southern charter bci growth fund of fund...southern charter bci growth fund of fund as at 31 january...
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Southern Charter BCI Growth Fund of Fund as at 31 January 2017Minimum Disclosure Document - Date of issue 24 February 2017
Risk profile
Low Low-Mod Mod Mod-High High
Portfolio manager
Ursula Maritz / Mark Thompson
First Floor, Silverberg Terrace
Steenberg Office Park
Steenberg Road
TOKAI, 7945
Authorised Financial Services Provider
FSP No. 740
Contact: Mark Thompson / Ursula MaritzTelephone: (021) 7001000Web: http://www.southerncharter.co.za
Portfolio details
Sector: SA Multi Asset High EquityLaunch date: 25 October 2007Size of fund: R778.9 MBenchmark: Composite *Composition: 60% FTSE JSE Swix
15% ALBI index10% FTSE JSE Listed Property0% SteFI5% JPM INT Bond Index10% MSCI World index
Minimum investment
R25 000 Lump sum or R1000 monthly debit order.
Income distribution
Income distribution 2015: 2.34 centsIncome distribution 2016: 2.90 centsDeclaration date 29 Feb, 31 AugPayment date 2nd working day of March /SeptemberValuation time 08h00 (T + 1)Transaction time 14H00
Total Expense Ratio (TER)
Total Expense Ratio (Including VAT) 2.37%Performance fee included in TER 0.00%Portfolio Transaction Cost 0.18%Total Investment Charge (TER + TC) 2.55%
A higher TER ratio does not necessarily imply a poor
return, nor does a low TER imply a good return. The
current TER cannot be regarded as an indication of
future TER's. Transaction Costs are a necessary cost in
administering the Fund and impacts Fund returns. It
should not be considered in isolation as returns may be
impacted by many other factors over time including
market returns, the type of Fund, the investment
decisions of the investment manager and the TER. The
TER and Transaction cost is calculated for the 3 year
period / since inception (annualised) ending 30
September 2016.
Fees incl VAT
Manager's upfront charge (max) 0.00%FSP upfront commission (max) 0.00%Annual management fee 1.14%
Performance fee
15% (share rate) of out performance above the
portfolio benchmark (hurdle rate), capped at 1.5% p.a
over a 2 year rolling period. The fees are accrued on a
daily basis and paid out on a monthly basis. Any
shortfall to the hurdle rate is carried forward for set-off
against future positive out performances. Fee example:
0% performance fee if portfolio performs in line with its
benchmark.
Investment objectiveThe Southern Charter BCI Growth Fund of Funds is an aggressively managed fund of funds. Theprimary investment objective of the portfolio is to provide the investor with a relatively high long termtotal return. The Fund aims to provide investors with capital growth of 7% above inflation over thelonger term by investing in a combination of asset classes including local and international equities,fixed interest, property and cash. As the Fund has a high allocation growth assets, it is ideal forinvestors with a long investment horizon, who seek capital growth and who are at least 10 years fromretirement. The fund is Regulation 28 compliant.
StrategyThe Fund is actively managed with a value bias. By focusing on macro themes, the Fund looks toexploit valuation discrepancies in asset classes when they occur. The allocation to equities will be max75%, with a neutral weighting of 65%.
Fund Performance (net of all fees)
Fund Return 1 Year 3 Years 5 Years 8 Years
SC Growth FoF's Cumulative 4.5% 22.9% 75.3% 173.0%
CPI +7% Cumulative 14.3% 44.9% 84.9% 164.2%
Benchmark * Cumulative 8.4% 36.1% 93.8% 211.4%
SC Growth FoF's Annualised 4.5% 7.1% 11.9% 13.4%
CPI +7% Annualised 14.3% 13.2% 13.1% 12.9%
Benchmark * Annualised 8.4% 10.8% 14.1% 15.3%
Highest and Lowest Monthly Figures per Calendar Year
Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
High 3.57% 5.98% 1.84% 5.33% 3.45% 5.82% 5.68% 7.32% 5.82% -
Low -3.32% -2.37% -1.33% -3.12% -1.74% -1.11% -3.9% -5.5% -5.68% -
R229K
R203K
Fund Average Fund
Ince
ptio
nN
ov 0
7D
ec 0
7Ja
n 08
Feb
08
Mar
08
Apr
08
May
08
Jun
08Ju
l 08
Aug
08
Sep
08
Oct
08
Nov
08
Dec
08
Jan
09F
eb 0
9M
ar 0
9A
pr 0
9M
ay 0
9Ju
n 09
Jul 0
9A
ug 0
9S
ep 0
9O
ct 0
9N
ov 0
9D
ec 0
9Ja
n 10
Feb
10
Mar
10
Apr
10
May
10
Jun
10Ju
l 10
Aug
10
Sep
10
Oct
10
Nov
10
Dec
10
Jan
11F
eb 1
1M
ar 1
1A
pr 1
1M
ay 1
1Ju
n 11
Jul 1
1A
ug 1
1S
ep 1
1O
ct 1
1N
ov 1
1D
ec 1
1Ja
n 12
Feb
12
Mar
12
Apr
12
May
12
Jun
12Ju
l 12
Aug
12
Sep
12
Oct
12
Nov
12
Dec
12
Jan
13F
eb 1
3M
ar 1
3A
pr 1
3M
ay 1
3Ju
n 13
Jul 1
3A
ug 1
3S
ep 1
3O
ct 1
3N
ov 1
3D
ec 1
3Ja
n 14
Feb
14
Mar
14
Apr
14
May
14
Jun
14Ju
l 14
Aug
14
Sep
14
Oct
14
Nov
14
Dec
14
Jan
15F
eb 1
5M
ar 1
5A
pr 1
5M
ay 1
5Ju
n 15
Jul 1
5A
ug 1
5S
ep 1
5O
ct 1
5N
ov 1
5D
ec 1
5Ja
n 16
Feb
16
Mar
16
Apr
16
May
16
Jun
16Ju
l 16
Aug
16
Sep
16
Oct
16
Nov
16
Dec
16
Jan
17 80K 90K100K110K120K130K140K150K160K170K180K190K200K210K220K230K
Fund CommentaryThe fund returned 2.22% for the month of January, well ahead of the average fund in the Multi-AssetHigh Equity category which returned 1.60%. The outperformance mainly attributable to the fund’soverweight position in resources through the Nedgroup Mining and Resources fund, which returned9.75%.
The reflation trade is well underway with the global industrial cycle turning upwards, filtering down tothe corporate profit level, leading to an expected rise in earnings, which is positive for equities. Asdeflation fears were left behind in 2015, the early signs in the improvement of this corporate profitgrowth cycle is expected to continue throughout 2017 and extend into next year as well.
The All Share Index (ALSI) bounced back in January returning 4.31%, outperforming SA ListedProperty (SAPY) and the All Bond Index (ALBI) which returned 1.63% and 1.36% respectively.
The fund's bond position has been added to as local bond yields are attractive and real returns shouldbe underpinned by a favourable inflation trajectory. The outlook for local inflation has improved,primarily due to the deceleration in food inflation.
Annualised return is the weighted average compound growth rate over the period measured.
Southern Charter BCI Growth Fund of Fund as at 31 January 2017
Risk profile
Low Low-Mod Mod Mod-High High
Medium | Medium-High Risk
These portfolio's generally hold more equity exposure
than low risk portfolio's but less than high risk
portfolios. In turn the expected volatility is higher than
low risk portfolios, but less than high risk portfolios.
The probability of losses are higher than that of the low
risk portfolios, but less than high risk portfolios.
Expected potential long term investment returns could
therefore be lower than high risk portfolios due to lower
equity exposure, but higher than low risk portfolios.
FAIS Disclosure
Please note that your financial advisor may be a related
party to the conaming partner and/or BCI. It is your
financial advisor's responsibility to disclose all fees
he/she receives from any related party. The portfolio's
TER includes all fees paid by portfolio to BCI, the
trustees, the auditors, banks, the co-naming partner,
underlying portfolios, and any other investment
consultants/managers as well as distribution fees and
LISP rebates, if applicable. The portfolio's performance
numbers are calculated net of the TER expenses. The
investment manager earns a portion of the service
charge and performance fees where applicable. In some
instance portfolios invest in other portfolios which forms
part of the BCI Schemes. These investments will be
detailed in this document, as applicable.
Fund Codes
JSE:MSCR
ISIN:ZAE000103867
Bloomberg:SOUCHGF:SJ
Full details and basis of the award is available from the
company
Asset Allocation
Fund Benchmark *
50.7%
7.0%
13.2%
8.4%
4.4%
16.0%
0.3%
60.0%
10.0%
15.0%
0.0%
0.0%
10.0%
5.0%
Local Equity
Property
Bonds
Cash
Int Property
Int Equity
Int Fixed Income
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 %
Asset Class Performance
Monthly 1 Year
4.3%
1.6%
1.4%
0.7%
-1.4%
1.0%
0.1%
10.4%
15.4%
11.9%
7.5%
-8.1%
-0.1%
-14.0%
ALSI
Property
Bonds
Cash
Global Property
MSCI World
Global Bonds
-10% 0% 10%
Manager Selection
6.5%
9.7%
8.5%
14.1%
12.2%8.2%
6.7%
4.5%
5.4%
5.9%
8.1%
4.4%
5.8%
Money Market - 6.5%Foord Equity - 9.7%Prudential Dividend Maximiser - 8.5%Investec Equity - 14.1%Allan Gray SA Equity - 12.2%Nedgroup Mining & Resource - 8.2%Prudential Property Tracker - 6.7%Investec Diversified Income - 4.5%Stanlib Flexible Income - 5.4%Coronation Bond Fund - 5.9%Investec Global Franschise FF - 8.1%Catalyst Global Real Estate FF - 4.4%Coronation Global EM Flexible - 5.8%
Top 10 Equity Holdings
Holding Fund Weight Holding Fund Weight
Naspers 5.49% First Rand 2.18%
Sasol 5.38% Standard Bank 2.10%
BAT 4.78% Richemont 1.96%
Billiton 3.81% Sappi 1.84%
Anglo American 2.45% Steinhoff 1.75%
Additional information●Additional information, including application forms, annual or quarterly reports can be obtained from BCI, free of charge or can be accessed on ourwebsite www.bcis.co.za●Valuation takes place daily and prices can be viewed on our website (www.bcis.co.za) or in the daily newspaper.●Actual annual performance figures are available to existing investors on request.●Upon request the Manager will provide the investor with portfolio quarterly investment holdings reports.Custodian: The Standard Bank of South Africa Limited: Tel (021) 441-4100. Boutique Collective Investments (RF) (Pty) Limited, Catnia Building,Bella Rosa Village, Bella Rosa Street, Bellville, 7530. Tel: 021 007 1500/1/2 | Fax: 086 502 5319 | Email: [email protected]|www.bcis.co.za. Registration No 2003/024082/07.Boutique Collective Investments (RF) (Pty) Ltd ("BCI") is a registered Manager of the Boutique Collective Investments Scheme, approved in terms ofthe Collective Investments Schemes Control Act, No 45 of 2002 and is a full member of the Association for Savings and Investment SA. CollectiveInvestment Schemes in securities are generally medium to long term investments. The value of participatory interests may go up or down and pastperformance is not necessarily an indication of future performance. The Manager does not guarantee the capital or the return of a portfolio.Collective Investments are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees, charges and maximumcommissions is available on request. BCI reserves the right to close and reopen certain portfolios from time to time in order to manage them moreefficiently. Additional information, including application forms, annual or quarterly reports can be obtained from BCI, free of charge. Performancefees are calculated and accrued on a daily basis based upon the daily outperformance, in excess of the benchmark, multiplied by the share rate andpaid over to the manager monthly. Performance figures quoted are from Morningstar, as at the date of this MDD for a lump sum investment, usingNAV-NAV with income reinvested and do not take any upfront manager's charge into account. Income distributions are declared on the ex-dividenddate. Actual investment performance will differ based on the initial fees charge applicable, the actual investment date, the date of reinvestment anddividend withholding tax. Investments in foreign securities may include additional risks such as potential constraints on liquidity and repatriation offunds, macroeconomic risk, political risk, foreign exchange risk, tax risk, settlement risk as well as potential limitations on the availability of marketinformation. Certain investments - including those involving futures, options, equity swaps, and other derivatives may give rise to substantial riskand might not be suitable for all investors. Boutique Collective Investments (RF) Pty Ltd retains full legal responsibility for the third party namedportfolio. Although reasonable steps have been taken to ensure the validity and accuracy of the information in this document, BCI does not acceptany responsibility for any claim, damages, loss or expense, however it arises, out of or in connection with the information in this document, whetherby a client, investor or intermediary. This document should not be seen as an offer to purchase any specific product and is not to be construed asadvice or guidance in any form whatsoever. Investors are encouraged to obtain independent professional investment and taxation advice beforeinvesting with or in any of BCI/the Manager's products. A fund of funds is a portfolio that invests in portfolios of collective investment schemes thatlevy their own charges, which could result in a higher fee structure. A fund of funds is a portfolio that invests in portfolios of collective investmentschemes that levy their own charges, which could result in a higher fee structure.