WHAT IS THE FUND OBJECTIVES

The Fund aims to consistently outperform the Association for Savings and Investment South Africa (ASISA) South-African Multi-Asset Low Equity category (after investment management fees) over any 3-year rolling period. The Fund, therefore, targets stable reasonable growth whilst aiming (no guarantee) to preserve capital over shorter-term periods. The Fund is aimed at investors that have a low-risk tolerance (i.e. which are close to retirement or in retirement) and with an investment time horizon of 3 years.

WHAT DOES THE FUND INVEST IN?

The Fund is well diversified across both local and offshore asset classes as well as a combination of highly reputable and best of breed local and offshore investment managers and will have a maximum exposure of 40% to growth assets such as local and offshore equities and property. A maximum of 30% may be allocated to offshore assets and an additional 10% to Africa investments.

The Fund is overweight to fixed interest assets such as local and global cash and bonds. Over the long term, such fixed interest assets are the key to delivering high income but also real returns to investors.

The Fund construction incorporates both actively managed and passively managed investment mandates and also incorporates fund that incorporates environmental, governance and social aspects into the investment philosophy.

The Fund is actively managed with assets being tactically shifted between the various markets, asset classes and investment managers and funds to reflect changing economic and market conditions to maximise income over the short to medium term but to produce real returns over the long term.

WHO SHOULD CONSIDER THE FUND?

The Fund is ideally suited for a conservative risk profiled investor or an investor that is close to or in retirement who wishes to maximize income whilst still aiming to produce real returns over the long term. The Fund is suitable to investors which requires a well-diversified, actively managed multi-asset and multi-manager investment portfolio, that adheres to the guidelines set by ASISA and Regulation 28 of the Pension Fund Act.

Download Cautious FoF July 2020