28 Jan 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:
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SAIF’s Fitch national fund credit quality rating of AA-(zaf) was withdrawn on 8 January 2016 at our request.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.
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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.