The Sasfin Domestic Equity Fund may be used to create a well-balanced long-term wealth solution. It is also a great addition to Sasfin's offshore portfolios and as a growth component to complement Sasfin's income portfolios. The fund may be used as a building block by independent financial advisors to create multi-asset class balanced portfolios.
The fund is focused on the South African domestic market, with 80% invested in local South African instruments and up to 20% in international markets.
The fund is managed by Robert Towell and assisted by Koebie Malick, Portfolio Manager at Sasfin Wealth.
Robert Towell explains: “You should invest in this strategy if you want high exposure to the South Africa market. The portfolio is 80% invested in the local JSE and looks to achieve above CPI returns over a 5-year rolling period. It is a high-risk investment profile.”
The fund aims to invest in businesses that pay reliable dividends through various market cycles and generate significant cash flows in the present climate of rising interest rates and inflation. Currently, the banking, financial, commodities, tobacco, and commodity sectors are some of the industries in South Africa's economy that meet this description.
Since its debut in 2010, the fund has outperformed inflation over the long run by keeping an eye out for this cash flow and dividend dynamic. When appropriate, the Funds' mandate is adaptable enough to include property and income-generating elements.
“Understanding the South African context and not trying to implement strategies developed for broader deeper markets is a key for this fund. Understanding the Liquidity and Ownership of local stocks in a small market such as the JSE is vitally important and complements our fundamental analysis of companies” Robert Towell concludes.
The fund is well supported by Sasfin’s experienced portfolio managers from around the country, who contribute to our monthly strategy meetings. This gives the fund manager a close connection with businesses across the country.