Today, the Sanlam Real Assets Fund reaches its first birthday.
Managed by Mike Pinggera and his team, the Fund was launched in response to demand from existing investors for increased exposure to real assets; a key component of the award winning Sanlam Multi-Strategy Fund since its launch in 2013.
Since inception in August 2018, the Fund has grown significantly, from £53 million to £186 million. Over the same period it has also delivered an impressive return of 11% against the MSCI World’s 0.5%*.
The Fund targets income and capital growth through investments in real asset securities which Pinggera describes as the “pillars of a functioning economy”. These include energy, education, healthcare, food and water, housing, transport and communications: in essence, investments that are key requirements for a successful economy and beneficiaries of demographic changes.
No restriction is placed on the type of access vehicles which can be utilised which enables Mike and the team to focus on the underlying asset exposure, agnostic to the vehicle through which it is accessed.
It offers significant sector and geographical diversification, to 57 countries and 59 different asset types. As a daily traded vehicle it is attractive for investors who have traditionally been unable to access real assets due to the liquidity terms and minimum investment sizes demanded by private vehicles.
Commenting on the anniversary Mike Pinggera, Head of Multi-Strategy at Sanlam said:
“One year on, the principles of the Fund have withstood the challenging investing environment. I am delighted with how the Fund has performed and grown.”
“In this continued environment of economic uncertainty and volatility, the fundamentals of the Fund’s “pillars” investment strategy remain highly attractive. As investors look for long-term real returns, growing income streams, and investment diversification, the Real Assets Fund has found a growing audience.”
*Source: Sanlam and Bloomberg as at 20/08/2019. USD Class. GBP Class launched on 01/11/18.
The Fund has holdings which are denominated in currencies other than sterling and may be affected by movements in exchange rates. Consequently the value of an investment may rise or fall in line with the exchange rates. The Fund may invest in derivatives for the purposes of efficient portfolio management and hedging only. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions. Part of the fund may invest in fixed income securities. The government or company issuer of a bond might not be able to repay either the interest or the original loan amount and therefore default on the debt. This would affect the credit rating of the bond and, in turn, the value of the fund. Investment in bonds and other debt instruments (including related derivatives) is subject to interest rate risk. If long-term interest rates rise, the value of your shares is likely to fall.
Issued and approved by Sanlam Investments. Sanlam Investments is the trading name for our two Financial Conduct Authority (FCA) regulated entities: Sanlam Investments UK Limited (FRN 459237), having its registered office at 24 Monument Street, London, EC3R 8AJ and Sanlam Private Investments (UK) Ltd (FRN 122588) having its registered office at 16 South Park, Sevenoaks, Kent, TN13 1AN.
The opinions are those of the author at the time of publication and are subject to change, without notice, at any time due to changes in market or economic conditions. Whilst care has been taken in compiling the content of this document, neither Sanlam nor any other person makes any guarantee, representation or warranty, express or implied as to its accuracy, completeness or fairness of the information and opinions contained in this document, which has been prepared in good faith, and to the fullest extent permissible under UK law. SAH0819(94)1119UKInst