Industry category

Wealth and Investment Management

Absa Sterling Income Fund

Minimum disclosure document

Month ended 31 July 2017

Fund details

Industry category

Regional - Interest Bearing - Short Term

Benchmark

UK 3 Month BBA Interest Settlement Rate

Fund launch date

20 November 2006

Class A launch Date

20 November 2006

Fund Size

R 238.07 Million

JSE code

ABPS

Fund Manager

Greg Kettles – B Com (Hons), CA(SA), CFA

Juan Bekker – SAIFM

Asset Manager

Absa Asset Management (Pty) Ltd

Minimum lump sum

R 2000

Minimum Monthly

R 200

Income distributions - cents per unit (cpu)

Class A

the 3 months ended 30 Sep 2016

0

the 3 months ended 31 Dec 2016

0

the 3 months ended 31 Mar 2017

0

the 3 months ended 30 Jun 2017

0.17

Income declaration

31 Mar, 30 Jun, 30 Sep & 31 Dec

Income distributions

15 Apr, 15 Jul, 15 Oct & 15 Jan

Fees and Cost ratio (VAT incl.)

Fees

Class A

Initial Fees:

Absa:

0%

Adviser:

1.14%

Annual Fees:

Management:

0.86%

Adviser:

0-1.14%

Performance Fee:

No

Costs (annual, based on period shown)

Class A

For the period to 30-06-2017, from:

01/07/2014

Total expense ratio (TER):

0.88%

Transaction costs (TC):

0.03%

Total investment charges (TER+TC):

0.91%

Please refer to Disclosure section on next page for further information on Fees and Costs

Performance

Performance: annualised total returns (%)

Term

Class A

Benchmark

Sector

Average

Rank

Rand/Sterling

Launch

2.72

3.92

4.73

6/6

-

1 Year

-6.96

-4.55

-5.47

5/6

-4.89

3 Year

-1.67

-0.79

2.46

6/6

-1.27

5 Year

5.81

6.61

7.76

6/6

6.08

10 Year

2.24

3.28

4.63

-

1.90

Performance Yearly returns (%)

1 yr ending:

Jul'17

Jul'16

Jul'15

Jul'14

Jul'13

Jul'12

Jul'11

Jul'10

Class A

-6.96

-6.48

9.27

19.78

16.48

16.77

-3.90

-11.38

Benchmark

-4.55

-6.49

9.38

21.41

16.17

18.87

-3.17

-11.50

Rand/Sterling

-4.89

-7.02

8.83

20.80

15.57

17.86

-3.81

-11.98

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

Fund objectives

The primary objective of the fund is to provide the investor with a consistent

foreign income that is higher than deposits in Sterling Pound trading banks in the

form of interest as well as currency rate movement income opportunities over

the short to medium term.

Fund strategy

The fund invests mainly in British pound-denominated interest-bearing

securities. Both capital and interest will be exposed to currency fluctuations. The

majority of securities included in the fund will consist of foreign non- equity

securities denominated in United Kingdom (UK) Pound Sterling. Capital invested

in UK Pound Sterling will be protected, while its movement against the rand could

be speculative at a medium to high-risk to investors. The fund will purchase

securities in UK Sterling Pound currency, but the participatory interests in the

portfolio will be denominated in South African Rand

Fund features

•

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

Pound Sterling market

Fund specific risks

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

Since Inception (20 November 2006)

Number of positive months

64/128

Highest 1 Year Performance

31/01/2014

30.58%

Lowest 1 Year Performance

31/12/2016

-26.05%

Cumulative performance (5 years)

  

Absa Sterling Income A

     

Rand/Sterling

  

UK 3m BBA ISR/Stlg 90d Deposit (in ZAR)

100

120

140

160

180

200

Jul-12 Sep-12

Dec-12

Mar

-13

Jun-13

Sep-13

Dec-13

Mar

-14

Jun-14

Sep-14

Dec-14

Mar

-15

Jun-15

Sep-15

Dec-15

Mar

-16

Jun-16

Sep-16

Dec-16

Mar

-17

Jul-17

The chart reflects the value (monthly data points) of a R100 investment made on the

01/08/2012

Absa Sterling Income Fund

Wealth and Investment Management

Asset Allocation (%)

3,29%

96,71%

RSA cash

Sterling cash

Issuer Exposure (%)

HSBC

31.61

Nedcor Ltd

26.32

Standard Bank of SA

18.77

Absa Group Ltd

15.06

JPMorgan

8.24

Quarterly fund commentary as at 30 June 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 30 June 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 portfolio⁄class of portfolios. Illustrative performance information is included for illustrative purposes only; individual investor performance may

differ as a result of initial and ongoing fees, the actual investment date, the date of reinvestment and dividend withholding tax. All figures quoted are from Morningstar and⁄or IRESS, for the

period ending 31/07/2017 (unless otherwise stated), calculated on a NAV to NAV basis, with income distributions reinvested on the ex-dividend date. Annualised figures refer to the average

yearly return of an investment over a given time period, all actual annual figures (if not shown) are available on request.

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 quarterly 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 And in daily newspapers, 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 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 August 2017

Contact details

Management Company

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: [phone] 

Email: [e-mail]

Website: www.absa.co.za/wim

Trustees

Société Générale Johannesburg Branch

PO Box 6872, Johannesburg, 2000

Asset Manager

Absa Asset Management

An authorised financial services provider, FSP No: 522 

Telephone: [phone]

Website:www.absa.co.za/wim

 

Absa Sterling Income Fund