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Southern Charter BCI Balanced Fund

as at: 
31 August 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 Years9 Years
SC Balanced FoF'sCumulative4.0%20.8%62.7%148.7%
CPI + 5%Cumulative9.8%34.7%68.0%149.4%
SC Balanced FoF'sAnnualised4.0%6.5%10.2%10.7%
CPI + 5%Annualised9.8%10.4%10.9%10.7%

Fund Commentary

Financial markets slipped into a risk-off mode in August, as an upbeat second quarter earnings season globally was overwhelmed by a number of negative geopolitical events. US dollar weakness and falling global bond yields stood out as two of the more significant market drivers for bond investors, as the North Korean missile testing drove investors to safe-haven assets, causing the US 10-year yield to drift lower from 2.30% to 2.13%. South-African bond yields fell to a lesser extent, the benchmark 10-year yield was down 4 bps to end the month at 8.57%, thanks to an improved inflation outlook (CPI fell to 4.6% y/y from 5.1% y/y), but also muted by political uncertainty. The All Bond Index did however manage to render a decent return for the month, gaining 1.0%, and outperforming cash (0.6%) and property (0.8%).

The FTSE/JSE All Share Index reached a new record high of 56,656 on 25 August, returning 2.7% for the month, underpinned by strong returns from resources stocks amid rising commodity prices. Year-to-date, the All Share Index leads the pack, returning 13.6%, followed by SA Listed Property (6.9%), the All Bond Index (6.7%) and Cash (5.0%). Global Equity has performed well year-to-date, the MSCI World returning 8.3% in ZAR, amidst an appreciating rand (5.6% vs US dollar).

On the political front, President Zuma survived yet another vote of no-confidence, this time by a narrower than expected 198-177 margin. The ANC elective conference in December appears a close race, with more noise expected in the months leading up to the event.

Asset Allocation - Values displayed in percentage (%)

Global Fixed Income7.5%1.1%
Global Equity7.5%25.5%
Global Property0.0%0.0%
SA Cash20.0%10.1%
SA Bonds12.5%25.0%
SA Property10.0%9.3%
SA Equity42.5%29.0%

Asset Class Performance - Values displayed in percentage (%)

1 YearMonthly
Global Bonds-11.9%-0.6%
Global Equity3.2%-1.3%
Global Property-13.8%-1.7%
SA Cash7.6%0.6%
SA Bonds10.2%1.0%
SA Property9.4%0.8%
SA Equity10.2%2.7%
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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

(021) 700 1000


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

FSP No. 740