NAV on 2021/09/22
|NAV on 2021/09/21
|52 week high on 2021/09/22
|52 week low on 2021/04/01
|Total Expense Ratio on 2021/06/30
|Total Expense Ratio (performance fee) on 2021/06/30
Boutique Collective Investments (RF) (Pty) Ltd.
South African--Multi Asset--Income
SteFi Composite + 1%
Methodical Investment Management
Megafin SCI Income Fund of Funds - Sep 19
Megafin SCI Income Fund of Funds Portfolio Update Investors with an income focus received strong returns during the second quarter of 2019. Income generating assets such as cash and bonds delivered decent outcomes during the quarter, while allocations to local listed property also drove positive portfolio performance. The Megafin SCI Income FoF’s returned 2.1% for the quarter and has generated a return of 8.2% over the past year.
The Portfolio remains conservatively positioned, with diverse asset allocation which we expect to generate stable inflation beating returns in a variety of market environments.
Asset Allocation Local bonds and local cash, which make up the bulk of the assets within the Portfolio, both generated positive returns for investors over the quarter. Global bond markets continued to move higher, as yields moved lower in response to expectations for lower interest rates in developed markets in the future. South African inflation continues to be well contained, with the most recent print for May 2019 of a year-on-year CPI figure of 4.5% well within the South African Reserve Bank’s target range of between 3% and 6%. Well-contained inflation means that yields on local bonds currently offer South African investors decent real yields (in excess of inflation), especially when compared to the yields on offer in developed markets. Small allocations to local equities and listed property also contributed positively to the performance of the Portfolio over the quarter.
Fund Selection The contribution from fund selection was mixed over the quarter.
Coronation Strategic Income delivered decent performance in the second quarter of the year. Significant allocations to local corporate bonds drove returns over the quarter, in line with strong performance from global bond markets, as yields lowered in response to lower future expected interest rates.
Investec Diversified Income had a difficult quarter relative to peers, however, the fund still managed to outperform its benchmark over the second quarter. The fund's sizeable cash allocation and conservative positioning placed a drag on performance relative to peers.
The allocation to Nedgroup Core Income was replaced by Nedgroup Flexible Income during the second quarter of 2019. The allocation to Prescient Income Provider was also reduced slightly in favour of BCI Income Plus.
Summary We will continue to follow a valuation-driven approach when allocating to different asset classes. This will allow the Portfolio to deliver on its objective of producing stable excess returns without the risk associated with investing significant amounts in equities.
The Methodical BCI Income Fund is a low risk profile portfolio with the objective is to provide investors with a high level of income combined with capital protection. The portfolio aims to generate a return of SteFI plus 1% over any rolling 12-month period. The portfolio complies with prudential investment guidelines to the extent allowed for by the Act. However, the portfolio's equity exposure will not exceed 10% of the portfolio's net asset value. Investments to be acquired for the portfolio may include equity securities, property securities, property related securities, bonds, interest bearing securities, non-equity securities, money market instruments, preference shares and assets in liquid form.
The portfolio may also invest in a participatory interest or any form of participation in portfolios of collective investment schemes or other similar collective investments schemes as the Act may allow from time to time, which are consistent with the portfolio's investment policy. Where the aforementioned schemes are operated in territories other than South Africa, participatory interests or any other form of participation in portfolios of these schemes will be included in the portfolio only where the regulatory environment is, to the satisfaction of the manager and the trustee, of sufficient standard to provide investor protection at least equivalent to that in South Africa. The portfolio may from time to time invest in listed and unlisted financial instruments, in accordance with the provisions of the Act, and the Regulations thereto, as amended from time to time, in order to achieve the portfolio's investment objective.
The portfolio may also include forward currency, interest rate derivatives and exchange rate swap transactions for efficient portfolio management purposes in line with the portfolio's investment objective. The Trustee shall ensure that the investment policy set out in this Supplemental Deed is carried out. For the purpose of this portfolio, the manager shall reserve the right to close the portfolio to new investors on a date determined by the manager. This will be done in order to be able to manage the portfolio in accordance with its mandate. The manager may, once a portfolio has been closed, open that portfolio again to new investors on a date determined by the manager.