The Matrix Review. December 2018

Transcription

1 The Matrix Review December 2018

2 Why Matrix Fund Managers Diversified Business Long funds AUM = R5.9 billion Hedge funds AUM = R3.1 billion Robust investment process across asset classes Evolution Hedge Funds since 2006 (12 years) Launched Long Funds 2014 (4 ½ years) AUM growth Main hedge fund investors made up of FOHF Exponential growth in Long Funds Multi Managers and DFMs main long investors Direct Pension Fund investment in hedge funds Key Focus areas Brand Awareness Multi-Asset Equity Fund Suite Launch of Multi Asset Income 1 Dec AUM Growth Hedge Long Multi Asset Growth Q Q Q Q YTD 2018 Sanlam Select Defensive Balanced Fund Sanlam Select Absolute Fund Source: Matrix 2

3 Fund Suite Long Multi Asset Low Equity CPI+3% Medium Equity CPI+4% Sanlam Select Defensive Balanced Fund Benchmark: Multi Asset Low Equity category average Target: CPI + 3%, achieved CPI + 3.5% Ranked 1 st out of 91 funds Since Inception Annualised outperformance against average in Morning Star Category of 3% Since Inception Fund Size = R2 113 million Sanlam Select Absolute Fund Benchmark: Multi Asset Medium Equity category average Target: CPI + 4% Took over management of fund in October 2017 Fund Size = R821 million Ranked 1 st out of 102 Funds Since Inception Long Single Asset Bond Fund Equity Fund Sanlam Select Bond Plus Fund ALBI benchmark Ranked 7 th out of 27 funds Since Inception Annualised Alpha of 0.2% Since Inception against ALBI Fund Size = R951 million Hedge Funds Fixed Income Multi Strategy Matrix NCIS Fixed Income Retail Hedge Fund 10 year track record Pursuing Fixed Income opportunities in SA 15.9% Annualised Performance Since Inception Cash + 10% achieved Fund Size = R2 024 million Matrix NCIS Equity Fund SWIX TR as benchmark Ranked 5 th out of 123 funds Since Inception in General Equity Category Annualised Alpha of 2% SI against SWIX TR Fund Size = R574 million Matrix NCIS Multi Strategy Retail Hedge Fund 12 year track record Blend of various Hedge Fund Strategies 11.7% Annualised Performance Since Inception Cash + 5% achieved Fund Size = R132 million Other Funds Money Market Multi Asset Income Multi Asset High Equity 3

4 Hedge Funds

5 Matrix NCIS Fixed Income Retail Hedge Fund Net Investment Performance Periods Greater than 1 year are annualised Growth of R100 invested since inception (1 Oct 2008) Dec- 18 Matrix Fixed Income Hedge Fund Cash Bonds SA Equity YTD 6.0% 6.6% 7.7% -8.5% Year 6.0% 6.6% 7.7% -8.5% Years 12.7% 6.9% 11.1% 4.3% 5 Years 11.2% 6.3% 7.7% 5.8% Since Inception 15.9% 6.0% 8.3% 12.3% Correlation Volatility 11.4% 0.4% 7.3% 13.7% Outperforming Equities with lower volatility and no correlation 50 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Cash ALBI ALSI TR Matrix NCIS Fixed Income Retail Hedge Fund 50 The Fund converted to a regulated CIS Hedge Fund on 1 September Performance prior to that date is from an unregulated environment. Performance from 1 October December 2018 Source: Matrix, Reuters 5

6 Matrix NCIS Multi Strategy Retail Hedge Fund Net Investment Performance Periods Greater than 1 year are annualised Dec- 18 Matrix Multi Strategy Hedge Fund Cash Bonds SA Equity YTD 3.9% 6.6% 7.7% -8.5% 1 Year 3.9% 6.6% 7.7% -8.5% Growth of R100 invested since inception (1 Oct 2006) Years 7.4% 6.9% 11.1% 4.3% Years 9.2% 6.3% 7.7% 5.8% Since Inception 11.7% 6.8% 8.4% 10.4% Correlation Volatility 8.6% 0.5% 7.4% 14.6% Equity like return with Bond volatility and low correlation to asset classes 50 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Matrix NCIS Multi Strategy Retail Hedge Fund Cash ALBI ALSI TR 50 The Fund converted to a regulated CIS Hedge Fund on 1 September Performance prior to that date is from an unregulated environment. Performance from 1 October December 2018 Source: Matrix, Reuters 6

7 Traditional Funds

8 Annualised Return Long Only Funds vs Peer Groups and Indices since inception 9.00% 8.00% 7.00% Sanlam Select Defensive Balanced Fund Average FI Manager Sanlam Select Bond Plus Fund ALBI Cash Matrix Novare Equity Fund 6.00% Average Low Equity Manager 5.00% CPI 4.00% SWIX TR ALSI TR 3.00% Average Gen Eqty Manager 2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Volatility Performance from 1 June December 2018 Source: Morningstar, Matrix, Reuters 8

9 Traditional Funds rolling 24M Periods Quartile vs Peers* 31-May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec-18 0% 10% 20% Consistent Top quartile ranking for both funds over 24M periods 30% 40% 50% 60% Sanlam Select Defensive Balanced Fund* Matrix Novare Equity Fund 1ST Quartile 2ND Quartile * The chart shows the ranking of funds managed by Matrix fund managers compared to peer groups in the low equity, and general equity categories from ASISA. Source: Morningstar, Matrix 9

10 Multi Asset CIS Fund vs Peers Since Inception ASISA MA Low Equity Category 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% Sanlam Select Defensive Balanced Fund* NFB Ci Stable A Allan Gray Optimal A Allan Gray Stable A Sasfin BCI Stable A ABAX Absolute Return Prescient A Sanlam Multi Mgd Conservative FoF A2 Hollard Prime Strategic Defensive FoF B Kagiso Stable A Plexus Wealth BCI Conservative A Prime Classic Port Conservative FoF C Sygnia Skeleton Balanced 40 A ABSA Inflation Beater A PSG Stable A SIM Inflation Plus Discovery Cautious Balanced Prime Balanced Income FoF B1 Old Mutual Real Income A PSG Wealth Preserver FoF D Prime Cabernet Stable FoF C Optimum BCI Stable A Nedgroup Inv Core Guarded C Platinum BCI Income Provider FoF MI-PLAN IP Inflation Plus 3 B5 Average Performance from 1 June December 2018 Source: Morningstar, Matrix 5.53% Ranked 1 st out of 91 funds 8.52% 10

11 Multi Asset CIS Fund vs CPI Since Inception Achieving CPI+3.5% Worst Drawdown -2.7% 25% 20% % % 110 5% 100 0% 90 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18-5% Drawdown (RHS) Sanlam Select Defensive Balanced Fund* CPI CPI+3% Performance from 1 June December 2018 Source: Morningstar, Matrix 11

12 Multi Asset CIS Fund vs Peers Since Inception ASISA MA Medium Equity Category -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% Sanlam Select Absolute Fund Prime Chardonnay Moderate FoF C Wealth Associates BCI Moderate FoF A Prescient Pos Rtn QuantPlus C Novare Multikor Moderate FoF A MI-PLAN IP Inflation Plus 7 B5 Kagiso Protector A ABSA Wealth Preserver Plus A Counterpoint SCI Moderate R Ci Moderate Strategic A Old Mutual Moderate Balanced A MI-PLAN IP Inflation Plus 5 B5 Coreshares OUTStable Index O Noble PP STANLIB Balanced FoF A2 Momentum Target Stable Growth FoF A STANLIB Absolute Plus A GCI SCI Balanced FoF FedGroup Balanced FoF A Sasfin BCI Balanced A Fairtree Flex Balanced Prescient A1 Destiny BCI Prudential FoF A MFS SCI Moderate FoF B1 Assetbase CPI +4% Prescient FoF A1 FNB Moderate FoF B1 Average -2.76% 2.35% Only 14 Months of performance!! Ranked 1 st out of 102 funds Performance from 1 November December 2018 Source: Morningstar, Matrix 12

13 Matrix Novare Equity Fund vs Peers Since Inception* ASISA General Equity Category 0% 1% 2% 3% 4% 5% 6% 7% 8% Fairtree Equity Prescient A1 Anchor BCI Equity A Aylett Equity Prescient A1 Momentum MoM Macro Growth B1 Matrix Novare Equity Fund Momentum MoM Emerg Mgr Growth F1 Satrix Momentum Index A1 Sygnia Divi Index A Satrix Dividend Plus Index A1 Investec Equity A Marriott Dividend Growth R Momentum MoM Ultra Long-Term Value B4 ClucasGray Equity Prescient A1 Bridge Equity Income Growth A 36ONE BCI Equity A Laurium Equity Prescient A1 PSG Equity A Prime General Equity B Sygnia Active Equity A Counterpoint SCI Dividend Equity R FTSE/JSE All Share SWIX TR Kagiso Islamic Equity A Allan Gray Equity A Truffle SCI General Equity A 27four Shari'ah Active Eq. Prescient A1 4.54% 6.54% Ranked 5 th out of 123 funds *This fund was run as a segregated mandate from 1 June 2014 to 30 November The Matrix Novare Equity Fund was launched on 1 December 2015 with a similar mandate to the segregated account. The source of return data for the initial 18 month period is therefore Matrix Fund Managers. Performance from 1 June December 2018 Source: Morningstar, Matrix 13

14 Bond CIS Fund vs Peers Since Inception ASISA IB Variable Term Category 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Investec Corporate Bond Z Allan Gray Bond A Coronation Bond R ABSA Bond A Momentum MoM Managed Bond B1 Momentum MoM Active Bond B1 Sanlam Select Bond Plus Fund* STANLIB Bond R Beassa ALBI TR Oasis Bond A Nedgroup Inv Core Bond A ABSA Multi-Managed Bond A Community Growth Gilt AF Investments Pure Fixed Interest A Investec Gilt A Citadel SA Bond H4 B1 SIM Bond Plus R Satrix Bond Index A1 Momentum Bond B7 Average Old Mutual Bond R SMM Yield Plus B8 STANLIB Prudential Bond A Prudential High Yield Bond A PIC MET Bond A 8.08% 7.89% Ranked 7 th out of 27 funds Performance from 1 June December 2018 Source: Morningstar, Matrix 14

15 Regulatory Requirements Mandatory Disclosures Collective Investment Schemes (unit trusts) are generally medium to long-term investments. Past performance is not necessarily a guide to future performance. The manager does not provide any guarantee in respect to the capital or the return of the portfolio. The performance figures given show the yield calculated on a Net Asset Value ( NAV ) basis. The NAV is the total value of all the assets in the portfolio including any income accruals and less any permissible deductions (brokerage, STT, VAT, auditor s fees, bank charges, administration fees, trustee and custodian fees, the annual management fee and other transaction fees) from the portfolio divided by the number of participatory interests (units) in issue. Individual investor performance may differ as a result of initial fees, time of entry/actual investment date, date of reinvestment, and dividends withholding tax. Collective investments are traded at ruling prices and can engage in scrip lending and borrowing. Forward pricing is used. Excessive withdrawals from the portfolio may place the portfolio under liquidity pressures and a process of ring-fencing of withdrawal instructions and managed pay-outs over time may be followed. The Manager retains full legal responsibility for any portfolio hosted on its CIS platform. The value of an investment is dependent on numerous factors which may include, but not limited to, share price fluctuations, interest and exchange rates and other economic factors. Where foreign securities are included in a portfolio there may be potential constraints on liquidity and the repatriation of funds, macroeconomic risk, political risk, currency risk, tax risk, settlement risks and potential limitations on the availability of market information. As a result the value per unit may go up or down, however, our robust investment process takes these factors into account. Additional information, including but not limited to; how we treat our investors (TCF), key investor information documents, minimum disclosure documents (MDD), conflict of interest management policy, as well as other information relating to the portfolios, including the basis on which the manager undertakes to repurchase participatory interests offered to it, and the basis on which selling and repurchase prices will be calculated, aswell asa detailed description of how performance fees are calculated and applied, is available on request from the Manager and on the Manager s website. Website: Disclaimer matrixfundmanagers.co.za matrixfundmanagers/funds This presentation is a private publication intended for private circulation and may not be distributed to any persons other than the intended recipients. It is for information purposes only and should not be seen as a legal offer document. It is the responsibility of any person in possession of this document to inform themselves of, and observe, any applicable laws and regulations of the relevant jurisdiction. Matrix Fund Managers is approved by the Financial Sector Conduct Authority (previously; the South African Financial Services Board) as a hedge fund investment manager (Financial Advisory and Intermediary Services Act Category I, II & IIA licence, FSP Registration No ). During 2016 the Matrix hedge funds converted from being unregulated investment funds to regulated Collective Investment Schemes in Hedge Funds in terms of the Collective Investment Schemes Control Act and Board Notice 52 of Matrix Fund Managers has entered into a co-naming agreement with Novare CIS (RF), a regulated Collective Investment Scheme Management Company whereby the Matrix hedge funds are administered by Novare CIS. Performance numbers are historical, the value of all investments and the income there from can go down as well as up, and as such the past is not necessarily a guide to future performance. The performance and risk statistics contained herein are net of fees. Historical performance numbers will include performance from the periods when the relevant fund was an unregulated hedge fund. Further detail about the relevant conversion dates can be requested from Matrix Fund Managers. Matrix Fund Managers. Authorised Financial Services Provider. 15

16 Thank you Eben Karsten T +27 (0) C +27 (0) eben@matrixfm.co.za matrixfundmanagers.co.za