Two of Amplify Investment Partners unit trusts have reached a 10-year milestone, boasting a long-term track record of outperformance. The Amplify SCI* Defensive Balanced Fund and the Amplify SCI* Strategic Income Fund have exemplified and proven Amplify’s strategy of producing exceptional performance through active management by agile, independent managers, says Amplify Head Marthinus van der Nest. “We are proud to be able to show such consistency and outperformance over the long term.”
While Amplify is effectively only six years old, the funds were born and spun out of Sanlam Investments’ Blue Ink Investments, under the Sanlam Select Funds range. These funds were moved into Amplify Investment Partners, which launched in 2018 with R7.8bn assets under management.
It has since grown assets under management by 580% to R53bn in eight local and offshore (USD and ZAR) unit trusts and seven hedge funds. “Our growth in AUM is a true testament to the strong and mutually successful relationships we have with our partners and clients,” says Amplify’s Head of Retail Distribution Nico Janse van Rensburg.
Amplify’s managers use their hedge fund skills and active tactical mindsets to produce exceptional returns while protecting on the downside.
Managed by Matrix Fund Managers, the R5bn Amplify SCI* Defensive Balanced Fund is a stable, low equity multi-asset solution for cautious investors with a three-year investment horizon aiming to produce income while preserving clients’ investment in real terms, with lower volatility over the medium term, which is borne out in its performance. It invests in a combination of equities, money market instruments, bonds, listed property, international equities and fixed interest assets, with a maximum of 40% in equities.
Matrix incorporates a truly unconstrained active allocation mindset with forward- looking scenario planning that seeks to generate consistent inflation-beating returns with a higher probability, by avoiding large downside risk.
“Partnering with Amplify has been a very constructive endeavour, both for our mutual clients, whose investment objectives have been met or exceeded over multiple time horizons, and in supporting our diversification from a hedge fund manager into a broader product range asset manager,” says Lourens Pretorius, co-CIO at Matrix Fund Managers and co-portfolio manager of the Amplify SCI* Defensive Balanced Fund.
The R17bn Amplify SCI* Strategic Income Fund is an actively managed, flexible fixed interest solution for conservative investors with a two-year investment horizon, aiming for investment preservation and diversification across high-yielding asset classes for downside protection. The fund is managed by Terebinth Capital, which combines macro analysis and quantitative precision for asset allocation. They subscribe to the theory of cycles. Using scenario analysis, they construct diversified portfolios of high-quality, highly liquid assets that always reflect their best-investment view. Their active approach incorporates a disciplined risk management.
Erik Nel, CIO of Terebinth Capital and co-portfolio manager of the Amplify SCI* Strategic Income Fund, says that “it has been a rewarding journey, and we are grateful for the opportunity initially offered to us in 2013 at Terebinth Capital’s launch, to kick off the Sanlam Select product set. The partnership with Amplify continues to grow roots with further success now also in the hedge fund space, proving the value and synergies to be had in these arrangements.”
The value and synergies have weaved through into Amplify’s track record. “Over the 10 years, our managers have continued to use their hedge fund DNA and active management expertise and mindset while finetuning their strategies and asset allocation to take advantage of investment opportunities,” says Janse van Rensburg.
The funds’ managers have different strategies and viewpoints, both producing excellent and consistent results,” adds Van der Nest. “This speaks to the long-term partnership we have with their managers. It also speaks to the success of our strategy of choosing and working closely with actively managed boutiques with skin in the game. The results speak or themselves, and we are excited about their future.”
Table 1: The Amplify SCI* Defensive Balanced Fund has recorded annual returns of 8.92% against ASISA’s SA multi-asset low equity peer group of 7.09%. Above-average market returns are also evident over five years (9.93% against a multi-asset low equity benchmark of 8.29%), three years (9.6% compared to 8.47%) and one year (13.45% against 12.33%).
Source: Morningstar as at 31 August 2024.
Table 2: The Amplify SCI* Strategic Income Fund has returned 8.42% annually against the STeFI plus 1 benchmark of 7.61% and ASISA SA multi-asset income peer group of 7.48%. Over five years, it has produced returns of 8.97% (against a 7.10% benchmark and peer performance of 7.40%) and over three years, it has delivered 9.06% against the benchmark return of 7.75% and peer group’s 7.98%. Over the last year, the fund has delivered 13.16% against the benchmark of 9.56% and 10.92% performance of peers. Source: Morningstar as at 31 August 2024.
*Sanlam Collective Investments
Disclaimer: AMPLIFY INVESTMENT PARTNERS (PTY) LTD IS AN AUTHORISED FINANCIAL SERVICES PROVIDER (FSP 712). Sanlam Collective Investments (RF) (Pty) Ltd (“SCI”) is a registered and approved Manager in terms of the Collective Investment Schemes Control Act. Collective investment schemes are generally medium- to long- term investments. Past performance is not necessarily a guide to future performance, and the value of investments/units /unit trusts may go down as well as up. A schedule of fees and charges and maximum commissions is available from the Manager on request. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. The Manager does not provide any guarantee with respect to either the capital or the return of a portfolio. The manager has the right to close the portfolio to new investors to manage it more efficiently in accordance with its mandate. Income funds derive their income primarily from interest-bearing instruments. The yield is current and is calculated daily. If the fund holds assets in foreign countries, it could be exposed to the following risks regarding potential constraints on liquidity and the repatriation of funds: macro-economic, political, foreign exchange. The Manager retails full legal responsibility for the co-brand portfolios. Collective investments are calculated on a net asset value basis, which is the total market value of all assets in the portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Forward pricing is used. Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div date. Performance is calculated for the portfolio and the individual investor performance may differ as a result of initial fees, actual investment date, date of reinvestment and dividend withholding tax.
