LA Excelsior Conservative Portfolio

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					                               LA Excelsior Conservative Portfolio
                                                                                                                                                                                        September 2009

                               about the portfolio                                                                         quarterly commentary (3rd quarter)
                               Portfolio manager:                 STANLIB                                                  Fund Review
                                                                                                                           As we expected, equities performed best out of the four asset classes during the third quarter ending September, with
                               Launch date:                       March 2006 (Excelsior 1000)                              the JSE All Share Index returning 13.9% (including dividends) on increasing signs of a sustained global economic
                               Inception date:                    March 2006 (Excelsior 1000)                              recovery, after gaining 8.9% in the June quarter. This strong quarterly gain vindicated our decision to be overweight
                                                                  December 2008 (Excelsior 2000)                           equities in our five risk-profiled funds. The second best return came from listed properties (12.2%), where we are also
                                                                                                                           overweight relative to benchmark. By comparison, the All Bond Index returned 3% (moderately underweight) and cash
                               Portfolio type:                    Single Manager
                                                                                                                           returned 1.9%.
                               Portfolio size:                    R 1’300 million (Excelsior 1000)
                                                                                                                           At the start of the quarter we were at maximum underweight in bonds because of rising yields amidst the much higher
                               Benchmark:                         20% FTSE/JSE All Share Index
                                                                                                                           supply hitting the market because of weak government revenues. However, early in the third quarter, SA government
                                                                  30% FTSE/JSE All Bond Index
                                                                                                                           bond yields soared to almost 9.5% for the R207 2020 maturity, which we saw as an opportunity and up-weighted our
                                                                  20% SAPIX SA Property Owners Index
                                                                                                                           holding to moderately underweight.
                                                                  30% STeFI Index (Cash Index)
                               Guarantee available:               An optional guarantee is available on this               On the equity front, the funds are 29% in Resources, 28% in Financials and 43% in Industrials. This is similar to the JSE
                                                                  portfolio                                                shareholder-weighted index known as the SWIX. Resources in the SWIX index are much lower than in the All Share
                                                                                                                           Index. The funds hold seven different STANLIB equity unit trusts, with the largest holdings being the ALSI 40 Fund and
                               Additional Information:            The LA Excelsior Lifetime Phase 1 mirrors
                                                                                                                           the Value Fund. During the quarter we sold our holding in the Prosperity Fund in favour of these two funds, to consolidate.
                                                                  the performance of this portfolio
                                                                                                                           The third biggest holding is the Growth Fund.

                                                                                                                           Looking Ahead
                                                                                                                           We expect the world economy followed by our economy to continue to improve steadily, allowing company earnings to
                               The performance of the portfolio benchmark over time provides the basis against
                                                                                                                           grow strongly in 2010, in turn allowing shares to appreciate meaningfully offshore. In South Africa, our shares don't look
                               which the portfolio manager will be measured.
                                                                                                                           cheap on a one year view, but assuming earnings come through strongly in 2011, as currently forecast, shares have
                               Please consult the current portfolio grid for any current restrictions on the               excellent value on a two year view. We expect property funds to do reasonably well too.
                               availability of portfolios for new business and switching.

                               risk profile

                                      Cons                               Mod                                Aggr
                                                                                                                                                                        3 Months    6 Months          1 Year             2 Years        3 Years

                                                                                                                             Taxed                                       3.76%        6.58%           10.19%             7.17%           9.71%
                               No adjustment has been made to the above risk profile for the guaranteed version
                               of the portfolio. If a guarantee is selected on the portfolio, then the risk profile will
                               be lower, provided the investor remains in the guaranteed portfolio for the                   Retirement Annuity                          4.34%        7.77%           12.60%             9.32%          11.83%
                               duration of its guaranteed term.
                                                                                                                             Untaxed                                     4.33%        7.77%           12.65%             9.35%          11.94%

                               top 10 holdings (equity)                                                                      Company                                     3.61%        6.39%           10.17%             7.27%           9.64%

                               MTN Group                                                                      9.5%
                                                                                                                             Benchmark                                   4.23%        6.88%           10.58%             8.89%          11.90%
                               BHP Billiton                                                                   7.5%
                               Sasol                                                                          6.7%           Inflation                                   1.78%        4.03%            5.60%             9.58%           8.61%
                               Firstrand Limited                                                              6.0%
                                                                                                                           Please Note: The above investment returns are after four-fund tax has been deducted but before any Liberty Life
                               Standard Bank Group                                                            4.9%
                                                                                                                           charges have been deducted, with applicable distributions reinvested and are on a sell-to-sell basis. They are
                               SABMiller                                                                      4.8%         applicable to single contributions and are for Excelsior 1000 Series products for the periods above. Investment returns
                               Investec PLC                                                                   4.7%         for periods less than one year are not annualised.
                               Impala Platinum Hlds                                                           4.5%
                               Aveng                                                                          3.5%         portfolio objective
                               Murray & Roberts                                                               3.3%
                                                                                                                           The Portfolio aims to produce a risk/return profile consistent with that required by a conservative investor. Conservative
                                                                                                                           investors are investors who want stability and are more concerned with protecting the current value of their investment
                                                                                                                           than increasing its real value.
                               who should invest in this portfolio?

                               This portfolio is suited to the investor who:                                               portfolio's asset allocation
                               - wants to preserve capital over rolling 18-month periods
                               - has an investment horizon of at least 3 years
                               - wants some growth over rolling 3 year periods, but with limited
                                                                                                                                          Bonds                                                                    26.5%
                                  fluctuations from year to year

                                                                                                                                            Cash                                                                         28.9%
                               what return is this portfolio designed to achieve ?
                                                                                                                                         Equities                                                              25.1%
                                Investment horizon to achieve                    Expected Returns*
                                expected return
                                3 years                                          CPI + 0.5% p.a.                                         Property                                                 19.5%

                                The Consumer Price Index (CPI) measures the increase in the price                                                   0%         5%          10%      15%         20%          25%         30%         35%
Liberty Life Fund Fact Sheet

                                of the basket of goods an average family would buy over a
                                specified period of time.                                                                  return volatility
                                                                                                                           The graph below indicates the volatility of annual investment returns for an investor in this portfolio. The highest and
                                * Expected return is after the deduction of tax but before any Liberty Life charges
                                                                                                                           lowest annual returns over 1, 5 and 10 year intervals have been shown based on the portfolio being invested in the
                                and fees have been deducted.
                                                                                                                           benchmark. The calculations are based on investment returns during the 20 years to 01/01/2007.

                               disclaimer                                                                                                 25
                                                                                                                                          20                                        18%                            17%
                               The information contained in this document does not constitute advice                                                                                                                          14%
                                                                                                                                          15                                                   13%
                               by Liberty Life. Whilst every attempt has been made to ensure the
                               accuracy of the information contained herein, Liberty Life cannot be
                               held responsible for any errors that may occur. Past performance                                                                    5%
                               cannot be relied on as an indicator of future performance. Investment                                       5
                               performance will depend on the growth in the underlying assets, which
                               will be influenced by inflation levels in the economy and prevailing                                        0
                               market conditions. Source: Liberty Life, STANLIB.                                                                          1 year                     5 years                       10 years
                               Liberty Group Ltd – an Authorised Financial Services Provider in terms                                                       Best Performance                    Worst Performance
                               of the FAIS Act (licence no. 2409)
                               Liberty Active Ltd – an Authorised Financial Services Provider in terms                     No allowance has been made for the impact of tax or charges and fees in calculating these returns.
                               of the FAIS Act (licence no. 10332)

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