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Southern Charter BCI Growth Fund

as at: 
31 January 2019

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Investment Objectives

The Southern Charter BCI Growth Fund of Funds is an aggressively managed fund of funds. The primary investment objective of the portfolio is to provide the investor with a relatively high long term total return. The Fund aims to provide investors with capital growth 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 high allocation growth assets, it is ideal for investors with a long investment horizon, who seek capital growth and who are at least 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 when they occur. The allocation to equities will range from 60% to 75%, depending on economic conditions with neutral weighting of 70 %. The balance is allocated to the other asset classes.

Performance (net of all fees)

FundReturn1 Year3 Years5 Years10 Years
Southern Charter BCI Growth FoFCumulative-3.5%8.8%27.9%184.1%
Average FundCumulative-2.1%11.8%29.8%140.9%
Southern Charter BCI Growth FoFAnnualised-3.5%2.8%5.0%11.0%
Average FundAnnualised-2.1%3.8%5.4%9.2%

Fund Commentary

After a wobbly start to the year, global markets closed the month on a high note. In the United States, the Federal Reserve made a policy U-turn with a decidedly more dovish tone and a resolution to the Sino-US trade war appeared to be on the cards, all serving to fuel investors’ risk appetite. In other parts of the world, the Eurozone faces faltering economic sentiment, softer global growth, trade tensions and political uncertainty. The United Kingdom still has no deal on the table in the Brexit shambles. Chinese authorities remain committed to bringing down elevated debt levels, but have implemented measures to prevent a sharper slowdown in the economy through economic and regulatory reforms which is positive for emerging markets. Finally, in South Africa, headline inflation dropped to 4.5% in December 2018 on account of a significant fall in fuel prices. The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) in their January meeting however decided to hold rates steady amid tough economic conditions and faltering growth, as the MPC aims to anchor inflation expectations at the midpoint of their inflation target of between 3% and 6%.

South African equities managed a solid performance for January, the SWIX returning 3.1% (ZAR) leading the MSCI World which managed a positive return of 7.8% in USD but rand appreciation against the greenback of 8.5% meant a negative return of -0.5% in ZAR. The South African property sector had a solid start to the year, the SAPY gaining 9.2% (ZAR). While very little has effectively changed, and fundamentals remain the same, the market has adapted its expectations and risks are already priced in, while also coming off a low base after the 2018 property index slide which is regarded as a black swan event, and one that is unlikely to return.

Asset Allocation - Values displayed in percentage (%)

SA Equity60.0%43.7%
SA Property10.0%6.5%
SA Bonds15.0%13.7%
SA Cash0.0%10.2%
Global Fixed Income5.0%3.6%
Global Property0.0%0.3%
Global Equity10.0%22.0%

Asset Class Performance - Values displayed in percentage (%)

1 Year1 Month
SA Equity-8.3%3.1%
SA Property-9.4%9.2%
SA Bonds8.8%2.9%
SA Cash7.3%0.6%
Global Fixed Income8.6%-5.6%
Global Property18.4%2.2%
Global Equity5.0%-0.5%
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Time horizon

10 or more years to retirement

Risk Profile

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

First Floor, Silverberg Terrace

Steenberg Office Park

Steenberg Road

TOKAI, 7945

Authorised Financial Services Provider

Southern Charter Fund Managers (Pty) Ltd FSP No. 740