Fund Fact Sheets
Individual Investors and Financial Advisors
Discretionary Savings
Multi-Asset Class

Description

Multi-Asset Class Balanced fund of funds portfolios that caters for a wide range of investor goals and risk profiles. The portfolios are multi-managed across asset classes and funds investing in equity, bond, property and cash funds locally and globally. The portfolios comply with Regulation 28 of the South African Pension Funds Act.

 

Fund

27four Asset Select Prescient Fund of Funds

The portfolio has a medium to high risk profile and its primary objective is capital growth.

This portfolio is accessible through Momentum, as well as directly through 27four.

27four Balanced Prescient Fund of Funds

The portfolio has a medium risk profile and its primary objective is capital growth and income generation.

The portfolio is accessible through the following LISPS, as well as directly through 27four:

  • Momentum; Investec; Glacier; Stanlib; Old Mutual; PSG

27four Stable Prescient Fund of Funds

The portfolio has a low risk profile and its primary objective is capital preservation and income generation.

The portfolio is accessible through the following LISPS, as well as directly through 27four:

  • Momentum; Investec; Glacier; Stanlib; Old Mutual; PSG

Shari’ah Compliant

Description

Our Shari’ah compliant unit trust product range caters for different investor goals and appetite for risk. Our offering includes a domestic equity portfolio and a Balanced fund of funds portfolio.

The 27four Shari’ah Supervisory Board

Our supervisory board comprises three highly respected Islamic scholars with significant experience in Shari’ah Law:

– Mufti Ahmed Suliman (Chairman)

– Mufti Mohammed Ashraf

– Mufti Zaid Haspatel

The board plays an ongoing supervisory role responsible for monitoring ongoing Shari’ah compliance with regards to our investment offering, investment process implementation, mandates and legal documentation. All Shari’ah products are developed in consultation with and approved by the board. This ongoing process of product development, fund segregation and Shari’ah review ensures that 27four’s Shari’ah products are free of interest and within the guidelines prescribed by the Shari’ah. A semi-annual audit is completed by the board to verify Shari’ah compliance which is then certified through the issuance of a Shari’ah compliance certificate.

Click here to view our Shari’ah compliance certificate.

Fund

27four Shari’ah Balanced Prescient Fund of Funds

The portfolio has a medium risk profile and is multi-managed across Shari’ah compliant asset classes and funds locally and globally. The primary objectives are capital growth and income generation. The portfolio complies with Regulation 28 of the South African Pension Funds Act.

 

The portfolio is accessible through the following LISPS, as well as through 27four:

  • Momentum
  • Glacier

27four Shari’ah Active Equity Prescient Fund

The portfolio invests in South African listed Shari’ah compliant shares, and hence is suitable for investors with a long term investment horizon. Portfolio returns are generated from a combination of both capital appreciation and dividends. The portfolio is managed by Visio Capital, one of South Africa’s premium fund managers.

 

The portfolio is accessible through 27four.

Global – Rand denominated

Description

A Rand feeder fund that provides investors access to our UCITS compliant global equity fund of funds portfolio that invests in the world’s leading equity funds. The fund is best suited for investors seeking foreign exposure. Manager selection is based on a thorough evaluation of the investment management team, business, investment process and philosophy and the ability to consistently deliver performance. The portfolio is well diversified across managers and geographies in both the developed and emerging economies.

Fund

27four Global Equity Prescient Feeder Fund

The investment objective of the fund is to generate excess returns above its benchmark by strategically allocating assets across investment themes, regions, countries, sectors and currencies through expert equity fund selection and portfolio construction processes. The fund is suitable for investors that seek long term capital appreciation and who have a moderate to aggressive risk profile who wish to capture upside equity while minimising downside volatility.

UCITS Compliant
Global

Description

UCITS compliant global fund of funds portfolios providing investors access to the world’s leading fund managers. The funds are best suited for investors seeking foreign exposure through the utilisation of their offshore allowance. Investors can choose between a global balanced and a global equity fund of funds. Manager selection is based on a thorough evaluation of the investment management team, business, investment process and philosophy and the ability to consistently deliver performance. Both portfolios are well diversified across managers and geographies in both the developed and emerging economies.

Fund

27Four Global Equity Fund of Funds

The investment objective of the fund is to generate excess returns above its benchmark by strategically allocating assets across investment themes, regions, countries, sectors and currencies through expert equity fund selection and portfolio construction processes. The fund is suitable for investors that seek long term capital appreciation and who have a moderate to aggressive risk profile who wish to capture upside equity while minimising downside volatility.

27four Global Balanced Fund of Funds

The investment objective of the fund is to generate excess returns above its benchmark by strategically allocating assets across asset classes, investment themes, regions, countries, sectors and currencies through expert asset allocation, fund selection and portfolio construction processes. The fund is suitable for investors that seek long term capital appreciation and income growth and who have a moderate risk profile who wish to capture upside equity while minimising downside volatility.

Retirement Annuity/Preservation/Living Annuity/Endowment
Multi-Asset Class

Description

Multi-Asset Class Balanced fund of funds portfolios that caters for a wide range of investor goals and risk profiles. The portfolios are multi-managed across asset classes and funds investing in equity, bond, property and cash funds locally and globally. The portfolios comply with Regulation 28 of the South African Pension Funds Act.

 

Fund

27four Asset Select Prescient Fund of Funds

The portfolio has a medium to high risk profile and its primary objective is capital growth.

This portfolio is accessible through Momentum, as well as directly through 27four.

27four Balanced Prescient Fund of Funds

The portfolio has a medium risk profile and its primary objective is capital growth and income generation.

The portfolio is accessible through the following LISPS, as well as directly through 27four:

  • Momentum; Investec; Glacier; Stanlib; Old Mutual; PSG

27four Stable Prescient Fund of Funds

The portfolio has a low risk profile and its primary objective is capital preservation and income generation.

The portfolio is accessible through the following LISPS, as well as directly through 27four:

  • Momentum; Investec; Glacier; Stanlib; Old Mutual; PSG

Shari’ah Compliant

Description

Our Shari’ah compliant unit trust product range caters for different investor goals and appetite for risk. Our offering includes a domestic equity portfolio and a Balanced fund of funds portfolio.

The 27four Shari’ah Supervisory Board

Our supervisory board comprises three highly respected Islamic scholars with significant experience in Shari’ah Law:

– Mufti Ahmed Suliman (Chairman)

– Mufti Mohammed Ashraf

– Mufti Zaid Haspatel

The board plays an ongoing supervisory role responsible for monitoring ongoing Shari’ah compliance with regards to our investment offering, investment process implementation, mandates and legal documentation. All Shari’ah products are developed in consultation with and approved by the board. This ongoing process of product development, fund segregation and Shari’ah review ensures that 27four’s Shari’ah products are free of interest and within the guidelines prescribed by the Shari’ah. A semi-annual audit is completed by the board to verify Shari’ah compliance which is then certified through the issuance of a Shari’ah compliance certificate.

Click here to view our Shari’ah compliance certificate.

Fund

27four Shari’ah Balanced Prescient Fund of Funds

The portfolio has a medium risk profile and is multi-managed across Shari’ah compliant asset classes and funds locally and globally. The primary objectives are capital growth and income generation. The portfolio complies with Regulation 28 of the South African Pension Funds Act.

 

The portfolio is accessible through the following LISPS, as well as through 27four:

  • Momentum
  • Glacier

27four Shari’ah Active Equity Prescient Fund

The portfolio invests in South African listed Shari’ah compliant shares, and hence is suitable for investors with a long term investment horizon. Portfolio returns are generated from a combination of both capital appreciation and dividends. The portfolio is managed by Visio Capital, one of South Africa’s premium fund managers.

 

The portfolio is accessible through 27four.

Life Pools
Money Market

Description

Low-risk portfolios focused on capital preservation through investment in a diversified blend of money market funds.

Fund

Cash Optimiser

Low-risk portfolio designed exclusively for hedge fund managers to optimally manage unencumbered cash and diversify counterparty risk through investment in a diversified blend of premium money market funds. The portfolio is designed to outperform the JSE Trustees rate, as well as STeFi.

Money Market

The portfolio aims to preserve capital and to provide a total return in excess of that offered by money market portfolios, regular annual fixed deposits and cash. It is best suited to manage liquidity and preserve capital for those members close to retirement. The portfolio complies with Regulation 28 of the South African Pension Funds Act.

Multi-Asset Class

Description

Multi-Asset Class Balanced portfolios that cater for a wide range of investor goals and risk profiles. They are best suited for member investment choice or life-stage portfolios within a Defined Contribution Fund. The portfolios comply with Regulation 28 of the South African Pension Funds Act.

Fund

Inflation plus 7%

For members with a long-term investment horizon wishing to capture strong market performance above inflation. Through its high equity allocation, the portfolio aims to grow wealth to facilitate a higher income at retirement. More significant capital volatility is to be expected over the short-term.

Inflation plus 5%

For members with a medium-term investment horizon and very clear purchasing power goals of achieving inflation protection and moderate capital growth. Some level of capital volatility is to be expected over the short-term.

Inflation plus 3%

For members close to retirement seeking performance stability. The assets of the portfolio are largely invested in income generating assets as a means to achieve capital preservation and avoid downside risk.

Shari’ah Compliant

Description

The 27four Regulation 28 and Shari’ah compliant risk profiled range of portfolios was designed exclusively for members of South African retirement funds requiring a solution that would meet their investment goals without compromising Islamic law. The portfolios are multi-managed balanced portfolios providing asset class and fund manager diversification by investing in a combination of Shari’ah compliant equity funds, both locally and internationally, Islamic income products and direct physical exposure to gold bullion.

27four can also tailor Shari’ah compliant investment options to suit the unique risk and return requirements of individual retirement funds. Shari’ah compliant member investment choice portfolios can be constructed to mirror the strategic asset allocation of your traditional member choice funds or life stage portfolios.

The 27four Shari’ah Supervisory Board

Our supervisory board comprises three highly respected Islamic scholars with significant experience in Shari’ah Law:

– Mufti Ahmed Suliman (Chairman)

– Mufti Mohammed Ashraf

– Mufti Zaid Haspatel

The board plays an ongoing supervisory role responsible for monitoring ongoing Shari’ah compliance with regards to our investment offering, investment process implementation, mandates and legal documentation. All Shari’ah products are developed in consultation with and approved by the board. This ongoing process of product development, fund segregation and Shari’ah review ensures that 27four’s Shari’ah products are free of interest and within the guidelines prescribed by the Shari’ah. A semi-annual audit is completed by the board to verify Shari’ah compliance which is then certified through the issuance of a Shari’ah compliance certificate.

Click here to view our Shari’ah compliance certificate.

Fund

Shari’ah Global Flexible Fund

A global portfolio designed to maximise investment returns over the long term. Volatile movements in the value of capital in the short to medium term are to be expected. Contributions and returns are in ZAR. The fund is only available as an endowment investment.

Shari’ah Wealth Builder

For members with a longer-term investment horizon and a higher-risk tolerance that require moderate to high capital growth and for their retirement assets to be invested in accordance with Shari’ah law.

Shari’ah Multi-Managed Balanced Fund

For members with a medium-term investment horizon and a moderate-risk tolerance that require moderate capital growth and for their retirement assets to be invested in accordance with Shari’ah law.

Institutional Investors
Money Market

Description

Low-risk portfolios focused on capital preservation through investment in a diversified blend of money market funds.

Fund

Cash Optimiser

Low-risk portfolio designed exclusively for hedge fund managers to optimally manage unencumbered cash and diversify counterparty risk through investment in a diversified blend of premium money market funds. The portfolio is designed to outperform the JSE Trustees rate, as well as STeFi.

Money Market

The portfolio aims to preserve capital and to provide a total return in excess of that offered by money market portfolios, regular annual fixed deposits and cash. It is best suited to manage liquidity and preserve capital for those members close to retirement. The portfolio complies with Regulation 28 of the South African Pension Funds Act.

Multi-Asset Class

Description

Multi-Asset Class Balanced portfolios that cater for a wide range of investor goals and risk profiles. They are best suited for member investment choice or life-stage portfolios within a Defined Contribution Fund. The portfolios comply with Regulation 28 of the South African Pension Funds Act.

Fund

Inflation plus 7%

For members with a long-term investment horizon wishing to capture strong market performance above inflation. Through its high equity allocation, the portfolio aims to grow wealth to facilitate a higher income at retirement. More significant capital volatility is to be expected over the short-term.

Inflation plus 5%

For members with a medium-term investment horizon and very clear purchasing power goals of achieving inflation protection and moderate capital growth. Some level of capital volatility is to be expected over the short-term.

Inflation plus 3%

For members close to retirement seeking performance stability. The assets of the portfolio are largely invested in income generating assets as a means to achieve capital preservation and avoid downside risk.

Shari’ah Compliant

Description

The 27four Regulation 28 and Shari’ah compliant risk profiled range of portfolios was designed exclusively for members of South African retirement funds requiring a solution that would meet their investment goals without compromising Islamic law. The portfolios are multi-managed balanced portfolios providing asset class and fund manager diversification by investing in a combination of Shari’ah compliant equity funds, both locally and internationally, Islamic income products and direct physical exposure to gold bullion.

27four can also tailor Shari’ah compliant investment options to suit the unique risk and return requirements of individual retirement funds. Shari’ah compliant member investment choice portfolios can be constructed to mirror the strategic asset allocation of your traditional member choice funds or life stage portfolios.

The 27four Shari’ah Supervisory Board

Our supervisory board comprises three highly respected Islamic scholars with significant experience in Shari’ah Law:

– Mufti Ahmed Suliman (Chairman)

– Mufti Mohammed Ashraf

– Mufti Zaid Haspatel

The board plays an ongoing supervisory role responsible for monitoring ongoing Shari’ah compliance with regards to our investment offering, investment process implementation, mandates and legal documentation. All Shari’ah products are developed in consultation with and approved by the board. This ongoing process of product development, fund segregation and Shari’ah review ensures that 27four’s Shari’ah products are free of interest and within the guidelines prescribed by the Shari’ah. A semi-annual audit is completed by the board to verify Shari’ah compliance which is then certified through the issuance of a Shari’ah compliance certificate.

Click here to view our Shari’ah compliance certificate.

Fund

Shari’ah Global Flexible Fund

A global portfolio designed to maximise investment returns over the long term. Volatile movements in the value of capital in the short to medium term are to be expected. Contributions and returns are in ZAR. The fund is only available as an endowment investment.

Shari’ah Wealth Builder

For members with a longer-term investment horizon and a higher-risk tolerance that require moderate to high capital growth and for their retirement assets to be invested in accordance with Shari’ah law.

Shari’ah Multi-Managed Balanced Fund

For members with a medium-term investment horizon and a moderate-risk tolerance that require moderate capital growth and for their retirement assets to be invested in accordance with Shari’ah law.

Hedge Funds

Description

The 27four investment team has extensive experience in fund of hedge funds management.

Investment philosophy

  • The preservation of capital – to control downside risk.
  • To skilfully balance alpha generation and risk management within a portfolio framework that seeks to produce strong absolute returns with low correlation to traditional “asset classes” across market cycles.
  • To achieve this through a superior manager selection and portfolio construction process, offering multiple levels of diversification between underlying managers, strategies and asset classes.
  • Stringent risk management controls are applied at every level of the investment process.

Independent pricing and risk monitoring

Administrator: Prescient Fund Services
Auditor: Pricewaterhousecoopers
Risk manager: RisCura Analytics

Disclaimer

Hedge funds are declared regulated financial products under the Collective Investment Schemes Control Act. The information provided here does not constitute a solicitation, invitation or investment recommendation and prior to selecting a financial product or fund it is recommended that investors seek specialised financial, legal and tax advice.

Fund

27four Fortress Prescient RI Fund of Hedge Funds

A high conviction aggressive equity long short fund of hedge funds comprising of a blend of different manager strategies and styles. This fund is designed to deliver positive risk-adjusted returns, with slight market direction. We place a strong emphasis on risk control, both at the single manager and the fund of funds level.

27four Alternate Income Prescient QI Fund of Hedge Funds

A unique fixed income fund of hedge funds blend offering institutional investors a fixed income hedge fund building block providing a clean and easy fit to a pension funds strategic asset allocation. The fund is an optimal blend of fixed income and structured credit hedge funds exploiting relative value and credit arbitrage opportunities in the listed credit space.

27four Market Neutral Prescient RI Fund of Hedge Funds

An equity market neutral fund of hedge funds that blends a combination of different manager strategies and styles. This fund is designed to deliver positive risk-adjusted returns, independent of the direction of the market. We place a strong emphasis on risk controls, both at the single manager and fund of funds level.

27four Long Short Equity Prescient QI Fund of Hedge Funds

An equity long short fund of hedge funds that blends a diverse combination of different manager strategies and styles. This fund is designed to deliver positive risk-adjusted returns, with slight market direction. We place a strong emphasis on risk controls, both at the single manager and fund of funds level.

Africa

Description

A listed equity fund of funds portfolio that offers global institutional investors the opportunity to participate in the growth and development of one of the world’s fastest growing regions. As the continent comes off its low base and enters a protracted growth phase, following economic liberalisation and industrialisation, the continent presents an attractive source of returns in an era where developed economic policy measures are leading to low yields and significant increases in public debt.

Utilising a fund of funds investment approach, 27four follows an exhaustive process of fund screening and qualitative and quantitative due diligence in selecting the best funds on the African continent. Through extensive travel and networks, we proactively search for top fund management talent that meet our stringent requirements of expert investment skill and quality operational compliance. We then apply our sophisticated process of fund of funds construction, designed to deliver superior risk adjusted performance. Ongoing risk monitoring of our fund of funds is an integrated multi-layered process that seeks to minimise both endogenous and exogenous risks.

Portfolio mandate

  • Fund of funds
  • Listed equity – long only
  • Africa ex SA
  • Malta domiciled
  • USD priced

Fund

Pangaea Africa Fund of Funds

For the pension fund that wishes to take up their 5% allowance to the African continent. The Pangaea fund is a malta domiciled equity fund that provides a single point of access to a diversified blend of premium African funds that invest in the listed markets across Africa, excluding South Africa. The portfolio has a high risk profile and its primary objective is capital growth.

Global

Description

UCITS compliant global fund of funds portfolios providing investors access to the world’s leading fund managers. The funds are best suited for investors seeking foreign exposure through the utilisation of their offshore allowance. Investors can choose between a global balanced and a global equity fund of funds. Manager selection is based on a thorough evaluation of the investment management team, business, investment process and philosophy and the ability to consistently deliver performance. Both portfolios are well diversified across managers and geographies in both the developed and emerging economies.

Fund

27Four Global Equity Fund of Funds

The investment objective of the fund is to generate excess returns above its benchmark by strategically allocating assets across investment themes, regions, countries, sectors and currencies through expert equity fund selection and portfolio construction processes. The fund is suitable for investors that seek long term capital appreciation and who have a moderate to aggressive risk profile who wish to capture upside equity while minimising downside volatility.

27four Global Balanced Fund of Funds

The investment objective of the fund is to generate excess returns above its benchmark by strategically allocating assets across asset classes, investment themes, regions, countries, sectors and currencies through expert asset allocation, fund selection and portfolio construction processes. The fund is suitable for investors that seek long term capital appreciation and income growth and who have a moderate risk profile who wish to capture upside equity while minimising downside volatility.

Unclaimed Benefits

Description

For beneficiaries of members who have unclaimed pension or provident benefits.

Fund

Unclaimed Benefits

The portfolio aims to offset the eroding effects of inflation and provide a liquid, yield enhancing alternative to a pure cash fund.

Black Asset Manager Incubation

Description

Why a Black Asset Manager Incubation Program?

The incubator program was launched in 2007 in response to:

  1. The shortage of the number of black asset management companies in South Africa; and
  2. The lack of a sustainable model to grow black investment talent and skill in South Africa, which nurtures the managers yet protects retirement fund investors against the pitfalls of ‘unproven’ incubation.

 

Investing retirement fund assets demands prudence and process, which lead to the need for an investment platform that gives Trustees the required comfort and value, while allowing retirement funds the opportunity to support development within the industry. Notwithstanding the opportunity to invest with premium untapped black investment talent.

Key features of the Black Asset Manager Incubation Program:

  • The role of the Incubator is to source premium black investment talent, create seeding opportunities for start-up and emerging black fund managers in their early stages of growth, and assist these managers grow their businesses and achieve the critical mass required for long-term sustainability. Once sustainability has been reached, managers graduate from the Incubator to make room for new managers seeking early stage support. Following graduation, the manager joins the ranks of other mainstream mature managers in South Africa.
  • Incubation requires specialist skills and processes that go beyond just a ‘hand-out’ of assets to fund start-ups and emerging managers. 27four provides the environment to ensure that start-ups and emerging managers are successful. Our model is designed to help the managers transition into credible institutional players through the provision of ongoing guidance and support.
  • We have specifically addressed investor concerns regarding the risk of investing in managers with unproven track records and as yet undemonstrated skill, by employing stringent risk management controls and a comprehensive DAILY performance monitoring plan that continuously monitors mandate compliance. It is a responsibility that requires rigorous oversight, monitoring and evaluation that is more comprehensive than is required with mainstream asset managers.

Selection process:

Potential candidates are put through a rigorous due diligence process that involves a thorough evaluation of their skill and offering. Managers must satisfy our selection criteria and pass through our internal Investment Committee evaluation process before being considered for the Incubator program.

Selection criteria include:

  • Onerous BEE credentials.
  • Candidates must also display a long-term commitment, have a definite definable edge and have the necessary entrepreneurial aptitude to manage and to grow a business.
  • Candidates must have a successful verifiable historic track record.

Fund

27four Black Asset Manager Offering

1.    Multi-manager

The Incubator identifies and supports black investment skill and talent across asset classes. The following multi-manager building blocks comprising a group of diversified premium black investment talent is available for institutional investment:

  • Specialist equity
  • Fixed Income
  • Cash
  • Hedge funds
  • Listed Property

2. Customisation options

In this case we will tailor a solution based on a retirement fund’s unique requirements.

3. Other services

  • Transformation policy – assist retirement funds in drafting and implementing a transformation policy that is in line with the long-term goals of the retirement fund.
  • Research – provide retirement funds access to our industry wide transformation research, including surveys, new entrants, manager rankings and in-depth manager due diligence reports.

 

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Tailor Made Solutions

Description

27four’s retirement fund off-the-shelf product range caters for a wide range of investor needs and risk profiles. However, off-the-shelf portfolios that pool the assets of multiple institutions may not be suitable to all retirement funds. Small and medium sized retirement funds can now enjoy the benefits of cost effective tailor-made solutions, previously only available to the larger funds.

27four offers retirement funds, regardless of asset size, with the opportunity to customise portfolio solutions based on their own unique requirements. We seek to understand the investment objectives of each retirement fund and its members and develop bespoke portfolio solutions that match their individual needs and enhance their overall investment strategy.

The benefits of customisation include: more control and input from the retirement fund, increased transparency and cost management and the implementation of an investment strategy that meets the retirement fund’s future cash flow needs (i.e. liabilities).

 

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