NAV on 2021/09/17
|NAV on 2021/09/16
|52 week high on 2021/08/26
|52 week low on 2020/11/02
|Total Expense Ratio on 2021/06/30
|Total Expense Ratio (performance fee) on 2021/06/30
Discovery Life Collective Investments (Pty) Ltd.
MSCI AC World index
In line with our commitment of promoting talent from within, Rhynhardt Roodt will start co-managing a portion of the SA general equity funds strategy. Rhynhardt is a co-portfolio manager on the General Equity Strategy. In addition he has dedicated analyst responsibilities for the resources sector and other multi-Asset strategies. Rhynhardt re-joined the firm in 2010 from Oryx Investment Management where he worked for two years as a research analyst and portfolio manager. Rhynhardt began his career at Investec Asset Management in 2004 and spent a year as a client service consultant and as an analyst in risk attribution and performance measurement team, before moving into equity analysis. Rhynhardt has been with Investec Asset Management for 8 years and has 10 years’ experience in the investment industry.
the 4Factor Global Equity Team
Discovery Global Equity Feeder Fund - Dec 09
Market Background Equity markets spent most of the fourth quarter trading sideways but closed on a firm note. The MSCI World index returned 4.2% in US dollar terms over the period. Most developed and emerging markets also gained over the quarter: the S&P 500 returned 6.0% in US dollars; the MSCI Europe ex UK Index returned 3.5% in euros; the FTSE All Share index returned 5.5% in sterling and the MSCI Emerging Markets Free Index returned 8.6% in US dollars. The TOPIX index (Japan) failed to realise any gains over the period, returning -0.3% in yen.
The strongest performing sectors over the quarter were resources, which was led primarily by oil & gas and mining, and consumers, which was driven by pharmaceuticals. The worst performing super sector was financials, where banks, insurance and life assurance all performed poorly.
The leading indicators suggest a loss of momentum in economic recovery but third quarter data showed a return to growth in the US, Europe and Japan but not in the United Kingdom. This is likely to have continued in the fourth quarter, with consumption data static and US jobs data indicating an imminent peak in unemployment. The major uncertainty remains the prospect of fiscal tightening, potentially negative for growth in the short term, but positive longer term.
Market outlook Entering 2010, we believe the world's equity markets are in reasonable condition. Functionality in the credit markets has returned and equity raising in both the primary and secondary markets has gathered momentum, further enhancing the general strength of corporate balance sheets. Money has now begun the next stage in the transition from cash to bonds and is moving strongly to equities as risk appetite continues to grow as a result of greater confidence and the paucity of alternative income producing assets.
In our view, this process is likely to continue through 2010 although government support for capital markets may be gradually withdrawn and the funding markets would then have to function without it. We also worry about the extent of the legislative wave that approaches the financial sector and how the balance between capital adequacy and provision of finance to the corporate and consumer sectors is achieved.
Following on from a year where deep value has been rewarded, we look to 2010 as the year when those corporations that succeed in delivering an enhanced operating performance at a time of muted, but positive economic performance may be rewarded by the investment community, especially because clear value opportunities are likely to be significantly less prevalent (with perhaps the exception of the financial sector).
We would also anticipate a stronger focus on quality as institutional money flows to equities. Quality companies have been broadly neglected as buyers have looked for cyclical exposure rather than size and strength and this group appears good value relative to its history.
In this context we expect further progress for markets in the medium term but anticipate a more broadly base leadership where quality is added to the mix of value and momentum factors.
Investment Strategy The fund is a rand-denominated fund and invests in shares listed worldwide. The majority of the fund's investment is in developed markets such as the United States, Europe, UK and Asia. The philosophy of the fund is that share prices are driven by four factors over time: strategy, valuation, dynamics and technicalities. The Investec Four Factor Team are constantly looking for high quality, attractively valued international companies, which have improving operational performance and which are receiving increasing investor attention. This could include larger, medium and smaller companies either by size or industry or the geographical make-up. The focus of the fund management is individual stock picking (bottom-up approach) utilising the Four Factor investment approach. The process has no inherent bias to any particular currency or country. The majority of the fund's investment is in developed markets such as the United States, Europe, UK and Asia. Fund Objectives The fund aims to give investors dedicated international equity market exposure at lower levels of risk. The fund targets returns in excess of the benchmark, measured over rolling three-year periods, calculated on a total return basis with dividends reinvested.