the matrix review - matrix fund managers€¦ · utilising asset allocation skills with higher...

The Matrix Review

February 2020

This presentation is a private publication, please do not redistribute.Date Published: 23 March 2020

Business Update

• A diversified boutique asset manager• Long funds R6.8 billion

• Hedge funds R3.0 billion

• Strong growth of Long assets in 2018

• Hedge funds since 2006 (12+ years)• Delivering uncorrelated absolute returns

2Source: Matrix

• A Level 2 B-BBEE contributor

• Consistent performance across product range

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 20

Hedge Long

What Funds do we offer?

3Source: Matrix

Type of Fund Fund Name Target Note

Low Equity Amplify SCI Defensive Balanced Fund CPI + 3% Number 3 in Low Equity Category since inceptionAchieved CPI + 3.1%, minimal drawdowns

Medium Equity Amplify SCI Absolute Fund CPI + 4% Took over mandate in October 2017Number 7 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


Equity Matrix Novare Equity Fund SWIX + 1% Number 9 in General Equity Category Since InceptionAchieved SWIX + 1.80% after all fees

Bond Sanlam Select Bond Plus Fund ALBI Outperformed ALBI since inceptionAnnualised return since inception of 8.61%

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 – 29 February 2020Source: 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

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


Fixed Income Matrix NCIS Fixed Income Retail Hedge Fund Cash + 8% Achieved Cash + 9% 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 – 29 February 2020Source: 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%

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 – 29 February 2020Source: Morningstar, Matrix

Consistent Top Quartile ranking for both funds

over 24M periods

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10%

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30%

40%

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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 – 29 February 2020Source: Morningstar, Matrix

7.47%

5.69%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

Abax Absolute Prescient A

NFB Ci Stable A

Amplify SCI Defensive Balanced A1

Sanlam Multi Mgd Conservative FoF A2

SIM Inflation Plus

Sygnia Skeleton Balanced 40 A

ABSA Inflation Beater A

Platinum BCI Income Provider FoF

Discovery Cautious Balanced

Kagiso Stable A

Allan Gray Stable A

Optimum BCI Stable A

Sasfin BCI Stable A

Hollard Prime Strategic Defensive FoF B

Allan Gray Optimal A

Investec Cautious Managed B

Prime Classic Port Conservative FoF C

Prime Balanced Income FoF B1

Nedgroup Inv Stable A

Prime Cabernet Stable FoF C

MI-PLAN IP Inflation Plus 3 B5

Sanlam Multi Mgd Cautious FoF A2

Nedgroup Inv Core Guarded C

Old Mutual Real Income A

Average

Ranked 3rd out of 91 funds

-5%

0%

5%

10%

15%

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25%

30%

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May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 May-17 Nov-17 May-18 Nov-18 May-19 Nov-19

Drawdown (RHS) Amplify SCI Defensive Balanced A1 CPI CPI+3%

Multi Asset CIS Fund vs CPI Since Inception


Achieving CPI+ 2.8%Worst Drawdown -2.7%

3.52%

1.31%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00%

Sasfin BCI Balanced A

Counterpoint SCI Moderate A1

Wealth Associates BCI Moderate FoF A

Platinum BCI Balanced FoF

Kagiso Protector A

Foord Conservative A

Amplify SCI Absolute A1


ABSA Wealth Preserver Plus A

SIM Mgd Moderate FoF A2


Sygnia Skeleton Balanced 60 A

Prime Optimal Balanced FoF B1

Mergence CPI + 4% Prime A1

Noble PP STANLIB Balanced FoF A2

Prescient Pos Rtn QuantPlus C

ABSA Multi Managed Passive Accum B

Optimum BCI Balanced A

STANLIB Absolute Plus A

Discovery Moderate Balanced

FNB Moderate FoF B1

Prime Chardonnay Moderate FoF C

Fairtree Flex Balanced Prescient A1

ABSA Multi Managed Core Accumulation C

Average

Multi Asset CIS Fund vs Peers Since InceptionASISA MA Medium Equity Category

10

Ranked 7th out of 102 funds

Performance from 1 November 2017 – 29 February 2020Source: Morningstar, Matrix

1.32%

1.37%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00%

Rezco Managed Plus A

Gryphon Prudential FoF B

Rezco Value Trend A

Nedgroup Inv Balanced A

Financial Fitness Balanced IP FoF A

Investec Managed A

Kagiso Balanced A

Olympiad BCI Managed FoF

Warwick BCI Balanced B

Fairtree Balanced Prescient A1

H4 Diversified B1

Rowan Capital BCI Balanced FoF A

Sasfin BCI Prudential A1

Investec Opportunity B

Element Islamic Balanced SCI A

Counterpoint SCI Balanced Plus A1

Kanaan BCI Balanced FoF

Nedgroup Inv Managed D

Long Beach Managed Prescient A1

SIM Mgd Moderate Aggr FoF A2

Instit BCI Managed FoF A

SIM Mgd Aggressive FoF A2

NFB Ci Managed A

Matrix Novare Balanced A2

Average

Multi Asset CIS Fund vs Peers Since InceptionASISA MA High Equity Category

11Performance from 1 March 2018 – 29 February 2020Source: Morningstar, Matrix

Ranked 110th

out of 205 funds

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 – 29 February 2020Source: Morningstar, Matrix

5.09%

3.18%

0% 1% 2% 3% 4% 5% 6% 7% 8%

Fairtree Equity Prescient A1

BlueAlpha BCI Equity A

36ONE BCI Equity A

Aylett Equity Prescient A1

Satrix Momentum Index A1

Momentum Macro Growth B1

Anchor BCI Equity A

Momentum Emerg Mgr Growth F1

Matrix Novare Equity C

Sygnia Active Equity A

Investec Equity A

Truffle SCI General Equity A

ABSA Prime Equity A

GTC Active Equity C

SIM Top Choice Equity A1

Prime General Equity B

Kagiso Equity Alpha A

Counterpoint SCI Dividend Equity A1

Marriott Dividend Growth R

Kagiso Islamic Equity A

Sanlam Value Institutional B1

Investec Value A

Gryphon All Share Tracker

FTSE/JSE All Share SWIX TR

Allan Gray Equity A


Bond CIS Fund vs Peers Since InceptionASISA IB Variable Term Category


8.61%

8.28%

0% 2% 4% 6% 8% 10% 12%

Investec Corporate Bond Z

Allan Gray Bond A

ABSA Bond A

Momentum Managed Bond B1

Sanlam Select Bond Plus B2

Coronation Bond R

Momentum Active Bond B1

STANLIB Bond R

FTSE/JSE All Bond TR ZAR

Nedgroup Inv Core Bond A

Oasis Bond D

Community Growth Gilt

SIM Bond Plus R

Investec Gilt A

Citadel SA Bond H4 B1

Ashburton Multi Manager Bond B1

AF Investments Pure Fixed Interest A

ABSA Multi-Managed Bond A

Momentum Bond B7

Satrix Bond Index A1

Old Mutual Bond R

Average

Prudential High Yield Bond A

SMM Yield Plus B8

Sanlam Multi Mgd Bond B3


8.70%

6.59%

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%

Truffle SCI Income Plus A

Terebinth SCI Enhanced Income B1

Nedgroup Inv Fundisa A

Central Fundisa B8

SIM Enhanced Yield A1

ABSA Core Income A

Matrix Novare Stable Income A1

STANLIB Income R

Investec High Income B

ABSA Income Enhancer R

Ashburton SA Income B1

Ashburton Stable Income A

Prudential Income A

AF Investments Income A

STANLIB MM Enhanced Yield B1

Standard Bank Fundisa A

Hollard Prime Yield-Plus B

Standard STANLIB Yield Plus B1

Average

Old Mutual Income R

Momentum Enhanced Yield A

PPS Enhanced Yield B2

Instit BCI Enhanced Yield A

Citadel SA Income H4 B1

STeFI Call Deposit ZAR

Stable Income Fund* vs Peers Since InceptionASISA Short term interest bearing Category

14

Performance from 1 December 2018 – 29 February 2020Source: Morningstar, Matrix*This fund is in the Multi Asset Income category at present but application with FSCA to move to the Short Term Interest Bearing Category


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.

Feb 20Matrix Fixed

Income Hedge Fund

Cash Bonds SA Equity

YTD -1.0% 1.0% 1.1% -10.5%

1 Year 9.5% 6.6% 8.9% -5.7%

3 Years 9.5% 6.7% 9.1% 3.1%

5 Years 8.2% 6.6% 7.2% 2.2%

Since Inception 15.2% 6.3% 8.7% 10.1%

Correlation 1.00 0.26 0.59 0.04

Volatility 11.1% 0.4% 7.0% 13.7%

Outperforming Equities with lower volatility and no correlation

Performance from 1 October 2008 – 29 February 2020Source: Matrix, Reuters

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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.

Feb 20Matrix Multi

Strategy Hedge Fund

Cash Bonds SA Equity

YTD -1.5% 1.0% 1.1% -10.5%

1 Year 6.4% 6.6% 8.9% -5.7%

3 Years 5.5% 6.7% 9.1% 3.1%

5 Years 6.8% 6.6% 7.2% 2.2%

Since Inception 11.5% 6.9% 8.7% 9.6%

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 – 29 February 2020Source: Matrix, Reuters

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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.

http://www.matrixfundmanagers.co.za/

http://matrixfundmanagers.co.za/funds/

Eben Karsten

T +27 (0)21 673 7890

C +27 (0)79 898 5576

[email protected]

matrixfundmanagers.co.za

Thank you

the matrix review - matrix fund managers€¦ · utilising asset allocation skills with higher...

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