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) 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 75% to equities. A maximum of 30% may be allocated to offshore assets and an additional 10% to Africa investments.
The Fund is overweight to growth assets such as local and global equities and property. Over the long term, such growth assets are the key to delivering high real returns to investors.
The Fund construction incorporates both actively managed and passively managed investment mandates investing and the Fund invests across local and offshore equity, bond and property markets and money market instruments.
The Fund is actively managed with assets being shifted between the various markets, asset classes and investment managers to reflect changing economic and market conditions to maximise total returns over the long term.
WHO SHOULD CONSIDER THE FUND?
The Fund is ideally suited for a moderate to aggressive risk profiled investor who wishes to maximize long term capital growth, 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.
In order to achieve high real returns over any 3 year rolling periods, the Fund will have 60% to 75% exposure to local and offshore equities. Therefore, investors need to be comfortable with capital losses of 10% to 20% over any 12-month rolling period and a 5% loss in any one month.