Image
Icon

Directory

IconAlternative Investments
IconAsset Managers
IconAssociations and Institutes
IconBBBEE Consulting and Verification Agencies
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconFinancial Planners
IconInvestment Consulting
IconLinked Investment Service Providers
IconListed Equities
IconOmbud
IconOnline Share Trading
IconParticipation Bond Managers
IconProperty Unit Trusts
IconPublications
IconRegulatory Authorities
IconStock Exchange
IconUnit Trust Fund Managers
IconWellness Programs
Advertise Here
  Subscribe To »

Global Feeder fund reaches ZAR100m as local desire to externalise assets continues

Published

2019

Tue

10

Sep

South Africans have a healthy appetite for global feeder investments in the current environment of domestic political and economic uncertainty, as we have seen with our feeder fund which launched less than a year ago and has already surpassed the ZAR100 million mark in assets under management.

 

Feeder funds are Rand denominated funds that ‘feed’ investments into a ‘Master’ offshore fund denominated in foreign currency. The Stonehage Fleming Global Best Ideas Equity Feeder Fund (GBI Feeder Fund) gives South African investors direct access to Stonehage Fleming’s flagship Global Best Ideas Equity Fund (GBI Fund or Master Fund).

Since inception on 16 August 2013 to 31 August 2019, the Master Fund’s annualised return is +10.8% per annum in USD (versus the MSCI AC TR’s annualised return of +7.5% per annum in USD for the equivalent period) 1.  The GBI Feeder Fund launched in December 20182

 

Not only do feeder funds allow you to forego the complications of investing directly offshore using your investment allowance or other foreign currency, they also typically offer lower investment minimums and also the facility to make frequent investments through a debit order. This is helpful, as the minimums of most direct offshore funds – whether they’re expressed in US dollars, Euros, or UK pounds - are often too dear for many investors when converted into Rands.

 

Investors can invest in the GBI Feeder Fund through a range of investment platforms from managers such as Glacier, Momentum and Investec, or directly through Stonehage Fleming. Looking at the minimum investment, were you to invest directly in the GBI Fund using your offshore allowance, you’d need US$50,000 or GB£35,000, compared to the minimum ZAR10,000 needed to invest in the GBI Feeder Fund. Further, certain local investment platforms are prepared to waive the minimum, at their discretion. Subsequent investments from ZAR500 per month may be made.

 

The GBI Fund itself is managed from London by a South African, Gerrit Smit. His investment philosophy is to invest in high quality listed businesses that operate globally with strong competitive advantages. But not too many different businesses. Smit’s strategy is to hold a maximum of 30 shares in a high conviction focused portfolio to keep them for the long term until they may become overvalued.

 

Currently over 70% of the GBI Fund is invested in US listed shares, and the top ten holdings include names like Visa, Nike, Microsoft, Accenture, Estee Lauder and Nestlè – shares that aren’t available to investors through the JSE.  However, looking at where the underlying companies in the GBI Fund derive their revenues from, a good split of regions is revealed, showing the fund is regionally well diversified:

 

Estimated Regional Revenues % of GBI Fund

North America

46.4

Emerging Markets

31.7 (predominantly Asia)

Continental Europe

17.7

UK

4.2

Total:

100

Source:  Stonehage Fleming Investment Management Limited; Link Fund Administrators (Ireland) Limited, July 2019

It is also well diversified in terms of sectors with positions in Technology, Staples, Discretionary, Healthcare, Communication, Financials, Industrials and a residual amount in cash.

 

 

1Past performance is not a reliable indicator of future results. Performance of the Master Fund relates to the USD B Share Class. Actual annual figures are available on request.

2The performance of the Feeder Fund cannot be shown before the 12 month anniversary of the fund being 1 November 2019.

 

All investments risk the loss of capital.  No guarantee or representation is made that the funds will achieve their investment objective. The value of investments may go down as well as up and, for products designed to return income, the distributions can also go down or up and you may not receive back the full value of your initial investment The material contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information on this document does not constitute legal, tax, or investment advice. You must not, therefore, rely on the content of this document when making any investment decisions.

 

GBI Feeder Fund

The GBI Feeder Fund is an approved Collective Investment Scheme in South Africa. The Management Company is Sanlam Collective Investments (RF) Pty Ltd, a registered and approved Manager in Collective Investment Schemes in Securities. The management of investments is outsourced to Stonehage Fleming Investment Management (South Africa) (Pty) Ltd. The Portfolio Manager is Gerrit Smit. Collective investment schemes are generally medium- to long-term investments. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. Collective investments are calculated on a net asset value basis, which is the total market value of all assets in the portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. A feeder fund is a portfolio that invests in a single portfolio of a collective investment scheme, which levies its own charges and which could result in a higher fee structure for the feeder fund. A schedule of fees, charges and maximum commissions is available from the GBI Feeder Fund Management Company, Sanlam Collective Investments (RF) Pty Ltd. The fund invests in foreign countries and therefore it may have risks regarding liquidity, the repatriation of funds, political and macroeconomic situations, foreign exchange, tax, settlement, and the availability of market information. This document is approved for distribution in South Africa by Stonehage Fleming Investment Management (South Africa) (Pty) Ltd, FSP 42847.

 

GBI Fund

The  Fund  is  a  sub-fund  of  the  Stonehage  Fleming Pooled  Investments  (Ireland) plc  (the “Company”), an open-ended umbrella  investment  company  with variable   capital and segregated   liability  between Funds  incorporated  with  limited  liability  in  Ireland under the  Companies  Act  2014  with  registration number   525228.   It   qualifies   and   is authorised in   Ireland   by   the   Central   Bank   of   Ireland   as   an Undertaking for Collective Investment in Transferable Securities (“UCITS”). The Company is recognised as a section 264 scheme by the Financial Conduct Authority in the United Kingdom. The Fund is an approved Foreign Collective Investment Scheme in South Africa and the Management Company, Stonehage Fleming Partners Pooled Investments (Ireland) plc, is registered under the Collective Investment Schemes Control Act, 2002. Link Fund Administrators (Ireland) Limited has been appointed as the manager (the “Manager”) of the Company and Stonehage Fleming Investment Management Limited has been appointed as the investment manager (the “Investment Manager”) of the Company. Stonehage Fleming Investment Management Limited is authorised and regulated by the Financial Conduct Authority and registered with the Financial Sector Conduct Authority (South  Africa)  as  a  Financial  Services  Provider  (FSP No: 46194). The latest version of the Prospectus and the Key Investor   Information   documents   are   available   in English   and   can   be   obtained   by   contacting   the administrator at dublinta@linkgroup.ie. The home jurisdiction of the Fund is Ireland. 

 

© Stonehage Fleming Investment Management (South Africa) (Pty) Ltd, 2019.

 
Source: Sandra Gule cdcom
 
« Back to previous page Print this page » |
 

Breaking News »

Longevity in estate planning

Willie Fourie, Head of Estate and Trust advisory services at PSG Wealth We often think of longevity when it comes to financial planning, but there is also something to be said for considering the longevity of ...
Read More »

  

The risk of a US bear market is higher than a year ago – PSG Wealth

The current bull market reached its 10-year anniversary this June, making it the longest bull market run in modern history. Understandably, this makes investors nervous. Everyone remembers the mayhem of 2008 – ...
Read More »

  

Five key reasons not to DIY your investments

The rise of new technologies and fintech has made investing simpler, more transparent and cheaper than ever before, leading many to adopt a DIY-approach to their finances. So, in a world where investing is as easy ...
Read More »

  

The risk of selling low

The premise of investing is simple: buy low, sell high and, by doing so, earn an investment return. In practice, however, it’s far more difficult. How we’re wired as humans makes it hard for us to set ...
Read More »

 

More News »

Image

Healthcare »

Image

Life »

Image

Retirement »

Image

Short-term »

Advertise Here
Image
Advertise Here

From The Glossary »

Icon

Quota Share Reinsurance:

An agreement whereby the ceding company is bound to cede and the reinsurer is bound to accept a fixed proportion of every risk written by the ceding company within a defined category of business. The reinsurer thus shares proportionally in all losses and receives the same proportion of all premiums.
More Definitions »

 

Advertise

 

eZine

 

Contact IG

 

Media Pack

 

RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2019. All Rights Reserved.