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Southern Charter BCI Balanced Fund

as at: 
31 January 2017

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Investment Objectives

The Southern Charter BCI Balanced Fund of Funds is a moderate managed fund of funds. The primary investment objective of the portfolio is to provide the investor with a moderate total return. The Fund aims to provide investors with capital growth of 5% above inflation over the longer term by investing in a combination of asset classes including local and international equities, fixed interest, property and cash. As the Fund has a medium allocation growth assets, it is ideal for investors with a medium investment horizon, who seek capital growth and who are at least 5 - 10 years from retirement. The fund is Regulation 28 compliant.


The Fund is actively managed with a value bias. By focusing on macro themes, the Fund looks to exploit valuation discrepancies in asset classes. The allocation to equities will be max 60%, depending on economic conditions with a neutral weighting of 50%. The allocation to assets other than equities, aims to reduce the risk of capital loss in the portfolio.

Performance (net of all fees)

FundReturn1 Year3 Years5 Years8 Years
SC Balanced FoF'sCumulative4.4%23.1%71.0%153.6%
CPI + 5%Cumulative12.1%37.0%68.3%127.2%
SC Balanced FoF'sAnnualised4.4%7.2%11.3%12.3%
CPI + 5%Annualised12.1%11.1%11.0%10.8%

Fund Commentary

The fund returned 2.03% for the month of January, well ahead of the average fund in the Multi-Asset Medium Equity category which returned 1.40%. The outperformance mainly attributable to the fund's overweight position in resources through the Nedgroup Mining and Resources fund, which returned 9.75%.

The reflation trade is well underway with the global industrial cycle turning upwards, filtering down to the corporate profit level, leading to an expected rise in earnings, which is positive for equities. As deflation fears were left behind in 2015, the early signs in the improvement of this corporate profit growth cycle is expected to continue throughout 2017 and extend into next year as well.

The All Share Index (ALSI) bounced back in January returning 4.31%, outperforming SA Listed Property (SAPY) and the All Bond Index (ALBI) which returned 1.63% and 1.36% respectively.

The fund's bond position has been added to as local bond yields are attractive and real returns should be underpinned by a favourable inflation trajectory. The outlook for local inflation has improved, primarily due to the deceleration in food inflation.

Asset Allocation - Values displayed in percentage (%)

Asset Class Performance - Values displayed in percentage (%)

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Time horizon

5 or more years to retirement

Risk Profile

  • Low
  • Low-Mod
  • Mod
  • Mod-High
  • High
Morningstar Rating: 
4.00 Star

Portfolio Managers

CEO & Investment Strategist

Mark Thompson

Chief Investment Officer

Ursula Maritz

(021) 700 1000


1st Floor, Silverberg Terrace
Steenberg Office Park
Steenberg Road
Tokai, 7925

FSP No. 740