|Investec Cautious Managed Fund|
|MANAGEMENT|| Fund Manager's Comment|
|Clyde Rossouw, BSc, CFA|
|Clyde is head of Quality at Investec Asset Management. He is portfolio manager with a focus on multi-asset absolute return and low volatility real return equity investing. His portfolio manager duties include our flagship Opportunity strategy that he has run since 2003 and our two equity-oriented Global Opportunity Equity and Global Franchise strategies. Clyde joined the firm in 1999, initially as an asset allocation and sector allocation strategist. Prior to Investec Asset Management, Clyde was awarded a study bursary by Sanlam where he worked for eight years, including five years in asset management. His experience in investments there included fixed income analysis and portfolio management. Clyde graduated from the University of Cape Town with a Bachelor of Science (Statistics and Actuarial Science) degree. He was awarded the Certificates in Actuarial Techniques in 1995, and Finance and Investments in 1997 by the Institute of Actuaries in London. Clyde is a CFA Charterholder.
|Sumesh Chetty, BSc (Hons), FIA|
|He is co-portfolio manager of the Investec Absolute Balanced Fund and the Investec Cautious Managed Fund.
He joined the firm in 2007 from Metropolitan Asset Managers where he managed the Metropolitan Absolute Return Fund from 2005. Sumesh began his career at Swiss Re Life - Health, where he spent over three years as an actuarial specialist. Sumesh graduated from the University of Cape Town with a Bachelor of Business Science (Honours) degree in Actuarial Science and a Post Graduate Diploma in Actuarial Science. He is also a Fellow of the Institute of Actuaries in the United Kingdom.
|FUND OBJECTIVES AND FOCUS|
The Investec Cautious Managed Fund aims to grow income and capital over the medium term. The objective is to achieve returns in excess of inflation comprising both capital and income over the medium term.
The fund invests in a mix of South African equities, bonds and money market instruments, as well as international equity and fixed interest investments. Regulation 28 currently limits equity exposure to 75% of the fund (90% with listed property) and international exposure to 25% (for retirement funds exempted from the 15% limit). The fund's classification however limits equity exposure to 40% of the fund. Equities are selected using a value-biased approach, meaning that the fund favours companies which are trading at a discount to their fundamental value. Overall, the fund is positioned in such a way that there is a low propensity for capital loss.
-A conservative, balanced fund for cautious investors.
-Suitable as a core portfolio holding around which more aggressive investments can be added.
-Low equity weighting limits drawdown.
-Lower volatility than traditional balanced funds.
-A value-based, contrarian approach to stock selection reduces the equity downside risk.
|Sector||South African-Multi Asset-Low Equity|
|Sector Rank: 17 out of 123 |
(lump sum over 3 years to 31 July 2019)
|Overall Rank: 325 out of 1038 |
(lump sum over 3 years to 31 July 2019)
|R1000 invested on 31 July 2016 was worth R 1196 at 31 July 2019|
( 6.15% annual compound return)
|R100 per month since 31 July 2016 was worth R 4013 at 31 July 2019|
( 6.95% annual return compounded monthly)
|Formation Date:||01 APR 2006
|Top Holdings on 31 July 2019|
|Share (Sector)||No.||Value||% of Fund|
|ASSORE (Mining)||276,105||101,269,792|| 0.99 %|
|BATS (Tobacco)||256,420||126,799,690|| 1.24 %|
|BIDCORP (Food - Drug Retailers)||173,690||53,321,093|| 0.52 %|
|DERIVATIVB (Derivatives)||0||24,059,305|| 0.24 %|
|SANTAM (Nonlife Insurance)||409,014||122,704,200|| 1.20 %|
|U-INVMM (Money Market)||331,949,496||331,949,496|| 3.26 %|
|FOREIGNBO (Foreign Invest)||0||177,853,608|| 1.75 %|
|R2032 (Bond)||780,200,000||742,330,106|| 7.29 %|
|MEDICLINIC (Health Care Equipment - Services)||387,303||21,088,648|| 0.21 %|
|KAP (General Industrials)||942,242||5,267,133|| 0.05 %|
|CASH (Cash on call)||0||154,820,257|| 1.52 %|
|U-INVABBA (Flexible)||337,875,371||595,572,916|| 5.85 %|
|MM-04MONTH (Money Market)||0||453,097,304|| 4.45 %|
|O-IGLFRAA (Offshore Intern)||2,421,149||2,148,507,939|| 21.09 %|
|U-NEWLD (Exchange Traded Funds)||896,296||168,037,574|| 1.65 %|
|NASPERS-N (Software - Computer Services)||4,445||15,199,766|| 0.15 %|
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