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

Meet the Sanlam Multi-Strategy Team

Mike Pinggera
Mike Pinggera
Head of Multi-Strategy
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Johan Badenhorst
Johan Badenhorst
Fund Manager
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Christopher Greenland, CFA
Christopher Greenland, CFA
Fund Manager
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Joshay Harkoo
Joshay Harkoo
Analyst
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Awards

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Why invest in the fund?

  • Aims to protect on the downside, participates on the upside
  • Provides ‘equity like’ returns over a full investment cycle through a diversified absolute return approach
  • A great portfolio diversifier that uses a combination of thematic and systematic investment strategies
  • Strongly aligned to sustainable positive impact investments. Active investors in real assets since 2006 and developed process that integrates ESG and Impact factors into decision making
  • Yield target of 3% per annum, paid monthly.

The fund has a simple philosophy of “Participate when you can and defend when you need to”. This translates to two objectives:

  1. Have positive returns over three years and;
  2. CPI plus 4% (before fees) over a full market cycle.

The pillars of a functioning economy

Our investments are centred around the sustainable long-term theme of pillars of a functioning economy. The focus is on investments that are key for a successful economy and beneficiaries of demographic changes.

Environmental, Social, Governance and Impact

Our underlying “pillars” theme is strongly aligned to sustainable positive impact investments. We have been active investors in real assets since 2006 and developed a process that integrates ESG and Impact factors.

Our key ESGI considerations

The ability to employ a diverse range of strategies helps the fund to unearth attractive opportunities and spread risk

Mike Pinggera, Fund Manager

Fund Commentary

November 2021

Activity
Our equity exposure was decreased in-line with our allocation process, maturing bond proceeds were re-invested and we added three new positions within the real asset’s strategy.   

 

Transparency
 At month end our net equity exposure was 23% and our bond duration was 3.0 years. We have exposure to three markets in the equity momentum strategy and remain active in eight other areas: Synthetic equity options, Global infrastructure, Renewables, Property, Corporate bonds (short dated), Government bonds, Alternatives and Opportunistic. We hold equity index options as upside and downside hedges.

 

Positive contributors

Investment Grade Debt                         +0.12%

Hedge Strategy                                     +0.11%

Specialist Property                                +0.10%

 

Negative contributors

Renewable Energy                                -0.13%

Opportunistic                                        -0.07%

Synthetic                                              -0.05%

 

Corporate Highlights
Our real assets businesses announced 9 new acquisitions and 4 equity placings over the month. We had 2 one-to-one meetings with company management teams and 7 group investor meetings. One of our diversified economic infrastructure businesses announced the acquisition of a leading global data communications company, owning over 66,000km of subsea cable connecting North America and Europe to Asia. These are crucial assets used by blue-chip tech companies, telecom operators and media providers and benefit from long-term contracted cash flows underpinned by solid data demand growth. Elsewhere, one of our renewables businesses announced its intention to move into ‘controlled environment infrastructure’, which is set to play an increasingly important role in decarbonising sectors with strong alignment to COP26 pledges such as food & water and agriculture. Such corporate updates signal to us that our real assets businesses are favourably positioned for the structurally important sectors of the future.

 

Outlook
As we enter the final month of 2021, markets are grappling with the latest COVID-19 developments. The heavily mutated Omicron strain has prompted a number of countries to reintroduce restrictions on the public as governments and the scientific community race to analyse the emerging data, adapt the vaccines if necessary and accelerate booster programs. Elsewhere, the Fed chair Jerome Powell admitted to the senate banking committee that inflationary pressures in the economy might be more than transitory, paving the way for a faster rate normalisation cycle if economic conditions call for it. From a portfolio perspective, the fund remains very well positioned with a highly liquid equity strategy that includes upside and downside hedges, a short duration bond portfolio and a diversified portfolio of long-life real assets. 

Explore the details
Aimed at absolute positive return and income distribution from a portfolio of real assets, corporate and government bonds, plus equity options strategies.

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Fund Risks

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.

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.

Deemed authorised and regulated by the Financial Conduct Authority. The nature and extent of consumer protections may differ from those for firms based in the UK. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website. (Notes 1, 3 and 4).

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The value of investments and any income from them can fall and you may get back less than you invested.