Within the quarter, asset allocation decisions and stock selection decisions detracted from the fund performance as shown by Bifm. But the star of the show was the offshore bond which returned 2.94 percent over the quarter, outperforming the benchmark return of 2.76 percent by 0.18 percent.
Letlotlo Education Fund, a multi-asset fund that invests in local and offshore equities, bonds, property, and money market instruments, currently stands at P12,143,019.28 in value.
The fund aims to provide a degree of long-term capital growth by investing in a diversified range of assets. It has a moderately low-risk profile which provides a small degree of risk and volatility for some degree of growth. The seven-year lock-in period caters for investors with a long-term investment horizon and is deemed to be suitable for the investor with a moderately low-risk profile who wishes to generate some degree of long-term capital growth. This fund is best suited for individuals who wish to plan and save for predetermined future expenses such as a child’s future education.
Bifm’s Ya Masa Junior Fund, which is a multi-asset fund that invests in local and offshore equities, bonds, property, and money market instruments, returned 3.32 percent over the second quarter of 2021. This was an underperformance of 1.26 percent against the benchmark return of 4.58 percent.
“Within the quarter, both asset allocation and stock selection decisions detracted from fund relative performance. Over the 12-month market period, the fund underperformed the benchmark return of 13.64 percent by 0.38 percent,’’ the asset management firm announced in its Q3 update.
The local equity allocation underperformed the benchmark Domestic Companies Index (DCI) total return of 8.55 percent by a marginal 0.71 percent, returning 7.84 percent over the quarter as four of the six securities within the financial sector appreciated, whilst the other two remained flat. While the local bond allocation underperformed its benchmark return of -2.09 percent by 1.52 percent, returning -3.61 percent over the quarter, it is important to note that the offshore bond allocation returned 0.56 percent over the quarter, outperforming the benchmark return of 0.37 percent by 0.18 percent.
“Data regarding rollouts of COVID-19 vaccinations was promising, resulting in less pressure on the global healthcare systems but another wave can certainly not be ruled out, hence some pessimism persisted over the quarter,” Bifm wrote. On the back of the volatility, “we saw a global bond sell-off with rates rising slightly in the US, Germany, and the UK”.
The fund aims to provide long-term capital growth by investing in a diversified range of assets. It has a moderately high-risk profile and a seven-year lock-in period which caters for investors with a long-term investment horizon who are comfortable with accepting some degree of risk and volatility for some degree of growth.
The fund is suitable for the investor with a moderately high-risk profile who wish to hold investments over a long-term horizon and generate long-term capital growth and is best suited for individuals who wish to save and invest for the long term in their individual capacity or on behalf of their children. The fund requires a minimum investment fee of P200 and currently stands at over P16 million in size.