Northstar BCI Managed Fund

This medium-risk fund is ideal for investors who require a moderate to high long-term total return. The recommended investment time horizon is 5+ years. Managed in accordance with Regulation 28.

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Fund Performance

Northstar BCI Managed Fund

Who should invest

This medium-risk fund is ideal for investors seeking steady long-term growth of their capital and income from a diverse portfolio of actively managed South African and global assets. The fund is managed in accordance with Regulation 28, making it suitable for building up long-term retirement capital. An investment time horizon of at least 5 to 7 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

  • A core multi-asset fund.
  • Diversified asset exposures to protect against risk.
  • Moderate to high long-term total returns.
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Invest Now

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 December 2024

Performance Review

Quarterly Performance: The Northstar Managed Fund returned 1.0% for the fourth quarter of 2024, underperforming its peers amidst a challenging economic landscape. The primary detractors included local equities, which fell by 1.7%, though positive stock selection added 80 basis points (bps) to performance.

Annual Performance: Over the 12 months of 2024, the fund achieved a return of 12.0%, which was slightly below peer benchmarks. However, the fund has maintained its long-term goal, outperforming inflation by more than 5% over the last five years, demonstrating resilience and strategic asset allocation effectiveness.

Asset Class Contributions

Local Equities: Despite the market downturn, overweight positions in companies like Pepkor, Super Group, Pick n Pay, Absa, and Mr Price contributed positively. Negative performance was seen from overweight in Anheuser-Busch, Standard Bank, Sasol, and Bidvest.

Global Exposure: The fund’s 30% offshore allocation was beneficial due to the rand’s 8.3% depreciation against the dollar. Global bonds and equities underperformed, but the fund’s underweight position in global equities (17.3%) and focus on global cash helped mitigate losses.

Local Fixed Income: Through the Northstar Income Fund, the fund held inflation-linked bonds like I2025, which are set to be reinvested into similar securities and floating rate notes, taking advantage of the expected shallow rate cut cycle.

Market Outlook

Economic Backdrop 2024: The year was marked by global economic uncertainty, a strong US dollar, and volatile commodity prices, impacting South African assets. Local equities experienced headwinds due to these factors, but the diversified asset allocation within the fund provided some cushioning.

Local Economy: Anticipated growth with cautious optimism, driven by policy reforms and infrastructure investments, though still facing currency and inflation risks.

Global Influence: Continued strength in the US dollar might persist, influencing local markets. Global interest rates are also expected to fall at a more moderate pace, which is causing treasury yields remain buouyant.

Sector Outlook: Potential recovery in consumer discretionary sectors with easing inflation and interest rates, while materials might benefit from any commodity price stabilisation

Portfolio Positioning

Local Equities: Overweight relative to strategic asset allocation (47% vs. 34%), with a tilt towards industrials and materials, expecting a rebound in performance. At a stock level, the portfolio has notable overweight positions in Standard Bank, FirstRand, Gold Fields, Bidvest and BHP and underweight positions in BTI, Nedbank, Harmony and Clicks.

Local Fixed Income: Maintaining a high inflation-linked bond holding, increasing fixed bond duration and small increase in floating rate notes to capitalise on the shallower than expected interest rate cutting environment.

Global Assets: Maintained a significant offshore presence, focusing on cash, however looking for opportunities to extend duration, especially into US Treasuries as yields rise to attractive levels offering above historic average real returns.

Strategy

Asset Allocation: We will continue to monitor local and global economic indicators, adjusting our equity exposure based on market valuations and growth prospects. The fund will keep a meaningful global asset allocation for diversification and potential Rand weakness.

Sector Focus: A continued overweight in industrials (Bidvest) and materials (Gold Fields, AngloGold, BHP & Mondi) reflects our belief in these sectors’ recovery and growth potential. We will reassess consumer staples (BTI, Clicks & Bid Corp), considering their performance relative to the broader market.

Risk Management: In response to a volatile economic environment, we’ll maintain a diversified portfolio, balancing between growth opportunities and defensive positions. The strategy includes a careful selection of stocks and bonds to ensure alignment with our medium-risk profile.

Investment Philosophy: The Northstar Managed Fund aims to deliver consistent returns above inflation while managing medium-level risk. We will leverage our insights into stock picking and asset allocation to navigate through 2025’s economic landscape, aiming for both capital appreciation and income generation

Quarterly Fund Video as at 31 December 2024

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About This Fund

Latest Allocation

  • Fixed Income
  • Cash
  • Equity
  • Alternatives
Management Date
01 August 2011
Sector
South African - Multi Asset - High Equity
Fund Size
R 1 billion
Minimum Investment
Lump sum: R 10 000
Monthly: R 500
Latest Distribution
2.34 cpu (31/12/2024)
INVESTMENT MANAGEMENT FEE
1.10% p.a. (Excl. VAT)
Risk Profile
Medium
Allocation
Time Horizon
5 Years +
Regulation 28
Yes
Benchmark
ASISA Category Avg: SA - Multi Asset - High Equity
Fund Classification
South African - Multi Asset - High Equity

* This is the date from when Northstar commenced management of the fund