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The Southern Charter BCI Worldwide Flexible Fund of Funds primary objective is to generate moderate to high long term total returns. The fund aims to provide investors with capital growth of 5 % above inflation over a 2 year rolling period, by investing in a combination of asset classes including local and international equities, fixed interest, property and cash. The manager shall have maximum flexibility in terms of asset allocation and shall not be precluded from continually varying the underlying exposure to both local and offshore assets such as equities, non-equity securities, bonds, preference shares, property, fixed interest and money market portfolios and assets in liquid form. This fund is NOT Regulation 28 compliant and therefore will reflect our best unconstrained asset allocation strategy. It is ideal for investors with discretionary funds and who are willing to have a high exposure to offshore assets.
The Fund is actively managed and reflects our best unconstrained asset allocation strategy.
Performance (net of all fees)
|Fund||Return||1 Year||3 Years|
|SC Flexible FoF's||Cumulative||-3.6%||19.7%|
|CPI + 5%||Cumulative||11.9%||36.9%|
|SC Flexible FoF's||Annualised||-3.6%||6.2%|
|CPI + 5%||Annualised||11.9%||11.0%|
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 Income||10.0%||3.0%|
Asset Class Performance - Values displayed in percentage (%)