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Southern Charter BCI Balanced Fund

as at: 
28 February 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'sCumulative3.0%20.1%67.6%126.4%
CPI + 5%Cumulative11.9%36.9%68.3%158.4%
SC Balanced FoF'sAnnualised3.0%6.3%10.9%9.5%
CPI + 5%Annualised11.9%11.0%11.0%11.1%

Fund Commentary

The ALSI retreated 3.1% (-0.6% in USD) in February and underperformed emerging market peers (+3.1% in USD). The National Budget garners a lot of attention from investors as the budget deficit is mainly funded by the local bond market, which tabled a budget that hiked the top marginal income tax rate and increased the dividend withholding tax rate from 15% to 20%.

The Nedgroup Mining and Resources fund was down 7.5% during the month as the market was hit by a sharp correction in resources, especially mining shares, on concerns that the US infrastructure spending program may be delayed as well as a slowdown in the Chinese property market. It is expected that infrastructure spending (railway, roads etc.) in China will fill the gap left by the slowdown in Chinese property in 2017.

In the bond market, the ALBI returned 0.7% the month. The intra-month trading range for the yield of the benchmark R186 SA government bond turned out to be fairly wide at 8.57% to 8.85%, as factors such as the probability of a March Fed rate hike and a cabinet reshuffle in the SA government contributed to the volatility. SA Listed property returned -0.4%, as the rand appreciated 2.5% vs the US dollar and the index has more than 30% foreign earnings.

Asset Allocation - Values displayed in percentage (%)

Int Fixed Income7.5%0.5%
Int Equity7.5%18.8%
Int Property0.0%4.6%
Local Equity42.5%40.6%

Asset Class Performance - Values displayed in percentage (%)

1 YearMonthly
Global Bonds-17.6%-2.5%
MSCI World1.1%-0.2%
Global Property-8.0%-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: 
3.00 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