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0.31  /  0.21%


NAV on 2021/09/23
NAV on 2021/09/22 144.67
52 week high on 2021/08/30 152.67
52 week low on 2020/10/07 137.38
Total Expense Ratio on 2018/09/30 0.63
Total Expense Ratio (performance fee) on 2018/03/31 0
Incl Dividends
1 month change -4.24% -0.31%
3 month change -1.99% 2.03%
6 month change 2.81% 7.03%
1 year change 4.18% 12.88%
5 year change -1.46% 7.63%
10 year change -0.56% 8.01%
Price data is updated once a day.
Click and drag to zoom in on timeline.
  • Sectoral allocations
Liquid Assets 0.42 3.43%
SA Bonds 11.70 96.57%
  • Top five holdings
  • Performance against peers
  • Fund data  
Management company:
Community Growth Management Company Ltd.
Formation date:
ISIN code:
Short name:
South African--Interest Bearing--Variable Term
BEASSA All Bond index
  • Fund management  
Rhandzo Mukansi

  • Fund manager's comment

Community Gilt comment - Jun 19

2019/08/13 00:00:00
Our main concern regarding the bond market remains the strong link between lacklustre economic growth and the lack of fiscal consolidation. More specifically, this points to the rising debt burden of the state, which arises as a consequence of the lack of fiscal consolidation. This continues to threaten the country’s sovereign risk profile and places pressure on domestic funding costs. The risk of a failed economic recovery has certainly not dissipated; with this firmly supported by disappointing first quarter GDP data. This makes us question the quality of tax revenue collections, and consequently the state of health of the tax base, which in turn keeps the risk of a budget deficit overrun at elevated levels. The financial burden of poorly managed SOEs on state finances has reached a point where the delivery of a credible national budget is nearly impossible in the absence of a substantial remedial action for the unfolding financial disaster. The proverbial chickens, mainly in the form of Eskom, have come home to roost and this requires more than the usual liquidity provision. Addressing solvency is an entirely different matter, requiring more than simply kicking the can down the road via more liquidity bail-outs.
We continue to endeavour to strike a balance between avoiding capital loss in the case of a market sell-off and losing out on the accrual offered by a steeply sloped yield curve. We have also considered the fact that long-dated nominal bonds are currently trading at an attractive real yield of around 4%. So, while our broad interest rate investment strategy remains defensive, the modified duration variance of -0.2 is some way off the maximum allowed position of -1.0. This acknowledges reasonable valuation, which partly offsets the relatively poor investment theme.
The fund underperformed the benchmark by 0.2% on a net of fee basis for the 12-month period ending June 2019. This was mainly due to the more conservative positioning of the fund relative to the benchmark, specifically the underweight modified duration position during the period under review. This negative contribution was partly offset by the accrual earned from the higher yielding non-government bond holding in the fund.
The fund is defensively positioned, with an underweight modified duration tilt of 0.2 relative to the All Bond Index modified duration of 7.1. This is the result of a smaller holding of nominal bonds with a term to maturity of 25 years and longer relative to the benchmark.
  • Fund focus and objective  
The fund aims to maximise total returns through a balance of capital growth and income generation. The fund invests in bonds with a particular emphasis on reconstruction and development. The emphasis is on institutions and projects that contribute to the development of South Africa through programmes that have a meaningful social impact and are committed to development, community participation and support.
This is a medium to lower risk fund. The fund is exposed to interest rate fluctuations. Long-term bonds are more sensitive to rate changes, while short-term bonds experience more modest price movements. The holding of long and short-dated bonds in the fund is used to reduce these risks.

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