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Quarterly Investor reporting 2020 Q2

Commentary

We are in the middle of 2020, a year that marks the beginning of a new decade and we feel the weight of the Coronavirus outbreak on our hopes, but we do not despair. I’m reminded of lyrics from Lauryn Hill’s Grammy winning album where she sings “Everything is everything, after winter must come spring”.

As the markets start to show some sort of recovery, aided by stimulus and large relief packages, we reflect on the prospects for true growth in the future and building resilience in economic and investment policy. As such Cloud Atlas has decided to act in a manner that we believe is the for the good of all, by focusing on people and looking at issues at hand such as climate change it has become imperative for us to incorporate Responsible Investing in our future forward approach for Africa. In doing so, Cloud Atlas has sought to become a signatory to the UN Principles of responsible Investing and will be adapting its investment products current and future to reflect such. In reading a recent National Geographic highlighting a 50year reflection on the first EarthDay movement, a quote stuck out for me and this quote read: “We cannot solve the climate crises by being good consumers but we can make things much better by being good citizens.”

We believe in the immense potential of African markets to not only make it through this period but to become powerhouses in their own right in the coming future in a manner that protects people and the planet.

We wish all investors and their families safety and health during this time.

 

AMI Big50 ex-SA ETF

The Big 50 of Africa still remains resilient to market bears. Markets have taken a hit due to lockdown measures whilst some commodities rise and reverse losses pre lockdown. The rebalance for the Big 50 has seen a change removing out Egyptian Satellites (EGYSA) and bringing in UNIMED (UMED). Did you know? Cloud Atlas Investing now invests in Tunisia’s first Pharmaceutical laboratory. The Zimbabwean Stock exchange (ZSE) has temporarily suspended trading with only 4.9% exposure in the country we are in discussions to see when the suspension will be lifted and as a result price the exposure at 0%. The weak rand (ZAR) has seen AMIB50 receive additional support as investors opting for yield enter are finding it in stimulus driven developed markets. Lockdown is being eased and economies are reopening AMIB50 is trading at R12.20 at time of print.

The portfolio rebalanced in the month of June 2020. One constituent with a combined weighting of 0.36% has been replaced with a constituent with a combined weighting of 1.15%.

New additions: Unité de Fabrication de Médicaments (1.15%).

Removals: Egyptian Satellites (0.36%).

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

Risk rating: Medium | Closing price: R 12.30 | Closing NAV R 10.46 | Number of units: 2,032,842| Total Expense Ratio as targeted: 0.85% | Distribution: ZAR cents 0.00

 

AMI Real Estate ex-SA ETF

Global markets are still fragile with investors fearing a second wave of the Corona virus and some Governments contemplating ‘going back to lockdown’. Many investors are opting for cash and safe havens. Commodities have experienced a rally in the recent weeks reversing losses. Property in Africa is on the road to recovery since the market lost almost 50% at the start of the pandemic. Did you know? Cloud Atlas Investing invests in EMAAR MISR one of Egypt’s biggest property companies? The AMIRE fund has shed almost 20 % since March lockdown levels, the property market is still volatile as consumers are afraid to ‘move around’. The AMIRE is trading at R23.69 at time of print. Cloud Atlas is seeking to re-purpose the AMIRE fund via ballot and investors will be informed in due course.

The portfolio rebalanced in the month of June 2020.

New additions: N/A

Removals: N/A

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

Risk rating: High | Closing price: R 25.58 | Closing NAV R 28.89 | Number of units: 27,960 |Total Expense Ratio as targeted: 0.85% | Distribution: ZAR cents 0.00