CORION ABSOLUTE NCIS RIF FUND OF HEDGE FUNDS
DECEMBER 2016 - MINIMUM DISCLOSURE DOCUMENT
INVESTMENT OBJECTIVE AND STRATEGY
INVESTOR PROFILE
The Corion Absolute NCIS RIF Fund of Hedge Funds is a low risk multi-strategy fund
The risk profile of the Corion Absolute NCIS RIF Fund of Hedge Funds is low
of hedge funds. The Fund aims to outperform cash over a one year period with low
to moderate, rated 3 on the below risk spectrum. The Fund is appropriate for
dependence on the direction of the capital markets. The volatility of the fund is
investors who aim for consistent absolute returns with low volatility and whom
expected to be less than the All Bond Index.
understand the risks and exposures of a hedge fund. The Fund is not compliant
with Regulation 28 of the Pension Funds Act.
C O N S E R V AT I V E
1
AGGRESSIVE
3
2
4
CUMULATIVE RETURN
5
6
RETURN
ABSOLUTE
7
CASH
BONDS
1 Year
10.8%
6.8%
15.4%
2 Years
9.1%
6.3%
5.3%
5 Years
9.2%
5.6%
7.3%
Since Inception
10.2%
7.6%
9.3%
Best 1 Year Rolling Return
20.6%
13.6%
27.3%
Worst 1 Year Rolling Return
-4.6%
4.8%
-5.6%
ABSOLUTE
CASH
BONDS
Volatility
3.6%
NA
7.2%
Worst Month
-4.9%
NA
-6.7%
Correlation
1.00
NA
0.23
Month End 99% VaR**
-2.2%
NA
-4.7%
Max 99% VaR for December**
-2.2%
NA
-4.7%
RISK
*Cash used is the shor t Term Fixed Interest Call Deposit Index
**Value-at-Risk is a monthly loss, calculated historically since inception
All returns greater than one year have been annualised
NET MONTHLY PERFORMANCE TABLE
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2002
2.9%
-4.9%
0.3%
1.6%
2.7%
0.0%
-0.9%
0.6%
1.6%
2.1%
1.4%
3.8%
5.3%
4.1%
1.7%
12.0%
2003
0.8%
0.2%
1.0%
0.6%
1.4%
2004
0.8%
1.5%
1.6%
0.9%
0.4%
1.8%
1.7%
2.1%
0.2%
1.0%
0.3%
1.7%
1.1%
2.3%
0.6%
1.8%
15.4%
2.8%
2.6%
1.8%
17.7%
2005
0.7%
1.3%
0.3%
0.3%
1.6%
0.7%
2.5%
1.0%
0.2%
0.3%
0.8%
2.0%
12.1%
2006
2.3%
1.6%
0.5%
0.9%
-0.3%
-0.7%
1.1%
1.2%
0.4%
1.9%
1.8%
0.9%
11.8%
2007
2.1%
1.7%
1.8%
1.5%
1.5%
0.6%
0.4%
-0.6%
0.7%
1.4%
-1.1%
0.4%
10.9%
2008
-3.6%
2.1%
-0.2%
0.6%
0.3%
-1.2%
0.4%
0.6%
-1.9%
-1.2%
-0.4%
0.9%
-3.5%
2009
1.4%
-1.2%
2.2%
0.9%
1.3%
0.4%
1.7%
0.5%
0.3%
0.7%
0.9%
1.4%
11.0%
2001
Total
2010
-0.2%
0.0%
1.7%
0.8%
-0.3%
0.3%
1.8%
1.4%
0.5%
1.8%
-0.2%
0.8%
8.7%
2011
-0.4%
1.8%
0.6%
0.8%
0.6%
0.4%
0.4%
1.2%
-0.2%
1.4%
1.0%
0.7%
8.6%
2012
0.7%
0.7%
0.5%
0.5%
1.0%
0.4%
0.6%
0.8%
1.1%
1.0%
1.0%
0.7%
9.3%
2013
2.1%
0.2%
1.1%
0.6%
0.9%
-0.7%
1.4%
1.0%
1.3%
1.4%
0.2%
1.0%
10.8%
2014
0.0%
2.2%
1.0%
0.6%
1.3%
0.4%
0.4%
-0.9%
-0.2%
0.7%
0.6%
1.4%
7.7%
2015
1.8%
1.3%
0.5%
1.0%
0.1%
0.8%
0.6%
0.8%
0.0%
1.7%
-0.3%
-1.2%
7.4%
2016
1.5%
1.1%
2.2%
1.0%
0.7%
0.8%
0.8%
1.7%
0.6%
-0.7%
0.0%
0.7%
10.8%
tel +27 21 831 5400 • email [email protected] • The District, Block B, 6th Floor, 41 Sir Lowry Road, Woodstock, 7925
Corion Capital (Pty) Ltd • Company Reg. No. 2007/002166/07 • Authorised Financial Services Provider • FSP No. 44523
1
CORION ABSOLUTE NCIS RIF FUND OF HEDGE FUNDS
FUND ALLOCATION
Novare Long/Short 5 4%
STRATEGY ALLOCATION
Cash - ZAR 2%
Cash - ZAR 2%
Corion Prime Stable 1%
Bayhill 5%
Multi Asset Low Equity Unit Trust 1%
Market Neutral 5%
Corion Gravitas NCIS 18%
Novare Fixed Income 3 7%
Long Short Equity 21%
Florin da Vinci 6%
Abax Mosaic 18%
Bateleur Long/Short 11%
Multi Strat 71%
Corion Prosperitas NCIS 15%
Corion MS 1 13%
FUND FACTS
Classification
Retail Hedge Fund of Fund
Benchmark
Cash
Portfolio Size
R201.52 mil
Inception Date
November 2011 (Conversion to Retail CIS in October 2016)
Income Distribution Date
June, December
NAV per Unit
10 003.07
Participatory Interests
2 014 588
Income Distribution
No distributions to date.
Minimum Investments
R250,000 lump sum; R5000 debit order
Initial Fee
Nil
Management Fee
1.00% p.a. (Excl. VAT)
Performance Fee
10% of performance above cash
Total Expense Ratio
N/A - The Total Expense Ratio (TER) for this portfolio/ class of participatory interest
cannot be accurately determined. The TER of this class of participatory interest/portfolio
will be higher than the quoted management fee and given the nature of the fund, generally
higher than other standard Collective Investment Schemes. The higher TER does not
necessarily imply a poor return, nor does a low TER imply a good return. The current TER
cannot be regarded as an indication of future TER’s.
Counterparty Exposure
A portion of the capital is held with respective prime brokers (detail available on request).
Leverage
Portfolio is allowed to make use of leverage, provided by prime brokers.
Exposure Limit
Value-at-Risk limited to 20% per month at 99% confidence level
Investable Instruments
The portfolio will invest in participatory interests or any other form of participation in
portfolios of collective investment schemes.
Valuation Time
17h00 last trading day of the month. Prices are available from Novare CIS upon request
Transaction Cut Off Times
12h00 last trading day of the month
Published Date
16 January 2017
tel +27 21 831 5400 • email [email protected] • The District, Block B, 6th Floor, 41 Sir Lowry Road, Woodstock, 7925
Corion Capital (Pty) Ltd • Company Reg. No. 2007/002166/07 • Authorised Financial Services Provider • FSP No. 44523
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CORION ABSOLUTE NCIS RIF FUND OF HEDGE FUNDS
SERVICE PROVIDERS
Management Company
Novare CIS (RF) (Pty) Limited (Novare CIS)
Registration No: 2013/191159/07
P.O. Box: 4742, Tyger Valley, 7736, South Africa
Call Centre: 0800 668 273 (0800 Novare)
Email: [email protected]
Website: novare.co.za
Directors: Rene Miles, Leon de Wit, Derrick Roper, Geoffrey Carter and Johan Basson.
Novare CIS is an authorized Management Company registered according to the Collective
Investment Schemes Control Act (CISCA) 45 of 2002.
Co-Named Agreement
Novare CIS and Corion Capital have entered into a co-named agreement regarding the
administration of the co-named fund. Novare CIS retails full legal responsibility for the
co-named fund. Risk management of the portfolio is done by Novare CIS. Novare CIS has
the right to close the portfolio to new investors in order to manage it more efficiently in
accordance with its mandate.
Fund Manager
Corion Capital (Pty) Ltd
Registration No: 2007/002166/07
Address: The District, Block B, 6th Floor, 41 Sir Lowry Road, Woodstock, 7925
Tel: 0027 21 831 5400
Email: [email protected]
Website: www.corion.co.za
Auditor
Price Waterhouse Coopers
Administrator
Maitland Hedge Fund Services (Pty) Limited
Appointed Trustees
FirstRand Bank Limited
D I S C LA I M E R & OT H E R I N F O R M AT I ON
Collective Investments are generally medium to long term investments. Actual investment performance will differ based on the initial fees applicable, the actual investment date,
the date of reinvestment and dividend withholding tax. The value of participatory interests may go down as well as up and past performance is not necessarily an indication of
future performance. This portfolio contains offshore exposure, which could result in additional material risks, potential constraints on liquidity and the patriation of funds,
macroeconomic risks, political risks, foreign exchange risks, tax risks, settlement risks and potential limitations on the availability of market information. Novare CIS does not
provide any guarantee either in respect of capital or the return of a portfolio. Prices are calculated on a net asset value basis and auditor’s fees, bank charges and trustee fees
are levied against the portfolio. The Collective Investment is traded at ruling prices and can engage in borrowing and scrip lending. Commentary or any forecasts contained in
this document are not guaranteed to occur.
The portfolio was established as a Collective Investment Scheme in October 2016, all information prior was in an unregulated environment. The portfolio will not change its
investment strategy or investment policy without prior approval from the Financial Services Board and investors. The ballot procedure as indicated in CISCA will be followed.
The level of counter party exposure is restricted to funds that are administered by Novare CIS and the respective prime brokers of the underlying portfolio. The portfolio
does not use the services of a prime broker but the underlying portfolios will be allowed to use a prime broker. The liquidity risk management policy is available on request.
Corion has a conflict of interest policy which outlines the manner in which conflicts of interest are managed, a copy of the document is available on request. Novare’s CIS
schedule of fees and charges is also available on request.
tel +27 21 831 5400 • email [email protected] • The District, Block B, 6th Floor, 41 Sir Lowry Road, Woodstock, 7925
Corion Capital (Pty) Ltd • Company Reg. No. 2007/002166/07 • Authorised Financial Services Provider • FSP No. 44523
3