Download mi-plan ip inflation plus 5 fund

MI-PLAN
IP INFLATION PLUS 5 FUND
March 2014
FU ND IN FOR MAT ION
Inception date
31 May 2004
Sector
South African – Multi-Asset – Medium Equity
Minimum investment
Lump sum: R10 000; Monthly: R500
Class A1 (LISP)
Inc. max commission of 0.5%
1.25%
Asset composition
Equity, Fixed Interest and Cash
Class B4: (Allinshare)
Inc. max commission of 1.0%
2.25%
Income declaration
Quarterly (Mar / Jun / Sep / Dec)
Class B5: (Retail & Clean
Class)
0.75%
mod
1.77
2.91
1.21
GROWTH OF YOUR INVESTMENT
This fund is suitable for conservative investors with an
investment time horizon of between 3 and 5 years who
wish to have their fund managed to a specified real
return target with appropriate risk controls.
Mi-Plan IP Inflation Plus 5 Fund
Jun 13
Dec 13
Dec 12
Jun 12
Dec 11
Jun 11
Dec 10
Jun 10
Jun 09
Dec 09
Dec 08
Jun 08
Dec 07
DESCRIPTION
Jun 07
The Mi-Plan IP Inflation Plus 5 Fund is a risk-managed
balanced portfolio comprising a range of domestic and
foreign asset classes. The fund also forms part of MiPlan’s range of risk-controlled portfolios in a time-based
process designed to integrate the portfolio construction
or asset allocation framework with our proprietary
financial planning software called MIPLAN.
Jun 06
AP P L I C AT I O N
320
300
280
260
240
220
200
180
160
140
120
100
80
Dec 06
To achieve returns of at least 5% annualised in excess
of inflation (CPI) over rolling 3 year periods whilst
simultaneously controlling the risk of underperforming
CPI over any rolling 12 month period.
Dec 05
OBJECTIVE
aggr
Jun 05
cons
Total expense
ratio* (%)
* The Mi-Plan IP Inflation Plus 5 Fund has a Total Expense Ratio (TER) of 1.77%. For
the period from 1 January 2013 to 31 December 2013 of the average Net Asset Value of
the portfolio were incurred as charges, levies and fees related to the management of the
portfolio. A higher TER ratio does not necessarily imply a poor return, nor does a low
TER imply a good return. The current TER cannot be regarded as an indication of future
TER’s.
Dec 04
Risk profile
CPI+5% (before costs)
Annual management
fee (excl. VAT)
R180,184,702
Jun 04
Fund size
Benchmark
Inflation Plus 5%
FU ND MANAGEMEN T
The first quarter of 2014 was a tale of two halves. The first was caught up in a currency crisis with investors offloading local
bonds and equities and hightailing it out of any emerging market associated with the “fragile 5”. The second half witnessed
a complete reversal. Equities have enjoyed a strong rally with bonds moving firmer early on in the quarter as the global
return to “high yield” re-emerged as an investment option.
Tony Bell
CIO / Portfolio Manager
Vunani Fund Managers
As set out in our January report, we do not subscribe to the investment thesis of higher inflation in the US in the near term
and thus see the Fed as being able to hold its course as set out in its policy guidance. But what if the scenario arose where
inflation levels in the US continued to decline as a result of the US economy failing to achieve take off speed? Another
round of tapering? And how would the US respond if Japan embarks on another round of QE as we expect it may well do,
weakening the Yen to offset some of the very unpleasant fiscal adjustments needed in the months ahead, and the EU also
embarks on some limited QE to weaken the euro? These dynamics are all very much “in play” at the moment.
Against this background, we are pleased to report that your portfolio has performed well during the month of March and has
delivered a very credible return for the first quarter of 2014.
Disclosure: Collective investments are generally medium to long term investments. The value of units may go down as well as up and past performance is not necessarily a guide to the future. Collective
investments are traded at ruling prices and can engage in borrowing and scrip lending. All fees are quoted excluding VAT. The fund manager may borrow up to 10% of the market value of the portfolio to bridge
insufficient liquidity. Collective investments are calculated on a net asset value basis, which is the total value of all assets in the portfolio including any income accrual and less any permissible deductions from the
portfolio. All transactions must be received before 14:30 while the fund is valued at 15:00 (Quarter end: 17:00). The scheme may be closed for new investments. A schedule of fees and charges and maximum
commissions is available from the management company/scheme. Different classes of units apply to this fund and are subject to different fees and charges. Commission and incentives may be paid and if so, would
be included in the overall costs. Forward pricing is used. The following charges are levied against the portfolio: Brokerage and marketable securities tax, auditor's fees, bank charges, trustee fees. IP Management
Company is a member of ASISA. The Trustees for the scheme are Standard Bank of South Africa Ltd.
MI-PLAN
IP INFLATION PLUS 5 FUND
March 2014
R ISK AND R ETURN STA T IST IC S t o 31 Ma rc h 2 014
P E R F O R M AN C E
TOP 10 HOLDINGS
FUND
BENCHMARK
FUND
1 Year
13.3%
11.2%
Naspers
7.4%
3 Years**
14.3%
11.2%
Sasol
6.8%
5 Years**
13.7%
10.7%
BHP Billiton
6.2%
Since inception**
12.0%
11.3%
EOH Holdings Ltd.
6.0%
Remgro
5.7%
GLENCORE
5.4%
*annualised
Active (since inception**)
0.6%
Information ratio
0.1
**Fund returns shown are based on NAV-NAV unit pricings calculated from INET
for a lump-sum investment with income distributions reinvested (after fees and
costs).
Mondi Plc
5.3%
Compagnie Financiere Richemont AG
5.2%
Investec PLC
4.9%
British American Tobacco PLC
4.3%
POR TFO LIO STRUCTUR E a s at 3 1 Marc h 2 014
S A E Q U I T Y S E C T O R AL L O C AT I O N
E F F E C T I V E AS S E T AL L O C AT I O N
21.8%
29.1%
34.0%
49.6%
22.2%
21.3%
Resources
Financials
Industrials
22.1%
SA Equity
SA Fixed Interest
SA Cash
Foreign
CON TACT D ETA ILS
Anton Turpin - Managing Director
[email protected] MI-PLAN Investment Partners and IP Management Company
3rd Floor, Letterstedt House, Newlands-on-Main, Newlands, 7700 P O Box 23271, Claremont, 7735,
T +27 21 671 1650 F +27 86 557 4848
e-mail: [email protected] www.MI-PLAN.co.za
MI-PLAN (Pty) Ltd (Reg. No 2008/001568/07) is a licensed Financial Services Provider No. 9383
IP Management Company (Pty) Ltd (Reg. No 2007/017601/07)
Disclosure: MI-PLAN has a 48% ownership interest in IP Management Company (Pty) Ltd. IP Management is a registered Collective Investment Manager in terms of CISCA and performs administrative functions
on co-branded MI-PLAN IP unit trusts for which it receives contracted fees. In terms of its licence, IP Management Company may not conduct any other business other than the business of running a Collective
Investment scheme. Accordingly, all intermediary service and advice where applicable, is provided by MI-PLAN in terms of its licence for which remuneration is paid from the fees mandated in the supplemental
deed and disclosed herein. MI-PLAN offers investors a unique liability matching offering that matches the client’s portfolio to their unique needs as documented at www.miplan.co.za. The complexity and
uniqueness
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