AA Eswatini Lilangeni Fund
31 December 2021
General Fund Information Fund Objective
Fund Structure CIS The African Alliance Eswatini Lilangeni Fund aims to provide an
Region Eswatini attractive level of income while preserving capital. The Fund may
Currency SZL only invest in money market instruments with a maturity of less than
Asset Class Money Market 12 months and the weighted average duration of the portfolio may
Portfolio Manager Grant Torlage not exceed 90 days. The Fund is ideally suited to investors that
Headline Fee 0.75% want to have access to short-term liquidity while earning a
TER (includes Headline Fee) 0.78% competitive yield.
Initial Fee -
Distribution Frequency Monthly
Launch Date June 29, 1999
Financial Year End April
Risk Rating
Minimum Lump Sum Investment 10000
Risk Rating Low
Net Asset Value (NAV) 1.00 Low Medium High
Assets Under Management (AUM) 2,133,373,223
Gross Performance (%)
1 Month 3 Months 6 Months 1 Year 2 Years* 3 Years* 5 Years*
Fund 0.46 1.37 2.72 5.53 6.32 7.06 7.71
Benchmark** 0.34 0.98 1.94 3.81 4.60 5.49 6.25
Value Add 0.13 0.39 0.77 1.72 1.72 1.58 1.46
*Annualised **STeFI Index
Issuer Exposure (%) Sector Allocations (%)
Central Bank of Eswatini 23.0
ABSA 9.6
Nedgroup 8.3
Standard Bank South Africa 7.0
Cadiz Asset Management 7.0
Investec 7.0
Select 6.0
Nedbank South Africa 4.9
SwaziBank 4.9
Swaziland Building Society 4.7
Asset Class Breakdown (%) Region Breakdown (%)
Portfolio Manager Commentary
Eswatini equity investors would have been pleased in December as the local market gained 0.8% following Greystone Partners trading
5% higher to a level of E 3.15. The ESE all share index ended at 461.67. The ESE ended the year in positive territory but lagged global
equity markets which, for the most part, were positive.
There were no Government bond auctions in December and, as a result, liquidity was elevated in the money markets. The longer dated
auctions were well bid for during the month and the greenshoe option was frequently exercised. The yield on the 91 day issue remained
steady, ending around 4.9%.
The latest inflation print in South Africa (SA) increased to 5.5% - the highest level in 5 years. Rising costs of both food and fuel are the key
drivers of inflation at the moment and demand-side pressures remain subdued.
The SA equity market as measured by the SWIX increased +4.6 In December. Globally equity markets were positive a “phenomenon”
some market commentators dub the “santa rally”. Looking at the market across sectors, there was positive contribution from all, but the
financial and resource sectors were the core drivers of equity returns.
Looking ahead to 2022, we will watch the Central Bank action with respect to rates and we hope to see more activity in the local equity
market following a relatively lackluster performance in 2021.
Disclaimer
Unit trusts are generally medium to long term investments. The value of units, and any income derived therefrom may go down as well as
up and past performance is no indication of future growth. In certain circumstances the Manager may be required to suspend the
redemption of units. All information and opinions provided are of a general nature and are not intended to address the circumstances of
any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one
should act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation.
We endeavour to provide accurate and timely information but we make no representation or warranty, express or implied, with respect to
the correctness, completeness of the information and opinions. We do not undertake to update, modify or amend the information on an
accuracy or frequent basis or to advise any person if such information subsequently becomes inaccurate. Any representation or opinion
is provided for information purposes only.
