Sanlam FOUR Multi-Strategy Fund

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.
 

• Brings together a diverse range of asset classes focused on absolute return

• Is structured to participate when markets are rising while offering protection in falling markets

• Is managed by a highly experienced team with an award winning track record

 
We have exposure to two equity markets in the growth momentum strategy. Elsewhere we are now active in eight areas; Synthetic equity options, Global Infrastructure, Renewables, Property, Active Alpha, Corporate Bonds (short dated), Government Bonds and alternatives. We continue to hold equity index put options as downside hedges.
 
By recent standards it was a relatively quiet month for equity markets with most turning small initial losses into gains at month end. The US Federal Reserve continued along the path of normalisation with a 0.25% increase in US interest rates, and despite the social media pressure from President Trump further increases are likely. On the back of rising rates ten year government bond yields moved back towards their highest level of the year. 
 
The Multi Strategy fund saw positive contributions from renewable energy and other alternatives, but these were off-set by small negatives from all other strategies. The net result was a small negative return over the month.  
 
On the international scene interest rates and President Trump share the stage as the main topics of discussion, whilst locally Brexit continues to dominate the headlines. As we enter the fourth quarter and begin the run into the year end the Multi-Strategy fund is largely unchanged and remains well positioned with diversified long-term income producing assets, option based equity exposure and portfolio hedging.
 
Previous months’ commentaries are contained within the fund factsheets.

Past performance is not a guide to future performance. Do remember that the value of an investment and the income generated from them can fall as well as rise and is not guaranteed, therefore, you may not get back the amount originally invested and potentially risk total loss of capital. A table with five years performance is available in the fund factsheets below.
 

 
The Fund has holdings which are denominated in currencies other than sterling and may be affected by movements in exchange rates. Consequently the value of an investment may rise or fall in line with the exchange rates.

The fund can invest in derivatives.  Derivatives are used to protect against fluctuations in currencies, credit risk and interests rates or for investment purposes. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions. The Fund's expenses are charged to capital. This has the effect of increasing dividends while constraining capital appreciation. 

Part of the fund is invested in bonds. The government or company issuer of a bond might not be able to repay either the interest or the original loan amount and therefore default on the debt. This would affect the credit rating of the bond and, in turn, the value of the fund. Investment in bonds and other debt instruments (including related derivatives) is subject to interest rate risk. If long-term interest rates rise, the value of your shares is likely to fall.