New Road BCI Managed
Fund of Funds
The New Road BCI Managed FoF aims to provide the longer term, more aggressive investor with a well-diversified, multi-asset investment. 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.
This fund falls within the following ASISA category:
SA Multi-Asset High Equity
Objectives
Benchmark:
ASISA SA Multi-Asset High Equity category average
Target Return:
South African Inflation (CPI) + 5% over a rolling 7-year term
Objectives
Benchmark:
ASISA SA Multi-Asset High Equity category average
Target Return:
South African Inflation (CPI) + 5% over a rolling 7-year term
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.
- Apply a building block approach to asset allocation to maintain strict control of the asset exposures.
- Use predominantly active solutions to construct the income components of the fund, while local and offshore equity components are constructed using low-cost passive solutions to gain broad market exposure.
- A portion of the fund will be exposed to actively selected growth themes.
- Ensure that the fund complies with Regulation 28.