Swiss bank partnership produces two new global funds from Sanlam Private Investments
Through its exclusive partnership with Pictet & Cie, Switzerlands largest private bank, Sanlam Private Investments (SPI) has launched two new global funds which offer South Africans direct access to developed financial markets.
The funds offer investors additional portfolio diversification and the opportunity to guard against a potential decline in the rand.
The new funds, the SPI Global Balanced Fund and the SPI Global Equity Fund, are both US dollar domiciled, registered in Ireland and managed by Pictet. They allow South African investors to optimise the performance of their offshore investments while dealing directly with a South African company.
Daniel Kriel, the CEO of SPI, South Africas leading private client and stockbroking business, said, sophisticated South African investors who are interested in overseas opportunities now have access to reliable local service and respected global expertise as they seek to diversify their investment risk offshore. We believe that it is opportune time for South African investors to diversify their portfolios with offshore equities given the current strength of the rand.
Intended for investors with moderate risk tolerance, the SPI Global Balanced Fund invests in equities, bonds and cash and aims to outperform a benchmark consisting of 40 percent global equities (MSCI World Index), 40 percent global bonds (Lehman Global Aggregate) and 20 percent global cash (one-month US Euro deposit). For investors with a moderately aggressive risk profile, the SPI Global Equity Fund invests only in equities and its performance is benchmarked against the MSCI World Index. The minimum investment for both funds is $10 000.
According to Pictets Richard Ormond, the portfolio manager for both new funds, "From its lows in April 2003, the South African market is hitting all time highs, achieving an outstanding performance of 350 percent in USD terms over the period. The widening current account deficit financed mainly by foreign direct investment and portfolio flows is keeping pressure on the rand. These are the perfect conditions for shrewd South African investors to take advantage of swap facilities and diversify their portfolios."
These two new funds add to the breadth of SPIs customised offshore offerings and provide sophisticated investors an economical opportunity to diversify their portfolios into different markets around the world, added Kriel.
He said that partnering with Pictet meant access to exceptional expertise. Our exclusive arrangement with one of the top private banking and asset management specialists in Europe is part of providing outperforming long-term capital growth for SPIs clients.
Kriel said that by focusing on the high net worth individual, SPI has grown substantially in the last two years, posting record new business flows. The growth of this division is in line with Sanlams mission of becoming a diversified financial services group that offers client-focused solutions.
