SYGNIA PERFORMANCE MARCH EDITION 01 SYGNIA CONTINUES TO DELIVER TOP PERFORMANCE

Transcription

1 SYGNIA PERFORMANCE MARCH EDITION 01 SYGNIA CONTINUES TO DELIVER TOP PERFORMANCE 2015 saw the tail-end of an extraordinary bull market which started after the co-ordinated relaxation of monetary policies following the global financial crisis in The volatility in equity markets increased markedly from June 2015 when Greece unsettled sentiment and China battled its free-falling stock market, and continued for the remainder of the year. We are thus very pleased that our investment team successfully steered Sygnia s multi-manager and fund of hedge funds products through the stormy waters of 2015, delivering outstanding returns for clients. The most pleasing aspect of that performance was that it was achieved with very little risk being taken. In fact, the outperformance was mostly derived from two sources: SUPERIOR MANAGER SELECTION Our investment team has, for a long time, maintained that despite it being difficult for active managers as a group to outperform market benchmarks, there will always be a number of active managers that are able to achieve this on a reasonably consistent basis. However, these managers tend to be less well known, manage smaller pools of assets, have a risk-management mind-set that is quite different from the larger brand name asset management houses, and they are more adaptable to changing market conditions. Identifying, monitoring and managing these asset managers requires significant research effort and insight. It is also our core belief that when deciding on the implementation of actively- versus passively-managed portfolios there is a strong case to be made for using both, and that one can get to a better overall result by blending these two management philosophies together to various degrees at different points in the investment cycle. EXPERT TACTICAL ASSET ALLOCATION Tactical Asset Allocation (TAA) involves taking decisions which deliberately deviate from a product s long-term Strategic Asset Allocation (SAA) position in order to capitalise on the shorter term prospects for each asset class given the prevailing market conditions. TAA includes taking active overweight or underweight positions in asset classes (inter-asset class TAA) and actively tilting asset classes towards or away from particular sectors or themes (intra-asset class TAA). Although 2016 is likely to be a very challenging year for all asset managers, we are determined to manage our strategies with a risk-focused mindset. Diversification, sensible decision making and maximum offshore exposure, for the foreseeable future, are some of the features of our strategy. We would also like to take this opportunity to thank all of our clients for their loyal support over many years. SIMON PEILE HEAD: INVESTMENTS SYGNIA LIMITED 1

2 PERFORMANCE We would like to share with you how our funds stood up relative to their peers in various surveys over the period. ASISA CATEGORY - SOUTH AFRICAN - MULTI ASSET - LOW EQUITY* 1 YEAR Allan Gray Stable Fund 13.7% Investec Cautious Managed Fund 11.5% SIM Low Equity Fund 11.0% SIM Inflation Plus Fund 10.9% NFB ACi Cautious FoF 10.9% Nedgroup Investments Stable Fund 10.9% Ampersand Momentum CPI Plus 2 FoF 10.9% Personal Trust Conservative Managed Fund 10.8% Sygnia CPI + 2% 10.7% Sygnia Skeleton Balanced 40 Fund 10.1% Analytics ACi Cautious FoF 9.7% Investment Solutions Stable FoF 9.6% Discovery Cautious Balanced Fund 9.5% Kruger STANLIB Prudential FOF 9.2% Sanlam Select Defensive Balanced Fund 8.9% STANLIB Balanced Cautious Fund 8.8% PPS Conservative FoF 8.7% ACi Diversified Income Fund 8.7% Prudential Inflation Plus Fund 8.7% PSG Konsult Preserver FoF 8.3% APS ACi Managed Growth FoF 8.3% NGI Private Wealth Defensive FoF 8.2% FG IP Venus Cautious FoF 8.2% Sanlam Multi Managed Defensive FoF 8.2% Coronation Balanced Defensive Fund 8.1% Noble PP STANLIB Strategic Income FoF 8.1% NFP Stable FoF 7.9% Absa Absolute Fund 7.8% BCI Stable FoF 3B1 7.7% Naviga BCI Secure Growth FoF 7.6% Celtis BCI Conservative FoF 7.4% Old Mutual Stable Growth Fund 7.2% Amity BCI Conserver FoF 7.1% Dynasty ACi Wealth Preserver FoF 7.0% PSG Stable Fund 7.0% S-BRO BCI Defensive FoF 6.7% Sanlam Select Absolute Fund 6.7% Absa Multi Managed Wealth Protection FoF 6.5% STANLIB Multi-Manager Low Equity FoF 6.5% Allan Gray Optimal Fund 6.4% Momentum Conservative Fund 5.8% STANLIB Balanced Trustees FoF 5.8% Absa Multi Managed Wealth Preservation FoF 5.8% Old Mutual Real Income Fund 5.8% STANLIB Conservative FoF 5.3% PPS Institutional Multi Asst Low Equity Fund 5.2% STANLIB Moderately Conservative FoF 4.2% Absa Inflation Beater Fund 3.7% Old Mutual Capital Builder Fund 2.0% Third Circle MET Defensive FoF -4.7% SYGNIA INVESTMENT NOTE

3 ASISA CATEGORY - SOUTH AFRICAN - MULTI ASSET - LOW EQUITY* 2 YEAR Personal Trust Conservative Managed Fund 11.0% Sanlam Select Absolute Fund 10.6% Sygnia CPI + 2% 10.4% NFB ACi Cautious FoF 10.3% Prudential Inflation Plus Fund 10.2% Allan Gray Stable Fund 10.1% Ampersand Momentum CPI Plus 2 FoF 9.9% SIM Low Equity Fund 9.8% SIM Inflation Plus Fund 9.7% Investec Cautious Managed Fund 9.6% Nedgroup Investments Stable Fund 9.6% Allan Gray Optimal Fund 9.4% NGI Private Wealth Defensive FoF 9.2% Investment Solutions Stable FoF 9.2% Discovery Cautious Balanced Fund 9.1% Kruger STANLIB Prudential FOF 9.1% FG IP Venus Cautious FoF 9.0% PPS Conservative FoF 8.8% Absa Absolute Fund 8.8% Coronation Balanced Defensive Fund 8.5% BCI Stable FoF 3B1 8.4% NFP Stable FoF 8.3% PSG Konsult Preserver FoF 8.3% STANLIB Balanced Cautious Fund 8.2% Analytics ACi Cautious FoF 8.2% Celtis BCI Conservative FoF 8.2% Old Mutual Stable Growth Fund 7.8% Noble PP STANLIB Strategic Income FoF 7.8% S-BRO BCI Defensive FoF 7.7% Amity BCI Conserver FoF 7.7% Dynasty ACi Wealth Preserver FoF 7.7% Naviga BCI Secure Growth FoF 7.6% STANLIB Multi-Manager Low Equity FoF 7.6% Sanlam Multi Managed Defensive FoF 7.4% Momentum Conservative Fund 7.3% Sanlam Select Defensive Balanced Fund 7.2% PSG Stable Fund 7.2% Absa Multi Managed Wealth Protection FoF 7.0% Absa Multi Managed Wealth Preservation FoF 7.0% Old Mutual Real Income Fund 6.7% STANLIB Conservative FoF 6.3% Absa Inflation Beater Fund 5.9% STANLIB Balanced Trustees FoF 5.9% STANLIB Moderately Conservative FoF 5.6% Old Mutual Capital Builder Fund 4.0% Third Circle MET Defensive FoF 1.2% SYGNIA INVESTMENT NOTE

4 ASISA CATEGORY - SOUTH AFRICAN - MULTI ASSET - MEDIUM EQUITY* 1 YEAR Sygnia CPI + 4% 11.5% Platinum MET Balanced Prudential FoF 11.2% 27four Balanced Prescient FoF 10.7% FG IP Saturn Flexible FoF 10.4% Sygnia Skeleton Balanced 60 Fund 10.0% Ampersand Momentum CPI Plus 4 FoF 9.9% Old Mutual Albaraka Balanced Fund 9.4% Sanlam Multi Managed Absolute Solution 5 FoF 9.4% Foord Conservative Fund 9.2% APS ACi Moderate FoF 9.0% Analytics ACi Moderate FoF 8.9% Ci Cautious Fund 8.7% NGI Private Wealth Balanced FoF 8.6% PPS Moderate FoF 7.8% Noble PP STANLIB Balanced FoF 7.7% Select Manager BCI Prudential FoF 7.6% Momentum Factor 5 FoF 7.5% Old Mutual Dynamic Floor Fund 7.4% AS Forum BCI Moderate FoF 7.0% Absa Balanced Fund 6.6% ADB BCI Balanced FoF 6.5% Amity BCI Prudent FoF 6.4% Old Mutual Multi-Managers Defensive FoF 6.3% S-BRO BCI Balanced FoF 6.3% Kruger STANLIB Balanced FOF 6.1% STANLIB Inflation Plus 3% Fund 6.0% Absa Multi Managed Wealth Accumulation FoF 5.4% STANLIB Multi-Manager Medium Equity FoF 5.4% Coronation Capital Plus Fund 4.6% GTC Balanced Wealth FoF 4.6% Absa Multi Managed Wealth Creation FoF 4.5% Prescient Positive Return QuantPlus Fund 4.4% Nedgroup Investments Opportunity Fund 4.3% STANLIB Moderate FoF 3.4% Oasis Crescent Balanced Progressive FoF 1.7% Ashburton Defensive Fund 0.9% SYGNIA INVESTMENT NOTE

5 ASISA CATEGORY - SOUTH AFRICAN - MULTI ASSET - MEDIUM EQUITY* 2 YEAR Sygnia CPI + 4% 11.6% Platinum MET Balanced Prudential FoF 11.1% Sanlam Multi Managed Absolute Solution 5 FoF 10.4% NGI Private Wealth Balanced FoF 10.3% FG IP Saturn Flexible FoF 10.0% APS ACi Moderate FoF 10.0% Ampersand Momentum CPI Plus 4 FoF 9.4% Nedgroup Investments Opportunity Fund 9.4% S-BRO BCI Balanced FoF 8.7% Momentum Factor 5 FoF 8.6% Old Mutual Albaraka Balanced Fund 8.6% PPS Moderate FoF 8.4% Analytics ACi Moderate FoF 8.4% Noble PP STANLIB Balanced FoF 8.4% Kruger STANLIB Balanced FOF 8.1% AS Forum BCI Moderate FoF 8.0% ADB BCI Balanced FoF 7.9% Select Manager BCI Prudential FoF 7.7% STANLIB Multi-Manager Medium Equity FoF 7.5% Old Mutual Dynamic Floor Fund 7.2% Absa Balanced Fund 7.2% Old Mutual Multi-Managers Defensive FoF 7.2% Absa Multi Managed Wealth Accumulation FoF 7.1% STANLIB Inflation Plus 3% Fund 7.0% Amity BCI Prudent FoF 6.9% Absa Multi Managed Wealth Creation FoF 6.7% Coronation Capital Plus Fund 6.3% GTC Balanced Wealth FoF 5.2% Prescient Positive Return QuantPlus Fund 5.0% STANLIB Moderate FoF 4.7% Oasis Crescent Balanced Progressive FoF 4.5% Ashburton Defensive Fund 4.3% SYGNIA INVESTMENT NOTE

6 ASISA CATEGORY - SOUTH AFRICAN - MULTI ASSET - HIGH EQUITY* 1 YEAR Truffle MET Balanced Fund 17.8% Rezco Managed Plus Fund 17.0% Investec Managed Fund 16.8% Rezco Value Trend Fund 15.5% Investec Opportunity Fund 13.5% Discovery Balanced Fund 12.9% Allan Gray Balanced Fund 12.3% Sygnia CPI + 6% 11.8% Prescient Living Planet Fund 11.7% Personal Trust Managed Fund 11.3% Obsidian SCI Balanced Fund 10.9% NFB ACi Balanced FoF 10.8% Seed Balanced Fund 10.8% Sanlam Multi Managed Balanced FoF 10.1% Sygnia Skeleton Balanced 70 Fund 10.0% Southern Charter BCI Growth FoF 9.8% Momentum Balanced Fund 9.7% Investment Solutions Multi-Manager Balanced FoF 9.7% Graviton SCI Balanced Fund 9.6% Sanlam Multi Managed Moderate Aggressive FoF 9.4% Momentum Best Blend Balanced FoF 9.3% Skyblue BCI Cumulus Moderate FoF 9.2% Ci Managed Fund 9.2% Foord Balanced Fund 9.1% 4D BCI Moderate FoF 9.1% Brackenham SCI Managed Fund 9.1% Investment Solutions Performer Managed Unit Trust 9.1% Marriott Prudential FoF 9.0% BCI Prudential FoF 8.9% Select Manager BCI Flexible Growth FoF 8.9% STANLIB Multi-Manager Balanced Fund 8.8% Prudential Balanced Fund 8.4% Analytics ACi Balanced FoF 8.2% Momentum Factor 7 FoF 8.2% Coronation Balanced Plus Fund 8.1% APS ACi Managed Growth FoF 8.0% Sanlam Select Managed Fund 7.8% PSG Multi-Management Balanced FoF 7.8% Absa Managed Fund 7.3% Centaur BCI Balanced Fund 7.3% Warwick MET Managed Fund 7.3% NFP Balanced FoF 7.2% Old Mutual Balanced Fund 7.2% PSG Konsult Moderate FoF 7.1% STANLIB Balanced Fund 6.8% Old Mutual Multi-Managers Balanced FoF 6.7% STANLIB Inflation Plus 5% Fund 6.6% PPS Balanced FoF 6.4% STANLIB Absolute Plus Fund 5.9% SIM Balanced Fund 5.2% Naviga BCI Balanced Growth FoF 5.1% PSG Balanced Fund 5.0% GTC Prosperity Wealth FoF 4.4% Satrix Balanced Index Fund 4.3% Oasis Balanced Unitrust Fund 4.3% Grindrod Managed Growth Fund 3.0% Investment Solutions Real Return Unit Trust Fund 2.5% Oasis Crescent Balanced High Equity Fund 0.1% Nedgroup Investments Managed Fund -22.4% SYGNIA INVESTMENT NOTE

7 ASISA CATEGORY - SOUTH AFRICAN - MULTI ASSET - HIGH EQUITY* 2 YEAR Truffle MET Balanced Fund 17.1% Rezco Managed Plus Fund 13.6% Centaur BCI Balanced Fund 13.3% Discovery Balanced Fund 12.4% Rezco Value Trend Fund 12.4% Investec Managed Fund 12.1% Sygnia CPI + 6% 12.0% Obsidian SCI Balanced Fund 12.0% Personal Trust Managed Fund 11.9% Seed Balanced Fund 11.8% Sygnia Skeleton Balanced 70 Fund 11.1% Momentum Best Blend Balanced FoF 10.8% Investec Opportunity Fund 10.7% NFB ACi Balanced FoF 10.7% Allan Gray Balanced Fund 10.6% Grindrod Managed Growth Fund 10.4% Sanlam Multi Managed Balanced FoF 10.4% Graviton SCI Balanced Fund 10.3% Investment Solutions Performer Managed Unit Trust 10.3% Prescient Living Planet Fund 10.3% Marriott Prudential FoF 10.2% Prudential Balanced Fund 10.0% BCI Prudential FoF 9.9% Momentum Factor 7 FoF 9.8% Investment Solutions Multi-Manager Balanced FoF 9.6% Foord Balanced Fund 9.6% Sanlam Multi Managed Moderate Aggressive FoF 9.6% Southern Charter BCI Growth FoF 9.5% Coronation Balanced Plus Fund 9.5% APS ACi Managed Growth FoF 9.3% PSG Multi-Management Balanced FoF 9.1% Skyblue BCI Cumulus Moderate FoF 8.9% Momentum Balanced Fund 8.9% 4D BCI Moderate FoF 8.8% STANLIB Multi-Manager Balanced Fund 8.8% Brackenham SCI Managed Fund 8.7% PSG Konsult Moderate FoF 8.5% Old Mutual Balanced Fund 8.5% Select Manager BCI Flexible Growth FoF 8.3% Warwick MET Managed Fund 8.2% Satrix Balanced Index Fund 8.2% Analytics ACi Balanced FoF 8.2% PSG Balanced Fund 8.1% Absa Managed Fund 8.0% PPS Balanced FoF 7.6% SIM Balanced Fund 7.5% Oasis Balanced Unitrust Fund 7.1% Sanlam Select Managed Fund 7.1% STANLIB Balanced Fund 7.0% STANLIB Absolute Plus Fund 7.0% Old Mutual Multi-Managers Balanced FoF 6.9% NFP Balanced FoF 6.8% Naviga BCI Balanced Growth FoF 6.7% GTC Prosperity Wealth FoF 6.0% Investment Solutions Real Return Unit Trust Fund 5.8% STANLIB Inflation Plus 5% Fund 5.4% Oasis Crescent Balanced High Equity Fund 3.5% Nedgroup Investments Managed Fund -13.5% SYGNIA INVESTMENT NOTE

8 TWO YEAR RISK - RETURN SCATTERPLOT TO 31 DECEMBER % 16.0% 14.0% SYGNIA CPI + 6% RETURN 12.0% 10.0% 8.0% SYGNIA CPI + 2% SYGNIA CPI + 4% SYGNIA SKELETON BALANCED % 4.0% 2.0% 0.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% RISK (STANDARD DEVIATION) SYGNIA S SHOWCASE INSTITUTIONAL PRODUCTS ALEXANDER FORBES GLOBAL LARGE MANAGER WATCH SURVEY TO 31 DECEMBER 2015** 1 YEAR Investec 15.4% Sygnia Signature % Allan Gray 12.8% Sygnia Skeleton % Momentum 12.1% Foord 10.5% Coronation 8.9% Prudential 8.8% OMIGSA 8.5% Absa 8.3% Stanlib 8.2% SIM 6.5% Oasis 5.7% RE:CM -19.3% 3 YEAR Sygnia Signature % Investec 17.4% Coronation 16.3% Sygnia Skeleton % Allan Gray 15.9% Foord 15.0% Prudential 14.9% Momentum 14.5% OMIGSA 13.7% Oasis 13.7% Stanlib 13.2% SIM 13.0% Absa 12.2% RE:CM -1.2% 5 YEAR Sygnia Signature % Foord 16.3% Sygnia Skeleton % Investec 16.0% Coronation 15.7% Prudential 15.2% Allan Gray 15.1% Stanlib 14.6% Oasis 14.2% Momentum 14.1% OMIGSA 13.7% SIM 13.3% RE:CM 2.6% SYGNIA INVESTMENT NOTE

9 SYGNIA FUND OF HEDGE FUNDS RISK STATISTICS: 10 YEARS TO 31 DECEMBER STATISTICS ABSOLUTE FOHFS SIGNATURE FOHFS ALL STAR FOHFS ALSI INDEX ALBI INDEX PERFORMANCE: 1 YEAR 14.9% 15.7% 18.0% 5.1% -3.9% PERFORMANCE: 3 YEARS 13.3% 15.0% 17.7% 12.3% 2.1% PERFORMANCE: 10 YEARS 12.1% 13.5% 16.6% 14.1% 7.0% STANDARD DEVIATION 3.0% 4.6% 6.1% 15.5% 7.3% % MONTHS DOWN 8.3% 15.8% 20.0% 36.7% 34.2% % MONTHS UP 91.7% 84.2% 80.0% 63.3% 65.8% BEST MONTH 3.1% 5.1% 7.0% 12.5% 8.5% WORST MONTH -1.7% -3.8% -5.3% -13.2% -6.7% AVERAGE NEGATIVE MONTH -0.7% -1.0% -1.0% -3.3% -1.4% MAX DRAWDOWN -2.1% -5.3% -8.4% -40.4% -9.8% SHARPE RATIO SORTINO RATIO *Source: Money mate, funds with assets under management of less than R500m excluded Note: All unit trust returns are net of fees **Source: Alexander Forbes Research and Product Development and fund fact sheets Note: All institutional returns are gross of fees CAPE TOWN 7th Floor, The Foundry Cardiff Street, Green Point 8001, South Africa T: +27(0) F: +27(0) E: info@sygnia.co.za JOHANNESBURG Unit 40, 6th Floor Katherine and West building West Street, Sandton, 2196 T: +27 (0) F: +27 (0) E: info@sygnia.co.za DISCLAIMER: All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an adviser or in a fiduciary capacity. No one should act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation. We endeavour to provide accurate and timely information but we make no representation or warranty, express or implied, with respect to the correctness, accuracy or completeness of the information and opinions. We do not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate. Any representation or opinion is provided for information purposes only. SYGNIA INVESTMENT NOTE