AMI Big50 ex-SA ETF
The Big 50 rebalanced for 2019Q3 we see the equity and bond markets affected by the US-China Trade war and fears of a global economic slowdown. Political elections across Africa usually see the bottoming out of company valuations, the weighted 12month forward PBV for the Big50 at 2.75x compared to S&P500 sitting at 2.77x. With the weighted 12month forward PE for Big 50 at 10.4x vs the S&P500 at 14.76x. Two constituents with a combined weighting of 2.95% have been replaced with constituents with a combined weighting of 2.89%. The old saying of Warren Buffet to buy somethings that’s undervalued means we essentially see the next 12 months offering investors a return akin to that of a value investing portfolio.
New additions: Telecom Egypt (2.51%) and Egyptian Satellites (0.37%).
Removals: New African Properties (1.77%) and Global Telecoms (1.18%) which were removed due corporate actions.
Risk rating: Medium | Closing price: R 12.64 | Closing NAV R 10.27 | Number of units: 1,722,842 | Total Expense Ratio as targeted: 0.7% | Distribution: ZAR cents 0.00
AMI Real Estate ex-SA ETF
The African property market has felt the effects of worries of the global economy and the ongoing trade war. The AMIRE Fund rebalanced for 2019Q3, the retail property managers have stayed the same with the negative holding changes coming from GRIT real estate income group at (17.08%) from (18.21%) after a dividend declaration for shareholders, Douja Prom Addoha weakened in weighting to (8.32%) from (9.12%). In relation the positive holding changes were Heliopolis Housing (5.38%) from (4.51%) after bid of (10%) of the state-owned entity has been offered by Sixth of October Development and Investment Co and Oryx Properties gaining to (8.27%) from (6.75%). The African Property Investment Summit gets under way in October where a number of investors are set to attend.
The portfolio rebalanced in the month of September. No new companies were added to the fund or existing constituents removed.
Risk rating: Low | Closing price: R 35.86 | Closing NAV R 34.06 | Number of units: 29,433 | Total Expense Ratio as targeted: 0.70% | Distribution: ZAR cents 0.00