New Road BCI Moderate Fund of Funds

New Road BCI Moderate
Fund of Funds

The New Road BCI Moderate FoF aims to provide the medium to long term investor with a well-diversified, multi-asset investment. With this fund, the investor might experience moderate short-term volatility; however, the focus is on developing a combination of long-term capital growth and income.

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

Objectives

Benchmark:
ASISA SA Multi-Asset Medium Equity category average

Target Return:
South African Inflation (CPI) + 4% over a rolling 5-year term

Objectives

Benchmark:
ASISA SA Multi-Asset Medium Equity category average

Target Return:
South African Inflation (CPI) + 4% over a rolling 5-year term

Strategy

The strategies we employ to achieve the above objectives are:

  • Limit the fund’s total equity exposure to a maximum of 60% 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 43% 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