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Provided by the South African National Department of Health
1. The net of fee calculation assumes a 1.15% Annual Management Charge and a Total Trading Costs of 1% (both inclusive of vat) on the value of actual portfolio turnover
Along with global markets, SA equities came under pressure in January on concerns about the spreading of the Asian coronavirus. The FTSE/JSE All Share Index (ALSI) ended the month 1.7% lower in rand terms and a whopping 8.4% lower in US dollar terms. The rand depreciated – as did other emerging market currencies – by 6.8% against the US dollar as investors turned to safe-haven currencies.
The SA industrials sector gained 1.6% in January. Strong performance was recorded by tobacco that gained 10.3%, and software and computers that advanced by 6.6% on the back of the robust performance of Naspers. SA resources lost 3.5% in January, largely dragged down by chemicals (Sasol) that returned -19.2%. Gold mining posted a positive total return of 1.4% as Sibanye gained 8.9%.
Bonds performed well as the All Bond Index (ALBI) posted a monthly total return of +1.2%, while cash yielded 0.58%. Listed property remained under pressure – SA listed property was the worst performing asset class, shedding 3.1%.
The portfolio delivered a return of 8.6% for the 12 months to the end of January, in line with the peer group average. The portfolio achieved this performance despite a conservative asset allocation stance – relatively low local and global equity exposure – both these asset classes performed strongly in the last quarter of 2019.
When compared to competing high-equity multi-asset unit trusts, the portfolio was positioned around the middle of the peer group over the past 12 months, but remains in the top third of the peer group over five years.
The equity exposure in the portfolio was maintained at 64%. Since we hold the view that we are in an advanced stage of a global equity bull market, the equity position is underweight relative to the maximum allowable equity exposure of 75%. We maintained the property holdings in the portfolio. The SA fixed interest exposure remains conservatively positioned.
Alwyn Van Der Merwe
Sanlam Private Wealth is a holistic, integrated wealth management business that provides advice and manages assets for high net worth private individuals, cultural organizations, charitable institutions and similar entities with investable assets of more than R1 million
Participation in the Sanlam Private Wealth’s Balanced Model Portfolio is a medium to long-term investment. The value of this portfolio is subject to fluctuation and past performance is not necessarily a guide as to its future performance. Calculations are based on a lump sum investment with gross income reinvested on the ex-dividend date. All performance figures exclude costs. Actual investment performance will differ based on the fees applicable, the actual investment date and the date of reinvestment of income. A schedule of fees and maximum commissions is available from the manager. Sanlam Private Wealth (Pty) Ltd, registration number 2000/023234/07, is a member of the Johannesburg Stock Exchange, a licensed Financial Services Provide (FSP 37473) and a Registered Credit Provide (NCRCP1867)
As a business we are committed to the principles of TCF, practicing a specific business philosophy that is based on client-centricity and treating customers fairly. Our clients can be confident they are dealing with a company where TCF is central to what we do and be reassured that we have a holistic wealth management product offering that is tailored to their needs, and a service that is of a high standard.
Tel: 021 950 2770
Farm 1, Vineyards Office Estate, 99 Jip de Jager Dr, Welgemoed 7530
Tel: 021 950 2300
Tel: 021 672 1888
Tel: 021 861 3700
Tel: 011 778 6600
Tel: 012 470 0622
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Alwyn van der Merwe
Alwyn was appointed as Director of Investments for Sanlam Private Wealth in 2007. He has over 24 years' investment industry experience and managed institutional and unit trust portfolios successfully for 14 years. Alwyn leads and chairs Sanlam Private Wealth's formal investment committee.