The fund was launched in January 2013 to provide investors with access to our multi-strategy capability. It is a diversified fund that combines thematic and systematic investment strategies aimed at absolute positive return and income distribution.
The fund:
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Brings together a diverse range of asset classes focused on absolute return
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Is structured to participate when markets are rising while offering protection in falling markets
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Is managed by a highly experienced team with an award winning track record
Introducing the Sanlam Multi-Strategy Fund
February 2020 - Latest commentary
We have no exposure in the growth momentum strategy. Elsewhere we remain active in nine areas; Synthetic equity options, Global Infrastructure, Renewables, Property, Active Alpha, Corporate Bonds (short dated), Government Bonds, Alternatives and Opportunistic. We continue to hold equity index options as upside and downside hedges.
Coronavirus took centre stage with cases being reported around the world, and after many months of positive market moves this provided the perfect excuse for a sell-off. Over the month equity markets lost as much as 14% peak to trough, with most markets closing the month down around 8.5%, the exception was Hong Kong which surprisingly was only down 0.4%. Safe haven buying of government bonds in the US and UK were beneficiaries of the increased uncertainty and saw yields move to their lowest levels for 5 years.
There were very few places to hide and as such the Multi Strategy Fund saw losses in synthetic equity, renewables, property, equity momentum, investment grade debt, high yield bonds, infrastructure, and other alternative and midcap alpha. The only positive contributor were our hedge positions.
The coronavirus led sell-off continues at the time of writing and it is too early to call the bottom, however events such as this do not last forever and as long-term investors buying opportunities will be presented. Within the Multi Strategy fund we have taken a defensive stance but we maintain upside exposure through equity index options (rather than pure directional investments), alongside long-life income producing real assets and short duration bonds.
Previous months’ commentaries are contained within the fund factsheets.