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Quarterly Investor reporting 2020 Q3

AMI Big50 ex-SA ETF

The 2020 financial year has been rocked by the epic Coronavirus (COVID-19) pandemic. Globally, markets have lost almost up to 50% in terms of quarter on quarter GDP. Government and Central Banks have sought to cut interest rates to provide economies with liquidity as a result of lockdown measures to fight of the pandemic. Whilst some moderate recovery is on the horizon, there is still a possible second wave of infections disturbing a full global economic recovery, China has unsurprisingly reported a rise in GDP, as they are well on the road to recovery, while many African countries are still seeking stimulus and monetary policies to revive the already struggling economies. The AMI Big 50 has traded relatively close and is set to rebound only next year, local underlying currencies weakened, however the Rand hedge has held the share price steady in the depressed times.

The rebalance has an addition of one stock named CRDB of Tanzania, one of the country’s biggest bank and a removal of Oryx properties of Namibia. As we enter the 4th quarter and US election ahead markets will experience heightened volatility. AMIB50 is trading at R10.80 at time of print.

 

New additions: CRDB BANK (0.77%).

Removals: ORYX PROPERTIES (0.89%).

 

Fund factsheet: https://cloudatlasinvesting.com/ami-big50-ex-sa-etf/big-50-ex-sa-etf-factsheet/

Risk rating: Medium | Closing price: R 10.87 | Closing NAV R 8.89 | Number of units: 1,585,342|

Total Expense Ratio as targeted: 0.85% | Distribution: ZAR cents 0.00

 

AMI Real Estate ex-SA ETF

This will be our last commentary for the AMI Real Estate fund as we are going into ballot for a new index. We are repurposing the AMIRE fund into an African Fixed Income Hard Currency Bond Fund. This index looks at African Sovereign Bond issuances and tracks the performance of the hard currency (USD and EUR) bonds issued at very attractive coupons. Stock markets have hit choppy waters caused by global recession and talks of debt-driven stimulus and how much is enough. Most economist are predicting another market slump similar to the start of the pandemic. Across Africa there has been new changes in a few exchanges, Zimbabwe plans to open another stock exchange “Victoria Stock Exchange” many investors still weary of fungibility and dollar exchange concerns. African Securities Exchanges Association (ASEA) has decided to have digitise their exchange programme, the African Exchange Linkage Project (AELP), a platform for investors to start trading across exchanges allowing for ease of access across board. As we enter the 4th quarter and US elections ahead markets will experience heightened volatility. We expect the AMIRE fund to hold ground trading at R21.80.

The portfolio rebalanced in the month of September 2020.

New additions: N/A

Removals: ORYX PROPERTIES (12.63%)

 

Fund factsheet: https://cloudatlasinvesting.com/ami-real-estate-ex-sa-etf-factsheet/

Risk rating: High | Closing price: R 25.78 | Closing NAV R 20.70 | Number of units: 82,960 |

Total Expense Ratio as targeted: 0.85% | Distribution: ZAR cents 0.00