Fund Range and Fact Sheets

 
                                  
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Fund Fact Sheet
Prescient Money Market Fund

The Fund was launched in October 2009.It invests in money market and high-quality short-dated capital market instruments. Fund performance can be generated from taking interest rate views or duration and yield enhancement via credit instruments. The Fund is structured to minimise the risk of underperforming the benchmark, which is STeFI Call. Risk is further mitigated by limiting credit to A1/F1 instruments or better. The average duration of the Fund is limited to 90 days, while the allowed limit on individual instrument maturity is 12 months. The Fund can invest in fixed as well as variable rate paper across the full spectrum of South African money market instruments. The Fund is Regulation 28 compliant.


Prescient Yield QuantPlus Fund

This Fund was launched in July 2003. The Fund invests in money market and high-quality short-dated capital market instruments. Performance can be generated from taking interest rate views or duration, yield enhancements via credit instruments and also via the use of derivatives. The Fund is structured to minimise the risk of underperforming the benchmark which is the Inter-Bank Call Rate. Risk is further mitigated by limiting credit to A1/F1 instruments or better. The average duration of the Fund is limited to 270 days, while the allowed limit on individual instrument maturity is 18 months. The Fund can invest in fixed as well as variable rate paper across the full spectrum of South African money market instruments.


Prescient Income Provider Fund

The Fund was launched in December 2005. The Fund is regulation 28 complaint and invests in money market, shorter- and longer-term, high-quality capital market instruments, preference shares, property and international investments. A number of techniques are used to generate returns, including taking interest rate views or duration management, yield enhancements via credit instruments and also via the use of derivatives strategies, where these strategies are designed to provide downside protection. Risk is mitigated by applying credit limits of A and A1/F1 or better for bond and money market instruments respectively.  The Fund has no duration limitation. The offshore component exposes the Fund to exchange rate volatility, the exposure as well as the asset selection is managed to limit this volatility.  The Fund aims to outperform both SteFI Call and the 1 – 3 Year BEASSA Bond Index over time.


Prescient Income Saver Fund

The Fund was launched in July 2010.  The Fund aims to deliver returns that exceed cash investments on an after tax basis.  The Fund can invest in money market, short- and long-term, high-quality capital market instruments, preference shares, property and equity where market risk is reduced using derivatives. Fund performance can be generated from taking interest rate or duration views, yield enhancement via credit instruments and from equity selection.  Risk is further reduced by applying credit limits of A and A1/F1 or better for bond and money market instruments respectively.  The management process takes cognisance of reducing capital volatility.


Prescient Bond QuantPlus Fund

The Fund was launched in July 2003.  The Fund invests in money market and high-quality capital market instruments. A number of techniques are used to generate returns, including taking interest rate views or duration management, yield enhancements via credit instruments and derivative risk management strategies, where these strategies are designed to provide downside protection. Risk is further mitigated by applying credit limits of A and A1/F1 or better for bond and money market instruments respectively.  Duration deviation relative to the All Bond Index can be up to 2 years.  The Fund is benchmarked against the BEASSA All Bond Index.


Prescient Equity Quant Fund

This Fund was launched in July 2003. The Fund is an enhanced equity index fund, aiming to outperform the FTSE/JSE Africa Top 40 index. Returns are enhanced by taking advantage of low risk arbitrage opportunities in the market and other quantitative strategies. Additional benefits are gained from efficient implementation of cashflows, dividend reinvestments, management of corporate actions, use of future discounts and index rebalancing. Tracking error to the index is minimised in the process. The Fund aims to remain fully invested in equities at all times.


Prescient Equity Active Quant Fund

The Fund was launched in November 2006. The Fund uses quantitative techniques (multi-factor model) to build an active equity portfolio which aims to generate superior performance in a structured manner. The equity selection is done purely quantitatively on a bottom-up basis. The selection process targets those shares that offer the best economic value according to a predefined income statement, cashflow statement and balance sheet matrices. To enhance equity selection further, behavioural and other quantitative techniques are used. The quantitative process maintains some positive index type characteristics, such as low turnover and thus lower cost and high liquidity, while generating outperformance versus the benchmark. The benchmark for the fund is the FTSE/JSE Shareholder weighted index (SWIX).


Prescient Equity Income Fund

The Fund aims to provide an income from dividends that is greater than the FTSE/JSE Africa Shareholder Weighted All Share Index by investing in shares that offer an attractive yield relative to the benchmark.  It further aims to outperform the benchmark over the long term.

Prescient Equity Defender Fund

The Fund aims to provide equity-like returns over the long term while aiming to have negative drawdowns that is much lower than the equity market over the shorter term.

Prescient Africa Equity Fund

The Fund follows a quantitative investment process called Equity Active Quant. The process selects shares on a bottom-up basis and aims to outperform the benchmark, in a structured manner, across all market cycles. The share selection process targets those shares that offer the best economic value according to predefined income statement, cashflow statement and balance sheet matrices. To enhance equity selection further, behavioural and other quantitative techniques are added. The fund invests only in the biggest most liquid markets and shares in Africa. Being a Pan African fund, it excludes South Africa. As African markets are less efficient there is good potential to generate alpha through a structured process. Trips to African countries are conducted to gain local knowledge of the companies and markets.


Prescient Absolute Balanced Fund

This Fund was launched in July 2003. The Fund invests in money market instruments, capital market instruments, equities, listed real estate and derivatives in South Africa and offshore. Asset allocation is managed actively to enhance return, but also to reduce risk when markets are overvalued. Protection strategies may be included to reduce volatility, but is not a permanent feature in the Fund. In combination, the asset allocation and protection strategies ensure that the portfolio is structured to optimise returns in positive market cycles, while reducing downside in negative markets. The aim of the portfolio is to grow the investors’ capital in real terms over time and is hence benchmarked against inflation. The Fund is Regulation 28 compliant.


Prescient China Balanced Fund

The Prescient China Balanced Fund was launched in March 2013.  The Fund aims to achieve long term capital growth appreciateion by investing in a diversified spectrum of Chinese equity, bond and money market instruments, including Chinese A-shares via Prescient's Qualified Foreign Institutional Investor licence (QFII).  The benchmark for the China Balanced Fund is China CPI+3%.  The aims is to outperform this benchmark on an annual basis.

Prescient Positive Return QuantPlus Fund

The Fund was launched in April 2004.  The Fund aims to achieve sustainable real returns over time and is benchmarked against inflation.  This is achieved by generating consistent positive returns, while safeguarding the portfolio from downside.  The fund aims to protect capital over a rolling 12 month basis.  The Fund invests in money market instruments, capital market instruments and equities with an active asset allocation overlay. The equity component of the fund is always protected to reduce the risk of capital loss.  The portfolio is thus structured to optimise returns in positive market cycles and to protect capital in negative periods.  The Fund is Regulation 28 compliant.


Prescient Global Income Feeder Fund

This Fund was launched in November 2004 and is a rand denominated offshore fund. The Fund provides investors with access to an internationally diversified portfolio of income generating assets via a rand based vehicle. Apart from assets in liquid form, the Fund consists solely of an investment in the Financial Services Board approved Prescient Global Income Fund under the Prescient Global Funds plc investment umbrella domiciled in Ireland. The Prescient Global Income Fund may invest in global money market and capital market instruments, other high yielding instruments, currencies and derivatives. Fund performance can be generated from taking interest rate views or duration, yield enhancements via credit instruments, currency selection and also via the use of derivatives. Derivatives will mainly be used to reduce interest rate or currency risk. Risk is further mitigated by limiting credit to investment grade instruments or better. The aim of the Fund is to generate yield whilst maintaining liquidity. Volatility is managed on an on-going basis. However, it may increase from time to time due to exchange rate fluctuations. The Global Income Fund is benchmarked against the 90 Day US Treasury Bill. The Feeder Fund is subject to Rand volatility.


Prescient Global Positive Return Feeder Fund

This Fund was launched in August 2007 and is a rand denominated offshore fund The Fund provides investors with access to an internationally diversified low to moderate risk balanced portfolio via a rand based vehicle. Apart from assets in liquid form, the Fund consists solely of an investment in the Financial Services Board approved Prescient Global Positive Return (Euro) Fund under the Prescient Global Funds plc investment umbrella domiciled in Ireland. The Positive Return (Euro) Fund aims to achieve sustainable real returns in Euro terms over time and is benchmarked against European inflation. This is achieved by generating consistent returns, while safeguarding the portfolio from downside volatility. The Fund invests in money market instruments, capital market instruments, equities and derivatives with an active asset allocation overlay. The equity component of the Fund is always protected to reduce the risk of capital loss. This will result in the Fund holding a more moderate allocation to equities over time. All currency exposure is hedged to Euros, which reduces volatility further and enhances the delivery of positive returns. The portfolio is thus structured to optimise returns in positive market cycles and to protect capital in negative periods in Euro terms. The Feeder Fund is subject to Rand volatility.


Prescient Global Growth Feeder Fund

This Fund was launched in August 2007 and is a rand denominated offshore Fund. The Fund provides investors with access to an internationally diversified medium risk balanced portfolio via a rand based vehicle. Apart from assets in liquid form, the Fund consists solely of an investment in the Financial Services Board approved Prescient Global Growth Fund under the Prescient Global Funds plc investment umbrella domiciled in Ireland. The Prescient Global Growth Fund aims to deliver growth in capital over the longer-term and will hence have a bias to equities over time. The Fund will gain broad exposure to global markets, primarily equities, but can also have exposure to money and capital market instruments, currencies and derivatives. An active asset allocation overlay will be used to reduce volatility, which may at times include protection strategies to reduce market downside. The equities will be selected out of the MSCI World Index universe using Prescient’s Equity Active Quant Model. The model uses quantitative techniques (multi-factor model) to build an active equity portfolio which aims to generate superior performance in a structured manner. The selection process targets higher earnings yield companies as core, enhanced by momentum and those shares that offer the best economic value according to a predefined income statement, cashflow statement and balance sheet matrices. The Global Growth Fund aims to increase the investor’s capital in real terms over time and is hence benchmarked against OECD G7 Global Inflation. The Feeder Fund is subject to Rand volatility.


Prescient China Balanced Feeder Fund

The Fund aims to generate long-term capital growth appreciation and to outperform Chinese inflation by 3% over the long-term.  To achieve this, the Fund will invest predominantly in mainland Chinese equities, bonds, cash and money market instruments.  The Fund may also invest in global equities, bonds and other interest bearing securities such as certificates of deposit, money market instruments, global currencies and through Regulated Funds, which have good risk adjusted pricing characteristics.  The Fund is permitted to invest in listed and unlisted financial instruments in line with the conditions as determined by legislation from time to time. 

In order to achieve its objective, the Fund will, apart from assets in liquid form, consist solely of participatory interests in the approved, Prescient Chinese Balanced Fund under the Prescient Global Funds plc domiciled in Ireland.

 


Prescient Optimised Growth Fund of Funds

The Fund is designed to pay out an income of 2.5% pa while striving to ensure real growth of teh underlying capital over time. Achieving capital growth requires a high exposure to shares and short term volatility in returns. Dynamic protection strategies are employed to limit the potential loss of capital only during major negative moves in the financial markets. The Fund is managed as a Regulation 28 fund.


Prescient Optimised Balanced Fund of Funds

The Fund was launched in February 2006. The Fund is designed to pay out an income of 5% p.a. while striving to maintain the real value of the underlying capital over time. Maintaining the real value of capital requires a high exposure to equities and a reasonable degree of short term volatility in returns. Dynamic protection strategies are employed to limit the potential loss of capital only during major negative moves in the financial markets. The Fund is Regulation 28 compliant.


Prescient Optimised Moderate Fund of Funds

The Fund was launched in February 2006. It is designed to pay out an income of 7% pa while striving to allow only a limited decrease in the real value of the underlying capital over time. This is achieved by targeting a balanced exposure to equities and allowing only moderate short term volatility in returns. Dynamic protection strategies are employed to limit the potential loss of capital only during major negative moves in the financial markets. The Fund is Regulation 28 compliant.


Prescient Optimised Conservative Fund of Funds

The Fund was launched in February 2006. It is designed to pay out an income of 10% pa. At this high level of income pay-out, it is generally not possible to maintain the real value of the underlying capital over time. The Fund targets a moderate exposure to equities and volatility of returns is kept to a minimum. Dynamic protection strategies are employed to limit the potential loss of capital during negative moves in the financial markets. The Fund is Regulation 28 compliant.


Prescient Global Positive Return (Euro) Fund

The Global Positive Return (Euro) Fund was initially launched on 23 January 1998. Prescient took over the management of the Fund in January 2007. The Fund aims to achieve sustainable real returns in Euro terms over time and is benchmarked against European inflation. This is achieved by generating consistent returns, while safeguarding the portfolio from downside. The Fund invests in money market instruments, capital market instruments, equities and derivatives with an active asset allocation overlay. The equity component of the fund is always protected to reduce the risk of capital loss. This will result in the Fund holding a more moderate allocation to equities over time. All currency exposure is hedged to Euros, which reduces volatility further and enhances the delivery of positive returns. The portfolio is thus structured to optimise returns in positive market cycles and to protect capital in negative periods in Euro terms.


Prescient Global Growth Fund

The Global Growth Fund was launched on 23 January 1998. Prescient took over the management of the Fund in January 2007. The Fund aims to deliver growth in capital over the longer-term and will hence have a bias to equities over time. The Fund will gain broad exposure to global markets, primarily equities, but can also have exposure to money and capital market instruments, currencies and derivatives. An active asset allocation overlay will be used to reduce volatility, which may at times include protection strategies to reduce market downside. The equities will be selected out of the MSCI World Index universe using Prescient’s Equity Active Quant Model. The model uses quantitative techniques (multi-factor model) to build an active equity portfolio which aims to generate superior performance in a structured manner. The selection process targets higher earnings yield companies as core, enhanced by momentum and those shares that offer the best economic value according to predefined income statement, cashflow statement and balance sheet matrices. The Global Growth Fund aims to increase the investor’s capital in real terms over time and is hence benchmarked against OECD G7 Global Inflation.


Prescient Global Income Fund

The Fund was launched in July 2007. The Fund may invest in global money market and capital market instruments, other high yielding instruments, currencies and derivatives. Fund performance can be generated from taking interest rate views or duration, yield enhancement via credit instruments, currency selection and also via the use of derivatives. Derivatives will mainly be used to reduce interest rate or currency risk. Risk is further mitigated by limiting credit to investment grade instruments or better. The aim of the fund is to generate yield whilst maintaining liquidity. Volatility is managed on an on-going basis. However, it may increase from time to time due to exchange rate fluctuations. The Fund is benchmarked against the 90 Day US Treasury Bill.