|
Audio Version
|
We are delighted to celebrate the Prosperity IP Worldwide Flexible Fund of Fund’s (Prosperity) 10-year anniversary as it has generated superb average compound returns of 10% per annum. Simply put, a R1m investment 10 years ago, is now worth R2.5m. To date, total assets under management are R475m.
Prosperity fund performance since inception (19 Sep 2014)
Managed by Investonline Director, Nick Brummer, his unique investment style encompasses (primarily) taking short-term tactical positions in asset classes that are irrationally priced, based on a combination of top-down and bottom-up fundamental research. To a lesser extent, longer-term strategic positions are included when major market opportunities are identified.
Asset classes comprise currencies, exchange traded funds and unit trusts diversified across geographic regions and industry sectors.
Fund positioning
Recent opportunities, that we have written about in previous newsletters, have arisen from the SA’s positive election outcome. The Rand / Dollar has strengthened to 17.10 from 19.20, SA bonds have produced returns in excess of 15% over the last six months, and SA Inc. shares have risen sharply (+30%). All these positive gains are on the back of better SA economic growth prospects, less risk of a government debt spiral, and the gradual return of foreign investors.
Over the last six months, the fund has been +80% invested in Rands, had meaningful positions in SA government bonds and SA Inc. shares, most of which fall in the small and mid-cap sectors.
In August the fund started to sell out of its SA government bonds and in September trimmed the SA Inc. exposure which had spiked up some 30% over the last six months. Currently, it remains with +80% in Rands and is profiting from its recent increased holdings in China and Emerging Markets which have recently rallied sharply off a low base.
Fund objective and long-term strategy
The fund’s objective is to provide investors with real medium to long-term capital growth in a portfolio that maintains a moderate risk profile.
The fund is managed conservatively with an emphasis on capital preservation. The strategy is to blend the asset allocation with our macro views while taking advantage of irrational pricing across all markets and to select the best assets to enhance our views.
The fund is best suited to investors with a moderate risk profile who require a balanced local and global investment exposure with a conservative bias and capital preservation.
Represents Investonline in-house views
The fund represents Investonline’s in-house investment market views, which we attempt to replicate over our different investment risk strategies for our clients.
Please note: Previous fund returns are no guarantee of future returns
Please see our latest fund fact sheet – click here
