Note: Given this fund’s objective, the manager recommends a minimum time horizon of seven years for it to achieve its strategic objective.

The H4 Worldwide Equity Fund (‘the fund’) delivered 1.3% in Q3-2019, and has delivered 5% over the past 12 months. In terms of the major asset classes to which the fund was exposed during the quarter, the local equity market (measured by the FTSE/JSE All Share Index) was down 4.6%, outperforming the FTSE/JSE Capped Top 40 Index (to which the fund is exposed) which lost 6.1%; while the local listed property market (FTSE/JSE SA Listed Property Index) ended down 4.4%. Global equities (MSCI All Country World Index in US dollars) ended the quarter flat, while global listed property (MSCI World REITs Index in US dollars) gained a stellar 6.2% on the back of a further decline in global bond yields amid concerns about the global economic growth outlook. During the quarter, the rand weakened 7.5% versus the US dollar; supporting the performance of global assets when measured in rand terms.

There were no marked asset allocation changes in the fund in recent months. Essentially, net inflows were used to top up the fund’s local equity exposure. In terms of foreign currency exposure, the manager initiated a new zero cost currency hedge during August on a portion of the fund’s offshore exposure in order to protect it from possible marked rand strength. This protection is in place until mid-December 2019. At quarter-end, the fund’s asset class exposure consisted primarily of offshore and domestic listed equities; and limited exposure to local and global listed property companies.

The fund continues to adhere to its policy.

Note: Given this fund’s objective, the manager recommends a minimum time horizon of seven years for it to achieve its strategic objective.

The H4 Worldwide Equity Fund (‘the fund’) was up 2.9% during Q2-2019, and has delivered 7.6% versus 11.9% for its SA CPI +7% p.a. benchmark over the past 12 months. In terms of the asset classes to which the fund was exposed during the quarter, the local equity market (measured by the FTSE/JSE All Share Index) delivered 3.9%, lagging the FTSE/JSE Capped Top 40 Index (to which the fund is exposed) which was up 4.9%. The local listed property market (the FTSE/JSE SA Listed Property Index) ended the quarter up 4.5%. Global equities (the MSCI All Country World Index in US dollars) gained 3.6%, while global listed property (the MSCI World REITs Index in US dollars) was up 2.2%. During the quarter, the rand strengthened 2.3% versus the US dollar; suppressing the performance of global assets when measured in rand terms.

In recent months, the manager marginally reduced the fund’s SA equity exposure in favour of SA protected equity; while also taking some profit in global real estate, which has delivered stellar returns over the past year. At quarter-end, the fund’s asset class exposure consisted primarily of offshore and domestic listed equities; and limited exposure to local and global listed property companies.

The fund continues to adhere to its policy.