Anchor BCI Worldwide Flexible comment - Sep 16 - Fund Manager Comment30 Nov 2016
The Fund achieved a return of 6.9% over the past 12 months, and 58.5% over the period since inception in mid-May 2013. This is compared to the benchmark return of 10.2% and 36.6% respectively. The Fund's performance over the past 12 months can also be compared against the SEtP 500 Index (in Rands), up 11.8%, and the FTSE All World Index (in Rands), up 8.6%.
During the quarter the existing investments in Royal Dutch Shell and Admiral Group were increased to 3.2% and 2.6% of the Fund, respectively. Small holdings n SMA Solar and PayPal were sold. The Fund closed the quarter with 20 equity investments, reflecting the relatively concentrated nature of the portfolio. The ten largest of these investments are detailed elsewhere in this fact sheet. Equity content at 30 September 2016 was 60.7%, up slightly from the previous quarter.
The rand portion of the portfolio declined to 4.1% at quarter-end, from 11.6% at the end of June 2016. Having started 2016 at R15.47/S, the rand had strengthened by 11.3% against the US dollar by the end of September. This mimics what has happened in other emerging markets like Brazil and Russia where currencies have strengthened as global investors return to emerging markets. Note that rand holdings were converted into US dollars at an average rate of R14.15 per dollar.
Anchor BCI Worldwide Flexible comment - Jun 16 - Fund Manager Comment02 Sep 2016
The Fund achieved a return of 19.5% over the past 12 months, and 63.6% over the period since inception in mid-May 2013. This is ahead of the benchmark return of 10.3%% and 33.5% respectively. The Fund's performance over the past 12 months can also be compared against the SUP 500 Index (in Rands), up 23.1%, and the FTSE All World Index (in Rands), up 14.2%.
No major changes were made to the portfolio during the latest quarter. Royal Dutch Shell has risen into the top-ten equity holdings - purely due to share price performance. Shell has replaced Alphabet (2.3% of the Fund), an investment which historically represented a much larger proportion of the Fund.
We do not believe that the investment case for Alphabet is as compelling as it once was. The small holding in eBay was sold during the period. Equity content at 30 June 2016 was 60.1%, which is almost in-line with the previous quarter. The weighting in US dollars remains high at 28.3% of the Fund. The Rand portion of the Fund ended the quarter at 11.6%, up from 8.5% in the prior quarter. Note that Rand inflows were converted into US dollars at an average rate of 814.87 per dollar.
Anchor BCI Worldwide Flexible comment - Mar 16 - Fund Manager Comment01 Jun 2016
The Fund achieved a return of 20.1% over the past 12 months, and 64.1% over the period since inception in mid-May 2013. This is ahead of the benchmark return of 11.3% and 29.9% respectively. The Fund's performance over the past 12 months can also be compared against the SOP 500 Index (in Rands), up 21.2%, and the FTSE All World Index (in Rands), up 14.3%.
During the quarter, the Fund made two new equity investments - in MasterCard and Axalta Coating Systems. The initial investment in IBM, made in the prior quarter, was increased to 5.0% of the Fund. GlaxoSmithKline and Oaktree Capital were also increased - to 5.6% and 3.4% of the portfolio, respectively.
No other major changes were made to existing equity holdings. The equity content of the Fund rose slightly from 60.0% at the end of December 2015 to 61.0% at 31 March 2016. The Rand portion of the Fund ended the quarter at 8.5%, up slightly from the prior quarter. Note that Rand inflows were converted into US dollars at an average rate of R15.82 per dollar.