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:
-
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
Introducing the Sanlam Multi-Strategy Fund
October 2019 - Latest commentary
Strong in-flows over the month were deployed across the portfolio. Net equity exposure increased slightly with the resetting of upside call options.
We have exposure to six equity markets 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.
The Brexit deadline set by Prime Minister Johnson was not achieved, but once an extension had been agreed a deal did finally get approval in parliament; the saga continues. The UK now has an election to face and the outcome is far from certain. However, we can be certain that the run up to the election date of 12 December will be an ugly contest of mudslinging, claim and counter claim. Elsewhere the US Federal reserve cut interest rates for the third time but signalled that there is now likely to be a pause.
Despite continuing political uncertainties in the UK, Sterling advanced against both the US$ and the Euro. The strong move in Sterling was bad for the FTSE100 index of UK large-cap stocks which lost over 2% over the month. This compared to the UK mid-cap 250 index which rose by a little over half a percent. Equity markets elsewhere posted relatively strong gains with Japan’s Nikkei 225 index leading the way with a gain of over 5%. Government bond yields continued to rise off their recent lows, even with the cut in US rates.
The Multi Strategy fund saw gains in synthetic equity, opportunistic, property, renewables, high yield bond, invest grade bonds and infrastructure. The fund saw negative contributions from midcap alpha, other alternatives and hedges.
The run in to year end will be dominated by the UK election positioning, US economic data and US/China trade talks. Volatility remains the most certain outcome. We continue to position the Multi-Strategy Fund with the profile of a diversified convertible favouring option based equity exposure alongside income producing real assets and short duration bonds.
Previous months’ commentaries are contained within the fund factsheets.