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Southern Charter BCI Balanced Fund

as at: 
31 January 2018

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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 Years9 Years
SC Balanced FoF'sCumulative7.63%18.16%52.07%172.93%
CPI + 5%Cumulative9.93%36.19%66.61%149.86%
SC Balanced FoF'sAnnualised7.63%5.72%8.74%11.80%
CPI + 5%Annualised9.93%10.84%10.75%10.71%

Fund Commentary

The SARB left interest rates unchanged at its MPC meeting in January, despite poor growth, citing the looming possibility of a downgrade and upside risks to the oil price. The Fed also kept rates unchanged at their FOMC meeting, however adopting a somewhat more cautionary tone on inflation expectations, causing some analysts to adjust their interest rate forecasts for 2018.

January marked a record 15 months of gains in global equity markets, with sentiment underpinned by solid fundamentals in corporate earnings and synchronised global growth. Fresh record highs were posted across numerous indices, the MSCI World and MSCI EM returned 5.3% and 8.3% in USD respectively. The JSE All Share Index was flat for the month returning 0.1% in ZAR, as returns were hit by weakness in Naspers shares and a stronger rand, which appreciated 4.1% against a weaker US dollar.

The All Bond Index delivered a strong return of 1.9% for the month as yields across the yield curve declined to lower levels. The nominal bond market received support from benign inflation data and another strong external trade surplus. While local bond market sentiment remained relatively buoyant, the same could not be said of most developed bond markets, as bond yields rose, causing some pain in risk assets in late January.

The SA Listed Property Index was down 9.9% in January, as SA Listed property shares were punished by rumours and fears over balance sheet weakness at the Resilient stable but were also affected by rising bond yields in developed markets, as they are particularly leveraged to interest rates.

Asset Allocation - Values displayed in percentage (%)

Global Equity7.5%23.9%
Global Property0.0%0.3%
Global Bonds7.5%2.2%
SA Cash20.0%9.7%
SA Bonds12.5%21.7%
SA Property10.0%10.4%
SA Equity42.5%31.8%

Asset Class Performance - Values displayed in percentage (%)

1 YearMonthly
Global Equity11.4%1.0%
Global Property-6.0%-5.4%
Global Bonds-2.9%-1.9%
SA Cash7.5%0.6%
SA Bonds10.8%1.9%
SA Property3.9%-9.9%
SA Equity16.1%0.1%
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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

(021) 700 1000


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

FSP No. 740