Northstar BCI Equity Fund

This high-risk fund is ideal for investors who require maximum capital growth over the long-term through investments in predominantly the equity market. The recommended investment time horizon is 7+ years.

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Fund Performance

Northstar BCI Equity Fund

Who should invest

This high risk fund is ideal for investors seeking meaningful growth of capital from a focused portfolio of JSE-listed securities. The fund’s aim is to outperform peers investing only in South African equity markets. An investment time horizon of at least 7 to 10 years is recommended.

Returns reflected below the chart are annualised. Source: Bloomberg, MorningStar and Northstar Asset Management.

Horizon:

  • 3 Years
  • 5 Years
  • 7 Years
  • 10 Years
  • SINCE INCEPTION
FUND RETURN

Benchmark Return

Outperformance

Benchmark Return

Outperformance

  • Invests predominantly in JSE Equities.
  • A high conviction portfolio.
  • Provides maximum capital growth over the long-term.
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Invest with Northstar directly

We can assist you with making direct investments but without financial advice. Direct investments via Northstar are subject to certain minimums.  Simply get in touch with our client service team by emailing admin@northstar.co.za

Speak to your financial advisor

Northstar’s funds are available via all the major local and offshore LISPS (linked Investment Services Providers). Please contact us for further information on how to invest via a LISP should that be your preference.

Requirements For This Fund

  • R 10 000
  • R 500
    • Certified Copy of both sides of ID Document with 3 specimen signatures.
    • Proof of Address (not older than 3 months) e.g. utility bill, rates, Telkom.
    • Proof of Banking details (not older than 3 months).
    • SARS document containing name and tax number.
  • Our unit trust range can be accessed via a number of platform providers. Please contact us for further information.

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Further Reading

Commentary for the quarter ended 31 March 2024

Performance Review

The Northstar BCI Equity fund was down -2.7% in Q1 2024 (net of fees), marginally behind the JSE Capped Swix (-2.3%) and the (ASISA) South African Equity General Peer Average which returned -2.1%.  The fund benefitted, relative to the benchmark, from an underweight position to financials and resources and  overall good stock picking across sectors. Conviction calls in Mr Price, Richemont, BAT, Dis-Chem and a healthy gold equity exposure in the fund (Goldfields and Anglogold) were positive standout contributors. Against this, disappointing results from Remgro (-24%) and Absa (-9.5%) during the quarter and exposure to underperforming insurers and general industrials detracted from performance.

Global equities continued to perform well in 2024, with the MSCI World Index returning +9.0% during the quarter and +25.7% over the past 12 months. Positive returns were broad-based across developed markets with standout performances from Japan (+11.2%) and the US (+10.4%), while Europe (+5.4%) and the UK (-0.9%) lagged despite staging a strong rebound in March. Negative returns from China (-2.2%) depressed MSCI Emerging Market Index (+2.4%), but excluding the negative effect from Chinese equities, the index would of returned +4.0% for the quarter and +21.1% for the past 12 months. The MSCI South Africa Index, continued to underperform global markets returning -6.9% in US Dollars, taking the 12 month performance into negative territory to -4.2%.

Stubbornly high inflation, uncertainty around the timing of interest rate cuts and heightened geopolitical tensions have dominate the narrative in 2024. Whilst the US has demonstrated extreme resilience, in light of tight monetary conditions, global markets are broadly experiencing a sharp slowdown with global GDP now forecast to be 2.9% for 2024 (OECD) from the 6.1% levels seen in 2021. In South Africa, despite an improvement in loadshedding days compared to 2023, economic activity remains constrained by a tough consumer environment and weak confidence levels. Furthermore, adding to volatility and uncertainty are the local national elections, which are happening later in May and are likely to have a profound effect on market returns as various extreme scenarios are possible.

The JSE Capped Swix Index was down -2.3% in Q1 2024. From a sector perspective, SA financials were hardest hit falling by -6.1%, while resources and industrial respectively returned -1.6% and +0.6%. Despite a good performance from gold equities and a few large caps, such Richemont (+12.5%), AVI (+11.3%), Bidcorp (+9.5%) and BAT (9.2%), the market was broadly weaker with elevated dispersion.

Market Outlook and Portfolio Positioning

During the quarter, we took advantage of a pullback in SA sensitive assets to increase the fund’s exposure to banks, retailers and general industrials. Against this, the rebound in in Naspers/Prosus, Aspen and various cyclical Rand hedges, allowed us to take profit and reduce global cyclicality in the portfolio. Overall the fund is well balanced in terms of currency risk, with a healthy exposure to both SA and global sensitive businesses. Whilst we note increased geopolitical risks and specific event risks in South Africa, most notably elections and loadshedding, we think valuations across the SA financial and industrial complex are becoming increasingly attractive.

Quarterly fund video as at 31 March 2024

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About This Fund

Latest Allocation

  • Fixed Income
  • Cash
  • Equity
  • Alternatives
Management Date
01 July 2017
Sector
South African - Equity - General
Fund Size
R 403 million
Minimum Investment
Lump sum: R 10 000
Monthly: R 500
Latest Distribution
13.87 cpu (31/12/2023)
INVESTMENT MANAGEMENT FEE
0.85% p.a. (Excl. VAT)
Risk Profile
High
Allocation
Time Horizon
7 Years +
Regulation 28
No
Benchmark
ASISA Category Avg: SA - Equity - General
Fund Classification
South African - Equity - General