Wealth and Investment Management
Absa US Dollar Income Fund
Minimum disclosure document
Month ended 30 April 2017
Fund details
Fund Objectives
Industry category
Benchmark
Fund launch date
Class A launch Date
Fund Size
JSE code
Fund Manager
Regional - Interest Bearing - Short Term
US Dollar 90 Day Deposit Rate
20 November 2006
20 November 2006
R 429.62 Million
ABUD
Greg Kettles – B Com (Hons), CA(SA), CFA
Juan Bekker – SAIFM
Absa Asset Management (Pty) Ltd
R 2000
R 200
Asset Manager
Minimum lump sum
Minimum Monthly
The primary objective is to provide the investor with a consistent foreign income
that is higher than deposits in United States Dollar trading banks. Income will be
in the form of interest as well as currency rate movement income opportunities
over the short to medium terms through investment in non- equity securities
denominated in United States of America Dollars
Fund strategy
The fund invests mainly in US dollar-denominated interest-bearing securities.
Both capital and interest will be exposed to currency fluctuations. The portfolio
will purchase securities in United States of America Dollars currency but the
participatory interests of the portfolio will be denominated in South African Rand.
Capital invested in United States Dollars will be protected whilst movement
against the rand would be speculative at a medium to high risk to investors.
Income Distribution - cents per unit (cpu)
Class A
the 3 months ended 30 Jun 2016
the 3 months ended 30 Sep 2016
the 3 months ended 31 Dec 2016
the 3 months ended 31 Mar 2017
Income declaration
Income distribution
5.75
1.88
0
0.21
31 Mar, 30 Jun, 30 Sep & 31 Dec
15 Apr, 15 Jul, 15 Oct & 15 Jan
Fees
Class A
Absa:
Advisor:
Management:
Advisor:
Annual Fees:
0%
1.14%
0.86%
0-1.14%
No
Performance Fee:
Costs (annual, based on period shown)
Class A
For the period to 31-12-2016, from:
Total expense ratio (TER):
Transaction costs (TC):
Total investment charges (TER+TC):
01/01/2014
0.89%
0.04%
0.93%
Rand-denominated offshore fund, which offers protection against
depreciating Rand
Offers currency and geographical diversification
Investor’s capital is exposed to currency movement risk
Suitable for investors who require income and seek offshore exposure to the
US Dollar market
Concentration: Investments may be primarily concentrated in specific areas (e.g.
countries/geographical regions and/or industry sectors), in terms of investment
style (e.g. income or growth), in individual holdings and/or in a number of other
ways. This may mean the value of the Fund may decrease whilst more broadly
invested funds might grow. Currency exchange: Changes in the relative values of
different currencies may adversely affect the value of the Fund's investments and
any related income. Interest rate: The value of fixed income investments (e.g.
bonds) tends to decrease when interest rates and/or inflation rises.
Risk profile and advisable minimum term
Low
Low-Medium
Medium
Medium-High
High
3 Months +
6 Months +
2 Years +
3 Years +
5 Years +
Risk statistics
Class A
Please refer to Disclosure section on next page for further information on Fees and Costs
Since Inception (20 November 2006)
Number of positive months
Highest 1 Year Performance
Lowest 1 Year Performance
Performance
Performance: annualised total returns (%)
Term
Class A
Benchmark
Launch
1 Year
3 Year
5 Year
10 Year
•
•
•
•
Fund specific risks
Fees and Cost ratio (VAT incl.)
Initial Fees:
Fund features
6.36
-5.67
7.66
10.88
6.90
65/125
56.49%
-25.28%
31/10/2008
31/01/2010
Cumulative performance (5 years)
Sector
Average
Rank
4.71
-10.62
2.06
7.97
4.76
1/6
2/6
2/6
1/6
1/6
7.27
-5.47
8.71
11.80
7.63
Rand/US
Dollar
6.04
-8.48
8.38
11.85
6.31
Absa US Dollar Income A
Rand/US Dollar
250
220
190
160
Performance Yearly returns (%)
1 yr ending: Apr'17 Apr'16 Apr'15 Apr'14 Apr'13 Apr'12 Apr'11 Apr'10 Apr'09
130
100
Apr-17
Dec-16
Jun-16
Sep-16
Dec-15
Mar-16
Jun-15
Sep-15
Dec-14
Mar-15
Jun-14
14.13
14.40
11.87
Sep-14
Sector Average & Rank: applies to the A Class.
Please refer to Disclosures section on next page for further information on calculation methodology
and source of all performance data content (tables and/or charts) of this MDD
-12.97
-12.21
-12.53
Dec-13
-10.08
-10.81
-11.17
Mar-14
16.74
18.81
18.45
Jun-13
15.43
15.90
15.60
Sep-13
16.33
17.30
17.11
Mar-13
11.74
12.35
12.18
Sep-12
18.39
20.96
20.49
Dec-12
-5.67
-5.47
-
Jun-12
Apr-12
Class A
Benchmark
Rand/US
Dollar
The chart reflects the value (monthly data points) of a R100 investment made on the
01/05/2012
Absa US Dollar Income Fund
Wealth and Investment Management
Asset Allocation (%)
Sterling cash
RSA cash
Issuer Exposure (%)
89,66%
10,34%
HSBC
Absa Group Ltd
Standard Bank of SA
Nedcor Ltd
JPMorgan
34.26
31.39
20.94
10.40
3.02
Quarterly fund commentary as at 31 March 2017
The Fund Commentary is provided on a quarterly basis and can be found on www.absa.co.za/WIM under Unit Trusts Minimum Disclosure Documents. The latest quarterly commentary
available is for the quarter ending 31 March 2017.
Disclosures
Fees: Class A Adviser annual fee is not included in the annual management fee, it is charged by a way of unit reduction.
Costs: Total Expense Ratio (“TER”) is expressed as an annualised percentage of the value of the class of the portfolio that was incurred as expenses relating to the administration of the
portfolio. A higher TER does not necessarily imply a poor return, nor does a lower TER imply a good return. The current TER cannot be regarded as an accurate indication of future TER's.
Transaction Costs (“TC”) is expressed as an annualised percentage of the value of the portfolio that was incurred as costs relating to the buying and selling of the assets underlying the
portfolio. TC are a necessary cost in administering the portfolio and impact returns. TC should not be considered in isolation as returns may be impacted by many other factors over time
including market returns, the type of portfolio, the investment decisions of the investment manager and the TER. Note that the Total investment charges (TER+TC) have already been deducted
prior to the calculation of the performance figures shown. Effective Annual Cost (“EAC”) is a measure that summarises the total cost that an investor incurs through their investment in a
particular financial product, based on the principles set out in the ASISA EAC Standard. EAC data is available on request.
Performance: Performance is calculated for the fund, individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend
withholding tax. Figures quoted are from Morningstar and/or INET for the period ending 30/04/2017, using NAV to NAV figures, with income distributions reinvested on the ex-dividend
date and figures quoted are net of fund fees. Annualised figures refer to the average yearly return of an investment over a given time period.
Collective Investment Schemes (CIS) are generally medium to long-term investments. The value of participatory interests may go down as well as up and past performance is not necessarily
a guide to future performance. Fluctuations or movements in exchange rates may cause the value of underlying international investments in a fund to move up or down. Forward pricing is
used. CIS are traded at ruling prices. Absa Fund Managers Limited (AFM) may borrow up to 10% (ten per cent) of the market value of a fund to accommodate insufficient liquidity. Securities
in a fund may be lent to borrowers. Income from the fund is distributed semi-annually and may only be paid out into an account as nominated by the investor. Prices are calculated on a net
asset value (NAV) basis which is the total value of all assets in a fund including any income accrual and less permissible deductions from the fund. Prices are published daily and are available
at www.absa.co.za/Absacoza/Indices/Absa- Unit-Trusts or from AFM upon request. Fees and charges associated with the most expensive class are available directly from AFM for investment
by members of the public, other than financial institutions. CIS are financial products and not investments in insurance policies with an insurer and therefore cooling-off periods do not apply.
AFM does not provide any guarantee either with respect to the capital or the return of a fund. The directors and personnel of AFM may be invested in any of the funds. AFM holds professional
indemnity cover. AFM utilises Absa Bank Limited’s electronic and telephone banking platform. All requests for transactions received on or before 16:00 every day will be traded at ruling prices
and valued after 16:00 on that day. Investments in funds with foreign securities may involve various material risks, which include potential constraints on liquidity and the repatriation of
funds, macroeconomic, political, foreign exchange, tax and settlement risks and potential limitations on the availability of market information and there may be tax to be levied on certain of
the benefits accruing to the investor from the funds and AFM may be required to deduct and pay over to the authorities any such tax from such benefits before paying any balance to or for
the benefit of the investor. AFM has a right to close the fund to new investors in order to manage it more efficiently in accordance with its mandate. The investor understands that the legal
and tax environment is continually changing, and that AFM cannot be held responsible for any changes to the law which might have an effect on their investment, and which did not exist at
the time their investment was made. Additional information on the fund including, but not limited to, brochures, application forms, annual and half-yearly reports are available free of charge
from the AFM website or from AFM upon request. AFM is a registered Collective Investment Scheme Manager and a full member of the Association for Savings and Investment SA. This
document is a Minimum Disclosure Document (MDD) in terms of the Advertising, Marketing and Information Disclosure Requirements for Collective Investment Schemes published by the
Financial Services Board. MDD issue date: 15 May 2017
Contact details
Management Company
Trustees
Absa Fund Managers Limited
Reg no 1991/000881/06
Barclays Sandton South Campus, 15 Alice Lane, Sandton, 2196
Private Bag X10056, Sandton, 2146
Contact Centre: 0860 111 456 Fax: 0860 212 123
Email: [email protected] Website: www.absa.co.za/wim
Société Générale Johannesburg Branch
PO Box 6872, Johannesburg, 2000
Asset Manager
Absa Asset Management
An authorised financial services provider, FSP No: 522
Telephone: +27 (0)11 243 4563 Website:www.absa.co.za/wim
Absa US Dollar Income Fund