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Southern Charter BCI Growth Fund

as at: 
31 January 2018

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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 of 7% 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 Years9 Years
SC Growth FoFCumulative7.87%17.46%54.12%194.46%
CPI + 7%Cumulative12.02%44.12%83.08%196.09%
Benchmark *Cumulative13.61%25.17%76.39%253.72%
SC Growth FoFAnnualised7.87%5.51%9.04%12.75%
CPI + 7%Annualised12.02%12.95%12.86%12.82%
Benchmark *Annualised13.61%7.77%12.02%15.07%

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 Equity10.0%26.3%
Global Property0.0%0.1%
Global Bonds5.0%1.8%
SA Cash0.0%4.8%
SA Bonds15.0%16.2%
SA Property10.0%10.4%
SA Equity60.0%40.4%

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

10 or more years to retirement

Risk Profile

  • Low
  • Low-Mod
  • Mod
  • Mod-High
  • High
Morningstar Rating: 
4.00 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