Citadel SA Bond comment - Sep 18 - Fund Manager Comment12 Dec 2018
The third quarter of 2018 saw local markets struggle on the back of weak economic data; and news that South Africa had entered a technical recession. Ongoing political uncertainty, coupled with South Africa being in the general emerging market crossfire, dampened investor sentiment. The broader equity market (FTSE/JSE All Share Index) was down 2.2%, and the FTSE/JSE Capped All Share Index ('CAPI') was down 1.1%. The SA listed property (FTSE/JSE Listed Property Index ('SAPY')) fell 1% while local bonds (BEASSA All Bond Index) rose 0.8%.
The Citadel SA Bond H4 Fund ('the fund') was up 1.1% over the quarter, outperforming its benchmark. In terms of underlying managers, both the In-House managed government bond portion and the Investec Corporate Bond portfolio outperformed local bonds.
The fund continues to adhere to its policy.
Citadel SA Bond comment - Jun 18 - Fund Manager Comment19 Sep 2018
The glow of 'Ramaphoria' seen earlier in the year was trumped in Q2-2018 by the unsettled global geopolitical backdrop, with global risk assets coming under pressure and a sell-off in emerging markets. In addition, local risk appetite was further dampened by the weak local economic data released during the quarter. The rand did not escape the broad-based emerging market sell-off, and experienced its worst quarterly decline since September 2011, slipping almost 14% against the US dollar over the period. The local equity market (FTSE/JSE All Share Index) managed to end the quarter up 4.5% as the weaker rand and higher commodity prices boosted resource stocks. Local bonds (BEASSA All Bond Index) were down 3.8%, while SA listed property (FTSE/JSE Listed Property Index ('SAPY')) fell 2.2%.
The Citadel SA Bond H4 Fund ('the fund') was down 2% in the quarter, outperforming its benchmark which fell 3.8%. In terms of underlying managers, within the CAM Fixed Interest component, the In-House managed government bond portion (-2.8%) outperformed the local bond market while the tactical allocation to the Citadel SA Income H4 Fund (+2.2%) outperformed SA cash. In terms of external managers, the Investec Corporate Bond portfolio (-2.7%) outperformed local bonds, albeit in negative territory.
The fund continues to adhere to its policy.