For investors with a moderate risk profile seeking exposure to South African bonds.
OVERVIEW
The strategy is suitable for investors seeking high income yields with prospects for capital gain and a moderate investment risk profile. It aims to outperform the FTSE/JSE All Bond Index over rolling three-year periods, with lower risk of loss. The investment horizon ought to exceed three years.
STRATEGY
To achieve its goal, the strategy invests in a broad spectrum of listed and unlisted South African interest-bearing securities of variable durations, reflecting the manager’s assessment of interest rate trends. The weighted average duration of the portfolio will typically be within two years of the risk budget as determined by the FTSE/JSE All Bond Index. The income characteristics will be in line with prevailing weighted average South African bond market yields. The portfolio is managed to comply with the statutory investment limits set for retirement funds in South Africa (regulation 28).
Investors showered US stocks with love this Valentine’s month, spurning bonds. The US S&P 500 Index surged 5.2%, closing above the 5,000 level for the first time. The Nasdaq Composite and Dow Jones indices also…
