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 2% in Q4-2019, and has delivered 16.1% versus 11.4% for its SA CPI +7% p.a. benchmark over the past year. 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) gained 4.6%, slightly behind the FTSE/JSE Capped Top 40 Index (to which the fund is exposed) which was up 5.2%; while the local listed property market (FTSE/JSE SA Listed Property Index) gained 0.6%. Global equities (MSCI All Country World Index in US dollars) delivered 9% during Q4-2019’s renewed risk-on phase; while global listed property (MSCI World REITs Index in US dollars) was flat. During the quarter the rand strengthened 8.4% versus the US dollar; detracting significantly from the performance of global assets when measured in rand terms.

There were no marked asset allocation changes in the fund during the quarter. 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 was in place until mid-December 2019. At quarter-end, the fund’s asset class exposure consisted primarily of domestic and offshore listed equities and limited exposure to local listed property companies and US protected equity. The fund continues to adhere to its policy.