NAV on 2021/09/17
|NAV on 2021/09/16
|52 week high on 2021/03/10
|52 week low on 2020/11/09
|Total Expense Ratio on 2021/06/30
|Total Expense Ratio (performance fee) on
Kagiso Collective Investments Limited (RF)
Global Equity General category average
Abdulazeez joined Kagiso Asset Management in February 2008 as the Head of Research and Portfolio Manager. In addition to his research responsibilities, he currently manages the Kagiso Islamic Funds as well as segregated equity portfolios for institutional clients. Prior to his joining the company, Abdulazeez spent 10 years at Allan Gray where he was a senior investment analyst and portfolio manager.Kagiso Asset ManagementKagiso Asset Management was established in 2001 as a (51%:49%) joint venture between the Kagiso Group and Coronation Fund Managers. In 2005 Coronation Fund Managers exited our business and Kagiso Asset Management and staff bought 30%. Independent administration and infrastructure was installed in 2006 and full operational independence from Coronation was established.On 1 October 2010, Kagiso launched its own unit trust management company, Kagiso Collective Investments Limited. Kagiso Collective Investments Limited is a subsidiary of Kagiso Asset Management. The Kagiso unit trust range is offered by Kagiso Collective Investments Limited.In 2011, management and staff increased their shareholding in Kagiso Asset Management to 49.9%.
Kagiso Islamic Glb Eqt Feeder comment - Dec 2020
The fund was up 1.6% this quarter, outperforming other Global general equity funds (up 1.3% on average) and is up 8.9% over 1 year (underperforming the 20.3% competitor average). This followed a very sharp fall in the first quarter amid the market crash as the unexpected COVID-19 crisis stalled economic activity across the world.
A severe COVID-19 resurgence has necessitated renewed partial lockdowns across the world, which is delaying economic recovery. The successful development of vaccines has shielded the world from more negative global health and economic scenarios, but the timing of the economic recovery in different regions and the extent of further scarring (particularly in services sectors like leisure and tourism) depends critically on the effectiveness of the vaccine rollout. In addition, the immense increase in global government debt due to aggressive fiscal stimulus will retard future, long-term growth. On the whole, uncertainty remains very high.
Positively, the global economy entered the crisis in a strong position, with healthy consumer dynamics in most developed markets and a moderating, but still strongly growing, Chinese economy. Developed market consumer and corporate health appears to have been largely preserved through extensive fiscal and monetary support. Consumer indications (discretionary retail sales, vehicle purchases and housing activity) have fared better than initially expected and increased cumulative savings (from less spend under lockdowns) bodes well for future consumption under more normal conditions. Nevertheless, economic conditions will be put to the test only when fiscal support and monetary stimulus tapers off and the reality of permanent job losses manifests.
Following a rapid resumption of economic activity back to pre-crisis levels, the Chinese economy is now growing strongly. This is largely due to the successful early containment of the pandemic, government stimulus (which boosted infrastructure investment in particular) and surprisingly strong exports and manufacturing (buoyed by temporary COVID-19 related goods demand) - despite weak consumer confidence and spending. However, pre-crisis risks remain: a disruptive moderation and rebalancing of economic growth (away from fixed asset investments and towards consumption) and potential further deterioration in geopolitical relations.
Global markets were strong again this quarter (up 14.1% in US dollars), with Japan up 21.2%, France up 20.7% and the UK up 17.2%. Within emerging markets (up 19.8% in dollar terms), South Korea (up 35.0%) and Brazil (up 36.6%) outperformed. 2020 has been a very strong year for global equity markets (up 16.5% overall).
Governments in developed countries responded to the health care crisis and the resultant pausing of large parts of their economies with aggressive fiscal stimulus packages. Together with a dramatic easing of monetary policy (rate cuts, increased quantitative easing and other unconventional measures), this has tempered economic scarring from the COVID-19 crisis. The interventions, which are being sustained into the recovery phase, are providing a powerful buffer for financial markets and have led to dramatic increases in general asset prices. We expect increased volatility when fiscal stimulus inevitably wanes, if inflation emerges at last and when interest rates rise from their extremely low levels.
Fund performance and positioning
The underlying fund’s significant outperformance of the FTSE World Index over the fourth quarter of 2020 was due to the strong performance of some of our Industrials and Materials holdings.
We saw positive contributions from some of our quality industrial companies in this quarter, led by Spire Healthcare Group, Samsung Electronics, Dupont De Nemours and Siemens Energy.
The fund maintained significant underweight positions in the Communication Services, Information Technology and Utilities sectors in the past 3 months. The sectors where the fund had overweight exposure are in Materials (Dupont De Nemours and Evonik Industries) and Healthcare (Bayer, Spire Healthcare, Pfizer and Roche Holdings) and Energy (Neste & Inpex Corporation) sectors.
Our fund is mainly positioned in companies listed in developed markets, with exposure to a broad range of diversified sectors. Some examples of the global structural themes underpinning some of our holdings include an ageing population (hospitals, healthcare equipment), online disruption (e-commerce), tomorrow’s workforce (automation and robotics), Food security (fertilisers, farm efficiency, alternative feed sources) and future energy and mobility (renewable energy, energy storage, components and consumables).
Despite the strong bounce-back in several of our holdings during the quarter, we have maintained our positioning in high quality cyclical companies as we believe that share price levels are still low relative to their long-term prospects and they should provide very attractive forward-looking returns.
The portfolio is a Feeder Fund. The investment objective of the portfolio is to achieve optimum risk adjusted total returns by providing investors with exposure to an international collective investment scheme portfolio comprising a diversified mix of global equity and equity- related securities.
Investments to be included in the portfolio will, apart from assets in liquid form, consist solely of participatory interests of only one collective investment scheme portfolio, namely the Kagiso Islamic Global Equity Fund, being a fund of the Irish-constituted scheme, the Kagiso Global Asset Management ICAV.
For the purposes of the Kagiso Islamic Global Equity Feeder Fund the manager shall reserve the right to close the portfolio to new investors. This will be done in order to be able to manage the portfolio in accordance with its mandate. This critical size shall be determined from time to time by the manager. The Manager may, once a portfolio has been closed, open that portfolio again to new investors on a date determined by the Manager.