Page 250 - Profile's Unit Trusts and Collective Investments 2021 issue 2

Novare Mayibentsha Moderate Qualified Fund of Hedge Funds - B4

Novare Mayibentsha Moderate Qualified Fund of Hedge Funds - B4
Novare Mayibentsha Moderate Qualified Fund of Hedge Funds - B4
INVESTMENT MANAGER STRATEGY ALLOCATION
Novare Investments (Pty) Limited Cash 0.10%
Equity long/short 29.63%
Equity market neutral 23.50%
INVESTMENT OBJECTIVE
The portfolio is a qualified investor fund of hedge funds. The
long-term return objective of the portfolio is to achieve CPI Fixed income arbitrage 36.14%
+3.5% over a rolling three-year period. This objective is also Multi-strategy 9.97%
considered the portfolio’s benchmark and hurdle rate. Unit Trusts 0.67%
INVESTMENT POLICY
PERFORMANCE
A collective investment scheme (“CIS”) can be described as an
investment vehicle that allows investors to pool their money
into a portfolio, sharing in the risk and return of the portfolio in
proportion to their participatory interest in the portfolio. The
portfolio has a moderate risk/return profile. It is suitable for
investors with a medium to long-term investment horizon that
seek moderate capital growth with reasonable levels of income,
whilst being mindful of capital preservation. The portfolio will
typically invest in South African domiciled hedge funds across
various strategies and asset classes, including equity long/short,
equity market neutral and fixed income hedge funds. Volatility
in monthly returns will be lower than the All Bond Index. The
investment manager follows a multi-manager, multi-strategy
approach with the aim of diversifying the assets of the portfolio
amongst strategies and investment styles. The investment
manager aims to capitalise on investment opportunities across
asset classes, investment strategies and sectors. The portfolio
aims to preserve capital by not producing a negative return over
a 36-month period while maintaining a low correlation with
the JSE All Share Index and the All Bond Index. The use of
leverage in the portfolio will be limited by means of a Value at
Risk (VaR) limit of 30% of the Net Asset Value (NAV), Alpha
FUNDS DETAILS as at 31 July 2021 Beta 1.31%
RISK STATISTICS
measured at 99% confidence level of a month period.
-0.14
All fees and charges include Vat
Sharpe ratio
0.73
HEDGE Establishment of CIS portfolio 01/02/2016 Standard deviation (%) -8.64%
4.27%
Inception Date
01/04/2003
Maximum drawdown
Fee class inception date
01/02/2016
Sortino ratio
1.06
Portfolio Class
B4
0.28
Fund Size
Tracking error
NAV cents per unit R 433 690 916.23 Information ratio 4.59%
13 445.32
Number of participatory interest 548 001.21 Source of risk statistics eVestment as at 31/07/2019
Benchmark CPI + 4.5% net of fees Risk statistics period (01/2009 - 07/2020)
Risk classification Moderate
Minimum lump sum R 1 000 000
Minimum monthly investment R 100 000
Annual management fee 0.69% (excl. VAT)
Performance fee 0.00%*
Income declaration Bi-annual (June,
December)
Transaction cut-off time 14:00 every business day
Portfolio Valuation 17h00 last business day
of the month
Accounting period dates 01 July - 31 December
01 January - 30 June
PERFORMANCE FIGURES
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2021 2.12% 1.65% 0.79% 1.25% 0.85% 0.73% 7.61%
2020 1.35% -0.72% -3.52% 4.83% 1.16% 2.02% 1.90% 0.91% -0.19% 0.52% 2.57% 1.59% 12.91%
2019 1.22% 1.01% 1.17% 1.02% -0.05% 0.68% -0.15% 0.11% -0.47% 0.87% 0.81% 0.93% 7.35%
2018 1.09% 1.52% -0.35% 1.11% -0.56% 0.39% 0.96% 0.91% 0.58% -0.34% 0.44% 0.47% 6.39%
2017 2.20% 0.01% 0.57% 1.61% 0.40% -0.88% 0.96% 0.29% 0.29% 0.90% -0.75% -1.45% 4.18%
2016 -1.38% -1.07% 1.95% 0.47% 1.91% -0.92% -0.08% 1.67% -0.10% -0.84% 0.22% 0.17% 1.94%
Highest calendar annual performance since launch 19.47% (in 2005)
Lowest calendar annual performance since launch -6.41% (in 2008)
*The portfolio charges a performance fee of 13.16% of the amount by which it outperforms the hurdle rate (CPI + 3.5% net of fees).
248 Profile’s Unit Trusts & Collective Investments — HEDGE FUNDS