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-0.13  /  -0.08%


NAV on 2021/09/17
NAV on 2021/09/16 166.378
52 week high on 2021/06/15 168.257
52 week low on 2020/09/30 147.63
Total Expense Ratio on 2021/06/30 1.17
Total Expense Ratio (performance fee) on 0
Incl Dividends
1 month change 1.43% 1.43%
3 month change -1.13% -0.07%
6 month change 4.49% 5.61%
1 year change 10.99% 13.51%
5 year change 0.46% 3.06%
10 year change 1.76% 5.3%
Price data is updated once a day.
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  • Sectoral allocations
Derivatives 0.17 0.02%
Liquid Assets -34.49 -4.38%
Money Market 66.43 8.44%
SA Bonds 754.54 95.92%
  • Top five holdings
MM-11MONTH 18.10 2.3%
MM-12MONTH 10.03 1.27%
MM-07MONTH 9.09 1.16%
MM-02MONTH 9.06 1.15%
MM-10MONTH 6.06 0.77%
  • Performance against peers
  • Fund data  
Management company:
Momentum Collective Investments Limited
Formation date:
ISIN code:
Short name:
South African--Multi Asset--Income
60% Barclays ILB index, 30% ALBI and 10% STeFI (call deposit index)


0860-111-899 (Client Services)

  • Fund management  
Conrad Wood
Conrad joined Momentum Asset Management in 1994 (then RMB Asset Management) and has been involved in the management of fixed-income portfolios from the start of his career. He was appointed as head of fixed income in October 2007, also taking that role in the new merged entity in February 2011. Conrad and his team currently oversee the management of R80 billion across various fixed income mandates, including for a number of institutional portfolios. He and his team have managed the Momentum Money Market Fund, the Momentum Maximum Income Fund and Momentum Diversified Yield Fund since their inception.

  • Fund manager's comment

Momentum Inflation Linked Bond - Sept 18

2018/12/03 00:00:00
Economic overview
Inflation-linked Bond's (ILB's) struggled again this quarter, managing to just scrape together a positive return. Real yields rose an average 18 basis points across the curve, following nominal yields higher and inflation surprising to the downside. The real yield curve flattened during the sell-off, with the largest move in the short-dated maturities as the SARB turned more hawkish in response to the risk-off environment. However, the longer maturities were not far behind and real yields are now well above 3% in the long-end. With the move up in yields, ILB's limped to a 0.46% return for the quarter, lagging nominal bonds (ALBI 0.81%) and the STeFI (1.76%). The good news is that we are closer to the point that these bonds should begin to perform again. Inflation is rising, albeit it in a measured fashion and yields are at fairly elevated levels from a valuation perspective.
The total return from ILB's can be divided into two components - the monthly accrual and the mark-to-market of the capital value due to the move in the real yields. The first component of return is the monthly accrual from the yield on the bonds and the inflation uplift. This component of the total return was a strong 2.07% this quarter, with 1.31% from inflation uplift and around 0.76% from yield accrual. The second component of the return is determined by the move in real yields of the bonds. Real yields moved higher over the quarter, thereby generating capital losses to the tune of 1.61%. These components combined thus explain the index total return of 0.46%.
Yields have risen sharply and present compelling value. However, there needs to be some sustained inflationary momentum to validate the outlook. At real yields above 3%, inflation one year forward needs to be at least 5.5%. We believe this is likely as the weak Rand / strong oil price combination comes through and electricity price rises result from Eskom's tariff clawback due to be announced by the regulator.
Portfolio overview
The portfolio marginally outperformed its IGOV benchmark over the quarter, although absolute returns from the asset class remain under pressure as highlighted. The positive relative performance came principally from an underweight duration position, given our caution on the prospects for ILB's, but was somewhat offset by the flattening of the ILB curve. We have tended to favour medium-dated maturities as opposed to ultra-long-date which have been the outperformers this quarter. In addition, credit spreads continued to compress over the quarter which contributed to relative performance.
  • Fund focus and objective  
The portfolio recognises that one of the greater risks facing investors, is inflation. The portfolio seeks to provide investors with consistent capital growth and income after inflation (CPI). The objective of the portfolio is to maintain a strong bias towards fixed interest securities that exhibit a high correlation to inflation at all times. Accordingly the portfolio seeks to provide a low volatility investment option to investors seeking real returns relative to inflation.
The manager's objective is to achieve a consistent 12-month rolling portfolio return of at least CPI(X) + 3%. The portfolio will invest primarily in fixed interest securities, as the total return offers a high correlation to the rate of inflation. The manager may vary the mix of fixed interest securities with the objective of securing for investors' consistent capital growth and income after inflation. The intention is that the portfolio will hold between 35% and 85% inflation linked interest-bearing instruments at all times. Apart from this limitation, the manager is not restrained in managing the portfolio to produce real returns. The manager may therefore take advantage of trading opportunities that arise between yield and duration characteristics in these markets, as well as changing the allocation between bonds, inflation linked bonds and money market instruments depending on interest and inflation expectations.

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