New year, new rating for the Sanlam Alternative Income Fund

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New year, new rating for the Sanlam Alternative Income Fund

GCR gives SAIF a rating of AA-(ZA)(f)

An FSB press release on 4 September 2015 announced that the Registrar of Credit Rating Agencies had cancelled the registration of Fitch Southern Africa (Pty) Ltd (Fitch) as a credit rating agency.  Following this announcement, we approached Global Credit Ratings Co (Pty) Ltd (GCR) for a fund rating on the Sanlam Alternative Income Fund (SAIF).

On 11 December 2015 GCR accorded SAIF a national scale fund rating of AA-(ZA)(f), with the outlook accorded as Stable.  SAIF’s GCR rating is identical to that provided by Fitch and reinforces the quality of the fund.  CGR is registered as a Credit Rating Services Provider by the Financial Services Board and is also recognised as an eligible External Credit Assessment Institution by the South African Reserve Bank.

Please click on the links below for the rating announcement and the rating report:

GCR SAIF rating announcement

GCR SAIF rating report

Highlights from the rating report include:

  • GCR noted a high quality of management and monitoring with SAIF’s marketing, risk management, compliance and administration.
  • The fund has ample liquid asset coverage, which supports the 24 hour liquidity offered to investors.
  • The weighted average credit rating reflects the quality of the fund’s underlying assets.

Withdrawal and affirmation of the Fitch rating

SAIF’s Fitch national fund credit quality rating of AA-(zaf) was withdrawn on 8 January 2016 at our request.  At the same time as the withdrawal, Fitch reaffirmed the fund’s rating and noted in their press release that this reaffirmation reflects the broad stability of SAIF’s credit quality.

After-tax returns of the fund

The current interest portion of SAIF is at the bottom end of the target range of 5-15%, enhancing its after-tax returns in comparison to money market type funds.  The current fund size is R8.3bn.

 

Please contact me if you have any questions.

Regards

Jonathan Whittaker

151117 - Website Staff J Whittaker

 

 

 

 

 

Disclosure

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.

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