Laurium Capital’s Flexible Prescient Fund is an excellent investment opportunity for South Africans looking for higher potential returns with lower risk.
This is thanks to the fund’s unrivalled flexibility in allocating money to different asset classes, locally and globally.
“Flexible funds are well-positioned to invest into any asset class they think is best at the time,” said Laurium Capital Head of SA Business Development and Marketing Kim Zietsman.
“They are the ultimate expression of a fund manager’s views on the investment landscape.”
This contrasts against equity funds, which can only invest in specific equity markets.
If equity markets are poised to decline overall, equity funds will take the full hit. Flexible funds, however, can simply lower their exposure to equity markets in favour of other opportunities like cash, preference shares and bonds Equity funds have their place for investors looking at doing their own asset allocation and portfolio construction, while flexible funds are more applicable for investors who would rather place the decision of asset allocation in the hands of the asset manager.
As they are unconstrained, well-managed flexible funds can outperform both balanced and equity funds over time with lower risk.
Despite these advantages, many South Africans are missing out by keeping their investments in more rigid alternatives.
“Flexible funds are generally poorly understood and underutilised in South Africa,” said Zietsman. Those that have been invested in the Laurium Flexible Prescient Fund have been well rewarded.
The Laurium Flexible Prescient Fund was launched on 1 February 2013 and has achieved an annualised return of 11.4% after fees, outperforming the SA Equity market by 3% per year and placing it second out of 25 funds in the ASISA SA Multi-Asset Flexible category since its inception.
To extend the comparison, it also would have outperformed all Balanced Funds over the 11.5-year period and beaten the average SA General Equity fund by 4% per year, at lower risk. (Morningstar Direct 31 Aug 2024)
It has outperformed the category average each year and has exceeded its primary objective of achieving CPI +5%.
The fund has also captured 81% of the upside of the SA equity market, while only incurring 54% of the downside, protecting your capital better.
“Key to the fund’s real performance has been a high allocation to equities on average over time, coupled with successful stock-picking, and select special situations,” said Zietsman.
Zietsman explained that the Laurium Flexible Prescient Fund is an excellent investment opportunity in multiple scenarios.
This includes for South Africans who want a diverse investment portfolio that is actively managed by experts in accordance with market changes, seeking long term capital growth
The Laurium Flexible Prescient Fund also serves as a great option for living annuities, which are not constrained by Regulation 28 of the Pension Fund’s Act, thanks to its combination of lower risk and high returns relative to equities.
“People are living longer than ever before, making it important that retired individuals invest a significant portion of their living annuity into high-growth funds,” said Zietsman.
The Laurium Flexible Prescient Fund can be used for your tax-free savings investment, too, and offers excellent long-term returns that align with the best use case of your tax-free allocation.
The opportunities for investing in the Laurium Flexible Prescient Fund are extensive – Click here to learn more about the fund.
Disclaimer: Collective Investment Schemes in Securities (CIS) should be considered as medium to long-term investments.
The value may go up as well as down and past performance is not necessarily a guide to future performance. CIS’s are traded at the ruling price and can engage in scrip lending and borrowing.
A schedule of fees, charges and maximum commissions is available on request from the Manager. There is no guarantee in respect of capital or returns in a portfolio. A CIS may be closed to new investors in order for it to be managed more efficiently in accordance with its mandate.
Performance for the A1 Class has been calculated using net NAV to NAV numbers with income reinvested.
The performance for each period shown reflects the return for investors who have been fully invested for that period.
Individual investor performance may dier as a result of initial fees, the actual investment date, the date of reinvestments and dividend withholding tax. Full performance calculations are available from the manager on request.
Annualised performance: Annualised performance shows longer term performance rescaled to a 1-year period. Annualised performance is the average return per year over the period. Actual annual figures are available to the investor on request.
Highest and lowest return: The highest and lowest returns for any 1 year over the period since inception have been shown. NAV: The net asset value represents the assets of a Fund less its liabilities.
Laurium Flexible prescient Fund highest rolling 1-year return 44.5%, lowest rolling 1-year return-15.1%.
Laurium Capital (Pty) Ltd is an authorized FSP (FSP34142). Prescient Management Company (RF) (Pty) Ltd is registered and approved under the Collective Investment Schemes Control Act (No.45 of 2002).
For any additional information such as fund prices, fees, brochures, minimum disclosure documents and application forms, please contact us.
Article from Business Tech.
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