RMB Moderate Fusion Fund

Fusion series
RMB Moderate Fusion Fund
Minimum disclosure document (fact sheet) for 30 April 2016
Yusuf Wadee
Investment objective
A medium risk fund that provides investors with access to a wide range of asset classes and
aims to deliver capital growth over the medium-term.
Product Manager
BEconSc,
BSc (Hons)
Investment strategy
The Fund follows a multi-asset allocation strategy, investing in both local and offshore assets.
It provides exposure to each asset class using indices/passive investing - the allocation between
asset classes is based on the tactical asset allocation parameters as set out below. The asset class
combination for the RMB Moderate Fusion Fund is considered to be appropriate for investors
with a medium appetite for risk.
Return objective
Historical performance
CPI + 3.5% over a rolling
5-year period
Annual
0.46% (excl VAT)
management fees
Total expense
0.78%
ratio
Launch date
June 2014
RMB Moderate Fusion total return performance since inception
RMB Moderate Fusion
South African - Multi Asset - Medium Equity sector average
111
101
91
Key index facts
Net asset value
10.91
Fund size
R38,547,460.78
Last distribution
0.1623
Denomination
Rand
ASISA
classification
South African - Multi Asset
- Medium Equity
Regulatory facts
Jul-14
Jan-15
Jul-15
Jan-16
Apr-16
Source: Bloomberg, RMB
Cumulative performance
Cumulative/Quarterly fund performance*
Management
company
RMB CIS MANCO (RF)
(Proprietary) Limited, PO
Box 786273, Sandton,
2146
Trustee
Standard Chartered Bank
Distributions
Quarterly: Beginning Apr,
Jul, Oct and Jan
Liquidity
Daily
Domicile
South Africa
RMB Moderate Fusion Fund
South African - Multi Asset - Medium Equity sector average
3-month
5.63%
1.82%
6-month
6.36%
5.21%
Regulation 28
Compliant
1-year
6.46%
5.09%
JSE code
RMMA
Denomination
Rand
ISIN
ZAE000186656
Note:
* Returns include the re-investment of distributions and are net of fees
Source: Bloomberg, RMB
Portfolio composition
RMB Moderate Fusion Top Strategic Asset Class Weights
SA equity
SA bonds
SA property
SA cash
SA inflation-linked bonds
Global equity
Global bonds
Source: Bloomberg, RMB
40%
21.5%
9%
7.5%
8%
6.5%
7.5%
RMB Moderate Fusion top 10 holdings % of Portfolio
Cash
9.00%
BGIF World Bond Index Fund
6.99%
BGIF World Equity Index Fund
6.14%
R186
4.97%
BHP Billiton plc
2.91%
Naspers Ltd -N2.52%
R2048
2.45%
SABMiller plc
2.30%
Compagnie Fin Richemon
2.29%
R2030
2.06%
Source: Bloomberg, RMB
Product profile
Balanced
Contact details
For more information please contact
• Your financial advisor
• www.rmb.co.za
• (+27) (0) 860 274 287
• [email protected]
• [email protected]
• Follow us on Twitter @RMB_GM
Please refer to the disclaimer overleaf
Rand Merchant Bank is an authorised financial service provider
Tactical asset allocation parameters
Asset class
Description
Lower limit
Upper limit
SA equity
RMB Top 60 Capped Index
35.0%
45.0%
SA bonds
Government Nominal Bond Price Index
17.0%
27.0%
SA property
FTSE/JSE SA Listed Property Index
7.5%
12.5%
SA cash
Cash and cash equivalents
5.5%
9.5%
SA ILB
Government Inflation-Linked Bond Price Index
6.0%
10.0%
Global equity
MSCI World Index
3.5%
6.5%
Global bonds
Citigroup World Government Bond Index
5.5%
9.5%
Asset allocation update
During the 1st quarter of 2016 the portfolio asset allocation was changed. South African Equity was down-weighted from 40.0% to 38.5% and the South
African Cash exposure up-weighted from 7.5% to 9.0%. These changes were made effective in April 2016.
Product profile key
Conservative product profile
This product is suitable if you wish to protect your investment portfolio and aim to generate returns in excess of inflation over time. As a
conservative investor, your risk tolerance ranges from low to moderate.
Balanced product profile
This product is suitable if you are looking for an asset allocation and management method aimed at balancing your risk and return.
These investments carry more risk than those aimed at capital preservation or current income and are therefore suitable if you have a
longer time horizon plus a degree of risk tolerance.
Growth product profile
This product is suitable for you if you are seeking assets with ‘good growth potential’. These investments may be volatile and deliver
negative returns at times, but would be suitable if you have a longer time horizon and a higher risk tolerance than investors who invest
in a balanced investment product.
Aggressive growth product profile
This is suitable if you expect very high capital growth by taking very high risk. These investments are sometimes viewed as being
speculative and you would need to have a much higher risk tolerance than those investing in conservative, balanced or growth products.
The higher risk profile of these products means that you may be subject to value fluctuations, including the loss of your invested capital.
Definitions
NAV (net asset value):
This is the total value of assets in the portfolio less any liabilities, divided by the number of shares outstanding.
Index:
In the case of financial markets, an index is a theoretical portfolio of assets representing a particular market or a
portion of it. Each index has its own calculation methodology and is usually expressed in terms of a change from a
base value. Thus, the percentage change is more important than the actual numeric value.
CPI (consumer price index):
The consumer price index in South Africa is the South African Reserve Bank’s official measure of inflation. It measures
the change in the price level of consumer goods and services bought by households.
Tactical parameters:
These define the extent to which each asset class may be adjusted as per the fund mandate on a biannual basis.
Disclaimer
RMB CIS MANCO (RF) (Pty) Ltd (Reg No 2006/036970/07) (“RMB Manco”) is an approved collective investment schemes manager of the RMB Funds Collective Investment Scheme
(“RMB Funds CIS”). RMB Manco is regulated by the Financial Services Board and is a full member of the Association for Savings and Investment SA (ASISA).
This document and any other information supplied in connection with the RMB Funds CIS is not “advice” as defined and/or contemplated in terms of the FAIS Act, 37 of 2002
and investors are encouraged to obtain their own independent advice prior to buying participatory interests in CIS portfolios issued under the RMB Funds CIS. Any investment is
speculative and involves significant risks and therefore, prior to investing, investors should fully understand the portfolios and any risks associated with them.
CIS in securities are generally medium to long term investments. In the event a potential investor requires material risks disclosures for the foreign securities included in a portfolio,
the manager will upon request provide such potential investor with a document outlining: potential constraints on liquidity & repatriation of funds; Macroeconomics risk; Political risk;
Foreign Exchange risk; Tax risk; Settlement risk; and Potential limitations on the availability of market information.
The value of participatory interests may go down as well as up and past performance is not necessarily indicative of future performance. Forward pricing is used and portfolio
valuations take place at approximately 17h00 (14h00 for money market funds.) each business day (17h00 at month and quarter end). Instructions to redeem or repurchase must
reach RMB Manco before 14h00 (11h00 for money market funds) to ensure same day value. For money market and short term debt portfolios the price of each participatory interest
is aimed at a constant value. While a constant price is maintained the investment capital or the return of a portfolio is not guaranteed. The total return to the investor is primarily
made up of interest received but may also include any gain or loss made on any particular instrument. In most cases this will merely have the effect of increasing or decreasing the
daily yield, but in extreme case, e.g. defaults by underlying issuers, it can have the effect of reducing the capital value of the portfolio. The yield is calculated using an annualised
seven day rolling average as at the last business day of the given month. Excessive withdrawals from the portfolio may place the portfolio under liquidity pressures. In such
circumstances a process of ring-fencing of withdrawal instructions and managed pay-outs over time may be followed. For bond and income portfolios, this is a historic/current yield as
at the last business day of the given month.
CIS portfolios are traded at ruling prices and can engage in borrowing and scrip lending. Fluctuations or movements in exchange rates may cause the value of underlying investments
to go up or down. A CIS portfolio may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Participatory interests are calculated on a net asset
value (NAV) basis, which is the total market value of all assets in the portfolio including any income accruals and less any permissible deductions from the CIS portfolio divided by the
number if participatory interests in issue. All fees quoted exclude VAT except where stated differently.
The Total Expense Ratio (TER) is expressed as an annualised percentage of the charges, levies and fees incurred by the portfolio related to its management, for the period under review
against the average NAV of the portfolio over this period. A higher TER does not necessarily imply a poor return, nor does a lower TER imply a good return. The current TER cannot
be regarded as an indication of future TERs. A full detailed schedule of fees, charges and commissions is available from RMB Manco on request and incentives may be paid and if so,
would be included in the overall costs.