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Risk 50 - Risk 90

Long Short 140/40 – Sir John Ross

Horizon > 5 Years
Leveraged Equity
Account type ZAR
Managed Leveraged Portfolios (MLP) - Alternative Managed Leveraged Portfolios (MLP) - Alternative
Aggressive Growth Aggressive Growth
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Excess returns with a lower risk profile than the selected benchmark.

Recommended investment term is 5 years or more.
Risk Score 66 - Growth (Risk Score Range: 50– 90)

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Fund Description

Leveraged portfolios allow you to get a greater exposure to what you’re investing in. Think of it in the same way that you would invest in property. If you wanted to buy a R1 million house, you’d only have to put down a percentage of that amount as a deposit, while still owning the property and reaping the benefts of it’s gain in value respectively. Leveraging investments work the same way; the amount you invest is a percentage of the exposure you get in the market.

Our Leveraged Equity portfolio follows a quantitative long-short leveraged strategy, investing in the most liquid shares on the JSE. These portfolios are constructed by analyzing the relationship between risk factors over various economic and market cycles and then allocations are made into a combination of our four equity factor building blocks, being Value, Quality, Stability and Momentum. This portfolio will take long and short positions, meaning investments are made into companies in which the share price is expected to grow, as well as in companies in which the share price is expected to fall, and may also retain amounts in cash or cash equivalents pending reinvestment if this is considered appropriate to maximise returns.The investment is permitted to invest in foreign instruments and its investment strategies will be mainly focused on South African equities, but supplemented by other opportunities such as offshore investments, subject to applicable legal limits. Portfolio short positions are primarily broad market indices and are targeted.

For this portfolio, the aim is to reach an average Beta market exposure of 100% by leveraging targeted shares to 140% of portfolio exposure and reducing Beta through market short positions.

Our data driven market timing models and market risk factors are used to determine optimal exposure levels and to facilitate sector and share weights, investment style and sector rotation to fully capture excess returns.

Investment Strategy

0%
Bonds
0%
Cash
100%
Equity
0%
Foreign Equity
0%
Property

Equity Factor Allocations

10%
Quality
30%
Stability
55%
Momentum
5%
Value

Suitable For

  • You are seeking capital growth over the medium to long term, being 3 years or more.
  • You are are comfortable with significant stock market fluctuations 
  • You are aware and accept the possibility of losing capital 
  • You are looking for investment strategy diversification away from traditional styles.

This investment is not suitable for moderate or conservative investors seeking capital stability or preservation.

Investment Objective

This portfolio aims to generate excess returns with a lower risk profile than the selected benchmark being 50% FTSE/JSE Top 40 Index + 50% STEFI . Targeting a return of Inflation + 6%

Benchmark

We use a benchmark as a way to compare and measure our performance against another fund. For this portfolio, we are using:

50% FTSE/JSE Top 40 Index + 50% STEFI

Investment Charges

Investment Management Fee: 1.2% P/A (excl VAT)

Performance Fee: 20% above benchmark

Transaction Costs: 0.35%

The Total Investment Cost excludes Performance Fees. These are calculated as 20% of any excess return above the stated benchmark and are calculated on a monthly basis

Performance

See the factsheet here for more information

Investment Options

Invest through Robo

Choose a desired target return, and based on your risk preferences the Robo will provide you with an investment strategy to achieve your goals.

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Invest through EasyEquities

If you are new to investing and prefer the human touch, investing on EasyEquities will provide an easy and fun way to achieve your investment goals.

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