Vindew Wealth Equity Fund

Fund description and summary

The Fund invests primarily in shares listed on the Johannesburg Stock Exchange (JSE). The Fund can invest a maximum of 30% offshore, with an additional 10% allowed for investments in Africa outside of South Africa. The Fund invests the bulk of its foreign allowance in equity. The Fund is typically fully invested in shares. Returns are likely to be volatile, especially over short- and medium-term periods.

Fund objective and benchmark

 The Fund aims to create long-term wealth for investors. It aims to outperform the average return of South African General Equity Funds over the long term, without taking on greater risk of loss. To pursue its objective, the Fund’s portfolio may differ materially from those of its peers. This will result in the Fund underperforming its benchmark materially at times. The Fund aims to compensate for these periods of underperformance by delivering outperformance over the long term. The Fund’s benchmark is the market value-weighted average return of funds in the South African Equity General category.

How we aim to achieve the Fund’s objective

We seek to buy shares offering the best relative value while maintaining a diversified portfolio. We thoroughly research companies to assess their intrinsic value from a long-term perspective. This long-term perspective enables us to buy shares from sellers who overreact to short-term difficulties or undervalue long-term potential. We invest in a selection of shares across all sectors of the stock market, and across the range of large, mid and smaller cap shares.

The Equity Fund is suitable for you if:

  • You seek exposure to listed equities to provide long-term capital growth
  • You are comfortable with stock market fluctuation, i.e. short to medium term volatility
  • You accept the risk of capital loss
  • You have at least five years to invest, but preferably longer

Need to know more? See our frequently asked questions about investing in our equity fund.

Sector investment allocation

  • Sector
  • Oil and gas
  • Basic material
  • Industrial
  • Consumer goods
  • Healthcare
  • Consumer services
  • Telecommunications
  • Utilities
  • Financials
  • Technology
  • Commodity-linked
  • Other
  • Money Market and bank deposit
  • % of Fund
  • 1.0
  • 6.2
  • 7.5
  • 8.4
  • 9.3
  • 12.4
  • 5.2
  • 5.7
  • 18.5
  • 24.0
  • 0.4
  • 0.8
  • 0.6

Asset investment allocation

Asset ClassTotalSouth AfricaAfrica excl. South AfricaForeign excl. Africa
Equity94.466.12.126.8
Property1.61.20.00.4
Commodity-linked0.40.40.00.0
Money Market and Bank Deposits3.02.00.10.9
Total100.069.72.228.1

What are the costs?

All the Equity Fund’s expenses, including the investment management fee, are deducted before performance figures are calculated. There are no separate or additional costs. The total investment charge is broken down below:

  1. Investment management fees are charged for the investment manager’s investment research and decision making. This figure includes Vindew Wealth’s investment management fee, which is charged on the portion of the fund invested locally, as well as the portion invested offshore.
  2. This includes audit fees, taxes and other administration costs.
  3. This is a measure of the actual costs that have been deducted from the fund over the past five years till the end of term (annualised).

The investment management fee depends on performance

The fee we charge depends on how well the Equity Fund performs against its benchmark.

  • 5% is charged when the fund performance is the same as its benchmark’s performance.
  • If the Equity Fund fails to achieve benchmark performance (measured yearly), we deduct 1 % to the fee.
  • If the fee would have been negative, no fee is charged until all underperformance has been recovered. The negative fee is carried forward and reduces the fee once it becomes positive.

Note: There may be slight discrepancies in the totals due to rounding.

Important information for investors

Securities (shares) are generally medium- to long-term investments. The value of a fund invested in shares may go down as well as up and past performance is not necessarily a guide to future performance. The Company does not provide any guarantee regarding the capital or the performance of its fund. Positions may be closed to new investments at any time in order for them to be managed according to their mandates. Dividends may differ as a result of the invested amount and the investment date.

The annual management fee charged by Vindew Wealth is included in the Total investment charge. The total expense ratio (TER) is the annualised percentage of the Fund’s average assets under management that has been used to pay the Fund’s actual expenses over the past five years. The TER includes the annual management fees that have been charged, VAT and other expenses like audit and tax fees. Transaction costs include brokerage fees and Securities Transfer Tax. Transaction costs are a necessary cost in administering the financial product and impacts financial product returns. They should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of financial product, the investment decisions of the investment manager and the TER. Since Fund returns are quoted after the deduction of these expenses, the TER and transaction costs should not be deducted again from published returns.

As fund expenses vary, the current TER cannot be used as an indication of future TERs. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. Instead, when investing, the investment objective of the Fund should be aligned with the investor’s objective and compared against the performance of the Fund. The TER and other funds’ TERs should then be used to evaluate whether the Fund performance offers value for money. The sum of the TER and transaction costs is shown as the total investment charge.

You can obtain additional information about your proposed investment from Vindew Wealth free of charge. Simply email info@vindewwealth.co.za or call our office on 065 928 6610.