The fund was launched in August 2018 to invest in listed securities that derive their value from underlying real assets and targets CPI +4% over a full investment cycle. Investments can be via REITs, investment trusts or specialist companies with a focus on physical assets.
 

The fund:
  • Offers attractive yields from long-term cashflows with significant inflation protection

  • Is managed by a team with proven experience in this area

  • Benefits from diversification and lower volatility than traditional equity portfolios

Introducing Sanlam Real Assets Fund

February 2020 - Latest commentary

 

News of a sharp uptick in coronavirus cases outside of China triggered an abrupt sell-off across global equity markets into month end. The last week of the month recorded the largest weekly market declines in the US and UK since the global financial crisis, and sent investors flocking to safe haven assets. Over the month the MSCI World closed down -8.5% whilst gains in 10 year US and UK government bonds pushed yields down to 1.15% and 0.44% respectively. Whilst the impact of the virus on the economic and social welfare of affected countries remains uncertain, market volatility will remain the order of the day.  

During a month of considerable volatility the Real Assets fund was not immune to the negative market reaction. On a relative basis the portfolio held up well, recording a drawdown of -5.9% vs MSCI World at -12.0%. Over the month all strategies contributed negatively to performance. Full year updates across a number of holdings revealed more robust balance sheets and continued earnings growth. This was largely attributable to contracted uplifts coming through. Acquisitions in February included US recycled energy projects, US data centres, a UK supermarket, wind farms in the UK and Ireland, social housing properties and a residential property development. One of our holdings announced the disposal of 2 A380 aircraft, which were sold at a price significantly above market expectations.

We participated in four capital raises in February, the proceeds of which will be deployed into the acquisition of logistics facilities, residential properties, infrastructure debt and renewable projects.

Previous months’ commentaries are contained within the fund factsheets.

Fund factsheets
Monthly snapshot.
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Fund supplements
Regulatory documents.
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Fund KIIDs
Key investor information.
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Quarterly newsletters
Fund and market updates.
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Fund disclaimer

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.

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 may invest in derivatives for the purposes of efficient portfolio management and hedging only . 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 may invest in fixed income securities. 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.

Please agree to proceed. By doing so you agree that you have read and understood the foregoing disclaimer and confirm that you are a professional investor.

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