We are proud and delighted to congratulate Anchor Fund Manager Nick Dennis on winning two awards for the impressive performance of two of his funds at this year’s Raging Bull Awards, which was held on 2 February. Since 1997, the Raging Bull Awards have been an important annual event honouring leaders in South Africa’s (SA) investment industry. The event celebrates top performers across a range of sectors and acknowledges investment managers in terms of best outright performers, best risk-adjusted performers, and the best unit trust management companies.
The Anchor Global Equity Fund won Best Financial Sector Conduct Authority (FSCA)-approved Offshore Global Equity Fund, for the best straight performance over three years. Over the past three years (Source: Moneymate), ending 31 December 2020, the fund has returned 29.3% p.a. in US dollar terms and for calendar year 2020, it recorded a 90.9% US dollar return. This can be compared with a 15% return over the same period for the fund’s benchmark (and the world’s most recognised equity index) – the MSCI World All Country Index. The Anchor Global Equity Fund’s annualised fund performance (since its inception on 13 March 2015) was 18.6% against the benchmark’s performance of 9.9% and the cumulative (since inception) fund performance stood at 169.4% vs the benchmark’s 72.9%.
The Anchor Global Equity Fund is aimed at those investors who can withstand the short-term volatility associated with a global equity fund to reap superior rewards over the long term. Its top holdings at the end of 2020 were Sea, a South East Asian gaming and ecommerce company, Tesla, the electric vehicle and clean energy company, Roku, a developer of devices and software for smart TVs, Snap, the company behind the eponymous social media app Snapchat, and Etsy, the US e-commerce website focused on craft and handmade items
Investors can invest in the offshore version of this fund, or in rand in the local feeder fund – the Anchor BCI Global Equity Feeder Fund, which won the award for The Best (SA-Domiciled) Global Equity General Fund on a Risk-adjusted Basis. The Anchor BCI Global Equity Feeder Fund, started on 2 November 2015 and is benchmarked against the MSCI World All Country Index. For calendar year 2020, the fund gained 91.0% vs the benchmark’s 22.0% gain. Since inception the fund is up 161.8% on a cumulative basis vs the benchmark’s 84.3% gain over the same time, while the fund’s annualised performance (since inception) was 20.5% against the benchmark’s performance of 12.5%.
Dennis says that he has always had “a very clear growth focus in the fund and concentrated on finding businesses that have the potential to be multibaggers. The world is changing quickly, and certain companies can create massive scale in a short period by leveraging off the prevailing trends. I am much more focussed on the businesses themselves, than beating man-made indices, which invariably include many ‘old-world’ businesses.” Multibaggers are companies (and shares) with the potential to increase by multiples of their current size over the next five to 10 years. These are also usually young, innovative, founder-run businesses that are solving important problems in enormous markets. A multibagger is also built on the foundation of a great product that is typically cheaper, more convenient, and offers customers greater choice and flexibility. From e-commerce to streaming to the cloud, COVID-19 exposed more people to superior products and the fund’s holdings benefited significantly from that shift.
Anchor believes that having an offshore component in an investment portfolio is essential, as this type of exposure is not available on the local market. It is also crucial when investing offshore to invest in those companies that are changing the world. We like the term creative destruction – the businesses of the future are gaining in value and the older index companies are decreasing in value.
Many investors are including index funds in their portfolios, which Anchor CEO Peter Armitage supports, noting that “you want some exposure to the overall market, but it really makes sense to give yourself the chance of material outperformance by backing one, or a few, fund managers that have a differentiated approach. 2020 was a case in point and a 76% outperformance (the fund’s 2020 outperformance compared to the world index) in one year changes your investment portfolio forever.”
For further information on the abovementioned funds or to invest in either fund please contact [email protected].
Collective Investment Schemes in securities are generally medium to long term investments. The value of participatory interests may go up or down and past performance is not necessarily an indication of future performance. The Manager does not guarantee the capital or the return of a portfolio. Collective Investments are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees, charges and maximum commissions is available on request. Performance fees are calculated and accrued on a daily basis based upon the daily outperformance, in excess of the benchmark, multiplied by the share rate and paid over to the manager monthly. Performance figures quoted are from Moneymate, as at the date of this presentation for a lump sum investment, using NAV-NAV with income reinvested and do not take any upfront manager’s charge into account. The investment performance is for illustrative purposes only and calculated for the portfolio, as well as that the individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. The yield is a current yield and is calculated daily. The performance fee is accrued daily, based on daily performance, and paid to the manager annually. Performance fees will only be accrued once the performance fee benchmark is outperformed. Only the minimum fee is accrued until the high water mark is again reached. Annualised return is the weighted average compound growth rate over the period measured. Actual investment performance will differ based on the initial fees charge applicable, the actual investment date, the date of reinvestment and dividend withholding tax Actual annual figures are available to the investor on request.
Anchor BCI Equity Feeder Fund is a portfolio that invests in a single portfolio of a collective investment scheme, which levies its own charges, and which could result in a higher fee structure for the feeder fund. Boutique Collective Investments (RF) (Pty) Ltd (“BCI”) is a registered Manager of the Boutique Collective Investments Scheme, approved in terms of the Collective Investments Schemes Control Act, No 45 of 2002 and is a full member of the Association for Savings and Investment SA. Boutique Collective Investments (RF) Pty Ltd retains full legal responsibility for the third party named portfolio.
The Anchor Global Equity Fund is a sub-fund of the Sanlam Universal Funds plc, a company incorporated with limited liability as an open-ended umbrella investment company with variable capital and segregated liability between sub funds under the laws of Ireland and authorised by the Central Bank. The Fund is managed by Sanlam Asset Management (Ireland) Limited, Beech House, Beech Hill Road, Dublin 4, Ireland, Tel + 353 1 205 3510, Fax + 353 1 205 3521 which is authorised by the Central Bank of Ireland; as a UCITS Management Company; and an Alternative Investment Fund Manager; and is licensed as a Financial Service Provider in terms of Section 8 of the South African FAIS Act of 2002. Sanlam Asset Management (Ireland) Limited retains full legal responsibility of the third-party portfolio.
Anchor BCI Global Equity Feeder Fund:
Highest and lowest calendar performance since inception – High 91.0 %: and Low: -11.3 %
Anchor Global Equity Fund:
Highest and lowest calendar performance since inception – High: 90.9 % and Low: -13.6 %
Anchor Capital is an authorised Financial Services Provider with FSP number 39834. Refer to the minimum disclosure document on Anchor Capital website (www.anchorcapital.co.za) for further information on both funds.