1. Our Local Funds
We have three wrap fund strategies in South Africa, with one being very stable like a money market or a savings account, the second consisting of, according to us, the very best SA growth funds, and the third with the very best locally registered offshore funds. We invest our clients’ money proportionally in these funds according to their risk profiles and circumstances but invest as far as possible their voluntary monies in our similar funds offshore. These local funds are:
1.1 Stable SA
(From where income can be withdrawn/ quick cash for emergency)
This wrap fund aims to compete with local savings accounts and money market accounts by offering similar low Standard Deviation (STD, volatility), but it usually provides more than 5% per annum net of fees and is intended to be a source of income or emergency fund. The Cumulative Average Rate of Return (CAR) has been 5.49% net of fees since inception over the 3-year period. The STD has been 1.67%, almost as low as a money market account. We started the Stable SA wrap fund in January 2019, which is a very short period. Looking at the spreadsheet below of the underlying funds from January 2018, you will see the longer-term CAR net of fees of 5.54%, which shows a lower CAR but a more reliable projection for future growth, and which is less than the unrealistic 5.6% as shown on the factsheet of 31 March 2022, because of which we show you the Stable SA historical growth with current funds since January 2019. See the factsheet for more up to date information.
1.2 Equities SA
(Lower growth than that of Global SA, But also lower volatility, available for emergency if funds in Stable SA have run dry)
This is, according to us, one of the best equity growth wrap funds in South Africa and intends to provide clients with maximum ZAR growth according to their risk profiles and circumstances over the medium to the long term. We started the Equities SA wrap fund only in January 2019, which is a relatively short period. When you examine the spreadsheet below, showing the historical growth with the current underlying funds from January 2018, you will notice a longer-term CAR (Compound Annual Return) net of fees at 7.48%. This demonstrates a lower CAR but a more reliable projection for future growth than the present CAR net of fees at 12.61% over the short period from January 2019 to the end of March 2022. For more up-to-date information, please refer to the factsheet.
1.3 Global SA
(Usually the highest growth available in South Africa but with greater volatility, for the long-term of 3 to 5 years and longer)
This wrap fund consists, according to us, of the best locally registered offshore funds and is expected to perform even better than Equities Offshore over the medium to long term. It has a CAR of 13% net of fees since inception over a 3-year period, with a relatively high STD of 18.21%, and a down STD of 7.99%, making this fund suitable for the longer term of 3-5 years or more. We started the Global SA wrap fund in January 2019, a very short period. Looking at the spreadsheet below of the underlying funds from January 2018, you will see the longer-term CAR net of fees of 13%, which shows a higher CAR but a more reliable projection for future growth. See the factsheet for more up-to-date information.
2. Our Offshore Funds
We usually encourage clients to invest most of their voluntary contribution monies offshore due to better growth prospects over the medium to the long term. These offshore funds are:
2.1 Stable Offshore
(From where income can be withdrawn/quick cash for emergency)
This fund, like Stable SA, aims to make income or cash available to clients and intends to compete with savings accounts and money market accounts. The fund consists of hedge funds with a very low down STD of 0.69% in USD, almost like that of a money market, and 6.58% in ZAR. Although the collective CAR of the underlying funds as of October 7, 2021, has been 8.39% net of fees in USD and 14.77% net of fees in ZAR with a very low down STD in USD, the down STD in ZAR is high. Therefore, we advise clients to withdraw their pension income annually and invest it in our Stable SA, from where they can draw their monthly income. On the homepage under professional advice paragraph 8.2 (as in the case of Moriah Global's historical growth), you will see that with current funds since July 2020, we have done the same as with our Moriah Global fund, for the same reasons mentioned. The real CAR of Stable Offshore since July 1, 2020, up to the end of April 2022, was 4.76% net of fees in USD and in ZAR 10.91% per annum net of fees, far less than the above-mentioned 8.39% in USD and 14.77% net of fees in ZAR, but sometimes it is the other way around as mentioned in paragraphs 1.1 and 1.2 above under local funds, but nevertheless more reliable to forecast future performance over a longer period. See the factsheet for more up-to-date information.
2.2 Equities Offshore
(A managed portfolio of fourth industrial revolution high-growth funds and shares that can grow more than 700% per annum but can also go negative with more than 30% in 6 months, like the Tesla shares, and therefore for the long-term as we do not try to time the markets anymore since 2008, except for cashing in a bit of profits after a very good run which we will invest when the markets or specific share is down again)
The CAR of the underlying funds of this fund since January 2017 over the 5-year period up to the end of April, taking COVID and the Ukraine War into account, is still a very high 17.16% in USD net of fees and in ZAR 20.43% per annum net of fees. The Down STD will usually be much higher than that of Stable Offshore as well as higher than that of Moriah Global, as this is a deep-value fund, consisting of fourth revolution shares, environmental shares, and unit trusts. We will not try to time the market corrections but will rather follow a strategy of buy and hold, making this fund suitable for the longer term of 3-5 years and longer. We have shown above the historical growth rates of Equities Offshore with current funds since January 2021 for the same reasons mentioned under local funds above in paragraphs 1.1 and 1.2, as well as on the homepage under professional financial advice in paragraph 8. The real Equities Offshore FoF has a short history, starting only on January 1, 2021, with a CAR over that period of -4.81% net of fees in USD. See the factsheet for more up-to-date information.
2.3 Moriah Global
(High growth with relatively low volatility)
This is our flagship fund of funds, also a growth fund, consisting of underlying hedge funds obtained since August 1, 2021. It has achieved a Cumulative Average Rate of Return (CAR) over a very difficult four-and-a-half-year period, amidst the uncertainties of the American elections, COVID-19, and the Ukraine War since February 2022, of 25.6% per annum net of fees in USD and 32.99% net of fees per annum in ZAR. The down Standard Deviation (STD) is very low compared to the high performance, namely 3.25% in USD and 9% in ZAR. Although this fund is not expected to yield the very high returns of Equity Offshore, it is also not expected to ever record a negative year, and therefore a larger portion of pension money can be invested in this fund. We have shown the potential projection of Moriah Global with current funds since August 2022 in paragraph 8 under 'home' for the reasons mentioned on the homepage under 'professional financial advice' in paragraph 8. In paragraph 8, we have provided a potential performance projection of the growth of underlying funds, which shows a much higher growth rate, but is more realistic in terms of expected future growth. Please note that in the case of some of our other funds, like Equities SA and Global SA mentioned under SA funds in paragraphs 1.1 and 1.2, the historical performance with current underlying funds over a longer term, which is more realistic, shows a smaller CAR, in the case of our Equities SA, almost 50% less. See the factsheet for more up-to-date information.
Download Moriah Global Fact Sheet
Download Moriah Global ZAR Fact Sheet