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Southern Charter BCI Worldwide Flexible Fund

as at: 
28 February 2017

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Investment Objectives

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.

Strategy

The Fund is actively managed and reflects our best unconstrained asset allocation strategy.

Performance (net of all fees)

FundReturn1 Year3 Years
SC Flexible FoF'sCumulative-3.6%19.7%
CPI + 5%Cumulative11.9%36.9%
SC Flexible FoF'sAnnualised-3.6%6.2%
CPI + 5%Annualised11.9%11.0%

Fund Commentary

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 (%)

BenchmarkFund
Int Fixed Income10.0%3.0%
Int Equity15.0%49.1%
Int Property0.0%5.5%
Int Cash0.0%0.0%
Cash0.0%5.1%
Bonds13.5%2.2%
Property9.0%6.9%
Local Equity52.5%28.2%

Asset Class Performance - Values displayed in percentage (%)

1 YearMonthly
Global Bonds-17.6%-2.5%
MSCI World1.1%-0.2%
Global Property-8.0%-0.1%
Cash7.5%0.6%
ALBI13.5%0.7%
Property10.4%-0.4%
ALSI6.3%-3.1%
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Time horizon

Minimum 3 years investment

Risk Profile

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

Portfolio Managers

CEO & Investment Strategist

Mark Thompson

Chief Investment Officer

Ursula Maritz

(021) 700 1000

 

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

FSP No. 740