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Multi-Strategy Team

Michael Pinggera

Michael Pinggera

Senior Multi-Strategy Fund Manager

Mike joins Sanlam FOUR from Insight Investments where he was head of the Multi-asset group and responsible for the retail multi-asset funds. Prior to Insight Mike spent 20 years at Credit Suisse where he held senior positions, including head of special mandates and head of trusts and charities in the asset management and private banking divisions. As the Head of Multi Asset Class Solutions at Credit Suisse Mike managed a team of 14 with responsibility for £5bn of institutional, private client and retail fund assets.

Johan Badenhorst

Johan Badenhorst

Assistant Multi-Strategy Fund Manager

Johan joins Sanlam FOUR in November 2012. He is an assistant portfolio manager responsible for trading and risk management on Sanlam FOUR’s multi-strategy portfolios. Prior to joining he worked at J O Hambro Investment Management for 11 years in various roles as Operations Manager, Performance and Risk Analyst and Project Manager where he was responsible for building the derivative infrastructure as well as oversight over market risk and global derivative risk monitoring. He is IAQ qualified, holds the CFA Level 1 and has passed the CISI diploma exam in Financial Derivatives.

Process and Philosophy

The Investment Proposition

The Sanlam FOUR Multi-Strategy Fund aims to participate in rising markets and defend capital in falling markets. It is a global absolute return proposition. As a UCITS IV vehicle it can also be described as a liquid hedge fund.

The fund aims to deliver positive returns over three years and returns of CPI plus 4% over an investment cycle (five years). It is not constrained by benchmarks and can deviate from a classic equity path by benefitting from its multi-asset construction.

It is attractive to investors because it provides exposure to growth markets but with embedded protection. The non-discretionary stop out process means that we can forecast and continually monitor expected maximum drawdown. This has historically been in the range of -2% to -6% which is in line with the strategy's largest experienced drawdown of -5%. Probably its most distinguishing features are that it can (and will) move to 100% cash in periods of extreme market stress, but will be quick to re-enter once market stabilisation begins.

Investment Characteristics

As an absolute return strategy investors should expect the greatest relative performance to come in periods of market weakness where the fund has the flexibility to exit all investments and return to a defensive cash position. The best absolute returns are expected to come after a period of weakness where the fund has the ability to re-invest quickly and fully. The combination of these "participate and defend" positions lead to a smoother path to an equity like return over the full investment cycle.

Can these objectives be met?

The portfolio follows a repeatable, rules-based strategy that has been shown to display the escalator profile that the "participate and defend" objective is targeting. The key to achieving the objective is having the discipline and confidence to follow the process over the investment cycle.

The fund only invests in assets that have underlying liquidity and as a result the fund itself has daily liquidity.

How do we achieve this?

The fund is free to invest in a broad range of asset classes and investment strategies and as such idea generation is vital. The team has a long track record of idea generation and strategy creation and is always on the look-out for opportunities. After decades of experience in the market place, the Multi-Strategy team frequently receive and research new investment ideas for the fund. Subsequent implementation depends on investment viability and prevailing market conditions.

Who should the Fund appeal to?

We see the Fund appealing to a wide constituent audience:

Multi-Manager, Pension Funds and other Institutional Investors

The fund is a credible option for investors looking for a DGF. Its liquidity, transparency and downside protection make it a very distinctive proposition. It could also be positioned as a “smart beta”.

High Net Worth Individuals/Family Offices

The global multi-asset portfolio together with the disciplined risk management process and the liquidity characteristics make the fund highly appealing to this market. It has been positioned as a liquid complement to illiquid private equity within this market space.

Retail/Wholesale Distribution

As an absolute return fund, the fund lends itself in particular to decumulation. The asset allocation of the fund will vary a great deal in response to market behaviour ensuring that investors receive increased exposure to equity markets when they are rising, and reduced exposure to equity markets when they are falling. The equity component parts are complemented by a range of liquid alternative assets.

How is the fund positioned currently?

The central view of the team is that 2015 will either see a breakout, with new highs being posted across multiple indices or a breakdown where the geo-political and macro factors such as war and on-going Eurozone concerns take hold.

The fund is currently taking a “barbell” stance favouring equity options on the upside and liquid safe havens (govt. bonds) on the downside. Equities are at or close to recent highs, but dividend pay-out ratios are high and hence there is little room for error; earnings must come through to warrant moves to new higher ground.
Bonds are far from attractive when compared with the recent past, but even though yields are expected to increase the forward curves indicate that the market expects yields on a relative basis to stay low for some time to come.

Alternatives such as infrastructure and renewable energy remain attractive. Held for 10 years they can be expected to distribute between 45% - 60% compared with 14% - 15% in a 10 year government bond.

Multi Strategy Funds

Sanlam FOUR Multi-Strategy Fund

The fund is an actively managed multi-strategy growth portfolio structured using core and satellite assets. The core position is a global equity strategy which allocates across eight equity indices or regions and provides the majority of directional risk to the overall fund. The satellite strategies are non-directional or low beta investments capturing active alpha, emerging market, high yield and global infrastructure.

The underlying approach and building blocks of the multi-strategy fund can be adapted to suit a range of product types to include “Diversified Growth Funds” (DC defaults), a multi-strategy hedge fund and target outcome funds (targets can be performance or volatility based).

Sanlam FOUR Multi-Strategy Class A GBP
Sanlam FOUR Multi-Strategy Class A USD
Sanlam FOUR Multi-Strategy Class B GBP
Sanlam FOUR Multi-Strategy Class B USD
Sanlam FOUR Multi-Strategy Founder GBP
Sanlam FOUR Multi-Strategy Fund Quarterly Investor Report
Sanlam Multi-Strategy Fund A USD KIID
Sanlam Multi-Strategy Fund B USD KIID
Sanlam Multi-Strategy Fund A GBP KIID
Sanlam Multi-Strategy Fund B GBP KIID
Sanlam Multi-Strategy Fund Founder GBP KIID
Sanlam Multi-Strategy Fund - Income Distribution A Sterling KIID
Sanlam Multi-Strategy Fund - Income Distribution B Sterling KIID
Sanlam Multi-Strategy Fund - Income Distribution Founder Sterling KIID
Sanlam Universal Funds plc Prospectus
Sanlam FOUR Multi-Strategy Fund Supplement

How to Invest

The following forms must be completed and faxed to Sanlam Universal Funds Plc, +353 1 241 7131:

Full instructions on how to complete the forms are included, however, please contact Sanlam Universal Funds +353 1 241 7130 for further assistance.

Please ensure you read the full prospectus prior to investing.

Sanlam Universal Funds plc Prospectus Download
Sanlam FOUR Multi-Strategy Fund Supplement Download

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