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0  /  0%


NAV on
NAV on 0
52 week high on 0
52 week low on 0
Total Expense Ratio on 2015/06/30 0.55
Total Expense Ratio (performance fee) on 2015/06/30 0
Incl Dividends
1 month change 0% 0.37%
3 month change 0% 1.23%
6 month change 0% 2.3%
1 year change 0% 5.8%
5 year change 0% 5.44%
10 year change 0% 0%
Price data is updated once a day.
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  • Sectoral allocations
Liquid Assets 12.94 56.13%
Money Market 10.12 43.87%
  • Top five holdings
MM-01MONTH 5.08 22.03%
MM-02MONTH 5.04 21.84%
  • Performance against peers
  • Fund data  
Management company:
Formation date:
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  • Fund manager's comment

Efficient Money Market comment- Sep 13

2013/12/20 00:00:00
Developments abroad continue to drive the performance of the domestic South African markets. September will be remembered as the month when the United States Federal Reserve Bank (the 'Fed') surprised the market by deciding not to reduce the stimulus that it has been providing in the form of Quantitative Easing. Our interpretation of this surprise is twofold. Firstly, the Fed has reason to be concerned about the near term outlook for the US economy and secondly, the Fed was concerned about the extent of the increase in bond yields since its initial announcement in June. We therefore take comfort from the communication that the Fed is watching the US bond yields and that it will insulate the market against excessive shocks where possible.
September was also a month to remember for the stubbornness of politicians. At the time of writing, it looks increasingly likely that the government of the United States will be unable to reach agreement on a budget going forward. This is increasing the likelihood of a government shutdown, with non-essential services being shuttered for a while. Such a shuttering will create a significant drag on the economy and could result in weaker economic data for the fourth quarter of 2013 than we had anticipated. Such weak data might further reduce the propensity of the Fed to significantly taper their Quantitative Easing.
A significant impact of the changes outlined above is that money market interest rates have begun to decrease as investors are reducing exposure to risky asset classes. The fund was able to benefit from locking in some of the higher rates while they were available. We include a measure of interest rates that we are seeing in the market. Bear in mind that your fund is invested in a portfolio of different instruments in order to comply with regulations and provide both capital protection and short term liquidity availability.
We are finding that the longer dated interest rates are appealing at present and we have been rolling the Efficient Money Market Fund into these where possible. This does increase the risk that the fund will lag should the South African central bank raise interest rates in the near term. We think that in the context of the weaker consumer and lower demand that an interest rate hike is improbable. Therefore we are comfortable with the fund's positioning.
Currently the portfolio is yielding (net of fees) 5.12%.
  • Fund focus and objective  
The Efficient BCI Money Market Fund is a Domestic-Fixed Interest-Money Market portfolio. The objective of this portfolio is to maximise interest income, preserve the portfolios capital and provide immediate liquidity. This is achieved by investing in money market instruments with a maturity of less than one year while the average maturity of the underlying assets may not exceed 90 days.
Investments to be included in the Efficient Money Market Fund will consist of money market instruments and such other investments as legislation permits from time to time.

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