how to read a fund factsheet - liberty

How to read a

FUND FACTSHEET

WHAT IS THE MAIN OBJECTIVE OF THE PORTFOLIO AND HOW HAS IT BEEN CONSTRUCTED?

WHAT TYPE OF INVESTOR SHOULD INVEST IN THIS PORTFOLIO AND WHAT LEVEL OF RISK WOULD THEY BE EXPOSED TO

WHAT ARE SOME OF THE COSTS ASSOCIATED WITH THIS PORTFOLIO? I.e. costs borne by the portfolio and not fees paid by the customer. FAQ Methodology attached.

AND NOW FOR PERFORMANCE. How has the portfolio performed in absolute terms and relative to its mandated benchmark and/or local inflation.

As at 30 September 2019

ADVICE INSURE INVEST Please refer to Disclosures for important information relating to the content of this document.

Liberty Group Ltd is a registered Long-Term Insurer and an Authorised Financial Services Provider (FAIS FSP no. 2409). of 3

Excelsior Aggressive Portfolio

General information Portfolio manager(s) Herman van Velze Asset manager(s) STANLIB Asset Management Benchmark

90% FTSE/JSE Capped Shareholder Weighted All Share Index, 10% JSE All Bond Composite Index (ALBI)

Portfolio size R 913.97 million Launch date 10 June 2002 Regulation 28 Non-compliant Guarantee available Yes - Optional Guarantee(s) available on

selected products.

Cost ratios Annualised (including VAT) as at 31 December 2018

Based on period from 01 January 2016 Total Expense (TER) 0.08% Transaction Costs (TC) 0.20% Total Investment Charge (TIC) 0.28%

Portfolio objective The Portfolio aims to produce a risk/return profile consistent with that required by an aggressive investor. Aggressive investors are long-term investors who want high capital growth. Substantial year-to-year fluctuations in value are acceptable in exchange for a potentially high long-term return. This is a local only multi-asset class portfolio and as such does not invest in any offshore assets.

Investor profile This portfolio is suited to the investor who: is looking for a diversified local-only balanced fund has a high risk tolerance is willing to accept significant losses over the short term to

maximise returns over the longer term has an investment horizon of 7-10 years in order to fully achieve

both income and capital growth

Risk profile

Conservative Moderately Conservative Moderate Moderately

Aggressive Aggressive

Performance Cumulative performance (%) over 5 Years

Returns

% YTD 3m 1y 3y 5y 10y Portfolio (RA) 3.18 -5.08 -2.39 -0.30 0.91 8.50 Portfolio (Taxed-I) 2.00 -4.64 -3.09 -1.04 0.11 7.32 Benchmark 2.13 -4.53 -1.08 1.63 4.14 10.86 Inflation 3.15 0.93 4.30 4.67 4.91 5.13

Statistics

Over 10 years Month Year Best % 5.02 1.76

Worst % -4.80 -6.44% Positive 52.94 33.33

Volatility, calculated over a three-year period: 2.71

Holdings Asset allocation (%) Sector allocation (%)

Top 10 equity holdings (%) Naspers Ltd 8.40 Standard Bank Group Ltd 5.80 Beta Equity Associated Instrum 4.90 MTN Group Ltd 4.60 Sanlam Ltd 4.10 Prosus N.V. 4.10 FirstRand Ltd 3.80 BHP Group Plc 3.60 Sasol Ltd 3.40 Bid Corp Ltd 3.10



Liberty Group Ltd is a registered Long-Term Insurer and an Authorised Financial Services Provider (FAIS FSP no. 2409). Page 1 of 3





selected products.







Risk profile




Returns


Statistics


Worst % -4.80 -6.44% Positive 52.94 33.33











selected products.







Risk profile




Returns


Statistics


Worst % -4.80 -6.44% Positive 52.94 33.33











selected products.







Risk profile




Returns


Statistics


Worst % -4.80 -6.44% Positive 52.94 33.33




REMEMBERFigures based on past performance it IS NOT an indication of future performance and DOES NOT account for customer product fees

NEW FEATURE

NEW FEATURE NEW FEATURE NEW FEATURE

REMEMBERFund fact sheets are used to provide valuable information and past performance on investment portfolios. They do not contain informa-tion relating to liberty products and will not exhibit the same returns shown on a rate of return letter or a customer statement. The returns in this document are used as an input into the those documents. The fact sheet contains useful detail on what the manager invests in, the approach taken in managing your/ your customers money and guides you to assess performance by including benchmark information.

WHAT ARE YOU INVESTED IN? All you need to know about asset classes, equity sector allocations, top holdings and country exposures…and who manages the portfolio.

WHAT DOES THE MANAGER SAY? Latest quarterly comments / thoughts / feedback from your manager.

AND FINALLY… HOW TO CONTACT US ON ALL THINGS PORTFOLIOS.

[email protected] www.liberty.co.za








selected products.







Risk profile




Returns


Statistics


Worst % -4.80 -6.44% Positive 52.94 33.33






Liberty Group Ltd is a registered Long-Term Insurer and an Authorised Financial Services Provider (FAIS FSP no. 2409). of 3


Portfolio manager(s)

Herman van Velze BEng (Mining), MBL

STANLIB Asset Management

Head of Equities Herman joined STANLIB in 1995 as a research analyst and a resource portfolio manager. Since then he has held the positions of head of Research, portfolio manager, head of Balanced Fund and he is currently the head of Equities and a member of STANLIB’s investment executive committee. In 2007 Herman joined a private equity company as a deal originator to expand his investment skillset. He later in 2009 re-joined STANLIB as the head of Balanced funds. He oversees a number of portfolio managers and analysts who provide company research and actively pursue investment ideas. Under his leadership, the team reviews and refines opportunities which are considered for the portfolio. Herman holds a bachelor of engineering from the University of Pretoria and a MBL from UNISA.

Commentary as at 30 September 2019 Market review Quarter 3 of 2019 was a tough market for South African investors. SA and Emerging Markets equities have been supported by the Fed’s dovish stance (this should limit further US dollar strength) and selective stimulus by Chinese policymakers, while uncertainty around US-China trade talks has swayed market sentiment. The FTSE/JSE Capped Swix Index declined -5.1%, leading most balanced portfolios to deliver negative returns. The All Bond Index was up only 0.7%, and Cash supplied an underpin of 1.8%. Resources remained the biggest positive contributor to SA performance year to date while the rand depreciated by a disappointing 7.1% against the dollar for the quarter. Fund review The portfolios asset allocation decisions were generally neutral for the quarter, however stock selection within the active equity allocation caused the overall portfolio to underperform over the period. Looking ahead The outlook for 2019 has weakened from a global growth perspective, however a positive feature is the continued lack of inflationary pressure globally, allowing central banks to maintain accommodative monetary policies, which should act as a tailwind for risk assets. The manager expects further monetary easing in Q4 of this year, while lower interest rates and positive developments such as the restructuring and refinancing of Eskom together with further fiscal policy announcements should be mildly positive for growth in the medium term. The manager continues to review the assets in the fund to ensure the optimal outcomes given the risks and constraints within these balanced portfolios. The commentary gives the views of the portfolio manager at the time of writing. Any forecasts or commentary included in this document are not guaranteed to occur.

NEW FEATURE

TER, TC Methodology explained

The Total expense ratio (TER) and the Transaction Costs (TC) are intended to quantify the fees levied (in respect of the underlying assets) from the return prior to it being applied to determine the unit price. They are expressed as a annualised percentage.

In order to determine the TER, the portfolio fees are required these include, among others: performance fees and fixed management fees. Any fees that are levied on underlying instruments held within the portfolio will also need to be taken into account, eg if the portfolio invests into a unit trust. These fees will then be aggregated (based on the actual performance and portfolio composition) to determine an overall figure. Should a portfolio levy shareholder participation, this fee will also need to be quantified and included in the TER.

Please note that we have recently changed this methodology and although some costs may seem different from previously reported figures this has no bearing on actual costs paid by a customer.

Disclaimer: The contents of this document are for generic information purposes only and do not constitute advice or intermediary services as contemplated in the Financial Advisory and Intermediary Services (FAIS) Act 37 of 2002. Whilst every attempt has been made to ensure the accuracy of the information contained herein, Liberty cannot be held responsible for any errors that may be represented. You are requested to consult your own accredited financial adviser prior to making any decisions of a financial nature. Investment performance is generally shown gross of asset management fees, but in certain instances it is shown net of these fees. Performance also includes bonuses proportional for the period under considerations, and makes allowance for implicit charges, where applicable. Performance will depend on the growth in the underlying assets within the portfolio, which will be influenced by inflation levels in the economy and prevailing market conditions. Past performance cannot be relied on as an indication of future performance. Unless stated otherwise, returns can be negative as well as positive. Expected return is after the deduction of tax but before any Liberty charges and fees. No adjustment has been made to the risk profile for the guaranteed version of the portfolio. Liberty may, from time to time, conduct securities lending activities on the assets in this portfolio. All of the risks in respect of these activities will be for Liberty’s shareholders and will not negatively impact on the returns provided to its policyholders.

Liberty Group Limited (reg no 1957/002788/06) is a registered Long-term Insurer and an Authorised Financial Services Provider (FAIS no. 2409).

how to read a fund factsheet - liberty

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