P-Solve Inflation Plus Fund
31 March 2015
Overview
Fund Data
The P-Solve Inflation Plus Fund is a sub-fund of Sanlam Universal Funds plc. The Fund’s strategy is
implemented through the combined use of active and passive management accessed
predominately via collective investment vehicles including exchange traded funds. The Fund uses a
combination of qualitative and quantitative inputs to decide on an asset allocation, maintaining a
flexible attitude to tactical allocation depending on economic considerations.
Fund Size
£49.7m
NAV Class
£1.6028 (A) £1.4087 (B)
IA Sector
Flexible Funds
Domicile
Ireland
Structure
OEIC
Status
UCITS IV
Launch Date
March 2004
Dealing
Daily
Source: Sanlam Asset Management Ireland Limited
Fund Charges
Class
A
B
One-off charges taken before or after you invest
Entry charge
5.00%
Exit charge
None
5.00%
None
Switching charge
2.00%
2.00%
Ongoing charges figure*
1.67%
1.04%
Performance fee
None
None
Charges taken from the Fund
* The ongoing charges shown is an estimate. This figure, which
excludes portfolio transaction costs, may vary from year to year.
You can find out more details about the charges by looking at the
"Charges and Expenses" section of the fund's principal prospectus.
Minimum Investment
Class
A
B
Initial
£1,000
£500,000
£500
£50,000
Additional
Investment Objective
Performance
The investment objective of the Inflation Plus Fund is to grow capital by delivering a
return in excess of UK inflation as measured by the Retail Price Index. This is achieved by
diversifying investments across various asset classes and providing the opportunity for
real capital growth.
Class B
Annual Return
Annual Risk**
2005
14.52%
6.29%
2006
8.91%
6.68%
2007
8.70%
3.90%
2008
-1.00%
11.32%
Cumulative Performance
2009
10.09%
9.15%
Class B
1 Mth
13.66%
6.98%
Inflation Plus
1.41%
RPI
0.16%
6 Mths
1 Yr
3 Yrs
5 Yrs
Since Inception
2010
4.33%
7.38%
11.45%
22.43%
29.35%
117.96%
2011
-4.80%
10.42%
-0.16%
-0.19%
0.90%
6.77%
16.49%
39.88%
2012
5.23%
7.08%
2013
8.84%
7.44%
2014
7.04%
5.69%
2015*
4.33%
1.06%
3 Mths
Source: Office for National Statistics. Crown Copyright material is reproduced with the permission of the Office of Public Sector Information
(OPSI). Reproduced under the terms of the Click-Use License. Sanlam Asset Management Ireland Limited.
Discrete Performance
*Up to 31/03/15
Source: Bloomberg 31/03/2015
**Annualised monthly standard deviation
Class B
Inflation Plus
RPI
31/03/2014 31/03/2015
31/03/2013 31/03/2014
31/03/2012 31/03/2013
31/03/2011 31/03/2012
31/03/2010 31/03/2011
11.45%
2.08%
7.61%
-0.55%
6.24%
0.90%
2.45%
3.28%
3.57%
5.35%
Source: Office for National Statistics. Crown Copyright material is reproduced with the permission of the Office of Public Sector Information
(OPSI). Reproduced under the terms of the Click-Use License. Sanlam Asset Management Ireland Limited.
The value of investments and the income from them can fall as well as rise as a result of market and
currency fluctuations, and investors may not get back the amount originally invested. Past
performance is not a reliable indicator of future results.
Source: Bloomberg 31/03/2015
Inflation Plus Commentary
Asset Allocation
The fund returned 1.41% over March against its investment objective of 0.16%. With certain markets appearing
relatively fully valued, we reduced the level of return seeking assets in the portfolio throughout March.
The reduction in the equity allocation was executed in a number of stages, primarily from the US, Japanese, and
emerging market allocations. This increased the portfolio’s underweight to US equity while reducing the extent to
which the portfolio is overweight Japan and emerging markets. These decreases were partially offset by a small
increase in the European equity allocation, concentrated within large and mid-cap German equities, following the
successful implementation of the ECB’s first round of quantitative easing purchases.
The remaining proceeds were invested in a 10 year UK gilt. With yields at attractive levels, we believe this, as well
as the other gilts already held, will benefit from a flight to safety in the event of another flare up of the situation in
Greece.
During the final stage of the equity reductions towards the end of the month, we also slightly reduced the high
yield corporate credit allocation.
Market Commentary
In general, return seeking assets lost ground in March, following what has, in general, been a strong start to the
year. European and Japanese equities were the exception, posting strong positive returns on the back of continued
loose monetary supply. Although the US and UK are undoubtedly closer to tightening monetary policy, economic
data is still showing signs of weakness, allowing central banks to push back the timing of their initial interest rate
rises.
UK equities finished March slightly down despite hitting record highs earlier in the month, with the FTSE 100 Price
Index breaking the 7,000 mark which is seen by most as somewhat of a psychological barrier. There were a number
of positive announcements over the month. These included an upward revision to 2014 GDP growth from 2.6% to
2.8%, its highest level since 2006, as well as consumer confidence hitting a 12 year high. A relatively large exposure
to energy stocks and slowing inflation weighed on markets however, with the Consumer Price Index falling to 0.0%
for the year to the end of February.
With the UK election set to be held on 7 May 2015, political leaders began their election campaigns in earnest.
None of the parties are currently registering a clear majority in the polls and any period of uncertainty whilst a new
government is formed could be detrimental to the UK economy. We believe this will be most pronounced in the
currency markets, with the likely outcome of sterling weakening against most other currencies.
Elsewhere in Europe, the European Central Bank began its €1.1 trillion quantitative easing (“QE”) program. Initial
indications show that the first month of buying was executed in line with expectations, driving sovereign bond
yields lower. Equity markets were also given a boost, partially also as a result of a number of positive economic
data releases on unemployment and manufacturing and services activity.
Subject to rounding.
Top Five Holdings
Manager
Fund
Vanguard
S&P 500 - ETF (USD)
14.2%
iShares
MSCI Japan Monthly
GBP Hedged
9.0%
Nomura Funds US High Yield Bond
Ireland
Fund - I GBP Hedged
8.5%
P-Solve
Investments
Ltd
4.75% Treasury Gilt
2030
7.0%
Vanguard
S&P 500 - ETF (GBP)
6.6%
4
Although there was little development of the situation in Greece over the month, it is far from resolved. There are
still a number of potentially destabilising debt repayments falling due over the next few months, any of which
could result in more last minute debt renegotiations.
3
5
10 year rating as at 31/03/2015
In contrast to the Eurozone, US economic data was not so positive, in part contributing to negative returns from US
equities over the month. In particular durable goods orders, viewed as a proxy for business investment, fell 1.4% in
February against expectations of a 0.2% rise. The US Federal Reserve also cut its inflation outlook and growth
forecast, as well as pushing out its consensus of when interest rates will rise to at least September.
Japanese equities continued their impressive start to the year. This came after it was revealed that consumer
inflation slowed for a seventh straight month. Excluding the effects of an increase in consumption tax, the
consumer price index was flat. Whilst slowing inflation is not directly good news from an economic perspective,
expectations that the Bank of Japan will embark on further stimulus measures to bring inflation back up helped to
support asset prices. On top of this, three domestic public pension funds, with assets totalling more than 30 trillion
yen (£170bn), announced they would be increasing their allocation to domestic equities, following a similar move
by the Government Pension Fund. Expectations that other Japanese pension funds will follow suit helped support
equity markets.
Allocatio
n
5 year rating as at 31/03/2015
Contact Information
E-Mail
[email protected]
Telephone
020 3327 5100
Website
www.psolve.com/inflationplus
For Institutions and Professional Advisers only, and not intended for distribution to retail clients.
The P-Solve Inflation Plus Fund (previously known as the PSigma Inflation Plus fund) is a sub-fund of the Sanlam Universal Funds plc, an open-ended umbrella type investment company, with segregated liability between its sub-funds, authorised by
the Central Bank of Ireland, as an undertaking for collective investment in transferable securities under the European Communities (UCITS) Regulation, 2003 as amended (the Regulations). It is managed by Sanlam Asset Management (Ireland)
Limited, Beech House, Beech Hill Road, Dublin 4, Ireland, Tel +353 1 205 3510, Fax +353 1 205 3521 which is authorised by the Central Bank of Ireland, as a UCITS IV Management Company & Alternative Investment Fund Manager and is licensed as a
Financial Service Provider in terms of Section 8 of the South African FAIS Act of 2002. Sanlam Investment Management (Pty) Limited (SIM) is the Investment Manager, responsible for managing the Fund’s investments. Although all reasonable steps
have been taken to ensure the information in the Portfolio fact sheet is accurate, Sanlam Asset Management Ireland Ltd does not accept any responsibility for any claim, damages, loss or expense; however it arises, out of or in connection with the
information. No member of Sanlam gives any representation, warranty or undertaking, nor accepts any responsibility or liability as to the accuracy of any of this information. Independent professional financial advice should always be sought before
making an investment decision. Collective investment schemes are generally medium- to long-term investments. Please note that past performances are not necessarily an accurate determination of future performances, and that the value of
investments / units / unit trusts may go down as well as up. Changes in exchange rates may have an adverse effect on the value, price or income of the product. The Sanlam Universal Funds Plc full prospectus, the P-Solve Inflation Plus Fund
supplement and Key Investor Information document is available free of charge from the Manager, the Investment Manager or at www.sanlam.ie. Any offering is made only pursuant to the relevant offering document, together with the current
financial statements of the relevant fund, and the relevant subscription application forms, all of which must be read in their entirety together with the Prospectus, Supplements and the KIID. No offer to purchase securities will be made or accepted
prior to receipt by the offeree of these documents, and the completion of all appropriate documentation. Collective investments are traded at ruling prices (the price is not known prior to trading) and can engage in borrowing and securities lending.
Collective investments are calculated on a net asset value basis, which is the total market value of all assets in the Portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Actual
investment performance of the portfolio and the investor will differ based on the initial fees applicable, the actual investment date, the date of reinvestment of income as well as dividend withholding tax. The Manager does not provide any
guarantee either with respect to the capital or the return of a Portfolio. The performance of the Portfolio depends on the underlying assets and variable market factors. Trail commission and incentives may be paid and are for the account of the
manager. International investments or investments in foreign securities could be accompanied by additional risks such as potential constraints on liquidity and repatriation of funds, macroeconomic risk, political risk, foreign exchange risk, tax risk,
settlement risk as well as potential limitations on the availability of market information. The Manager has the right to close any Portfolios to new investors to manage them more efficiently in accordance with their mandates if stated in the
Supplement. The portfolio management of all the portfolios are outsourced to Regulated and authorized financial services providers. A fund of funds is a portfolio that invests in portfolios of collective investment schemes that levy their own
charges, which could result in a higher fee structure for the fund of fund. In the UK, P-Solve Investments Limited is the appointed Investment Manager and distributor of the sub-fund. Professional investors are unlikely to be able to complain to the
UK or Irish Ombudsman or be covered by the UK or Irish Compensation Schemes. Please seek guidance from your advisor in relation to the scope of regulatory protections afforded to you. The fund is recognised under section 264 of the U.K.
Financial Services & Markets Act 2000.
P-Solve Investments Limited Company No. 3359127 is authorised and regulated by the UK Financial Conduct Authority FCA Registration No. 195028 and is a subsidiary of River and Mercantile Group Plc which is registered in England and Wales under
Company No. 04035248, with its registered office at, 11 Strand, London WC2N 5HR.