OGM Oasis Crescent Global Medium Equity Fund Report - 2nd Quarter 2021

Transcription

1. OGM OASIS CRESCENT FUNDFACTS GLOBAL INVESTMENT FUND (UK) ICVC MANAGED BY OASIS GLOBAL MANAGEMENT COMPANY (IRELAND) LTD. QUARTER OGM OASIS CRESCENT GLOBAL MEDIUM EQUITY FUND Fund Manager Adam Ebrahim Min. Initial Investment GBP 5,000 Launch Date 11 December 2020 Min. Additional Investment GBP 1,000 Risk Profile Low to Medium Fund Size GBP 17.3 million Benchmark OCED Inflation + 0.5% Total Expense Ratio 1.31% 2 2021 The OGM Oasis Crescent Global Medium Equity Fund (OGM OCGMEF) is a specialist, worldwide asset allocation portfolio. The objective of the fund is to achieve medium to long-term growth of capital and income by investing on a global basis in securities that are ethically, morally and Shari’ah compliant. This objective is to be achieved by investing the Sub-Fund’s Net Assets in a broadly diversified and balanced mixture of global securities. The range of investments will be allocated in the asset classes of equity, property and income. Cumulative Returns Return Since Inception Mar-Dec 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD Jun 2021 Cumulative Annualised OGM Oasis Crescent Global Medium Equity Fund 1.8 11.1 13.6 2.5 23.3 (1.5) (2.3) 8.0 0.9 6.1 80.7 6.5 OECD Inflation + 0.5% 2.0 1.9 2.1 1.2 1.9 2.9 3.3 2.3 1.8 3.0 24.7 2.4 Cumulative Returns The Fund was launched following Oasis Crescent Global Medium Equity Balanced Fund’s (“OCGMEBF”) merger with the Fund on 11 December 2020. Returns in GBP, Net of-Fees, Gross of Non Permissible Income of the OGM OCGMEF since inception to 30 June 2021. NPI for the 12 months to June 2021 was less than 0.01%. (Source: Oasis Research using Bloomberg & www.oecd.org: March 2012 – June 2021) Note: OECD Benchmark lags by 1 month. Annualised Returns Return Since Inception % Growth 1 year % Growth 3 year % Growth 5 year % Growth 7 year OGM Oasis Crescent Global Medium Equity Fund 6.0 4.2 3.7 6.5 6.5 OCED Inflation + 0.5% 4.3 2.8 2.8 2.4 2.4 Annualised Returns Annualised Performance (% returns) in GBP, Net of Fees, Gross of Non Permissible Income of the OGM OCGMEF since inception to 30 June 2021 (Source: Oasis Research using Bloomberg & www.oecd.org: March 2012 - June 2021) Note: OECD Inflation benchmark lags by 1 month. Asset Allocation Asset Allocation June 2021 OGM OCGMEF % Equity 52 Income 40 Property Total 8 100 Asset Allocation of the OGM OCGMEF (30 June 2021) (Source: Oasis Research: June 2021) Performance is indicative only and for the period from inception to October 2016, is based on the Class A (USD) Shares (Dist). It has been converted to GBP on a monthly basis using the closing GBP/USD exchange rate as published by Bloomberg. A pound sterling class was launched on 15 May 2012, and from November 2016 performance is based on the Class E (GBP) Shares (Dist). Past performance is not indicative of future returns. GIPS compliant & verified
2. Fund Manager Comments According to the IMF , the global economy is expected to deliver this year the strongest growth in many decades, at 6.0%. The economic recovery following on the onset of the COVID-19 pandemic shock during Q1 2020 has been led by those countries who have either implemented significant fiscal stimulus programmes or had an aggressive vaccine rollout, such as the U.S., the U.K. and China. Developing economies in Africa, Latin America and South East Asia who have both struggled to roll out vaccines as well as having limited means for fiscal stimulus are likely to take much longer to reach pre-COVID-19 levels of economic activity as they face potentially successive infection waves and associated lockdowns. With the U.S. set to outperform its peers, monetary authorities like the Federal Reserve, are starting to talk about withdrawing monetary stimulus. This suggests a rising risk of market volatility in coming months, given elevated market valuations, trading margin and debt levels. Factors that could boost global growth further are: a) the massive build-up in consumer savings; b) the wealth effect from robust financial markets; c) pent-up demand; and d), an extended commodity upcycle. Factors that could constrain global growth are: a) new variants of COVID-19 and delayed vaccine rollout in the developing world; b) sustainably high inflation or an oil price shock; c) a faster than expected reversal of monetary and fiscal support; d) elevated equity & bond valuations; e) constrained global supply chains, especially in logistics and semiconductors; f) record levels of sovereign and corporate debt; and g) continued geopolitical tension between US and China. In conclusion, the global economy should enjoy robust economic growth in 2021 after experiencing the worst economic contraction in 50 years in 2020 driven by the COVID-19 pandemic and related national lockdowns. Global stock markets rebounded from their COVID-19 lows, with the OCGEF benchmark returning 32.2% for the year to June 2021 and 3.1% p.a. since the funds inception. Global Equity markets benefited from a flood of liquidity provided by central banks and fiscal support to the economy. The fiscal and monetary support will continue to support equity markets in 2021. The key risks include rising inflation, high valuations and a reversal in fiscal and monetary support. With the COVID-19 vaccination rollouts gaining some momentum and the lower levels of capital investment and development activity curtailing new property supply, we are starting to see an improving environment for existing property owners. OCGPEF is well diversified with exposure to a number of sectors that benefit from the 4th Industrial Revolution and COVID-19 including Logistics, Datacenters, Storage and Medical Research. There are also a number of sectors that benefit. Global yields have been on a 40 year structural decline caused by ageing demographics in Advanced Economies and the inclusion of China into the global economy since the 1990s. Following the Global Financial Crisis and the onset of quantitative easing, global yields have fallen well below long term averages. Since the 1950’s, the U.S. 10 year yield has averaged 5.7% but fell to 1.5% during 2016 and even lower to just 0.5% in March 2020 during the initial phase of the COVID-19 pandemic. Continued massive monetary and fiscal stimulus and improving global economic growth during 2021 has driven expectations of ‘reflation’ which has raised global yields and led to steepening yield curves. The benchmark US 10-year yield peaked at 1.75% in March 2021, boosted partly by successive announcements of major fiscal packages in the U.S. Long-term yields retraced somewhat in Q2 2021 as markets seemed to be partly persuaded by the Federal Reserve that inflation risks were transitory. Notwithstanding central banks playing down inflation risks, as Q2 unfolded the Federal Reserve and Bank of England began to openly debate reducing the degree of monetary stimulus. Overall, global monetary policies are likely to remain historically accommodative through 2022 which should keep short-term interest rates well anchored. However, if economic growth continues to rebound strongly, longer-term yields could rise further as inflation risks rise, which could lead to a further steepening in yield curves. Source: Oasis Research, Bloomberg statistics, IMF World Economic Outlook GIPS compliant & verified Contact us : Disclaimer : UK Undertakings for Collective Investments in Transferable Securities (UCITS) are generally medium to long term investments.Past performance The Oasis Global Management Company (Ireland) Ltd. is not indicative of future returns. Authorised by the Central Bank of Ireland and approved by the Financial Conduct Authority as the Authorised Corporate Director of the Fund. Contact details: Registration Number: 362471, 4th Floor, One Grand Parade, Dublin 6, Ireland, Tel: +353 1 495 9800, Fax: +353 1 495 9888, UK Free Phone: 0808 238 7543, Warning: The value of your investment may go down as well as up and past performance is not a reliable guide to future performance. Deductions for charges and expenses are not made uniformly throughout the life of the product, but are loaded disproportionately onto the early period. A schedule of fees and charges is available from Oasis Global Management Company (Ireland) Ltd. (“the Authorised Corporate Director” or “ACD”) on request. Portfolios are valued at 08h00 daily using the previous day’s prices as at 22h00 GMT. All necessary documentation must be received before 14h00. Investments are made globally across a number of countries and currencies. Warning:This product may be affected by changes in currency exchange rates. www.oasiscrescent.com Prices are calculated on a net asset value basis which is the total value of all assets in the OGM Oasis Crescent Global Medium Equity Fund, a “Sub-Fund” of OGM Oasis Crescent Global Investment Funds (UK) ICVC (the “Fund”), Registration Number : IC030383, including any income accruals and less any permissible deductions from the Sub-Fund which may include but not be limited to auditors fees, bank charges, custodian fees, management fees and investment advisory fees. UCITS can engage in borrowing and scrip lending and may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. C/O: 3rd Floor, 50 Hans Crescent, Knightsbridge, Warning: The income that an investor may get from an investment may go down as well as up. Email : info@oasiscrescent.com, London SW1X 0NA, United Kingdom, Tel: +44 (0) 2075900550 / Fax:+44 (0) 2075900555, Email: info@oasiscrescent.co.uk www.oasiscrescent.co.uk FP127 - 11/2020 The ACD is regulated by the Central Bank of Ireland. The Fund and the Sub-Fund are regulated by the Financial Conduct Authority and is managed by the ACD in accordance with the UK UCITS Regulations. Performance figures quoted are from Oasis Research and Bloomberg for the period ending 30 June 2021 for lump sum investment, using NAV-NAV prices with income distributions reinvested. Returns may vary depending on the actual date of investment and the actual date of reinvestment of income. The Key Investor Information Documents or a full Prospectus are available on request from the ACD and Oasis Crescent Management Company Ltd. The Sub-Fund is registered with the Financial Sector Conduct Authority for distribution in South Africa, the Swiss Financial Markets Supervisory Authority for distribution in Switzerland, the Monetary Authority of Singapore for distribution in Singapore and the Securities and Commodities Authority of the United Arab Emirates for distribution in the UAE. The Sub-Fund has a Total Expense Ratio (TER) of 1.31%, which is the average Net Asset Value of the portfolio incurred as charges, levies and fees related to the management of the portfolio. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The ratio does not include transaction costs. The current TER cannot be regarded as an indication of future TERs. Full details and basis of accolades received are available from the ACD and Oasis Crescent Management Company Ltd. All information and opinions provided are of a general nature and the document contains no express or implied recommendation, warranty, guidance, advice or proposal that the Sub-Fund is appropriate to the investment objectives, financial situation or needs of any individual or entity. All data and information (unless otherwise stated) is as at 30 June 2021.