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.
Introducing Sanlam Real Assets Fund
September 2019 - Latest commentary
Transparency - September brought another flurry of Brexit news. The supreme court ruled that the suspension of parliament was unlawful and MPs consequently returned to the house of commons. Boris Johnson's future as PM was called into question, and the debates over a Brexit extension heated up. Europe has already front footed the issue stating the blame rests with the UK should there be a no deal. In the US, easing trade tensions were supportive for equity markets. Towards the end of the month, a whistle-blower uncovered a transcript of a Trump conversation with the Ukrainian president that led to an investigation over violations of US law. An impeachment inquiry has now begun.
Real Assets performed well in September with positive contributions coming from infrastructure, renewables, specialist property and other alternatives. September saw the results of the UK's third renewables CFD auction, which invited companies to bid for a number of offshore wind projects. The prices securing projects came in 30% lower than the previous auction only 2 years ago, marking another leap forward for the industry. However it was property that was the largest contributor over the month, helped by acquisitions in student accommodation, private-rented homes and social housing.
Activity - We continued to deploy inflows to the fund in the open market. We also participated in three capital raises during September, the proceeds of which are to go towards acquiring supermarkets, infrastructure debt assets and a tanker ship.
Previous months’ commentaries are contained within the fund factsheets.