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
December 2019 - Latest commentary
Transparency - The year ends with a little more clarity for the UK as Boris Johnson wins a large majority in the UK general election. The Conservative government has been given a clear mandate by the voting public to get Brexit done. The risk of nationalisation that has hung over the UK market has melted away by the rejection of a Corbyn led Labour government in the general election. Both of these factors had a positive impact on market sentiment over the month.
Globally, the US/China trade negotiations appear to have made progress with the news that a 'Phase One' trade deal is on the cusp of being agreed in January. Despite the news of president Trump’s impeachment, the easing trade tensions provided a positive backdrop for equity markets in December and the MSCI World and S&P indices both ended the month up 3%.
During December the fund saw positive contributions from infrastructure, property, renewables and other alternatives. Performance was supported by companies' investment activity across all of the real asset types. Acquisitions in December included a leading fibre network operator in the US, a large Indian telecom tower portfolio, a German offshore wind farm, an anaerobic digestion plant, UK residential property and acquisitions of multiple music catalogues.
Activity - We participated in one capital raise in December, the proceeds of which were deployed immediately into a portfolio of energy efficiency assets in the US.
Previous months’ commentaries are contained within the fund factsheets.