By Kim Zietsman, Head Business Development at Laurium Capital
The Laurium Stable Prescient Fund celebrates its 3rd birthday on 1 December 2021. Laurium’s first CIS Fund launched was the Laurium Flexible Prescient Fund on 1 February 2013. This fund has delivered excellent returns for investors over time, with a 12% return per year, after fees. This is 4% more per year than the SA equity market as measured by the Capped SWIX TR Index and at much lower volatility over the 8-year history (Source: Morningstar 31 October 2021). The fund is ranked in the top quartile since inception.
Following the success of the Laurium Flexible Prescient Fund, Laurium launched a Multi-Asset High Equity fund in December 2015 (now called Amplify SCI Balanced Fund), which is ranked in the top decile since inception) and subsequently a Multi-Asset-Low-Equity Fund in December 2018, the Laurium Stable Prescient Fund, which is ranked in the top quartile since inception.
The celebration of the Laurium Stable Prescient Fund 3rd birthday on 1 December is a significant milestone, as most investors typically look at three important things – people, process, and performance. From a performance perspective, three years seems to be the magic number as a ticket to play in the game for a fund. In our experience, financial advisors, discretionary fund managers and multi-managers will typically only allocate to funds which have at least a 3-year track record. Some linked investment platforms (LISPs) will only consider your fund for shelf space or their buy lists once this magic milestone is reached. Companies that rate funds and do the calculations for the annual coveted awards in the industry often require a minimum track record of 3 years. This said, of course a 5 year or 10-year track is even better.
About the Fund
The Laurium Stable Prescient Fund aims to achieve long-term capital growth with low correlation to equity markets through all cycles and has consistently beaten it’s benchmark of CPI +3% over time.
The fund is run relative to a strategic asset allocation or “base case” and the table below indicates the range exposures to the various asset classes that investors can expect to see depending on Laurium’s macro view.
Laurium’s asset allocation process combines experience and rigour in a strategic disciplined approach with over 129 years of collective experience of members on the asset allocation committee.
Laurium has grown to R37bn in assets under management (as at Oct 2021) and combines 28 driven team players striving to generate returns in excess of client expectations across its suite of funds.
With the reduction of interest rates in 2020, the risk-free lunch is now off the table. Those seeking to generate real returns from their investments (everyone) should consider switching some exposure slightly higher up the risk spectrum to the low-equity multi-asset class where a combination of smart asset allocation, fixed income, active equity selection, property and offshore exposure offer one the potential to meet their clients real return targets.Read more