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0.46  /  0.03%


NAV on 2021/09/23
NAV on 2021/09/22 1532.319
52 week high on 2021/09/23 1532.779
52 week low on 2020/10/01 1485.356
Total Expense Ratio on 2021/06/30 1.19
Total Expense Ratio (performance fee) on 0
Incl Dividends
1 month change 0.47% 0.47%
3 month change 0.31% 1.45%
6 month change 1.08% 3.32%
1 year change 1.97% 6.69%
5 year change 0.45% 7.13%
10 year change 0% 0%
Price data is updated once a day.
Click and drag to zoom in on timeline.
  • Sectoral allocations
Additional 26.43 1.14%
Derivatives 33.90 1.46%
Fixed Interest 68.84 2.97%
Liquid Assets 65.47 2.83%
Money Market 178.55 7.71%
Real Estate 34.04 1.47%
SA Bonds 1696.10 73.21%
Offshore 213.43 9.21%
  • Top five holdings
U-PRUHGIN 49.04 2.12%
MM-07MONTH 47.39 2.05%
FUTURES M 31.26 1.35%
MM-17MONTH 20.32 0.88%
U-PRUDINC 19.80 0.85%
  • Performance against peers
  • Fund data  
Management company:
Momentum Collective Investments Limited
Formation date:
ISIN code:
Short name:
South African--Multi Asset--Income
Alexander Forbes Money Market Index


0860-111-899 (Client Services)

  • Fund management  
Momentum Investment Consulting
Jako F de Jager
Eugene Botha

  • Fund manager's comment

Momentum Diversified Income comment - Sept 18

2018/12/03 00:00:00
Economic overview
An escalation in international trade tensions, a gradual erosion of democratic standards in Europe, rising world debt levels, tighter global financial conditions and geopolitically driven oil price shocks have dampened optimism around global economic prospects. The timing, degree and effect of previous fiscal and monetary interventions by the major central banks and varying progress in fiscal and monetary exit strategies have further given rise to a desynchronisation in global growth. Tell-tale signs of a late-cycle phase are emerging in the United States. The fading effect of the fiscal boost, higher expected interest rates and onerous tariffs are likely to trigger a downswing in 2020. Meanwhile, internal politics threaten Europe's growth outlook, as it transitions from mid to late cycle. If the newly formed anti-establishment coalition government in Italy fails to cooperate with European authorities, contagion effects could ripple throughout the bloc.
Protectionist policies and diminishing liquidity have generated uncertainty in emerging markets (EM), although they are, in general, far better positioned today to withstand external shocks. Though South Africa (SA) has been unfairly categorised within the latest EM grouping in terms of economic mismanagement, the country does exhibit some vulnerabilities, which stack up relatively poorly compared to other EMs. Nevertheless, unless there is a significant fiscal disappointment or further unconditional guarantees allocated to state-owned enterprises, sovereign ratings are likely to remain steady into the end of the year. A tepid near-term growth environment and a non-threatening inflation trajectory in SA point to the start of a shallow interest rate hiking cycle in due course.
Portfolio overview
The portfolio delivered a return of 1.9% and 7.3% for the quarter and year to 30 September 2018 respectively. Bond yields were up 20 basis points for the quarter and real yields rose 18 basis points across the curve. This led to impaired returns, with bonds (ALBI) delivering 0.81% and inflation-linked bond's (IGOV) returning 0.46%. Cash (STeFI) was king at 1.76% for the quarter. The portfolio's return objective of STeFI plus 1%, equating to 8.3% for the past 12 months, was not achieved. Most of the managers in the peer group struggled over the last 12 months and the average performance was 6.9%. There were limited credit issuances throughout the year mainly due to the lack of supply from issuers as well as increased demand for credit. The portfolio managers (Fairtree and Prudential) who rely mainly on credit thus managed to meet the required rate of return on a consistent basis. The diversified strategies employed by Granate and Prudential struggled to beat the benchmark in the last quarter.
Over a three-year period, the portfolio also did not achieve the stated benchmark, but managed to outperform the peer group average by more than 50 basis points per annum. We are, confident that the revised strategies implemented in the last quarter of 2017 will continue to increase the probability of achieving the return objectives over a rolling 36-month period. The risk objective of the portfolio is not to have any negative returns over a one-year rolling period and this has been achieved on a consistent basis.
  • Fund focus and objective  
The objective of the fund is to seek income and capital stability through high exposure to income bearing assets while maintaining an equity exposure of between 10% and 40% of the total value of the portfolio. The investments will be managed with a secondary objective of achieving some capital growth over the medium-term. The fund will have a low short-term capital risk due to the low equity exposure. Investments will be aggressively managed and investments to be included in the fund will, apart from liquid assets and approved securities, consist solely of units of unit trust schemes and will at all times comply with PIGS.

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