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-0.06  /  -0.05%


NAV on 2021/09/23
NAV on 2021/09/22 119.93
52 week high on 2021/06/30 119.99
52 week low on 2020/10/07 116.72
Total Expense Ratio on 2021/06/30 1.01
Total Expense Ratio (performance fee) on 2021/06/30 0
Incl Dividends
1 month change 0.1% 0.1%
3 month change 0.13% 1.38%
6 month change 0.98% 3.42%
1 year change 1.39% 6.47%
5 year change 0.13% 7.23%
10 year change 0.66% 7.32%
Price data is updated once a day.
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  • Sectoral allocations
Derivatives 71.57 0.45%
Fixed Interest 4714.36 29.49%
Liquid Assets 459.42 2.87%
Money Market 1493.17 9.34%
Real Estate 348.07 2.18%
SA Bonds 7434.56 46.50%
Offshore 1465.78 9.17%
  • Top five holdings
U-INVHINC 2552.16 15.96%
U-INVCORP 1841.04 11.52%
MONEYMARK 737.42 4.61%
U-INVCOMM 321.16 2.01%
MM-25MONTH 265.13 1.66%
  • Performance against peers
  • Fund data  
Management company:
Ninety One Fund Managers SA (RF) (Pty) Ltd.
Formation date:
ISIN code:
Short name:
South African--Multi Asset--Income
STeFI Composite
  • Fund management  
Malcolm Charles
Malcolm is a portfolio manager in the South African Rates team, with responsibility for a range of fixed income portfolios, including the Flexible Bond, Dynamic Bond and Diversified Income strategies as well as the Fixed Income hedge fund. Prior to joining the firm in 2001, he worked for African Harvest Fund Managers and Old Mutual Asset Managers, as both a fixed interest trader and portfolio manager. Malcolm graduated from Rhodes University with a Bachelor of Commerce degree in Accounting, Business Administration and Commercial Law.
Peter Kent
Peter is a Co-Head of SA & Africa Fixed Income and is a portfolio manager in the South African Rates team at Ninety One. He has responsibility for a range of fixed income portfolios, including the Flexible Bond and Diversified Income strategies, complementing the team with his global macro experience. Prior to joining the firm, he spent eight years as an interest rate derivative trader at Goldman Sachs in London, with responsibility for managing European swap flow and prop books. Peter holds a Bachelor of Commerce (Hons) from the University of Cape Town, and a Master of Science degree in Finance from the London Business School. He is also a Chartered Accountant (SA) and a CFA Charterholder.

  • Fund manager's comment

Investec Diversified Income Comment - Jun 13

2013/09/06 00:00:00
Market review Fixed income markets had a roller coaster ride this quarter as we experienced huge swings in yields. In April, the South African bond market had a big rally that saw the best monthly return for the All Bond Index since July 2010. The rally was driven by foreign flows after the Bank of Japan announced an extremely aggressive stimulus package designed to promote economic growth and inflation. This announcement, together with weaker economic data from China and continued evidence of a slow recovery in the US, led to emerging market bond yields reaching record lows. In May, there was a complete reversal of the exuberance experienced the previous month. Bonds had one of the worst months in over a decade, as rand weakness caused some aggressive selling in our market. There was a global sell-off in bond markets as investors came to terms with improving developed market economies and the prospect of the US Federal Reserve (Fed) scaling back its quantitative easing programme (QE). Emerging markets saw yields rise and most of their currencies lost ground to a strengthening US dollar. This triggered some selling of South African bonds by foreign investors to the tune of R4.7 billion. It is interesting to note that this was the first time since last May that foreigners were net sellers on a month. We expect these investors to remain cautious of the asset class and yields are likely to remain elevated for the next few months. There was also a sharp correction in short-dated yields as the monetary policy committee indicated that rates were likely to remain on hold at current levels for some time. While this was in line with our view, some investors had expected a rate cut, which resulted in these rates being too low. The South African Reserve Bank (SARB) remains extremely worried about the country's slow growth rate and would like to ease rates to stimulate some growth. However, the Bank is equally concerned about inflation, which is close to the upper limit of 6%. Bond markets remained under pressure in June as economic data in the US continued to point towards stronger growth. This led to bond yields rising globally as investors changed their asset allocation. The standout feature was the catch-up in real yields as inflation-linked bonds experienced their worst month since their introduction into the South African market in March 2000. This is part of the global re-pricing of rates, now that the Fed has indicated that its $3 trillion QE programme could be scaled back later this year. Rates are thus 'normalising' to reflect the fundamentals. This has sparked a general sell-off, leaving cash as the only fixed income asset with a positive return on the quarter. While the sell-off in yields has led to negative returns for some bond funds, it offers opportunities for the more defensive funds. Yields are now more realistic and are offering a reasonable return for investors. Risks still remain, but it is prudent to start looking at investing some of the cash in our funds in the shorter-dated bonds. On the monetary policy front, we expect rates to remain on hold for the next 12 months as the SARB remains conflicted between rising inflation and the weak economy. Given ongoing rand weakness, we expect inflation to breach the upper band of the inflation target in coming months. It could even remain outside the targeted band for the remainder of the year. As inflation adjusts for the weaker rand, we will continue to see cash generating a below-inflation return for 2013.The rand will remain key, and any recovery from the current 'cheap' levels will be welcomed by the SARB.
Portfolio review We avoided the pitfalls in the bond and inflation-linked bond market and the Investec Diversified Income Fund generated a return ahead of cash over the quarter. The performance was helped by the allocation to foreign exchange, particularly the US dollar. The foreign exchange strategy of the fund reduces the overall risk as it hedges out some of the duration risk in the portfolio.
Portfolio positioning The portfolio has done well over the cycle. It has benefited from the fall in yields over the past few quarters and we have now reduced the interest rate risk as yields start to rise. Corporate yields remain attractive and the portfolio continues to hold these instruments. As yields continue to rise, we will look for opportunities to invest some of the cash to increase the yield. This portfolio has the flexibility to perform well in all market conditions.
  • Fund focus and objective  
The Ninety One Diversified Income Fund is a fixed Interest portfolio. The investment objective of the fund is to provide Investors with a high level of Income while seeking opportunities to maximise capital growth. The portfolio will achieve this objective by Investing in a diversified range of fixed income instruments. The manager will be permitted to invest in offshore investments as legislation permits. Majority of the time, the Ninety One Diversified Income Fund will have a property allocation of more than 5% and equal to or less than 25%.

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