New Road BCI Enhanced Opportunities Fund

New Road BCI Enhanced
Opportunities Fund

The New Road BCI Enhanced Opportunities Fund aims to provide the longer term, more aggressive investor with a cost-effective, multi-asset investment placing more emphasis on absolute growth while remaining diversified. With this fund, the investor might experience higher short-term volatility; however, the focus is on long-term capital growth, with a smaller proportion dedicated to income.

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This fund falls within the following ASISA category:
SA Multi-Asset High Equity

Objectives

Benchmark:
ASISA SA Multi-Asset High Equity category average

Objectives

Benchmark:
ASISA SA Multi-Asset High Equity category average

Strategy

The strategies we employ to achieve the above objectives are:

  • Limit the fund’s total equity exposure to a maximum of 75% of the portfolio’s net asset value, with listed property (limited to 25%) and income instruments comprising the balance. (The income component is used to achieve a more stable return profile, because of the yield opportunities on these instruments, while the equity component is used to achieve longer-term capital growth and dividends.)
  • Maintain exposure to both local and offshore instruments, with global allocation forming a maximum of 45% of the portfolio’s net asset value. (We use our foreign investment allowance to obtain global exposure.)
  • Apply a building block approach to asset allocation to maintain strict control of the asset exposures.
  • Take great care in choosing cost-effective solutions for portfolio constituents, from low-cost ETF exposure to strategic indexation partnerships to bring down overall fees.
  • Actively allocate a significant portion of the fund’s equity exposure toward high-growth industries aimed at achieving excess capital growth based on global themes we believe have the most potential.
  • Ensure that the fund complies with Regulation 28