Tuesday, 14 July 2015 - 20:00
Seed Weekly - The Seed Flexible Fund
We recently celebrated the Seed Flexible Fund’s five year track record and this week I will be shedding some light on its ins and outs. The fund is a multi-managed unit trust that targets a return of 5% pa after inflation over rolling 5 year periods. The Fund sits in the ASISA South Africa Multi Asset High Equity category alongside most balanced unit trusts.
Process and Asset Allocation
The investment objective is to provide investors with long term capital growth over a full investment period (5 years). Third party specialist managers are appointed to manage segregate mandates, including strategies that are not otherwise available to retail investors. The Fund is managed as a Regulation 28 compliant Fund and is suitable for investors in retirement products. The net equity weighting (including international equity) will never exceed 75% of the total market value of the fund.
The Fund’s asset allocation is determined using Seed’s proprietary developed Tactical Asset Allocation (TAA) process, where those asset classes that offer the best risk/return prospects are over weighted versus a Strategic Asset Allocation (SAA) and vice versa. We do not take an “all or nothing approach” and therefore expect more consistent risk adjusted returns than strategies that aren’t always diversified across asset classes.
Below is a graph depicting our current weights (as at 30 June 2015) in each of the asset classes (the blue bars) vs our historic highs and lows (green and red lines.)
With local equity being on the expensive side, it makes sense that our allocation here is close to the historic minimum. On the local property side we are overweight (vs the benchmark) while being underweight local bonds and cash. We are almost fully invested in offshore (including Africa) assets.
Below is a risk reward plot showing the Fund vs its peers and some larger funds in the range. What is notable is how the Fund differs to its peers. It is clear that for similar returns (the y-axis), investors in the Seed Flexible Fund have experienced less risk. Some other advantages, which has been extensively covered in previous articles, includes our size (being relatively small (R792m) vs many peers (10 funds in excess of R10bn, with the largest one over R100bn)) as well as the fact that we make use of a multi-manager process.
Source: Morningstar Direct
The Fund’s performance has been excellent in the recent past (3 and 1 year) mainly due to equities and property generating returns well in excess of their long term averages. These asset classes comprise 70% of the Fund’s allocation and therefore have had a large impact on performance.
While past performance is no indication of future returns, we pride ourselves in taking utmost care by utilising qualitative and quantitative research, combined with investment experience, to make prudent investment decisions.
Tel 021 914 4966
Fax 021 914 4912
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Tue, 14 Jul 2015
On behalf of the Government Employees Pension Fund (˘GEPF÷) represented and acting through the Public Investment Corporation Ltd. (÷PIC÷), which hereby announces that it has appointed Deutsche Bank AG, London Branch as sole bookrunner to sell 25 million ordinary shares in Vodacom Group Ltd., representing approximately 1.7% of the companyĂs issued share capital. This placement is in relation to a hedging activity in respect of certain risk mitigation arrangements entered into by Merrill L. . .
Total income increased to GBP726 138 (GBP78 976), while total comprehensive income came in at GBP457 991 (loss of GBP83 150). In addition, headline earnings per share per share was GBP1.35 (loss of GBP0.84pps).
Atleaf will continue to pursue further asset acquisitions over the balance of the year. The Board is also pleased that there is now a solid asset base of income producing assets, from which to grow the Company.. . .
World Markets (Spot Prices)
|JSE Top 40||17:00||46571.30||-336.60||-0.72%|
|JSE Indust 25||17:00||67160.20||-366.09||-0.54%|
|USD / ZAR||19:59||12.3329||-0.1069||-0.86%|
|GBP / ZAR||19:55||19.2396||-0.0072||-0.04%|
|AUD / ZAR||19:55||9.1891||-0.0273||-0.30%|
|USD / JPY||19:59||123.3150||-0.1270||-0.10%|
|EUR / USD||19:59||1.1006||0.0001||0.00%|
|GBP / USD||19:59||1.5633||0.0145||0.93%|
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The JSE Today
* Includes all listed instruments on the JSE
|Index Name||RP||Move||% Move|
|Financial & Ind. 30||72,484.10||-518.47||-0.71%|
|Oil & Gas ||11,343.79||-42.33||-0.37%|
|Oil & Gas Producers ||60,993.45||-227.59||-0.37%|
|Basic Materials ||22,061.22||-133.70||-0.60%|
|Forestry & Paper ||45,989.72||-690.31||-1.48%|
|Industrial Metals ||7,313.71||261.33||3.71%|
|General Industrials ||158.76||-1.81||-1.13%|
|Consumer Goods ||67,220.15||-240.08||-0.36%|
|Automobiles & Parts ||7,730.86||101.90||1.34%|
|Health Care ||9,868.27||-77.89||-0.78%|
|Index Name||RP||Move||% Move|
|Food Producers ||8,656.81||4.74||0.05%|
|Personal Goods ||1,023.73||.90||0.09%|
|Consumer Services ||16,524.29||-129.88||-0.78%|
|General Retailers ||82,019.56||-1301.91||-1.56%|
|Travel & Leisure ||6,134.15||-1.27||-0.02%|
|Support Services ||3,299.11||17.70||0.54%|
|Non-life Insurance ||57,399.45||-25.52||-0.04%|
|Life Insurance ||42,499.30||-808.67||-1.87%|
|General Financial ||4,630.45||-73.20||-1.56%|
|SHARIAH TOP40 ||3,503.20||-23||-0.64%|
|FTSE/JSE SHARIAH ALL||3,707.10||-18||-0.47%|
|FTSE JSE Fledgling ||6,762.23||35||0.52%|
|FTSE/JSE Alt X ||1,331.01||5||0.35%|
|SA LISTED PROPERTY ||633.01||-1.05%|
|CAPPED PROPERTY ||554.30||-1.23%|
|FTSE/JSE RAFI 40||9,565.31||-74||-0.77%|
|Capped Top 40||24,840.45||-181||-0.72%|
|Capped All Share||26,430.90||-185||-0.70%|
|JSE TABACO ||8,928.80||-38||-0.43%|
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Latest Consensus Changes**
|MMI||MMI HOLDINGS LTD||HOLD||09/07/2015|
|OCT||OCTODEC INVESTMENTS LIMIT...||BUY||08/07/2015|
|MSM||MASSMART HOLDINGS LTD||HOLD||08/07/2015||
|Expected||Company Name||Fin. Date|
|15/07/2015||ROCKWELL||May 2015 (Q)|
|15/07/2015||SIBANYE||June 2015 (Interim)|
|20/07/2015||AMPLATS||June 2015 (Interim)|
|20/07/2015||ANGLOPLATCCP||June 2015 (Interim)|
|20/07/2015||SACOVEN||March 2015 (Final)|
|AEG CONV||26/06/15||10/07/15||24/07/15||ZAR 362.5000|
|ILV||Illovo Sugar Ltd.||15/07/2015||Confirmed|
|GAM||Global Asset Management Ltd.||15/07/2015||Confirmed|
|SMM||Sable Metals and Minerals Ltd.||16/07/2015||Confirmed|
|VOD||Vodacom Group Ltd.||16/07/2015||Confirmed|
|AEL||Allied Electronics Corporation Ltd.||20/07/2015||Confirmed||
Stock Exchange News Service
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