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- 1. Fund Options
. Financial Repression . Performance Summary Fund changes & Focus Areas
- 5. Summary
Annual General Meeting 17 February 2013 1. Fund Options . - - PowerPoint PPT Presentation
Annual General Meeting 17 February 2013 1. Fund Options . - - PowerPoint PPT Presentation
Annual General Meeting 17 February 2013 1. Fund Options . Financial Repression . Performance Summary Fund changes & Focus Areas 5. Summary ABCDEF ABCDEF
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ABCDEF
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ABCDEF Protection Moderate Growth Pensioner Moderate Pensioner Protection STeFI CPI CPI +3% CPI +4%
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CF F Protection Moderate Growth Pensioner Moderate Pensioner Protection
291,844,277 546,504,810 423,065,079 10,248,307,963 12,115,933,551 473,608,096 581,383,253 243,816,201
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DD BFFDE
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F!"EFE#$DF%&&& Moderate Equity Pensioner Property Bonds Cash High Low Risk High Return
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'CEC#!EE"(CDDFCECF!D! C!D)CDE&&& Moderate Equity Pensioner Property Bonds Cash Low High Risk High Return above inflation
Cash and Bonds may give returns below inflation, especially during periods of Financial Repression
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'CEC#!EE"(CDDFCECF!D! C!D)CDE&&& Moderate Equity Pensioner Property Bonds Cash Low High Risk High Return above inflation
Cash and Bonds may give returns below inflation, especially during periods of Financial Repression
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E*CF!D!D"C&&& Pensioner
One way of reducing their debt is through financial repression ...
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+!CDFDDBFFDE, Protection Moderate Pensioner
Source: JP Morgan, Shiller. Note: Past Performance is not indicative of future results
E.g. Forcing pension funds to buy Government debt at low yields
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- !FCDCDCEEDC!))CFE)DD
BFFDE
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.)E* /**
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0EC/**123DF4C/CC.EC
Ended June 2012 Ended January 2013
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A))F!EC/**56/78123DF4C
Ended June 2012 Ended January 2013
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.)E*/**1DF.E)D/ECDEF
Financial Year Period GP ProP PenP MP 2007 28.4% 2008
- 1.0%
2009 2.0% 11.7% 2010 16.3% 7.3% 2011 15.6% 6.6% 2012 11.0% 7.4% 11.2% 9.3% FYTD* 16.5% 4.3% 10.1% 9.0%
*Up to the end of January 2013
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.)E*/**1DF.E)D/ECDEF
A AB C DE F A DE
- DE
F
- DE
F
- !"
- *Up to the end of January 2013
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E#C! .EC)EDE
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E#C!.EC)EDE1"FEC.)E*
Financial Year Period GP CPI + 4% GP vs. Target 2007 28.4% 11.3% 17.1% 2008
- 1.0%
16.7%
- 17.7%
2009 2.0% 10.4%
- 8.4%
2010 16.3% 8.4% 7.9% 2011 15.6% 9.2% 6.4% 2012 11.0% 9.7% 1.3%
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E#C!.EC)EDE1.)E*;
Absolute Performance Comparison Period GP CPI + 4% GP vs. Target 1 year 11.0% 9.7% 1.3% 2 years 13.3% 9.5% 3.9% 3 years 14.3% 9.1% 5.2% 5 years 8.6% 10.8%
- 2.3%
Since July 2002 14.0% 9.8% 4.2%
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E#C!.EC)EDE1 3;
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E#C!.EC)EDE13F;
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E#C!.EC)EDE13F;
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EC .EC)EDE
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Absolute Performance Comparison Period MP CPI + 3% MP vs. Target 3 months 1.5% 1.5% 0.0% 6 months 4.8% 4.5% 0.2% 12 months 9.2% 8.6% 0.6%
EC.EC)EDE1.)E*;
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EC.EC)EDE1.)E*;
Absolute Performance Comparison Period MP CPI + 3% MP vs. Target 3 months 4.4% 1.5% 2.9% 6 months 7.6% 4.0% 3.5% 12 months 12.4% 8.5% 3.9%
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.ECCDE .EC)EDE
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.ECCDE.EC)EDE1
Absolute Performance Comparison Period ProP STeFI ProP vs. Benchmark 1 year 7.3% 5.6% 1.6% 2 years 6.9% 5.9% 1.0% 3 years 7.0% 6.4% 0.5% Since Inception 8.8% 8.1% 0.6%
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.ECCDE.EC)EDE1
Absolute Performance Comparison Period ProP STeFI ProP vs. Benchmark 1 year 7.5% 5.5% 2.0% 2 years 7.2% 5.6% 1.6% 3 years 7.2% 6.0% 1.2% Since Inception 8.7% 7.9% 0.8%
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.FDE.EC)EDE
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.FDE.EC)EDE.ECCDE.EC)EDE
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.FDE.EC)EDE.ECCDE.EC)EDE 7
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.FDE.EC)EDE.ECCDE.EC)EDE
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.FDE.EC)EDE.ECCDE.EC)EDE 7
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.FDE.EC)EDE
Sound investment strategy – focus on liabilities and risk 100% CPI increases granted every year Pensioner Portfolio has remained in surplus Ad-hoc pensioner bonuses paid in 2011 and 2012
200% bonus in Nov 2007, 100% in December 2008, 100% in Nov 2009, 100% in February 2011, 100% in December 2012
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- !F
<EFF
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E#C!.EC)EDE-!F1 Switched from Investec Trio to Investec Global Managed in December 2011 to tactically increase global equity exposure Appointed Coronation Global Absolute Return mandate in May 2012 to avoid effects of financial repression
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E#C!.EC)EDE-!F1=FCE"
Switch from Investec Trio (40% equity) to Investec Global Managed Fund (60% equity)
ABCD
Source: MSCI
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E#C!.EC)EDE-!F1=FCE"
Switch from Investec Trio (40% equity) to Investec Global Managed Fund (60% equity)
ABCD ABD
Source: MSCI
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E#C!.EC)EDE-!F1-EECDE"FECC
Used cash to buy exposure to all asset classes By end June, local equity was just slightly ahead of cash
Source: Inet-Bridge
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E#C!.EC)EDE-!F1-EECDE"FECC
Used cash to buy exposure to all asset classes By end June, local equity was just slightly ahead of cash
Source: Inet-Bridge
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- ABCDEF
C E ABC DEDF DFDFED FFE DED !!!FE"" !E!F #$ DED !FFFFEDD "FED %# DEDF FF!"EDD E !D!EF
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EFF Consideration of Africa excl. SA Consideration of Asia, BRICS and Emerging Markets
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A AB C DE F A DE
- DE
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- *Up to the end of January 2013
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