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FUNDFACTS
1ST
OASIS CRESCENT BALANCED STABLE FUND OF FUNDS
QUARTER
Fund Manager
Adam Ebrahim
Min. Monthly Investment
R 300
Launch Date
1 April 2010
Min. Lump - Sum Investment
R 2 000
Risk Profile
Low
Fund Size
R 404 million
Benchmark
CPI Rate**
Total Expense Ratio
1.9%
2014
Class D
Distribution Period
Quarterly
The Oasis Crescent Balanced Stable Fund of Funds is an asset allocation prudential portfolio. The primary objective is to provide
moderate capital appreciation, and the secondary objective is to provide moderate income growth based on a selection of
underlying investments that comply with ethical and moral considerations. To achieve this objective, the portfolio is well
diversified by asset class in accordance with existing prudential investment regulations. The portfolio’s equity exposure is
between 30% and 40% in commensurate with that typically displayed by a south african multi asset in accordance with the ASISA
standard for fund class for South African regulated collective low equity portfolios. The Oasis Crescent Balanced Stable Fund of
Funds is a Shari’ah compliant fund. This Fund is managed in accordance with Regulation 28 of the Pension Funds Act 24 of 1956.
CLASS D
Cumulative Returns
Cumulative
Performance
May-Dec
2010
2011
2012
2013
YTD
Mar
2014
Return Since Inception
Cum
Ann
Oasis Crescent Balanced
Stable Fund of Funds*
6.4
8.0
13.6
17.6
4.0
59.6
12.7
CPI Rate**
1.5
6.1
5.6
5.3
2.1
22.4
5.3
*Performance (% returns) in Rand, gross of fees, gross of non permissible income of the Oasis Crescent Balanced Stable Fund of Funds
since inception to 31 March 2014
(Source: Oasis Research using I-Net Bridge)
**Note: CPI benchmark lags by 1 month
Annualised Returns
Return Since
Inception
% Growth
1 Year
% Growth
3 Year
Oasis Crescent Balanced Stable Fund of Funds*
16.8
13.6
12.7
CPI Rate**
5.9
6.0
5.3
Annualised Performance
Annualised
*Performance (% returns) in Rand, gross of fees, gross of non permissible income of the Oasis Crescent Balanced Stable Fund of Funds
since inception to 31 March 2014
(Source: Oasis Research using I-Net Bridge)
**Note: CPI benchmark lags by 1 month
Asset Allocation Split
Asset Class
Risk Analysis
Weight %
Equity SA
28
Equity Global
11
Property
21
Income
40
Total
100
Risk Analysis
Oasis Crescent Balanced
Stable Fund of Funds
Sharpe
Sortino
Ratio
Ratio
0.9
1.6
Calculated gross of fees, gross of non permissible income
since inception to 31 March 2014
(Source: Oasis Research using I-Net Bridge)
Asset Allocation Split of the
Oasis Crescent Balanced Stable Fund of Funds
31 March 2014
(Source: Oasis Research)
Fund Manager Comments
Global economic growth prospects have continued to improve over the last quarter, being driven primarily by developed markets. The better growth outlook for
countries such as the United States and United Kingdom is underpinned by improving employment prospects, leading to greater confidence and increasing
consumer spending. Europe has probably experienced the worst effects of austerity as peripheral countries continue to reign in their budget deficits, and it is
expected that the drag on economic growth will be significantly reduced going forward. Developing markets continue to face short-term headwinds due to volatile
capital flows following the scaling back of quantitative easing in the US. Growth over the short-term is thus likely to be impacted by weaker currencies, higher inflation
and higher interest rates. However, we believe that weaker exchange rates in developing economies are likely to boost their competitive standing and ultimately
exports. Additionally, given their high saving rates, young urbanizing populations and rising consumer incomes, developing markets still remain well positioned to
drive global growth over the long-term. South African economic growth is expected to accelerate in 2014 after coming in at 1.9% last year. While consumption
growth has come under pressure due primarily to a slowdown in credit extension, the exporting sectors of the economy and tourism are expected to benefit
substantially from recent weakness in the currency. Inflationary pressures are likely to intensify over the short term, as higher agricultural prices begin to reflect at
retail stores. However, over the medium term an expected stabilisation in the rand should keep inflation within the Reserve Bank’s 3% to 6% target band. The current
account deficit narrowed to 5.1% of GDP in the final quarter of 2013, and is expected to continue narrowing over the medium term as import growth slows and
export figures improve. Although the wide deficit and concerns over the end of quantitative easing continued to put pressure on the exchange rate in recent
months, the country’s relatively strong fiscal position and improving competitiveness will in all likelihood mitigate these pressures going forward.
Global equity markets have continued to move higher during the past quarter with the index levels outpacing earnings growth. During the past few years global
bond and emerging markets have been the beneficiaries of strong inflows while developed market equities have lagged. As a result of the withdrawal of the financial
stimulus we saw the trend of flows reverse and this continued during the past quarter with inflows into global equities, specifically developed market equities, and
outflows from global bonds. Global pension funds have increased their allocation towards equities, however it is still below the long term average which combined
with the inevitable turn in the rate cycle create the potential for higher demand for quality developed market equities. This bodes well for our portfolios as we have
maintained our investment in high quality companies that have strong competitive advantages, and the ability to leverage off those competitive advantages to
deliver a higher level of sustainable Return on Equity (ROE) through the economic cycle. We believe that companies which have healthy balance sheets and strong
cash flows have the ability to sustain themselves during challenging economic environments while delivering real earnings growth over the long-term.
South African equity markets had a decent start to 2014 with positive returns being delivered during the first quarter. Resources, having underperformed over the
past few years, were the major driver of performance during the quarter as earnings growth started to come through. Within the ALSI, there are still attractive
opportunities in high quality, globally competitive companies who are trading below their intrinsic values. South Africa is being viewed as the gateway to Africa and
increasingly the ALSI is deemed to be an ideal platform for investors to get exposure to the African growth story. South African companies have been very active in
pursuing growth opportunities in Africa with many companies being leaders in their respective sectors. The huge growth potential and the increasing flexibility being
provided by the South African government to increase trade with the African continent should see the African contribution for the ALSI rise significantly going
forward.
We continue to see new office property supply coming to the Johannesburg and Cape Town markets and any recovery in rental is dependent on stronger growth
in the economy and a recovery in corporate employment and activity. Demand from national and international retailers for space in strong nodes continue to
support South African shopping centre rentals while the demand in the industrial logistics market is firm and vacancies remain low. Based on the steadily improving
growth outlook for the US economy, the Federal Reserve continues to reduce the pace of its stimulatory support. However, US policymakers have shown that they
will be prudent in their actions, withdrawing stimulus in an orderly fashion. While global yields have been volatile, they are widely expected to continue on a medium
term upward trend. Against the backdrop of increasing US yields and some reversal in the foreign flows to developing markets, South African yields have been
volatile.
Our balanced portfolio is well diversified across geographies, currencies, asset classes, sectors and instruments. This appropriate level of diversification allows for a
relatively lower level of risk and is positioned to generate real returns for our clients over the long term.
GIPS compliant & verified
Oasis Crescent Management Company Ltd.
Oasis House, 96 Upper Roodebloem Road
University Estate, Cape Town 7925
South Africa, DOCEX: 99 CPT
Tel: +27 21 413 7860 Fax: +27 21 413 7900
Oasis Share Call Helpline: 0860 100 786
Email : [email protected]
www.oasiscrescent.com
Custodian:
The Standard Bank of South Africa Limited
Collective Investment Schemes in Securities (CIS) are generally medium to long term investments. The value of participatory interests (units) may go down as well as
up and past performance is not necessarily a guide to the future. Different classes of units apply to some of the Oasis Funds, which are subject to different fees and
charges. A schedule of fees and charges and maximum commissions is available from the management company on request. Commission and incentives may be paid
and if so, would be included in the overall costs. CIS are traded at ruling prices and forward pricing is used. CIS can engage in borrowing and scrip lending. Fluctuations
or movements in exchange rates may cause the value of underlying international investments to go up or down. Portfolios are valued at 15h00 daily. All necessary
documentation must be received before 10h00. CIS are calculated on a net asset value basis which is the total value of all assets in the portfolio including any income
accruals and less any permissible deductions from the portfolio which may include brokerage, commissions, STT, auditor’s fees, bank charges, trustee and custodian
fees. Class D: performance fees are payable in the case of outperformance of the underlying portfolio, relative to its benchmark. The sharing ratio of the performance
fee is 20% of the outperformance, and the total fees are capped at 3%. This fee is calculated and accrued daily, based on the daily market value of the Investment
Portfolio, and paid to the Investment Manager on a monthly basis. For a full disclosure on performance fees FAQs visit www.oasiscrescent.com. The manager may
borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Member of the Association for Savings and Investment SA. The above portfolio
performance is calculated on a NAV to NAV basis and does not take initial fees into account. Income is reinvested on the ex dividend date. Actual investment performance
will differ based on the initial fees applicable, the actual investment date and the date of reinvestment of income. Figures quoted are from Micropal and I Net Bridge
for the period ending 31 March 2014 for a lump sum investment using NAV-NAV prices with income distributions reinvested. A fund of funds is a portfolio that invests
in portfolios of CIS, which levy their own charges, which could result in a higher fee structure for these portfolios. Class D of the portfolio has a Total Expense Ratio
(TER) of 1.9% for the period from 31 December 2012 to 31 December 2013. 1.9% of the average Net Asset Value of the portfolio was incurred as charges, levies
and fees related to the management of the portfolio. A higher TER 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 TERs. The ratio does not include transaction costs. All information and opinions provided are of a general nature and
the document contains no express or implied recommendation, warranty, guidance, advice or proposal that the product is appropriate to the investment objectives,
financial situation or needs of any individual or entity. No warranty as to the accuracy, correctness or completeness of the information or opinions contained herein is
provided. Data are sourced from Oasis Research using I-Net Bridge (31 March 2014). Kindly note that this is not the full Terms and Conditions. To view the latest
Terms and Conditions please visit www.oasiscrescent.com