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Absolute Returns

Protect your capital while earning inflation-beating returns.

Our absolute return portfolios target a range of inflation-plus returns and aim to preserve capital irrespective of market ups and downs. They are most suitable for clients who value:

  • Long-term capital growth;
  • An ability to beat inflation;
  • Downside protection and define risk as loss of capital;
  • More certain outcomes in the form of less volatile and more consistent returns.

The Sanlam Investments single manager absolute return capability is consciously cautious and, when the time is right, strategically bold.

For detailed information on our absolute return solution, you can download the full brochure.

Download brochure

How We Do It

We design and blend multi-asset class portfolios based on a deep understanding of long-term growth goals.

We identify ways to protect capital from excessive risk through underlying security selection; managing exposure to asset classes and their risk premia; and appropriate use of derivatives for downside protection.

  1. We integrate a bottom-up and top-down approach to asset allocation.
    We research and identify bottom-up investment opportunities within asset classes according to our pragmatic value investment philosophy. We then blend these in multi-asset class portfolios according to the client’s required long-term return.
  2. Our tactical asset allocation techniques help us leverage asset class-specific growth opportunities, manage risk and generate more consistent returns.
    The asset class weightings are tilted in favour of asset classes that offer good valuations and higher risk premia based on our tactical asset allocation valuations and techniques.
  3. We proactively apply derivative protection strategies to reduce risk and the volatility of returns.

Why Our Solution

Key reasons to choose our absolute return capability.

  • We follow a disciplined and proven investment philosophy. An unwavering focus on returns and risks.
  • We focus on where we believe we can add value (Asset Allocation, Fixed Interest and Derivatives).
  • We have proven our ability to use derivative tools to enhance returns and provide explicit downside protection, which helps to provide returns at reduced levels of risk.
  • We have a stable team with combined experience of over 45 years.
  • We can demonstrate stable and consistent returns.
  • Our drawdown history clearly indicates that the absolute return capability is doing what it promises for investors.
  • The team has achieved some of the highest risk-adjusted returns in the industry.

Quarterly Updates Q2, 2016*

Absolute Return CPI + 5 (Global)

3yrs 5yrs 7yrs
Portfolio 12.07% 12.50% 12.40%
Benchmark 10.48% 10.67% 10.37%
Excess 1.59% 1.83% 2.03%

Absolute Return CPI + 5 (Global)

3yrs 12.07%
5yrs 12.50%
7yrs 12.40%

3yrs 10.48%
5yrs 10.67%
7yrs 10.37%

3yrs 1.59%
5yrs 1.83%
7yrs 2.03%

*as at 30 June 2016

Absolute Return CPI + 5 (Global)

Absolute Return CPI + 5 (Global)

% of Equities % of Portfolio
Naspers Ltd 17.19% 3.49%
British Am. Tobacco Plc 6.94% 1.41%
Steinhoff Int Hldgs N.v 6.04% 1.23%
MTN Group Ltd 5.12% 1.04%
Sasol Ltd 4.21% 0.85%
Old Mutual plc 4.15% 0.84%
Sanlam Institutional Special 4.10% 0.83%
Standard Bank Group Ltd 3.23% 0.66%
Remgro Ltd 3.19% 0.65%
SABMiller Plc 3.02% 0.61%
57.17% 11.60%

Absolute Return CPI + 5 (Global)

% of Equities 15.71%
% of Portfolio 3.47%

% of Equities 6.76%
% of Portfolio 1.49%

% of Equities 6.33%
% of Portfolio 1.40%

% of Equities 5.05%
% of Portfolio 1.11%

% of Equities 4.80%
% of Portfolio 1.06%

% of Equities 4.68%
% of Portfolio 1.03%

% of Equities 4.38%
% of Portfolio 0.97%

% of Equities 4.01%
% of Portfolio 0.88%

% of Equities 3.26%
% of Portfolio 0.72%

% of Equities 3.23%
% of Portfolio 0.71%

% of Equities 38.65%
% of Portfolio 8.53%

*as at 30 June 2016

Find out more from the investment team in our latest quarterly commentary

*as at 30 June 2016

Sanlam Investment Management

SA Segregated Global Balanced Moderate Absolute Return

Compliance Statement
Sanlam Investment Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Sanlam Investment Management has been independently verified for the periods 1 January 1999 through 31 December 2014. The verification reports are available upon request.

Definition of Firm
Sanlam Investment Management (SIM) is a 100% owned operating entity within Sanlam Life Insurance Limited. The firm comprises all fee-paying portfolios managed by Sanlam Investment Management. SIM's subsidiaries and divisions are excluded unless specifically stated. The Firm includes SIM Namibia Ltd. SIM Hedgeco is excluded from the firm since 1 January 2011.

Fees
Performance figures are presented gross of management fees, custodial fees and withholding taxes but net of all trading expenses.

Fee Schedule
See Appendix A for Fees Structure

List of Composites
A complete listing and description of all composites is available on request.

Minimum Account Size
This composite include all discretionary, fee-paying accounts invested according to the composite investment strategy with a market value exceeding R20 000 000. Accounts meeting these criteria must be under management for a month before being included in this composite.

Cashflow Definition
Since January 2005 SIM exludes portfolios from composites when a Significant Cash Flow occurs. A significant cash flow occurs when the absolute value of a specific portfolio’s net cash flow for the month under review exceeds its market value at the beginning of that month by more than 15%. This is only applicable to composites with more than two portfolios.

Calculation Methology
Performance results presented have been calculated in accordance with the methodology prescribed by GIPS.

  • Total returns are calculated using realised and unrealised gains plus income.
  • Statpro Performance & Attribution is used to calculate performance. This system calculates daily performances. Cash flows are assumed to happen at the start of the day. Daily returns are geometrically linked. All daily pooled vehicles are priced daily and monthly pooled vehicles are priced monthly and unit prices are also calculated daily.
  • Accrued income is included in the market values of all fixed-income securities. Returns from cash and cash equivalents are included in total-return calculations.
  • Performance is calculated net of trading expenses and gross of management fees.
  • Monthly composite returns are calculated by weighting each account's return by its beginning market value as a percentage of the total composite beginning market value.
  • Performance results are expressed in South African Rand.
  • Policies for valuing portfolios, calculationg performances and preparing compliant presentations are available on request.
  • Dispersion is calculated by using the asset-weighted standard deviation of all portfolios that where included in the composite for the entire year.

Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

Contact us on institutional@sanlaminvestments.com for more information.

The Investment Team

A focused, experienced team applies Sanlam Investments insights to our absolute return framework.



Absolute Return Team

Phillip Liebenburg

Phillip Liebenburg

Head: Absolute Return
M.Eng. Phd(Eng), CFA

Natasha Narsingh

Natasha Narsingh

Senior portfolio manager,
Absolute Return
B.Sc (Chem), MBA

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Find Out More

For detailed information on our absolute return solution, you can download the full brochure.

Please visit our institutional portal for articles relating to this investment strategy.

Contact us at institutional@sanlaminvestments.com / 021 950 2500.

Sanlam Life Insurance is a licensed financial service provider.
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