Sanlam Alternative Income Fund comment - Sep 07 - Fund Manager Comment26 Oct 2007
SAIF was established on 25 May 2007 as an open-ended rand-denominated preference share conduit fund to offer private, corporate and institutional investors a low-risk alternative to short-term money-market investments, providing mainly a dividend return and focusing on capital preservation.
The size of SAIF and its structure enable the Fund to offer competitive returns while providing very strong protection to investors. A minimum credit rating required for investments during the life of the Fund will be in compliance with the rating and diversity requirements of CISCA, and subject to maximum investment limits per stipulated rating category.
The ultimate redeemable, cumulative preference share exposures of SAIF will predominantly be against larger registered banks, life insurance companies and large corporate and institutional issuers.
SAIF will not be exposed to market or price risk as all preference share or other investments will be redeemable in full at nominal value, with no exposure to listed perpetual preference shares.
As all investments made will be offering variable interest rates (for instance linked to Prime or Jibar), the return will track local short-term interest rates. This allows the Fund flexibility in rising and declining interest rate cycles, therefore providing the investor protection against interest rate risk exposure, and ensures preservation of capital.
For further comments on the liquid instrument portfolio, please refer to the fact sheet of the Sanlam Money Market Fund.
Sanlam Alternative Income Fund comment - Jun 07 - Fund Manager Comment19 Sep 2007
SAIF was established on 25 May 2007 as an open-ended rand-denominated preference share conduit fund to offer private, corporate and institutional investors a low-risk alternative to short-term money-market investments, providing mainly a dividend return and focusing on capital preservation.
The size of SAIF and its structure enable the Fund to offer competitive returns while providing very strong protection to investors. A minimum credit rating required for investments during the life of the Fund will be in compliance with the rating and diversity requirements of CISCA, and subject to maximum investment limits per stipulated rating category.
The ultimate redeemable, cumulative preference share exposures of SAIF will predominantly be against larger registered banks, life insurance companies and large corporate issuers operating in South Africa.
SAIF will not be exposed to market or price risk as all preference share investments will be redeemable in full at nominal value, with no exposure to listed perpetual preference shares.
As all investments made will be offering variable interest rates (linked to Prime or Jibar), the return will track local short-term interest rates. This allows the Fund flexibility in rising and declining interest rate cycles, therefore providing the investor protection against interest rate risk exposure, and ensures preservation of capital.
For further comments on the liquid instrument portfolio, please refer to the fact sheet of the Sanlam Money Market Fund.