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Southern Charter BCI Balanced Fund

as at: 
30 November 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'sCumulative12.3%23.9%62.4%180.7%
CPI + 5%Cumulative10.1%35.1%66.5%148.4%
SC Balanced FoF'sAnnualised12.3%7.4%10.2%12.2%
CPI + 5%Annualised10.1%10.6%10.7%10.6%

Fund Commentary

Credit ratings agencies, S&P and Moody's, reviewed South Africa's credit rating once more in November. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of a country, thus having a big impact on the country's borrowing costs. S&P pushed South Africa's local currency credit rating down one notch from investment grade to junk, whilst Moody's have put a negative outlook on their rating, one notch above junk. The immediate impact is that South Africa will be removed from the Barclays Government Bond Index, triggering an estimated R50bn of bond sales. South Africa remains part of the Citibank World Government Bond Index by virtue of the Moody's investment grade rating. Moody's has postponed its decision until February 2018, after the budget speech.

The rand appreciated 3.3% against the US dollar, recovering from oversold levels at an intra-month high of R14.57 and ending the month at R13.66, which weighed on rand-hedges and enhanced buying of SA Inc. shares largely led by financial stocks. Global Equities gained for the 13th consecutive month as corporate earnings affirmed synchronised global growth but emerging markets lagged as geopolitics and commodity price declines led to pockets of weakness in key markets. Year-to-date at end November, the All Share Index has returned +21.4%, SA Listed Property +12.4%, Cash +6.9% and the All Bond Index +4.3%.

Asset Allocation - Values displayed in percentage (%)

Global Equity7.5%24.3%
Global Property0.0%0.3%
Global Fixed Income7.5%1.7%
SA Cash20.0%9.1%
SA Bonds12.5%21.0%
SA Property10.0%9.9%
SA Equity42.5%33.7%

Asset Class Performance - Values displayed in percentage (%)

1 YearMonthly
Global Equity20.9%-1.4%
Global Property7.9%-0.5%
Global Bonds4.8%-2.2%
SA Cash7.6%0.6%
SA Bonds6.0%-1.0%
SA Property17.2%1.9%
SA Equity22.5%1.5%
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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