The objective of this portfolio is to deliver long term capital growth through equity-centric investments. The portfolio aims to generate a return of CPI + 5% p.a. over any rolling 10-year period. The portfolio maintains a high-risk profile and is not limited to a maximum exposure of equities. The portfolio does not adhere to the guidelines set by Regulation 28.
ASSET ALLOCATION
Foreign Equity
58.27%
SA Equity
19.13%
SA Cash
6.54%
Foreign Cash
5.33%
SA Bonds
4.92%
Foreign Bonds
4.09%
Commodities
0.8%
Foreign Property
0.65%
SA Property
0.27%
UNDERLYING HOLDINGS
Coronation Global Optimum Growth [ZAR] Feeder Fund
25.00%
Centaur BCI Flexible Fund
20.00%
Foord Flexible Fund of Funds
20.00%
Nedgroup Inv Bravata Worldwide Flexible Fund
20.00%
Satrix MSCI World Equity Index Feeder Fund
15.00%
ANNUALISED PERFORMANCE
Highest 1 year rolling return
43.07%
Lowest 1 year rolling return
-16.54%
* Benchmark: CPI + 5% p.a. over a rolling 10-year period * CPI: (ASISA) Worldwide - Multi Asset - Flexible
TOP 10 EQUITY EXPOSURES
1. Aspen Pharmacare
1.88%
2. Prosus
1.64%
3. Reinet Investments
1.63%
4. EXOR
1.42%
5. British American Tobacco
1.41%
6. Berkshire Hathaway
1.32%
7. Dell Technologies
1.30%
8. Flutter Entertainment
1.14%
9. Microsoft
1.10%
10. Shell
0.99%
Top 10 equity exposures as disclosed by Morningstar Direct, updated quarterly.
Market Risk Equity markets are volatile and the price of equities fluctuate based on a number of factors such as changes in the economic climate, general movements in interest rates and the political and social environment which will also affect the value of the securities held in the unit trust, thereby affecting the overall value of the unit trust. Currency Risk / Foreign Exchange Risk This risk is associated with investments that are denominated in foreign currencies. When the foreign currencies fluctuate against the South African Rand, the investments face currency gains or losses. Concentration Risk Unit Trusts pool the assets of many investors and use the proceeds to buy a portfolio of securities. There are regulations in place which limit the amount that a unit trust may invest in securities, thereby spreading the risk across securities, asset classes and companies. Liquidity Risk This relates to the ability of the unit trust to trade out of a security held in the portfolio at or near to its fair value. This may impact on liquidity and in the case of foreign securities, the repatriation of funds. Credit Risk Credit risk arises where an issuer of a non-equity security or a swap is unable to make interest payments or to repay capital. The Fund may be exposed to credit risk on the counterparties in relation to instruments such as cash, bonds and swaps that are not traded on a recognised exchange. The possibility of the insolvency, bankruptcy or default of a counterparty with which the Fund trades such instruments, could result in losses to the Fund. Total Return Swaps Risk This portfolio may invest in total return swaps. Total return swaps are unlisted instruments issued by a bank to provide the return of a specific index. Therefore, the equity exposure in this portfolio is derived through the total return swap and not by physically holding the equities in the portfolio. The value of the instrument is directly linked to the performance of the basket of assets per the index and will fluctuate in line with the daily market movements. Inflation Risk The risk of potential loss in the purchasing power of your investment due to a general increase of consumer prices. Tax Risk This risk relates to any change to tax laws or to the interpretation of existing tax laws which has an impact on the manner in which unit trusts are taxed. Compliance Risk This refers to the risk of not complying with the legislation, regulations, prescribed investment limits and internal policies and procedures by the manager or the portfolio manager. Political Risk The risk that investment returns could suffer as a result of a country’s political changes or instability in the country. Instability could come from changes in the country’s government, policy makers or military. Average Weighted Costs The average weighted cost of underlying funds is calculated using the latest available Total Investment Charges (TIC) of the underlying funds and their static weightings at month end on the selected Platform. This will vary daily as the actual weightings of the underlying funds fluctuate. The abovementioned fees include VAT but exclude Investment manager, Financial Advisor, Consulting and Platform fees.
DISCLOSURES
Sources Performance sourced from Morningstar and Portfolio Analytics Consulting (Pty) Ltd, for a lump sum using NAV-NAV prices with income distributions reinvested. CPI for all urban areas sourced from FactSet. Asset Allocation and Top 10 holdings data compiled by Global Investment Reporting SA ("GIRSA”). Asset allocation and Top 10 holdings data are lagged by one month.
THE FINE PRINT
*Returns are net of Total Investment Charges (TIC) and for periods greater than one year the returns have been annualised. Returns prior to launch of the portfolio are simulated based on the returns of the underlying funds at their weightings. Post launch returns are simulated based on the current weightings of the initial investment on the selected Platform, where applicable.
**Underlying TIC is calculated using the sum of the latest available Total Expense Ratio (TER) and Transaction Cost (TC) of each of the underlying funds and their static weightings at month end on a selected Platform. Underlying TIC varies daily as the actual weightings of the underlying funds fluctuate and is not an explicit cost to the investor. It includes VAT but excludes Investment Manager, Financial Advisor, Consulting and Platform fees. TIC is defined as the sum of the TER and TC. Total Expense Ratio (TER) represents the percentage of the value of each underlying fund which was incurred as expenses relating to the administration of that fund over a rolling 3 year period and annualised. Transaction Cost (TC) represents the percentage of the value of each underlying fund which was incurred as costs relating to the buying and selling of the assets in that fund over a rolling 3 year period and annualised.
The information and opinions contained in this document are recorded and expressed in good faith and in reliance on sources believed to be credible. No representation, warranty, undertaking or guarantee of whatever nature is given on the accuracy and/or completeness of such information or the correctness of such opinions. Portfolio Analytics Consulting (Pty) Ltd (“Analytics”) and Gradidge-Mahura Asset Management (Pty) Ltd will have no liability of whatever nature and however arising in respect of any claim, damages, loss or expenses suffered directly or indirectly by the investor or the investor's financial advisor acting on the information contained in this document. Furthermore, Analytics does not act as the investor's financial advisor, they have not conducted a financial needs analysis and will rely on the needs analysis conducted by the investor's financial advisor. Analytics recommends that investors and financial advisors take particular care to consider whether any information contained in this document is appropriate given the investor's objectives, financial situation and particular needs in view of the fact that there may be limitations on the appropriateness of any advice provided. No guarantee of investment performance or capital protection should be inferred from any of the information contained in this document. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to future performance. Source: Performance sourced from Morningstar and Analytics Consulting, for the periods ending at the month end date of this MDD, for a lump sum using NAV-NAV prices with income distributions reinvested. CPI for all urban areas sourced from FactSet. Asset Allocation data compiled by Analytics Consulting. Contact Details Portfolio Analytics Consulting (Pty) Ltd; FSP No 18490. Tel: (021) 936 9500; Website: www.analyticsconsulting.co.za.
Gradidge-Mahura Asset Management (GMAM) is an affiliate of Gradidge-Mahura Investments (Pty) Ltd (GMI) an authorised Financial Services Provider, FSP No. 36327.
