Embed Size (px)
Citation preview
The Matrix Review
December 2019
This presentation is a private publication, please do not redistribute.Date Published: 22 January 2020
Business Update
• A diversified boutique asset manager• Long funds R6.5 billion
• Hedge funds R3.0 billion
• Strong growth of Long assets last 2 years
• Hedge funds since 2006 (12+ years)• Stable assets in tough environment
• Delivering uncorrelated absolute returns
2Source: Matrix
AUM Growth since 2006 (R millions)
-
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
06 07 08 09 10 11 12 13 14 15 16 17 18 19
Hedge Long
• A Level 2 B-BBEE contributor
• Consistent performance across product range
• Adopt CRISA Principles for Responsible Investing
What Funds do we offer?
3Source: Matrix
Type of Fund Fund Name Target Note
Low Equity Sanlam Select Defensive Balanced Fund CPI + 3% Number 3 in Low Equity Category since inceptionAchieved CPI + 3.3%, minimal drawdowns
Medium Equity Sanlam Select Absolute Fund CPI + 4% Took over mandate in October 2017Number 5 in Category since under Matrix management
High Equity Matrix Novare Balanced Fund CPI + 5% Launched Fund in February 2018Utilising asset allocation skills with higher equity content
Income Matrix Novare Stable Income Fund CPI + 3% Launched Fund in December 2018Ran a number of segregated accounts prior to this
Multi Asset CIS
Type of Fund Fund Name Target Note
Equity Matrix Novare Equity Fund SWIX + 1% Number 7 in General Equity Category Since InceptionAchieved SWIX + 1.85% after all fees
Bond Sanlam Select Bond Plus Fund ALBI Outperformed ALBI since inceptionAnnualised return since inception of 8.65%
Money Market Matrix Novare Money Market Fund STEFI Comp Competitive feesDelivered Stefi Composite + 0.22%
Single Asset CIS
All performance throughout this report after all fees and costs
Main CIS Funds vs Peer Groups and Indices since inception
4Performance from 1 June 2014 – 31 December 2019Source: Morningstar, Matrix, Reuters
Amplify SCI Defensive Balanced A1
Sanlam Select Bond Plus B2
Matrix Novare Equity C
ALBI
SWIX TR
ALSI TR
CPI
Cash
Average FI Manager
Average Low Equity Manager
Average Gen Eqty Manager
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%
An
nu
alis
ed
Re
turn
Volatility
What Funds do we offer?
5
Type of Fund Fund Name Target Note
Fixed Income Matrix NCIS Fixed Income Retail Hedge Fund Cash + 8% Achieved Cash + 9.2% after all fees since inceptionLow Correlation to asset classes with moderate volatility
Multi Strategy Matrix NCIS Multi Strategy Retail Hedge Fund Cash + 8% Outperforming local Equities at Bond like volatilityDiversified mix of Hedge Fund strategies
Hedge Funds CIS
Performance from 1 October 2008 – 31 December 2019Source: Morningstar, Matrix, Reuters
Matrix NCIS Multi Strategy Retail Hedge Fund
Matrix NCIS Fixed Income Retail Hedge Fund
Cash
ALBI
ALSI TR
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00%
An
nu
alis
ed R
etu
rns
Volatility
Traditional FundsFund Specific Performance
Traditional Funds rolling 24M PeriodsQuartile vs Peers*
7
* The chart shows the ranking of funds managed by Matrix Fund Managers compared to peer groups in the multi asset low equity, and general equity categories from ASISA.Performance from 1 June 2014 – 31 December 2019Source: Morningstar, Matrix
Consistent Top Quartile ranking for both funds
over 24M periods
0%
10%
20%
30%
40%
50%
60%
31
/12
/20
19
30
/11
/20
19
31
/10
/20
19
30
/09
/20
19
31
/08
/20
19
31
/07
/20
19
30
/06
/20
19
31
/05
/20
19
30
/04
/20
19
31
/03
/20
19
28
/02
/20
19
31
/01
/20
19
31
/12
/20
18
30
/11
/20
18
31
/10
/20
18
30
/09
/20
18
31
/08
/20
18
31
/07
/20
18
30
/06
/20
18
31
/05
/20
18
30
/04
/20
18
31
/03
/20
18
28
/02
/20
18
31
/01
/20
18
31
/12
/20
17
30
/11
/20
17
31
/10
/20
17
30
/09
/20
17
31
/08
/20
17
31
/07
/20
17
30
/06
/20
17
31
/05
/20
17
30
/04
/20
17
Amplify SCI Defensive Balanced A1 Matrix Novare Equity C 1ST Quartile 2ND Quartile
Multi Asset CIS Fund vs Peers Since InceptionASISA MA Low Equity Category
8Performance from 1 June 2014 – 31 December 2019Source: Morningstar, Matrix
7.89%
6.08%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9%
NFB Ci Stable A
Kagiso Stable A
Amplify SCI Defensive Balanced A1
Abax Absolute Prescient A
Sygnia Skeleton Balanced 40 A
Sanlam Multi Mgd Conservative FoF A2
Sasfin BCI Stable A
Prime Classic Port Conservative FoF C
SIM Inflation Plus
Allan Gray Stable A
Hollard Prime Strategic Defensive FoF B
Prime Cabernet Stable FoF C
ABSA Inflation Beater A
Allan Gray Optimal A
Prime Balanced Income FoF B1
Discovery Cautious Balanced
Optimum BCI Stable A
Platinum BCI Income Provider FoF
Investec Cautious Managed B
Nedgroup Inv Stable A
Nedgroup Inv Core Guarded C
MI-PLAN IP Inflation Plus 3 B5
PSG Wealth Preserver FoF D
Sanlam Multi Mgd Cautious FoF A2
Average
Ranked 3rd out of 91 funds
-5%
0%
5%
10%
15%
20%
25%
30%
90
100
110
120
130
140
150
160
31-05-14 30-11-14 31-05-15 30-11-15 31-05-16 30-11-16 31-05-17 30-11-17 31-05-18 30-11-18 31-05-19
Drawdown (RHS) Amplify SCI Defensive Balanced A1 CPI CPI+3%
Multi Asset CIS Fund vs CPI Since Inception
9Performance from 1 June 2014 – 31 December 2019Source: Morningstar, Matrix
Achieving CPI+ 3.3%Worst Drawdown -2.7%
5.01%
2.68%
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00%
Kagiso Protector A
Wealth Associates BCI Moderate FoF A
Counterpoint SCI Moderate A1
Sasfin BCI Balanced A
Amplify SCI Absolute A1
Foord Conservative A
Deton Prime Balanced FoF A2
Prescient Pos Rtn QuantPlus C
Sygnia Skeleton Balanced 60 A
Prime Chardonnay Moderate FoF C
SIM Mgd Moderate FoF A2
FNB Moderate FoF B1
Platinum BCI Balanced FoF
ABSA Multi Managed Passive Accum B
MI-PLAN IP Inflation Plus 7 B5
Prime Optimal Balanced FoF B1
Fairtree Flex Balanced Prescient A1
Coreshares OUTStable Index O
Mergence CPI + 4% Prime A1
Discovery Mod Dynamic Asset Opt FoF A
MI-PLAN IP Inflation Plus 5 B5
Melville Douglas STANLIB Med Eq FoF A
Multi Asset IP Balanced A
Momentum Target 4 Fund of Funds A
Average
Multi Asset CIS Fund vs Peers Since InceptionASISA MA Medium Equity Category
10
Ranked 5th out of 102 funds
Performance from 1 November 2017 – 31 December 2019Source: Morningstar, Matrix
Multi Asset CIS Fund vs Peers Since InceptionASISA MA High Equity Category
11Performance from 1 March 2018 – 31 December 2019Source: Morningstar, Matrix
Ranked 94th out of 205 funds
Only 22 Months of performance!!
3.97%
3.73%
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00%
Kagiso Balanced A
Long Beach Managed Prescient A1
Nedgroup Inv Balanced A
Rezco Managed Plus A
Fairtree Balanced Prescient A1
H4 Diversified B1
Element Islamic Balanced SCI A
Rezco Value Trend A
Financial Fitness Balanced IP FoF A
Nedgroup Inv Managed D
Gryphon Prudential FoF B
Warwick BCI Balanced B
ABAX Balanced Prescient A1
Sasfin BCI Prudential A1
SIM Mgd Moderate Aggr FoF A2
SIM Mgd Aggressive FoF A2
WellsFaber Balanced RECM FoF A
Investec Opportunity B
Counterpoint SCI Balanced Plus A1
Rowan Capital BCI Balanced FoF A
Olympiad BCI Managed FoF
Instit BCI Managed FoF A
NFB Ci Managed A
Matrix Novare Balanced A2
Average
7.23%
5.38%
0% 2% 4% 6% 8% 10% 12%
Fairtree Equity Prescient A1
BlueAlpha BCI Equity A
Momentum Emerg Mgr Growth F1
Satrix Momentum Index A1
Momentum Macro Growth B1
36ONE BCI Equity A
Matrix Novare Equity C
Sygnia Active Equity A
Aylett Equity Prescient A1
Anchor BCI Equity A
Investec Value A
Investec Equity A
ABSA Prime Equity A
Truffle SCI General Equity A
GTC Active Equity C
SIM Top Choice Equity A1
Kagiso Equity Alpha A
Sanlam Value Institutional B1
Prime General Equity B
Kagiso Islamic Equity A
FTSE/JSE All Share SWIX TR
Sygnia Divi Index A
H4 Focused Wealth A1
Laurium Equity Prescient A1
ClucasGray Equity Prescient A1
Matrix Novare Equity Fund vs Peers Since Inception*ASISA General Equity Category
12
*This fund was run as a segregated mandate from 1 June 2014 to 30 November 2015. The Matrix Novare Equity C Fund was launched on 1 December 2015 with a similar mandate to the segregated account. The source of return data for the initial 18 month period is therefore Matrix Fund Managers.
Performance from 1 June 2014 – 31 December 2019Source: Morningstar, Matrix
Ranked 7th out of 123 funds
Bond CIS Fund vs Peers Since InceptionASISA IB Variable Term Category
13Performance from 1 June 2014 – 31 December 2019Source: Morningstar, Matrix
8.65%
8.32%
0% 2% 4% 6% 8% 10% 12%
Investec Corporate Bond Z
Allan Gray Bond A
ABSA Bond A
Momentum Managed Bond B1
Coronation Bond R
Sanlam Select Bond Plus B2
Momentum Active Bond B1
STANLIB Bond R
Beassa ALBI TR
Nedgroup Inv Core Bond A
Oasis Bond D
Community Growth Gilt
Citadel SA Bond H4 B1
SIM Bond Plus R
Investec Gilt A
AF Investments Pure Fixed Interest A
ABSA Multi-Managed Bond A
Momentum Bond B7
Satrix Bond Index A1
Ashburton Multi Manager Bond B1
Old Mutual Bond R
Prudential High Yield Bond A
Average
SMM Yield Plus B8
Sanlam Multi Mgd Bond B3
Ranked 6th out of 40 funds
Money Market Fund vs Peers Since InceptionASISA Money Market Category
14Performance from 1 August 2016 – 31 December 2019Source: Morningstar, Matrix
Ranked 15th out of 45 funds
7.61%
7.39%
7.00% 7.20% 7.40% 7.60% 7.80% 8.00% 8.20%
Old Mutual Inst Money Mkt B2
Momentum Outcome Based Money Market B4
ACI Money Market A1
SIS Money Market
BCI Money Market A
Cadiz Money Market A
Prescient Money Market A
Allan Gray Money Market
Hollard Prime Money Market B
Coronation Money Market A
Citadel SA Money Market H4 B1
Granate SCI Money Market B
Ashburton Money Market B1
RECM Money Market A
Matrix Novare Money Market B1
Old Mutual Multi-Managers MoneyMarket A
STANLIB Corporate Money Market B1
Gryphon Money Market A
Old Mutual Money Market A
Nedgroup Inv Money Market R
Glacier Money Market A
Momentum Money Market A
Prudential Money Market A
SIM Money Market R
STeFI Composite
Hedge FundsFund Specific Performance
Matrix NCIS Fixed Income Retail Hedge FundNet Investment Performance
Periods Greater than 1 year are annualised Growth of R100 invested since inception (1 Oct 2008)
16The Fund converted to a regulated CIS Hedge Fund on 1 September 2016.Performance prior to that date is from an unregulated environment.
Dec 19Matrix Fixed
Income Hedge Fund
Cash Bonds SA Equity
YTD 11.9% 6.6% 10.3% 12.0%
1 Year 11.9% 6.6% 10.3% 12.0%
3 Years 11.0% 6.7% 9.4% 7.4%
5 Years 9.3% 6.6% 7.7% 6.0%
Since Inception 15.5% 6.3% 8.8% 11.3%
Correlation 1.00 0.25 0.59 0.02
Volatility 11.1% 0.4% 7.1% 13.4%
Outperforming Equities with lower volatility and no correlation
Performance from 1 October 2008 – 31 December 2019Source: Matrix, Reuters
50
100
150
200
250
300
350
400
450
500
550
50
100
150
200
250
300
350
400
450
500
550
Sep-08 Mar-10 Sep-11 Mar-13 Sep-14 Mar-16 Sep-17 Mar-19
Matrix NCIS Fixed Income Retail Hedge Fund Cash ALBI ALSI TR
Matrix NCIS Multi Strategy Retail Hedge FundNet Investment Performance
Periods Greater than 1 year are annualised Growth of R100 invested since inception (1 Oct 2006)
17The Fund converted to a regulated CIS Hedge Fund on 1 September 2016.Performance prior to that date is from an unregulated environment.
Dec 19Matrix Multi
Strategy Hedge Fund
Cash Bonds SA Equity
YTD 10.7% 6.6% 10.3% 12.0%
1 Year 10.7% 6.6% 10.3% 12.0%
3 Years 7.0% 6.7% 9.4% 7.4%
5 Years 7.7% 6.6% 7.7% 6.0%
Since Inception 11.6% 6.8% 8.6% 10.5%
Correlation 1.00 0.14 0.30 -0.01
Volatility 8.6% 0.5% 7.4% 14.6%
Equity like return with Bond volatility and low correlation to asset classes
Performance from 1 October 2006 – 31 December 2019Source: Matrix, Reuters
50
100
150
200
250
300
350
400
450
50
100
150
200
250
300
350
400
450
Sep-06 Mar-08 Sep-09 Mar-11 Sep-12 Mar-14 Sep-15 Mar-17 Sep-18
Matrix NCIS Multi Strategy Retail Hedge Fund Cash ALBI ALSI TR
Regulatory Requirements
18Matrix Fund Managers. Authorised Financial Services Provider.
Mandatory DisclosuresCollective Investment Schemes (unit trusts) are generally medium to long-terminvestments. Past performance is not necessarily a guide to future performance.The manager does not provide any guarantee in respect to the capital or thereturn of the portfolio. The performance figures given show the yield calculatedon a Net Asset Value (“NAV”) basis. The NAV is the total value of all the assets inthe portfolio including any income accruals and less any permissible deductions(brokerage, STT, VAT, auditor’s fees, bank charges, administration fees, trusteeand custodian fees, the annual management fee and other transaction fees) fromthe portfolio divided by the number of participatory interests (units) in issue.Individual investor performance may differ as a result of initial fees, time ofentry/actual investment date, date of reinvestment, and dividends withholdingtax.
Collective investments are traded at ruling prices and can engage in scrip lendingand borrowing. Forward pricing is used. Excessive withdrawals from the portfoliomay place the portfolio under liquidity pressures and a process of ring-fencing ofwithdrawal instructions and managed pay-outs over time may be followed. TheManager retains full legal responsibility for any portfolio hosted on its CISplatform. The value of an investment is dependent on numerous factors whichmay include, but not limited to, share price fluctuations, interest and exchangerates and other economic factors. Where foreign securities are included in aportfolio there may be potential constraints on liquidity and the repatriation offunds, macroeconomic risk, political risk, currency risk, tax risk, settlement risksand potential limitations on the availability of market information. As a result thevalue per unit may go up or down, however, our robust investment processtakes these factors into account.
Additional information, including but not limited to; how we treat our investors(TCF), key investor information documents, minimum disclosure documents(MDD), conflict of interest management policy, as well as other informationrelating to the portfolios, including the basis on which the manager undertakes torepurchase participatory interests offered to it, and the basis on which selling andrepurchase prices will be calculated, as well as a detailed description of how
performance fees are calculated and applied, is available on request from the
Manager and on the Manager’s website.
Website: matrixfundmanagers.co.za
matrixfundmanagers/funds
Disclaimer
This presentation is a private publication intended for private circulation and may
not be distributed to any persons other than the intended recipients. It is for
information purposes only and should not be seen as a legal offer document. It is
the responsibility of any person in possession of this document to inform
themselves of, and observe, any applicable laws and regulations of the relevant
jurisdiction.
Matrix Fund Managers is approved by the Financial Sector Conduct Authority
(previously; the South African Financial Services Board) as a hedge fund
investment manager (Financial Advisory and Intermediary Services Act Category I,
II & IIA licence, FSP Registration No. 44663).
During 2016 the Matrix hedge funds converted from being unregulated
investment funds to regulated Collective Investment Schemes in Hedge Funds in
terms of the Collective Investment Schemes Control Act and Board Notice 52 of
2015. Matrix Fund Managers has entered into a co-naming agreement with
Novare CIS (RF), a regulated Collective Investment Scheme Management
Company whereby the Matrix hedge funds are administered by Novare CIS.
Performance numbers are historical, the value of all investments and the income
there from can go down as well as up, and as such the past is not necessarily a
guide to future performance. The performance and risk statistics contained
herein are net of fees. Historical performance numbers will include performance
from the periods when the relevant fund was an unregulated hedge fund. Further
detail about the relevant conversion dates can be requested from Matrix Fund
Managers.
Eben Karsten
T +27 (0)21 673 7890
C +27 (0)79 898 5576
matrixfundmanagers.co.za
Thank you
