The fund’s objective is to offer a specialist income generating portfolio that substantially tracks the South African short-term interest rate cycle (providing an average after-tax yield in excess of that received from MM portfolios), while preserving the capital invested. The fund’s market-value linked NAV is calculated daily, and is primarily impacted by price effects (on underlying investments) of changing credit risk and interest rates, and whether the fund is cum or ex distribution. Accrued income is paid to investors on a monthly basis. Investor returns depend on the portfolio yield and capital price, fund expenses, and relevant fee category applied.
Factors that could trigger a rating action may include
Positive change: The fund’s high WACR limits upside rating potential. A sustained track record of low volatility, above-benchmark returns, continually reducing investor and credit concentrations and improving liquidity levels could enhance the rating.