael Dobson, Ian King, Sir Damon Buffini, Rhian Davies, Rakhi Goss-Custard, Philip Mallinckrodt, Leonie Schroder, Deborah Waterhouse Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Schroders has developed under stable ownership for more than 200 years and has been a public company whose ordinary shares have been listed on the London Stock Exchange since 1959.
Investment philosophy As a global active investment manager, we help institutions and individuals meet their financial goals and prepare for the future. As the world changes, so do our clients’ needs. That is why we have a long history of adapting to suit the times and keeping our focus on what matters most to our clients. From pension funds and insurance companies to individuals, we work with a range of clients whose needs are as diverse as they are. We design innovative products and bespoke solutions, actively managed by our 41 investment teams across a diverse range of asset classes including equities, fixed income, multi-asset, private assets and alternatives. We are a global business, managed locally. Our diverse workforce, based across six continents, means we understand what matters to our clients, wherever they are in the world.
FAIS requirements Who is your FAIS complaints officer? Jan Scholtz Please provide the link to the complaints policy on your website: Available upon request
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Schroders employees’ rights to and ownership of shares through share schemes as a percentage of total shares in issue is approximately 3.4%*.
2016: B enchmark Capital, Hartford Funds, Brookfield Investment Management Inc., Safe Harbor and Investment in NEOS Business Finance 2014: I nvestment in Nutmeg Saving and Investment Limited 2013: C azenove Capital Holdings Limited, Secquaero Advisors Limited, Fisch Asset Management and STW Fixed Income Management 2012: 25% of Axis AMC 2010: S ale of third-party private equity administration business, 49% stake in RWC Partners Limited and Nissay Schroders Asset Management Europe Limited.
B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: –
GIPS
* The percentage above reflects Schroders employees’ unvested and vested but not yet exercised rights to shares through share schemes as a percentage of total shares in issue. The percentage does not include personal holdings or holdings arising from awards which have been exercised.
Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? Ernst & Young LLP Date of verification: 2018-06-08 Expiry date of verification: Annually
History
Investment mandates
When was the company established? 1804 List of mergers that have taken place since being established: Over the past 10 years we have had the following organisation changes and acquisitions: 2019: BlueOrchard Impact Investing 2018: Lloyds and Algonquin Management Partners 2017: Adveq
What are your total assets under management? £450.8 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: £268.8 billion Retail: £130.0 billion Life: – Other: £52 billion
Schroder Investment Management Ltd Continued
Key investment personnel Size of investment team: 946 Karl Dasher CEO North America & Co-Head of Fixed Income / Chief Investment Officer & Managing Director MBA, BA (Ind Eng) 25 years industry experience 11 years with firm Philippe Lespinard Chief Investment Officer & Co-Head of Fixed Income MSc (Comp Sci & Applied Math), Post-graduate degree (AI) 32 years industry experience 9 years with firm Nicola Richards Head of Equities BA (Econ & His) 32 years industry experience 5 years with firm Alex Tedder Head and CIO of Global and US Equities MA (Econ & BA) 39 years industry experience 5 years with firm
Hugo Machin Co-Head of Global Real Estate Securities MSc (RE Fin & Inv), BA (Eng Lit), Diploma in Cross Border Valuation 20 years industry experience 5 years with firm Tom Walker Co-Head of Global Real Estate Securities BA (Pol), Graduate Diploma in (RE) 20 yearsâ&#x20AC;&#x2122; industry experience 5 years with firm Rory Bateman Head of European Equities MA (Econ), BA (Fin Econ) 24 years industry experience 11 years with firm Doug Abbott Country Head: South Africa MSc in African Studies 11 years industry experience 11 years with firm Kondi Nkosi Head of Business Development: Gauteng MSc (Fin & Econ) 13 years industry experience 1 year with firm
Justin Abercrombie Head of Quantitative Equity Products MSc (Econom) (distinction), BSc (Bus Econ) 26 years industry experience 23 years with firm
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SEI Investments (Europe) Limited (SIEL) https://seic.com/en-gb/our-locations/south-africa
Company details FAIS FSP registration number: 13186 Switchboard: +27 11 994 4200 Fax number: +27 11 388 3963 General email: gmokoka@seic.com Website: https://seic.com/en-gb/our-locations/ south-africa Address: Unit 8A 1st Floor, 3 Melrose Boulevard Melrose Arch, 2196 Compliance officer name: Jan Scholtz +27 83 631 6570
Investment philosophy SEI uses a multi-manager investment platform in which we recommend hiring multiple specialised investment managers, with clearly differentiated investment processes within each asset class and combining them to achieve maximum diversification and potential risk managed for growth. Our investment professionals assume the responsibilities of portfolio structure, manager selection, manager evaluation and manager replacement. SEI’s philosophy and process reflect strategies geared towards achieving long-term investment goals in various financial climates. We believe: ■ Trustee time is better spent on strategic issues such as goal setting and monitoring success – as an investment manager, SEI is best placed to manage the day-to-day aspects of the investment strategy ■ In a strategic asset allocation framework customised to the financial objectives of each client ■ In a proactive, dynamic de-risking framework that is customised to the needs of each client ■ Short-term market inefficiencies create opportunities to add value across and within asset classes ■ Skilled specialised managers with a determinable competitive edge do exist
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■ A multi-manager framework provides tangible benefits ■ In an active risk management approach and continual oversight In order to actively manage a client’s asset allocation in an effective manner, SEI first establishes a point of view. The point of view is developed by combining both a top-down, macro-economic perspective with a bottom-up, underlying investment management perspective. SEI holds a bi-weekly roundtable meeting to integrate the views of our Investment Management Unit and Fund Managers, which we then implement across client portfolios.
FAIS requirements Who is your FAIS complaints officer? Jan Scholtz, Compliserve Please provide the link to the complaints policy on your website: Available on request
Ownership What is the ownership structure of the company? ■ SEI Investments (Europe) Limited (SIEL) is a wholly owned subsidiary of SEI Global Investments Corporation (SGIC), which is a wholly owned subsidiary of SEI Investments Company. SIEL is regulated by the Financial Conduct Authority. ■ SEI Investments (South Africa) (Pty) Ltd (SEI SA) is wholly owned subsidiary of SEI Global Investments Corporation (SGIC), which is a wholly owned subsidiary of SEI Investments Company. SEI SA provides global investment solutions to South African institutional investors. ■ SEI Investments Distribution Co. (SIDCO) is a broker-dealer registered with the SEC under the Securities and Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority. ■ SEI Investments Management Corporation (SIMC) is an investment adviser and is a US corporation organised under the laws of the state of Delaware. It is registered with the SEC under the Investment Advisers
Act of 1940 and provides investment management and advisory services. SEI’s Institutional Group provides investment management and advisory services, the core of this proposal, through SIMC. ■ SEI Investments Global, Limited (SIGL) is the Manager of SEI’s Dublin-domiciled UCITS Funds and is authorised by the Central Bank of Ireland to provide investment management services to the UCITS Funds and their sub-funds which are commonly referred to as ‘building blocks’. SIGL has appointed SIMC as the investment adviser to the Dublin- registered funds and SIMC provides investment management and advisory services to the funds under that agreement. Who are the directors of the company? Kgosietsile Giles Mokoka, Paul Klauder, Patrick Disney, Mr Leeapeetswe Molotsane, Ian Love, Michael Peterson Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: SEIC is a publicly traded firm, and many employees participate in our stock option and stock purchase programmes.
History When was the company established? 1968 List of mergers that have taken place since being established: Acquired A.G. Becker Paribas, Inc.’s Funds Evaluation Division in 1983.
B-BBEE credentials Are you B-BBEE accredited? – What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: – Expiry date: –
SEI Investments (Europe) Limited (SIEL) Continued
GIPS
Key investment personnel
Are you GIPS compliant? SEI Investments Europe Limited follows a similar time-weighted calculation as mandated by Global Investment Performance Standards (GIPS), formerly AIMR, for calculating portfolio-level performance returns for clients. We are currently working with an independent verification services consulting firm to become GIPS compliant. Are you GIPS verified? – By whom have you been verified? – Date of verification: – Expiry date of verification: –
Size of investment team:
Investment mandates
Jason Collins Head of Equities 23 years of industry experience 10 years with the firm
What are your total assets under management? $88.2 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: $88.2 billion Retail: – Life: – Other: –
James Smigiel Chief Investment Officer 27 years of industry experience 19 years with the firm Stephen Beinhacker Head of Research MBA, CFA 31 years of industry experience 8 years with the firm Bill Lawrence Head of Fixed Income MBA, CFA 34 years of industry experience 12 years with the firm
Cai Rees Chief Investment Strategist MBA, CFA 17 years of industry experience 4 years with the firm Eugene Barbaneagra Portfolio Manager MBA, CFA 19 years of industry experience 17 years with the firm
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Sentio Capital Management (Pty) Ltd www.sentio-capital.com
Company details
Ownership
Investment mandates
FAIS FSP registration number: 33843 Switchboard: +27 11 880 1994 Fax number: +27 11 447 8818 General email: TC@sentio-capital.com Website: www.sentio-capital.com Address: Illovo Edge, Building 3 1st Floor 5 Harries Road, Illovo 2146 PO Box 1120, Houghton, Johannesburg South Africa, 2041 Compliance officer name: Jan H Scholtz +27 86 127 3783
What is the ownership structure of the company? Managemenet and staff 78%, RMI – 22% Who are the directors of the company? Mohamed Mayet, Rayhaan Joosub, Imtiaz Suliman, Olwethu Notshe, Traugott (TC) von Czettritz und Neuhaus Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes they do, 78%
What are your total assets under management? R16.8 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R16.8 billion Retail: – Life: – Other: –
Investment philosophy Sentio customised investment filters used to highlight high probability investment opportunities and risk categorisation. Detailed fundamental models using multidimensional analysis are used to value companies. Management interaction and macro analysis to highlight key risks and catalysts for each investment opportunity. The stock selection process is integrated with quantitative portfolio construction to make buy and sell decisions. These decisions are made with a view to building portfolios that deliver superior risk-adjusted returns.
FAIS requirements Who is your FAIS complaints officer? Doug Stott Please provide the link to the complaints policy on your website: http://www.sentio-capital.com/complaints
History When was the company established? 2007List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Premier Verification Date of accreditation: 2018-11-26
GIPS Are you GIPS compliant? Not yet Are you GIPS verified? Not Yet By whom have you been verified? – Date of verification: – Expiry date of verification: –
Key investment personnel Size of investment team: 11 Mohamed Mayet Chief Investment Officer / Head of research B Com (Wits), B Com Hons (Adv Fin), NASD (USA) 22 years of industry experience 11 years with the firm Rayhaan Joosub Chief Investment Officer BSc Chemical Engineering (Wits), B Com (Unisa) 20 years of industry experience 11 years with the firm Sanveer Hariparsad Head of Fixed Income Actuarial Exams (Current) (Completed: CT1-9, ST 0, ST5, CA3, CA2); CFA; CAIA; MSc (Financial Engineering); BSc Hons (Financial Mathematics) (Cum Laude); BSc (Actuarial Science) 11 years industry experience 2 years with the firm Imtiaz Suliman Senior Portfolio Management CFA: CFA Institute, BSc: Financial Mathematics, University of Pretoria 15 years industry experience 8 years with the firm Olwethu Notshe Senior Portfolio Management BBusSci, CFA, CAIA 10 years of industry experience 7 years with the firm
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Sesfikile Capital (Pty) Ltd www.sesfikilecapital.com
Company details FAIS FSP registration number: 39946 Switchboard: +27 11 684 1200 Fax number: +27 86 619 5265 General email: Sescap@sescap.co.za Website: www.sesfikilecapital.com Address: 2nd Floor, 18 The High Street Melrose Arch, 2076 Suite 334, Private Bag X1 Melrose Arch, 2076 Compliance officer name: Enrique Goosen +27 21 975 6597
Investment philosophy
Who are the directors of the company? Executive director: Evan Jankelowitz, Kundayi Munzara and Mohamed Kalla, Non-executive director: Kabelo Rikhotso, Carlo Dickson and Stanley Pierre du Preez Independent non-executive director: Rahab Matabane Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Staff and management hold a 37.5% ownership interest in the company.
History When was the company established? 2010. List of mergers that have taken place since being established: –
Our investment philosophy is that longterm returns in listed property investment are driven by the underlying fundamentals of the property assets and management, considering systematic and unsystematic risks associated with those fundamentals. We also believe that earnings growth is a key driver to total returns over the medium term, but due regard should be given to the quality of those earnings. We summarise our philosophy as fundamentals at a reasonable price (FARP).
B-BBEE credentials
FAIS requirements
Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Who is your FAIS complaints officer? – Please provide the link to the complaints policy on your website: Available on request
Ownership What is the ownership structure of the company? Ukukhlua Sibanye En Commandite Partnership: 37.40%, Evan Jankelowitz: 12.50%, Mohammed Kalla: 12.50%, Kundayi Munzara: 12.50% and Royal Investment Managers: 25.01%
Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Renaissance SA rating (Pty)Ltd Date of accreditation: 2018-10-29
GIPS
Investment mandates What are your total assets under management? R17.06 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R17.06 billion Retail: – Life: – Other: –
Key investment personnel Size of investment team: 3 Evan Jankelowitz, Portfolio Manager BCom (Fin Man), CFA 14 years of experience 8 years with the firm Mohamed Kalla Portfolio Manager BCom (Inv Man), CFA 13 years of experience 8 years with the firm Kundayi Munzara Portfolio Manager BSc Hons (Prop Stud), UK FSA, CFA 12 years of experience 8 years with the firm Naeem Tilly Head of Research BAcc, CA(SA), CFA 11 years of experience 9 months with the firm Anil Ramjee Global REIT Analyst MCom (Econ Sci), MSc (Prop Stud) 7 years of experience 4 years with the firm
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STANLIB Asset Management Ltd www.stanlib.com
Company details FAIS FSP registration number: 26/10/719 Switchboard: +27 11 448 6000 General email: contact@stanlib.com Website: www.stanlib.com Address: 17 Melrose Boulevard, Melrose Arch Johannesburg, 2196 PO Box 202, Melrose Arch, 2076 Compliance officer name: Njabulo Duma +27 11 448 5374
Investment philosophy STANLIB believes that there is no “one size fits all” investment solution for clients. Diverse clients need diverse investment outcomes. They therefore look at investments through many lenses and from many angles – this gives them an in-depth understanding of an everchanging investment landscape. Their investment model thus houses multiple focused units with unique philosophies, which cater for diverse client needs. The STANLIB investment team consists of franchises made up of specialist teams of investment professionals. They manage clients’ assets in their area of expertise, namely: fixed interest, listed property, equities, multi-asset allocation, multi-management and alternatives. These specialist investment teams deal with market changes with agility and speed, as dedicated research, trade, implementation, and risk management and compliance teams support them. Their Multi-Specialist Franchise Model truly reflects the complex investment world they operate in and echoes their desire to deliver tailored solutions for diverse clients; the result of which is a broad investment offering designed to deliver their investment promise to clients.
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They strongly believe it is possible to add value both through superior research and through a superior investment process. For this reason, STANLIB currently employs over 60 investment professionals.
FAIS requirements Who is your FAIS complaints officer? Njabulo Duma Please provide the link to the complaints policy on your website: http://www.stanlib.com/Contactus/Pages/ FurtherQueries.aspx
Ownership What is the ownership structure of the company? STANLIB Asset Management (STANLIB) is wholly owned by Liberty Life, which in turn is owned 54% by the Standard Bank Group. Who are the directors of the company? DTV Msibi, DC Munro, JH Sutcliffe, A P Cunningham, MW Hlahla, H Walker and T Skweyiya. Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Not in the form of share ownership as STANLIB is wholly owned by Liberty. Instead, STANLIB offers incentives in the form of deferred investment units. This deferred scheme is applied to all investment professionals and senior management, and is akin to ownership as investment professionals have a direct interest in the success of their investment team funds, clients and the overall firm.
History When was the company established? 2002 List of mergers that have taken place since being established: STANLIB acquired Mezzanine Partners from Brait, Old Mutual Investment Group and the executive investment team in 2011.
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? AAA – Level 2 By whom have you been accredited? Transformex Date of accreditation: 2019-09-13
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PricewaterhouseCoopers Date of verification: 2018-12-31 Expiry date of verification: No expiry date.
Investment mandates What are your total assets under management? R617 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R131 billion Retail: R234 billion Liberty: R201 billion Africa: R51 billion Other: –
STANLIB Asset Management Ltd Continued
Key investment personnel Size of investment team: 61 Herman Van Velze Head of Equity & Multi-Asset MBL, BEng 27 years of industry experience 22 years with the firm Victor Mphaphuli Head of Fixed Income BCom Hons (Econ), GEDP, GMP 22 years of industry experience 18 years with the firm Marius Oberholzer Head of Absolute Return MSc (Glob Fin), BCom (Econ and Comm Law) 19 years of industry experience 6 years with the firm Ansie Van Rensburg Head of Money Market BCom Hons (Econ) 37 years of industry experience 27 years with the firm Keillen Ndlovu Head of Listed Property BCom Hons, CAIB (SA), Property Development Programme 14 years of industry experience 14 years with the firm Brian Kipps MD: Index Investments MBA, AMP(MIT), BBusSci, FIA, FASSA, CFA 21 years of industry experience 3 years with the firm Johan Marnewick Head of Credit Alternatives LLB, PGDA, HDIP (Tax, BCom (Law), BCom (Acc), CA(SA) 17 years of industry experience 3 years with the firm
Patrick Mamathuba Head of Africa BCom Hons, CFA 27 years of industry experience 20 years with the firm Greg Babaya Head of Infrastructure & Direct Property MBA, BCom Hons (Acc), BCom 23 years of industry experience 7 years with the firm Amelia Beattie Chief Executive Officer – Liberty Two Degrees BCom (Fin Acc and Trans Econ) 20 years of industry experience 7 years with the firm Joao Frasco Chief Investment Officer – STANLIB Multi Manager MBA (Inv), BSc (Act Sc and Math Stats), CFA, CIPM, FASSA, FIA, CAIA 18 years of industry experience 8 years with the firm Alphonso Raats Head of Equity and Derivative Dealing MCom (cum laude), BCom Hons, BAcc 19 years of industry experience 18 years with the firm Mark Lovett Head of Investments Securities Industry Qualification in Investment Analysis and Fund Management 30 years of industry experience 1 year with the firm Giles Heeger Executive: Asset Management MSc, BBusSc Hons, PGDA 20 years of industry experience 2 years with the firm Kevin Lings Chief Economist BCom Hons (Econ) 30 years of industry experience 18 years with the firm
273
STANLIB Multi-Manager (Pty) Ltd www.stanlibmultimanager.com
Company details FAIS FSP registration number: 763 Switchboard: +27 11 448 6000 Fax number: +27 11 448 6671 General email: SMMOperations@stanlib.com or SMMBusinessDevelopment@stanlib.com Website: www.stanlibmultimanager.com Address: 17 Melrose Boulevard, Melrose Arch Johannesburg, 2196 PO Box 202, Melrose Arch, 2076 Compliance officer name: Njabulo Duma +27 11 448 5374
Investment philosophy ■ We begin with a focused and uncompromising commitment to exploiting the highest quality data, systems, processes and people, since these are the controllable factors in an otherwise uncertain investment environment ■ We recognise that asset managers with skill may exist within certain markets or specific market segments or asset classes – they have the ability to deliver returns in excess of their benchmarks or passive alternatives ■ We identify these managers through a rigorous and integrated approach of quantitative and qualitative manager research ■ Using advanced modelling and statistical techniques, we combine these managers with passive alternatives where appropriate, to produce superior net investment returns, with a greater consistency than single mandates, through the diversification of idiosyncratic manager risks ■ Strategic (long-term) and tactical (short-term) asset allocation ensures that portfolios are appropriately designed and maintained to maximise the probability of meeting investment objectives
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■ Our systematic and ongoing portfolio management process includes inputs from manager and market research, asset allocation and portfolio construction. This value-add ensures portfolios are efficiently managed and positioned ■ Portfolio risk is managed at each and every step of the process to ensure that portfolios are designed, constructed and maintained so as to maximise the chances of achieving the investment objectives within any specified constraints Core values: ■ Focus on highest quality inputs ■ Do not begin with investment ideologies ■ Apply curiosity throughout ■ Deliberately insist on diversity in thinking ■ Value collective wisdom ■ Individual measurement and accountability ■ Consider all sources of risk and return ■ Continuous monitoring and evaluation ■ Efficient and effective communication
FAIS requirements Who is your FAIS complaints officer? Molatelo Raphadu Please provide the link to the complaints policy on your website: https://www.stanlib.com/TalkToUs
Ownership What is the ownership structure of the company? STANLIB Asset Management (STANLIB) is wholly owned by Liberty Life, which in turn is owned 54% by the Standard Bank Group. Who are the directors of the company? Chairman: David Munro (CEO: Liberty) Chief Executive Officer: Derrick Msibi Non-executive Director: Anthony Cunningham*, Monhla Hlahla, James Sutcliffe* and Howard Walker * British
Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Not in the form of share ownership as STANLIB is wholly owned by Liberty. Instead, STANLIB offers incentives in the form of deferred investment units. This deferred scheme is applied to all investment professionals and senior management, and is akin to ownership as investment professionals have a direct interest in the success of their franchise(s), funds, clients and the overall firm.
History When was the company established? 1999 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? TRANSFORMEX Date of accreditation: 2019-09-13
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
STANLIB Multi-Manager (Pty) Ltd Continued
Investment mandates What are your total assets under management? R74 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R74 billion Retail: – Africa: – Other: –
Key investment personnel Size of investment team: 16 Joao Frasco Chief Investment Officer MBA (Inv), BSc (Act Sc and Math Stats), CFA, CIPM, FASSA, FIA, CAIA 19 years of industry experience 8 years with the firm Malcolm Holmes Head of Portfolio Management (Institutional) BCom Hons (Econ), CFA 24 years of industry experience 17 years with the firm Jennifer Henry Head of Portfolio Management (Retail) BCom Hons (Inf Sys and Fin), CFA 13 years of industry experience 6 years with the firm
Kent Grobbelaar Head of Portfolio Management (Global) BCom Hons (Strat Man), ICMQ, FAUT, IMC 22 years of industry experience 17 years with the firm Nadeem Hoosen Portfolio Manager BBusSc (Fin), CFA 16 years of industry experience 5 years with the firm Lubabalo Kenyane Portfolio Manager BBA, CIPM, CFA 14 years of industry experience 4 years with the firm Renate Potgieter Portfolio Manager BSc Hons, CFA 14 years of industry experience 7 years with the firm Imelda Watkins Portfolio Manager BCom (Econ), CAIA, CFA Level 2 16 years of industry experience 1 year with the firm Richo Venter Portfolio Manager BCom Hons (cum laude), CFA 16 years of industry experience 12 years with the firm
275
Taquanta Asset Managers (Pty) Ltd www.taquanta.co.za
Company details
Ownership
GIPS
FAIS FSP registration number: 618 Switchboard: +27 21 681 5100 Fax number: +27 21 681 5199 General email: crm@taquanta.co.za Website: www.taquanta.co.za Address: 7th Floor, Newlands Terraces 8 Boundary Road, Newlands, 7700 PO Box 23540, Claremont, South Africa, 7735 Compliance officer name: Timothy Howse +27 21 671 8162
What is the ownership structure of the company? 100% Private Who are the directors of the company? Directors: Dr TV Maphai, BLE Khan, J Kretzschmar (CEO), SPC Rogers (Managing Director), S Matsebula (Chairperson), N Mqikela Company Secretary: Humeira Kazi Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 42.92%
Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? eComply Consultants (Pty) Ltd Date of verification: 2018-10-31 Expiry date of verification: 2019-08-31
Investment philosophy Taquanta’s investment philosophy is guided by the premise that investors are in general too easily swayed by shortterm sentiment and that a rules-based, systematic approach guided by a sound investor hypothesis will outperform in the long term. Taquanta view themselves as being style agnostic, focusing on delivering tailor-made solutions across all asset classes focused on investor preferences or constraints. Taquanta fundamentally believes that a product or portfolio is born only where their process meets an investor’s preference.
FAIS requirements Who is your FAIS complaints officer? Timothy Howse Please provide the link to the complaints policy on your website: timh@taquanta.com
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History When was the company established? 1999 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? AQRate Verification Services Date of accreditation: 2018-11-01
Investment mandates What are your total assets under management? R160.5 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R160.5 billion Retail: – Life: – Other: –
Taquanta Asset Managers (Pty) Ltd Continued
Key investment personnel Size of investment team: 11 Ray Wallace Chief Investment Officer BCompt (Hons), CFA 25 years of industry experience 24 years with the firm Stephen Rogers Managing Director FCIS 36 years of industry experience 34 years with the firm Charles Allderman Head of Fixed Income BCom, CFA 24 years of industry experience 23 years with the firm Sharika Salie Senior Portfolio Manager BCom Hons 14 years of industry experience 13 years with the firm Marshall Brown Senior Portfolio Manager BCom (Law & Bus Econ), Adv Dip Banking 26 years of industry experience 7 years with the firm
Faith Muramba Senior Portfolio Manager BSc (Hons), CFA 10 years of industry experience 9 years with the firm Clyde Gangerdine Portfolio Manager BCom (Fin) 12 years of industry experience 8 years with the firm Liezel Louw Portfolio Manager BCom Hons (Fin Man), CFA 16 years of industry experience 9 years with the firm ChanĂŠ Hendricks Trainee Portfolio Manager (under supervision) BBA 4 years of industry experience 4 years with the firm Neo Mokhesi Trainee Portfolio Manager (under supervision) MSc (Med), BCom Hons (Port Man), BSc Hons (Biochem) 3 years of industry experience 2 years with the firm
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Terebinth Capital (Pty) Ltd www.terebinthcapital.com
Company details
FAIS requirements
Investment mandates
FAIS FSP registration number: 47909 Switchboard: +27 21 943 4824 General email: team@terebinthcapital.com Website: www.terebinthcapital.com Address: 2nd Floor, Combined HQ Building 4 Bridal Close, Tyger Falls Tyger Valley, 7530 Compliance officer name: eComply Consultants (Pty) Ltd +27 21 671 8162
Who is your FAIS complaints officer? Nicole Le Riche (internal) Tim and Nick Howse (eComply Consultants (Pty) Ltd) Please provide the link to the complaints policy on your website: Available on request
What are your total assets under management? R3.86 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R1.27 billion Retail: R2.49 billion Life: R101 million Other: –
Investment philosophy The investment process (and thus strategy across funds) focuses on macro-economic principles. Macroeconomics is the study of the economic system as a whole – total production, total consumption, total savings and total investment. The study of macroeconomics is indispensable. As it is the main agent for formulation and successful execution of government economic policies, it is also indispensable for the formulation of microeconomic models. The key drivers of an economy broadly cover national output (measured by GDP), unemployment and inflation. Fixed income markets are almost solely driven over time by these broad economic factors. Studying the behaviour of all these units combined provides the most sustainable picture of any fixed income market. Applied in trading the manager implements strategies spread across various timelines, broadly characterised as: ■ Tactical/technical (mostly event-driven – such as over key data releases and monetary/fiscal statements); ■ Structural trading (focusing mostly on technical issues related to intramarket issues – such as switch auctions etc – and their impact on the broader economy); ■ Strategic trading (normally the longest timeline applied – such as trading upside/downside views on GDP/inflation over cycles relative to consensus). 278
Ownership What is the ownership structure of the company? 51% – Nomathibana Matshoba 32% – Erik Nel 17% – Nicole Le Riche Who are the directors of the company? Nomathibana Matshoba, Erik Nel, Bonolo Zwane Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes. 100%
History When was the company established? 2013 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Sworn Affidavit Date of accreditation: 2019-09-02
GIPS Are you GIPS compliant? No Are you GIPS verified? – By whom have you been verified? – Date of verification: – Expiry date of verification: –
Key investment personnel Size of investment team: 4 Erik Nel Chief Investment Officer IMCQ (Member of Institute of Financial Markets) 19 years of industry experience 6 years with the firm Nomathibana Matshoba Portfolio Manager MPhil (Maths of Finance), BBusSc (Act Sc), CFA 9 years of industry experience 2 years with the firm Johan Kurtz Portfolio Manager BCom Hons (Inv Man), BCom (Econ) 24 years of industry experience 9 months with the firm Mandy Pick Research Analyst BCom (Fin Acc) 7 years of industry experience 7 months with the firm
TriAlpha Investment Management (Pty) Ltd www.trialpha.co.za
Company details FAIS FSP registration number: 28090 Switchboard: +27 (0)21 809 1210 Fax number: +27 (0)21 882 8421 General email: info@trialpha.co.za Website: http://www.trialpha.co.za Address: Room 12B, 2nd Floor, Ou Kollege Building 35 Church Street Stellenbosch, 7600 Compliance officer name: Timothy Howse +27 21 671 8162
Investment philosophy TriAlpha is trusted by large, sophisticated institutional investors to build innovative products that meet their expectations of incremental alpha generation, with an intense focus on downside risk protection. The predominant focus is the management of enhanced Cash and Fixed Income long-only and hedge fund institutional investment mandates using a portable alpha approach. Their portable alpha approach combines different investment styles to achieve consistency throughout the Fixed Income market cycle. By Fixed Income they mean conventional bonds, inflationlinked bonds, convertible bonds, notes, fixed rate agreements, loans, deposits, money market instruments and at the margin preference shares and property. Portable alpha, also known as “alpha transport”, refers to the ability of a portfolio manager to extract the alpha generated within any investment portfolio from the beta, and to then apply this outperformance to any other asset class the manager chooses, which ultimately eliminates the market risk of the manager’s portfolio.
So the sweet spot for the firm on the relative/absolute return continuum is the cross-section where the return objective leans towards actively exploiting investment opportunity through skills sets, and the risk objective is not to take more than market risk when replicating or beating a benchmark.
FAIS requirements Who is your FAIS complaints officer? Theron van Wyk Please provide the link to the complaints policy on your website: http://www.trialpha.co.za/complaints
Ownership What is the ownership structure of the company? Directors, management and staff: 93.63% Other: 6.37% Who are the directors of the company? W T van Wyk, E Oblowitz, Dr M Phosa, JG Abels and H Brandt. S Julian (Alternate). Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes. 93.63%
History When was the company established? 2006 List of mergers that have taken place since being established: –
GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R16 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R16 billion Retail: – Life: – Other: –
Key investment personnel Size of investment team: 4 Theron van Wyk Managing Director BCom Hons, FFA 22 years of industry experience 13 years with the firm Jared Abels Executive Director BCom Hons, CFA 10 years of industry experience 2 years with the firm
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Acuity Verification Services Date of accreditation: 2018-10-02
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Truffle Asset Management (Pty) Ltd www.truffle.co.za
Company details
Ownership
Investment mandates
FAIS FSP registration number: 36584 Switchboard: +27 11 325 0030 Fax number: +27 11 325 0331 General email: info@truffle.co.za Website: www.truffle.co.za Address: Ground Floor, Lancaster Gate Building Hyde Park Lane Business Park Hyde Lane, Hyde Park, Sandton, 2196 PO Box 535, Pinegowrie, 2123 Compliance officer name: Independent Compliance Services +27 21 975 6597
What is the ownership structure of the company? The holding company, Truffle Capital (Pty) Ltd, owns 100% of Truffle Asset Management (Pty) Ltd. RMI Investment Managers (RMI IM) owns 28% of Truffle Capital. The remainder of the shares are held by staff, management and ex-staff. Who are the directors of the company? Executive Directors of Truffle Capital (Pty) Ltd: Louis van der Merwe, Hannes van der Westhuyzen, Charles Booth, Iain Power Non-Executive Directors of Truffle Capital (Pty) Ltd: Alida van Rooyen, Andre Rousseau Directors of Truffle Asset Mangement (Pty) Ltd: Louis van der Merwe, Hannes van der Westhuyzen, Charles Booth Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, staff and management own 57% of the interest.
What are your total assets under management? R21.03 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R18.7 billion Retail: R2.3 billion Life: – Other: –
Investment philosophy Our philosophy is that the market is efficient over the long term in pricing/ valuing companies, but inefficient over the short term. These short-term inefficiencies are largely due to investors extrapolating current good/bad news into perpetuity. This results in investors either overpaying and overvaluing the businesses, or becoming excessively pessimistic and undervaluing the businesses. This presents us, as an active manager with an opportunity to exploit these inefficiencies between price and value. These inefficiencies are not obvious and can be difficult to identify but, with an experienced team and a rigorous and robust process, it is possible. Truffle’s investment approach is bottom-up, fundamental and valuation-based.
FAIS requirements Who is your FAIS complaints officer? Craig Sampson Please provide the link to the complaints policy on your website: https://www.truffle.co.za/policies/
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Key investment personnel Size of investment team: 11 Iain Power Chief Investment Officer BCom Hons 26 years of industry experience 9 years with the firm
History
Hannes van der Westhuyzen Head of Fixed Income CA(SA) 30 years of industry experience 11 years with the firm
When was the company established? 2008 List of mergers that have taken place since being established: –
Saul Miller Portfolio Manager MBusSci, FFA 21 years of industry experience 3 years with the firm
B-BBEE credentials
Nicole Agar Portfolio Manager CA(SA) 22 years of industry experience 4 years with the firm
Are you B-BBEE accredited? No What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: –
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Sophié-Marié van Garderen Portfolio Manager MCom, CFA 24 years of industry experience 3 years with the firm Palvi Kala Portfolio Manager: Fixed Interest BCom (Hons) 14 years of industry experience 1 year with the firm Louis van der Merwe Head of Alternative Investments B Com 31 years of industry experience 11 years with the firm
Visio Fund Management (Pty) Ltd www.visiocapital.co.za
Company details FAIS FSP registration number: 49566 Switchboard: +27 11 245 8900 Fax number: +27 11 245 8915 General email: info@visiocapital.co.za Website: www.visiocapital.co.za Address: 5th Floor, 92 Rivonia Road, Wierda Valley Compliance officer name: Karen Goldstone-Hoffman +27 11 245 8928 or +27 82 677 3999
Investment philosophy Their investment process is firmly rooted in fundamental analysis. Their approach is predominantly bottom up and sector or theme specific. Every company is different and is influenced by its own particular factors. Hence the need for in-depth research and analysis, regular management contact, site visits, broker and company presentations, etc. They spend a considerable amount of time ‘on the road’ towards achieving this end. Additional attention is devoted to companies that are either underresearched, not covered by sell side analysts or otherwise those businesses considered out of favour from time to time by the investment fraternity. There is limited use of technical analysis in the formulation of their strategies. Their research is not limited to only listed companies. They continuously expand our knowledge and contacts base with many unlisted companies, who are either trading partners or competitors with their listed counterparts. Their strength lies in their ability to integrate the information which we continuously gather in order to formulate medium- to long-term investment ideas for the funds. They maintain their own financial models on the majority of the listed companies in their investment universe. They update, enhance and tweak those models regularly, as they represent the primary tools in our decision-making process.
The team place a heavy emphasis on ESG, and constructively engage (‘activism’) with the boards of companies in this regard. The investment universe spans across industries, market capitalisations and through the use of a number of different investment instruments. Those include not just listed shares, but also listed commodity ETFs, listed corporate debt issues, index futures and listed options. Portfolio ‘churn’ is low. Significant shareholdings may be accumulated in individual companies or material exposures achieved in certain sectors from time to time. The firm manages SA equity, absolute return, hedge, fixed interest as well as Africa, ex-SA mandates.
FAIS requirements Who is your FAIS complaints officer? Ulrike Engling Please provide the link to the complaints policy on your website: Available on request
Ownership What is the ownership structure of the company? Royal Investment Managers (RIM) 30% shareholding and Visio Team (70% includes Visio Capital Management) with 5% to be allocated to future staff. Who are the directors of the company? Patrice Moyal, Paul Sundelson, Althea Modiselle and Kabelo Rikhetso Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Visio staff and management own 70% with 5% to be allocated to future staff.
History When was the company established? 2003 List of mergers that have taken place since being established: –
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 6 By whom have you been accredited? Premier Verification (Pty) Ltd Date of accreditation: 2017-11-30
GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? – Date of verification: – Expiry date of verification: –
Investment mandates What are your total assets under management? R45 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R39 billion Retail: R0.5 billion Life: R5.8 billion Other: –
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Visio Fund Management (Pty) Ltd Continued
Key investment personnel Size of investment team: 16 Patrice Moyal Chief Investment Officer / Head of Research / Head of Equities CA(SA) 23 years of industry experience 16 years with the firm Paul Sundelson Director / Fund Manager BCom, CFA 21 years of industry experience 16 years with the firm Kerris Foster Fund Manager/Analyst BSc (Chem Eng) 19 years of industry experience 14 years with the firm Douglas Wallace Fund Manager/ Analyst CA(SA), CFA, ACA 23 years of industry experience 13 years with the firm Ofri Kahlon Fund Manager/Analyst MMORSE (UK) 13 years of industry experience 13 years with the firm Ronald Chabvonga Fund Manager/Analyst CA(Z), CA(SA) 16 years of industry experience 11 years with the firm Phihlelo Matjekane Fund Manager / Analyst BCom, CFA 16 years of industry experience 9 years with the firm Mark Wadley Fund Manager / Analyst MBBCH, MBA 11 years of industry experience 6 years with the firm
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Tassin Meyer Fund Manager / Analyst / IR BBusSci Hons 16 years of industry experience 5 years with the firm Kathryn Robinson Fund Manager / Analyst BCom Hons, CFA 11 years of industry experience 5 years with the firm Sindiso Mujaji Fund Manager / Analyst BBusSci Hons, CFA 12 years of industry experience 5 years with the firm Pumla Molope Fund Manager / Analyst / IR CA(SA) 8 years of industry experience 3 years with the firm Seten Naidoo Fund Manager/analyst BBusSci Hons 9 years of industry experience 6 months with the firm Kyle Mcmahon Fund Manager/Analyst MSc (Eng), BSc (Chem Eng) 2 years of industry experience 3 months with the firm Jonathan Myerson Head of Fixed Income MSocSc (Econ) 25 years of industry experience 3 months with the firm Mpumelelo Kondlo Fixed Income Fund Manager/ Analyst MSc (Math Stats), BBus Sci Hons 5 years of industry experience 3 months with the firm
Vunani Fund Managers (Pty) Ltd www.vunanifm.co.za
Company details FAIS FSP registration number: 608 Switchboard: +27 21 670 4900 Fax number: +27 21 683 5788 General email: info@vunanifm.co.za Website: www.vunanifm.co.za Address: 6th Floor, Letterstedt House, Newlands on Main, Newlands, 7700 PO Box 44586, Claremont, 7735 Compliance officer name: Carmen Peskin +27 21 670 4980
Investment philosophy Vunani Fund Managers (VFM) has a strong investment capability in the areas of absolute return (CPI + range), enhanced income, vanilla bond, ILB, core domestic equity, specialist equity, global equity capability, as well as property funds. Their investment philosophy is based on the use of inference as opposed to forecasting and the minimisation of drawdown risk across all product groups. To this end the following principles guide their investment process and philosophy ■ Risk control. Their objective in each of their product groups is to deliver performance that exceeds the benchmark but with less-thancommensurate risk. ■ Emphasis on consistency. They value consistency in everything they do. This includes delivering alpha as consistently as they are able to. ■ Market efficiency. Unlike most market participants that believe that they possess some skill or are able to find inefficiencies in the market (and whilst this is possible in some cases), Vunani Fund Managers don’t believe it to be the primary source of longterm alpha generation. ■ Specialisation. They believe that specialisation offers the surest path to the achievement of results. ■ Macro-environment. Using inference as opposed to forecasting they extract the key values discounted by the market at any point in time and debate these.
Their analysis shows that aggregate return expectations differ for both asset classes and companies in each of the three regimes identified within the macro-economic environment. ■ Market timing. Whilst they do not seek to time the market or believe that it’s time in the market that counts, they focus their market timing decisions in the context of the potential for drawdown risk as defined by their composite macro indicator.
FAIS requirements Who is your FAIS complaints officer? Carmen Peskin Please provide the link to the complaints policy on your website: www.vunanifm.eo.za/wp-content/ uploads/2019/09/Complaintsprocedure_IPM310_V2.xl 7238.pdf
Ownership What is the ownership structure of the company? Vunani Capital – 80%, Vunani Fund Managers Staff Share Trust – 30% Who are the directors of the company? Executive Directors: Butana Khoza, Snowy Masakale Non-Executive Directors: Nathi Chonco (Chairman), Manana Nhlanhla Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Vunani Fund Managers staff own 30% of the equity in the business through a participatory rights structure via the Vunani Fund Managers Staff Share Trust.
History
On 15 August 2011 Vunani Fund Managers became 100% owned by Vunani Capital. In February 2019 Vunani Capital allocated 30% of the equity in the company to a staff share scheme. The share scheme is in the form of a participatory rights structure.
B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Empowerlogic (provisionally please see above) Date of accreditation: Final accreditation pending
GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PricewaterhouseCoopers Inc (PwC) Date of verification: 2019-05-03 Expiry date of verification: 2019-12-01
Investment mandates What are your total assets under management? R31.3 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R25.7 billion Retail: R5.6 billion Life: – Other: –
When was the company established? 1999 List of mergers that have taken place since being established: None. In June 2010 long-term empowerment partner, the Vunani Group, increased its stake from 11% to a majority 51% shareholding, whilst the controlling company at the time, Peregrine Holdings, retained a meaningful 49% interest.
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Key investment personnel Size of investment team: 13 Safs Narker Chief Investment Officer & Head: Equities CA(SA), CFA 14 years of industry experience 6 years with the firm Tony Bell Head: Global BCom (Hons), MBA 32 years of industry experience 19 years with the firm Rowan Williams-Short Head: Fixed Interest MSc, FIFM, CFA, CIPM 30 years of industry experience 11 years with the firm Craig MacArthur Head: Passive BSc Hons, CFA 26 years of industry experience 19 years with the firm Johan de Kock Portfolio Manager: Equity BCom Hons, MBA 29 years of industry experience 6 years with the firm Nino Frodema Portfolio Manager: Equity MSc, CAIA 11 years of industry experience 4 years with the firm Ntobeko Stampu Senior Portfolio Manager: Fixed Interest BCom (Hons), BSc, CAIA, CQF 18 years of industry experience 1 year with the firm
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Ntsekhe Moiloa Portfolio Manager: Absolute Return MA (Econ), LLM (Fin), CAIA 15 years of industry experience 2 years with the firm Morotola Pholohane Portfolio Manager: Absolute Return MBA, BCom (Hons), BSc, CAIA 16 years of industry experience 1 year with the firm Tshidiso Maduwa Junior Credit Analyst: Fixed Interest CA(SA) 4 years of industry experience 1 year with the firm Nompumelelo Qwabe Junior Analyst: Equity BCom (Hons) 2 years of industry experience 3 years with the firm Gershwin Long Portfolio Manager (under supervision) MPhil, BCom Hons 13 years of industry experience 1 year with the firm Siv Govender Head: Dealer CBS (SA) 27 years of industry experience 4 years with the firm
X-Chequer Fund Management (Pty) Ltd www.xfm.co.za
Company details
History
Key investment personnel
FAIS FSP registration number: 31388 Switchboard: +27 21 918 8200 General email: info@xfm.co.za Website: www.xfm.co.za Address: Unit 714, The Cliffs, Tygerfalls Tygervalley, Bellville, 7530 Compliance officer name: Enrique Goosen +27 21 975 6597
When was the company established? 2006 List of mergers that have taken place since being established: –
Size of investment team: 4
Investment philosophy Our Market Neutral and Equity funds follow a bottom-up portfolio construction and stock-picking strategy based on fundamental research with a top-down risk framework overlay. Our aim is to provide superior risk-adjusted returns to our investors over the medium term, while focusing on capital protection continuously.
FAIS requirements Who is your FAIS complaints officer? Enrique Goosen Please provide the link to the complaints policy on your website: https://xfm.co.za/legal/
Ownership What is the ownership structure of the company? The X-Chequer Fund Management (Pty) Ltd ownership structure is a wholly owned privately held structure. Who are the directors of the company? Executive Directors: Eugene Prinsloo, Warren Erasmus. Non-Executive Directors: Nikos Michalopoulos Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: No
B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? – By whom have you been accredited? – Date of accreditation: –
GIPS Are you GIPS compliant? No Are you GIPS verified? N/A By whom have you been verified? – Date of verification: – Expiry date of verification: –
Werner Prinsloo Chief Investment Officer & Joint Head of Market Neutral Strategy Actuary 16 years of industry experience 13 years with the firm Eugene Prinsloo Joint Head of Market Neutral and Equity Long Only Strategy CA(SA) 25 years of industry experience 11 years with the firm Nico McDonald Joint Head of Equity Long Only Strategy CA(SA) 12 years of industry experience 12 years with the firm
Investment mandates What are your total assets under management? R1.3 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R1.2 billion Retail: R100 million Life: – Other: –
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Allan Gray Proprietary Limited Grant Pitt / Vuyo Nogantshi Tel: +27 21 415 2300 Email: institutional@allangray.co.za www.allangray.co.za
Aluwani Capital Partners (Pty) Ltd Lonwabo Dambuza Tel: +27 21 204 3813 Cell: +27 82 331 5009 Email: lonwabo.dambuza@aluwanicapital.co.za www.aluwanicapital.co.za
Argon Asset Management (Pty) Ltd Luyanda Joxo, CFA Tel: +27 21 670 6576 Mobile: +27 84 701 1271 www.argonassetmanagement.co.za An African investment firm with global standards
Ashburton Investments Gordon Wessels | Naleni Govender | Rudigor Kleyn Tel: +27 11 282 8800 (reception) Email: institutional@ashburtoninvestments.co.za www.ashburtoninvestments.com Access to fixed income and private markets for diversified sources of return
Coronation Fund Managers www.coronation.com
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Foord Asset Management Nick Curtin Tel: +27 21 532 6917 Email: nick.curtin@foord.co.za www.foord.co.za
Investec Asset Management Natalie Phillips | Deputy MD Tel: +27 21 416 1700 Email: natalie.phillips@investecmail.com www.investecassetmanagement.com
Mianzo Asset Management (Pty) Ltd Luvo Tyandela | Mark Lamohr Thembeka Sobekwa | Mohamed Shafee Loonat Tel: +27 21 552 3555 Email: info@mianzo.co.za www.mianzo.co.za Certainty in uncertain times
Momentum Invetsments (Pty) Ltd Willem Gaymans | Letshego Rankin Cell: +27 72 780 7815 | +27 83 253 8408 Email: Willem.gaymans@momentum.co.za Email: Letshego.rankin@momentum.co.za www.momentuminv.co.za
Ngwedi Investment Managers (Pty) Ltd Monei Pudumo-Roos | CEO Tel: +27 21 000 1904 Cell: +27 79 880 8932 Email: monei@ngwedi.com
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Northstar Asset Management (Pty) Ltd Tel: +27 21 810 8400 Email: admin@northstar.co.za www.northstar.co.za Quality at a Reasonable Price
Old Mutual Investment Group Sinenhlanhla Dlamini | Vishal Bhika | Craig Chambers Tel: +27 (0)21 509 5022 Email: sdlamini@oldmutualinvest.com vbhikha@oldmutualinvest.com cchambers@oldmutualinvest.com www.oldmutualinvest.com Invest for a future that matters
Old Mutual Multi-Managers Trevor Pascoe Tel: +27 (0)21 524 4815 Email: tpascoe@ommm.co.za www.ommultimanagers.co.za
Perpetua Investment Managers (Pty) Ltd Kevin Dantu Tel: +27 21 674 4274 Fax: +27 21 674 4599 Email: clients@perpetua.co.za www.perpetua.co.za Disciplined value investing
Prudential Institutional Team Tel: 0860 105 775 Email: icm@prudential.co.za CONSISTENCY IS THE ONLY CURRENCY THAT MATTERS.™
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PSG Asset Management (Pty) Ltd Anet Ahern | CEO Tel: +27 21 799 8000 www.psg.co.za/asset-management Bigger picture thinkers
Sentio Capital Management Traugott “TC” von Czettritz Cell: +27 72 780 7815 Tel: +27 11 880 1994 Email: tc@sentio-capital.com
O’Lerato Veti Cell: +27 72 449 4294 Tel: +27 11 880 1994 Email: oveti@sentio-capital.com
Invest for Good.
Vunani Fund Managers (Pty) Ltd Snowy Masakale Tel: +27 11 263 9583 / +27 21 670 4900 Fax: +27 21 683 5788 Email: snowym@vunanifm.co.za www.vunanifm.co.za Constancy. Defined.
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Thank you The Annual Retirement Fund Survey 2019 is the product of Don Andrews and the Survey team on behalf of Alexander Forbes. Through extensive research within the industry and comprehensive quantitative analysis of asset manager data, the team produced a complete analysis of performance over 2019. The Survey team would like to thank the following people for their extensive contribution to this publication in service of the asset management industry of South Africa: Dr Colin Habberton
Nicole Martens
Monique Mathys-Graaff
Isaah Mhlanga
David Moore
Katekani Nxumalo
Premal Ranchod
Janina Slawski
Lebo Thubisi
Hannes van Zyl
Alexander Forbes Communications team: Sharmaine Chanee Production Manager
Sibahle Dlamini Project Manager
Kim Jonson Designer and DTP
Irene Stotko Senior Copy Editor
A special thank you to the asset management industry for supplying Alexander Forbes with the necessary data and information in order for this publication to be produced. Thank you!
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ALEXANDER FORBES FINANCIAL SERVICES Alexander Forbes, 115 West Street, Sandton PO Box 787240, Sandton, 2146 Tel:+27 (0)11 269 0000 email: managerwatch@aforbes.com or andrewsdo@aforbes.com www.alexanderforbes.co.za
Alexander Forbes Financial Services is a licensed financial services provider (FSP 1177). The information in this document belongs to Alexander Forbes. You may not copy, distribute or modify any part of this document without the express written permission of Alexander Forbes. This information is not advice nor is it intended as a personal recommendation, guidance or a proposal on the suitability of any financial product or course of action as defined in the Financial Advisory and Intermediary Services (FAIS) Act. While care has been taken to present correct information, Alexander Forbes and its directors, officers and employees take no responsibility for any actions taken based on this information, all of which require advice. Note that past performance is not a reliable indicator of future investment returns. Please speak to your financial adviser for tailored advice based on your individual financial needs before you make financial decisions based on this information. Credits: Alexander Forbes Communications (production) | Getty Images (imagery). 18995-SUR-2020-02