Prescient Defensive Fund

Investment and Return Objective

The Fund aims to achieve healthy real returns over the long term and to outperform the ASISA category average of the South-African - Multi-Asset - Low Equity funds over a full market cycle by maintaining moderate exposure to growth assets like equities.

Who Should Invest

Investors seeking real returns coupled with a stable and attractive income yield via significant exposure to the South African interest bearing markets. Although the Fund's mandate allows investment up to 40% in equities, it is expected to have much lower actual exposure on average. This Fund is suitable to investors with a medium to long-term investment horizon and is Regulation 28 compliant. 

Investment Process

This Fund invests in local and offshore money market, bonds and inflation-linked bonds, property, preference and ordinary shares, derivatives and unlisted instruments to meet the investment objectives.  Fund performance can be generated from taking interest rate views or duration, yield enhancement via credit instruments, asset allocation and exposure equities. 

Risk Indicator = Moderately Conservative

Risk Indicator Definition

These portfolios typically have moderate equity exposure or in the case of bond funds, longer duration bond exposure, resulting in some capital volatility over the shorter term.  They are managed in such a manner that the probability of capital losses over one year periods is unlikely. These portfolios typically target returns in the region on 3% - 4% above inflation before tax over the long term.