SIM Enhanced Yield Fund Nominated For Raging Bull Best Risk- Adjusted Return

South Africa, 31 January 2022: The SIM (Sanlam Investment Management) Enhanced Yield Fund has been nominated for an award in the category Best South African Interest-bearing Short-term Fund on a Risk-Adjusted Basis at the 2022 Raging Bull Awards. Now a decade old, the fund has repeatedly received Raging Bull Awards for best rolling three-year performance in the category. The nomination for best 5-year risk-adjusted return attests to the fact that the fund has delivered solid straight performance (superior total returns) as well as robust risk-adjusted returns over one of the trickiest chapters in human history – the era of the pandemic.

Portfolio Manager Melville du Plessis says that the fund ranked in the top in terms of performance at the end of 2021 compared to its peers for all periods of one year and longer. The award also highlights that the fund ranks top in risk-adjusted performance, despite the Covid-19 catalysed financial market volatility. In addition, the fund is now one of the largest funds in its category, with a strong track record a testament to the investment process and strategy behind the fund.

“When we launched it in 2011, we said to ourselves, ‘Except for the category specifications; this fund has few other explicit limitations, so what’s the best we can do for clients?’ We knew that to be taken seriously; we needed to build a solid three-to-five-year track record. And now it’s ten years later, and that’s a special milestone. The best straight performance speaks to consistency; we’ve now been able to repeatedly deliver superior performance for over a decade.”

Du Plessis says ‘getting it right’ takes a lot of work, a good team and a shared vision or, more specifically, investment philosophy. “Investment decisions are made by leveraging off the broader team within the fixed interest unit and the active management capabilities and business more broadly. We are supported by the comprehensive credit capabilities of the Sanlam Group and also the desk dealing team. With their research and input, the economics team also brings a massive amount of value.”

The team’s investment philosophy is based on pragmatic value and a long-term investment horizon. “We focus on valuations; I think what makes us tick is a combination of fixed income and analytical mindsets. We’re passionate about investments and financial markets and economics and quants (quantitative trading) to optimise portfolios. But, at the end of the day, we are committed to delivering a good product to clients.”

This philosophy falls under Sanlam Investments overarching purpose to empower people to live with confidence. Its mission is simple: to unlock the opportunities for its clients that are difficult to find. As a result, the SIM Enhanced Yield Fund has repeatedly unlocked value despite the difficulties of the past few years. The Raging Bull nomination means a lot to the team and the business, further reinforcing their commitment to continuing to build on the fund’s stellar track record.

For more information about the fund, visit SanlamInvestments.com.

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