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
February 2019 - Latest commentary
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 put options as downside hedges.
The dominant themes continue to set the tone. On the international stage signs of progress on US trade talks allowed markets to maintain the positive run from January. On the domestic front there was little progress on a Brexit agreement and the possibility of a delay or a second referendum looks to have increased. However, despite this uncertainty Sterling continues to strengthen against the Euro and the US$. UK stocks with a domestic focus are outperforming internationally focussed stocks, with the FTSE250 index up 10.3% year to date compared to the FTSE100 index up 6.5%.
The Sanlam Multi-Strategy Fund saw gains in all but one strategy. Infrastructure, property, equity momentum, synthetic equity, property, midcap alpha, renewables, high yield bonds, investment grade bonds and opportunistic were all positive contributors over the month. Other alternatives were unchanged and with the backdrop of rising markets our hedge positions were the only negative contributor.
As we move towards the end of the first quarter the underlying story remains unchanged. Interest rates, trade negotiations and Brexit will continue to set the tone for the foreseeable future. The fund continues to be positioned with the characteristics of a diversified convertible and favour option based equity exposure (rather than pure directional investments), alongside income producing real assets and short duration bonds. Our simple philosophy of “participate when you can and defend when you need to” remains at the heart of our processes and activity.
Previous months’ commentaries are contained within the fund factsheets.