01 Jun Fitch reaffirms the Sanlam Alternative Income Fund’s rating
Fitch Ratings has reaffirmed the Sanlam Alternative Income Fund’s National Fund Credit rating of ‘AA- (zaf)’ for the eighth year running. The fund’s broadly unchanged level of credit risk was one of the reasons mentioned in the Fitch Ratings press release for the rating being reaffirmed. View the latest rating report here.
Record breaking flows
The Sanlam Alternative Income Fund received record breaking flows during the first quarter of 2015. March alone saw inflows of R2.5 billion – the highest recorded inflows for a month in the history of the fund. The month ended on an all-time-high fund size of R8.6 billion.
Due to the large inflows over the last few months the interest portion has moved out of the target range of 5% to 15%. The interest portion at the end of May was 17%. We are implementing plans to bring the interest portion down to the target range.
If you would like to receive regular updates on this fund, please email me.
The fund was originally rated by Fitch Ratings on 28 July 2008 and affirmed on 5 May 2015.
The information in this document is proprietary to Ora Fund Managers (Pty) Ltd (Ora) and is not to be reproduced, distributed, published or used for any purpose other than the evaluation of any proposal contained in the document, except with the written permission of a representative of Ora. The information contained in this document (together with any opinions expressed or further information provided in connection with this document) is of a general nature and provided for illustrative purposes. It does not address the circumstances of any particular person or entity and it is not a recommendation or advice in relation to any transaction or investment. In making this information available, we are not purporting to act in any way as an advisor or in a fiduciary capacity. No one should rely on any of this information without appropriate advice from an independent financial adviser, based on a thorough investigation of the investor’s specific circumstances. While we have taken care to ensure that the information is accurate and not misleading, Ora makes no representations or warranties of any kind with respect to its accuracy, completeness or correctness. The information is provided on the clear understanding that Ora will not be held liable or responsible for any loss or damages that may be suffered by any person or entity as a result of that party placing reliance on or failing to act on any of the information provided.
The Sanlam Group is a full member of the Association for Savings and Investment SA. Collective investment schemes are generally medium- to long-term investments. Please note that past performances are not necessarily an accurate determination of future performances, and that the value of investments / units / unit trusts may go down as well as up. A schedule of fees and charges and maximum commissions is available from the Manager, Sanlam Collective Investments (RF) Pty Ltd, a registered and approved Manager in Collective Investment Schemes in Securities. Additional information of the proposed investment, including brochures, application forms and annual or quarterly reports, can be obtained from the Manager, free of charge. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. Collective investments are calculated on a net asset value basis, which is the total market value of all assets in the portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Actual investment performance of the portfolio and the investor will differ depending on the initial fees applicable, the actual investment date, and the date of reinvestment of income as well as dividend withholding tax. Forward pricing is used. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The performance of the portfolio depends on the underlying assets and variable market factors. Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div date. Lump sum investment performances are quoted. The portfolio may invest in other unit trust portfolios which levy their own fees, and may result is a higher fee structure for our portfolio. All the portfolio options presented are approved collective investment schemes in terms of Collective Investment Schemes Control Act, No 45 of 2002 (“CISCA”). The fund may from time to time invest in foreign instruments which could be accompanied by additional risks as well as potential limitations on the availability of market information. The Manager has the right to close any portfolios to new investors to manage them more efficiently in accordance with their mandates. The portfolio management of all the portfolios is outsourced to financial services providers authorized in terms of the Financial Advisory and Intermediary Services Act, 2002. Standard Bank of South Africa Ltd is the appointed trustee of the Sanlam Collective Investments Scheme
Fund Manager: Sanlam Collective Investments (RF) (Pty) Ltd. Co-investment managers: Sanlam Structured Solutions, a division of Sanlam Investment Management (Pty) Ltd, and Ora Fund Managers (Pty) Ltd.