In this quarterly, we look at two key reasons for why it is worth considering investing in the Northstar SCI Managed Fund.
Northstar as a business
In the South African asset management industry, Adrian Clayton has one of the longest track records of managing balanced funds and he is supported by a team with an average of 18 years investment experience. Northstar has a very clear and consistent investment philosophy, being quality at a reasonable price. Over the long-term we believe that this approach results in higher investment returns and our track record is testament to this. Structurally, Northstar is highly focused as a research-driven manager without offering other services that attempt to compete with our advisor clients.
Opportunities for specialist managers
As a specialist manager, Northstar is unconstrained by the size and idiosyncrasies of the JSE All Share Index (ALSI) and Figure 8. Fund comparisons. Source: Northstar Asset Management, Morningstar (at 30 September 2018). the fund is able to access the market in a more selective and agile manner compared to larger managers. Small to mid-cap companies make up 41% of the combined weighting of our top 10 shares. The equivalent weighting in one of the 3 largest managed funds in SA, that we used as a comparator, is 26%.
The infographic below illustrates further comparisons.
The objective of the Fund, which is regulation 28 compliant, is to provide investors with a moderate to high, long-term total return, in so doing beating the SA Multi Asset High Equity peer group benchmark. To view more information on the Northstar SCI Managed Fund please go to the Northstar website www.northstar.co.za.