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The Prosperity Worldwide Flexible Fund of Funds (Prosperity) continues to perform superbly through these uncertain times. Since its inception in September 2014 the fund’s average annual return is 8.6% and over the last 12 months, 13.3%.
In the Morningstar unit trust rankings, Prosperity is currently the 3rd best performing fund year-to-date out of 91 funds in its category (World wide Multi-Asset Flexible). Year-to-date to August the fund has returned +3.1%, well ahead of the average fund in the category that has declined by -8.8%. Over five years, Prosperity is ranked 8th out of 63 funds in the category.
Relative to all SA unit trusts (1000+ funds), Prosperity’s performance is in the top 15% over the last 1, 5, and 7-year periods, which highlights the fund’s consistent performance. Plus, it’s low volatility coefficient puts it in the top 15% of stable performing funds.
Its unique management style is well suited for these volatile times
The fund is actively managed to take advantage of irrational asset pricing. It invests in a wide range of local and global funds, including ETFs, and foreign currency, making tactical short-term trades, and taking long-term strategic positions.
The fund’s overriding philosophy is to preserve capital as it balances risks with return opportunities. Central to the fund’s steady returns is its very disciplined investment strategy with a very tight risk management overlay.
The fund is managed by Investonline Director, Nick Brummer, and it broadly represents its inhouse views.
Strong 12-month performance of 13.3% in difficult times
The fund’s strong performance over the last 12 months has primarily been driven by US dollar cash holdings and tactical positions in SA bonds. Our equity holdings have been low and focused in undervalued local and emerging market sectors.
Current Fund Asset Allocation
Prosperity’s current high cash holding places the fund in a strong position to invest in many potential opportunities as market irrationality is heightened in these uncertain times.
Investor Profile
The fund is best suited to investors with a moderate risk profile who require a balanced local and global investment exposure with a conservative bias and capital preservation.
Fund Objective
The fund is diversified across geographic regions, asset classes and fund managers. Its objective is to provide investors with real medium to long-term capital growth from a portfolio that maintains a moderate risk profile. It ultimately aims to provide a steady return above inflation after tax.
Fund Strategy
The fund is managed conservatively with an emphasis on capital preservation. The strategy is to blend the asset allocation with our macro views while taking advantage of irrational pricing across all markets and selecting the best funds to enhance our views.
Please click here to Invest in the Prosperity Fund.
Please click here to view the Minimum Disclosure Document (Fund fact sheet).