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13 Jan 2014
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Dear Client

 

13 January 2014

 

We previously sent you the table below to show that your investment in KMB/KMF has performed very well over the past 4 months.

 

Fund

Cur

Sep

Oct

Nov

Dec

KMB (Kanaan Met Balanced FoF)

(ZAR)

2.55%

3.11%

0.56%

3.0%

KMF (Kanaan Met Flexible FoF)

(ZAR)

3.19%

3.91%

0.37%

3.49%

 

When you originally made your investment in KMB/KMF you decided on one of the following administrators: AIMS (ABSA), Glacier (Sanlam), Met Collective (Momentum), Investec or PSG. The mentioned companies do not manage your investments. They are solely responsible for the updating of value statements and the distribution thereof once a year for tax purposes. Kanaan Trust, who has been given the mandate to do so, is responsible for the management of KMB and KMF, but we have found when clients think of their investment they think of AIMS, Glacier, Momentum, Investec, or PSG, because they advertise their own name on the value statements sent to clients and occasionally neglect to mention KMB or KMF, unless one specifically requests the name of the fund.

 

Should you want to follow the price movements of your investment in one of the daily newspapers such as the Beeld, Pretoria News, Mercury or one of the Sunday Newspapers, you will only be able to find it under the name KMB or KMF.

 

It has been a while since KMB/KMF have been among the top 10 Unit Trusts in South Africa, since the 2008 “Credit Crunch Crash”, because of our conservative approach. However, since August 2013 we have been confident that first world countries are recovering and since then, we switched the maximum allowed allocation of 40% to top offshore funds namely, Allan Gray Orbis, Old Mutual Global en Deutsche Bank MSCI USA, which contributed to both KMF and KMB’s 4th spot amongst balanced and flexible South African Unit Trusts, over the 1 month period as well as the 3 month period (see the spreadsheet attached hereto).

 

We could have abandoned our conservative approach during 2008, to invest more aggressively so as to stay amongst the top 10, which we have achieved during the preceding 13 years since 1995, when we received the mandates to manage these funds, but then we would have had to accept the risk that if world markets should crash again overnight with 35%, our clients investment values would have crashed with 35% as well, for an unknown period.  We were not willing to take that risk.

 

Friendly greetings

 

Andre Delport

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