Sasfin launches two theme-based funds

Listed financial company Sasfin Frankel Pollak Securities has entered the unit trust market and launched two collective investment funds. The funds will be administered by Metropolitan Asset Managers. Well known market commentator David Shapiro will manage the Sasfin TwentyTen Fund, and Sasfin portfolio manager Rossouw Steyn will manage the Sasfin Socially Responsible Fund.

The TwentyTen Fund, which takes its name from the government's vision to lift the country to a new level of growth and opportunity within the next five years. The fund will focus on companies that will profit from South Africa's proposed social and investment expenditure projects and from the benefits that will emerge from the rest of the world's desire to build a more successful and prosperous African continent. The fund will position itself to take advantage of the long cycle of proposed spend on capital formation, the elimination of disease and social grants.

The Socially Responsible Fund, which will invest in companies included in the FTSE/JSE Socially Responsible Investment Index (SRI Index). Inclusion in this index is limited to those companies adhering to sound corporate governance and good labour and environmental practices. They must also make a positive contribution to society.

Both funds are Collective Investment Schemes as defined by the Collective Investment Schemes Act, and are governed by the Financial Services Board. Both funds are currently available on the Equinox platform.

Sasfin TwentyTen fund manager David Shapiro said that both funds aim to achieve consistent, positive growth in the long term.

'We have chosen what we believe are two of the most exciting investment themes for the future,' he said. .

The Sasfin TwentyTen Fund will invest in those companies most likely to benefit from government's R200bn infrastructure spending over the next five years and more, with the aim of halving unemployment and lifting economic growth to 6 percent. This is part of a broad programme of social and infrastructural spending to which the government has committed.

Government has already approved projects totalling R133 billion, including R93 billion to be spent by Eskom and R40 billion by Transnet. Other planned expenditure covers public works and roads, Telkom and Airports Company of SA. An additional amount exceeding R3bn will be invested in sporting facilities and infrastructure leading up to 2010.

'The government's policy broadly focuses on transport logistics, electricity and water resources,' said Shapiro. 'Projects considered include enhancing the Durban and Cape Town harbours, a pipeline between Durban and Johannesburg, the re-commissioning of Eskom power stations and liberalising the telecommunication industry. But investments in housing, public transport, national logistics subsystems and water will also be included. Additional social expenditure will cover social grants, potable water and education and as well as plans to reduce, eliminate or control diseases like TB, aids, malaria and cholera. The government expects clean running water for all households by 2008, sanitation by 2010 and electricity by 2012.'

Capital expenditure programmes are not confined to government. The private sector is forecast to invest over R100bn in the near-term on new developments and upgrades, including: Sasol's R12bn, the platinum industry's R17bn, R20bn on the Gautrain, a R3bn expansion at Sishen, a R5bn development at Zimbali Coastal Resort and R10bn in telecommunications infrastructure by the second network operator. There is also a planned R20 billion for gas-fired power stations to boost supply during peak demand periods and around R15 billion to cover half the cost of the Pebble Bed Modular Reactor programme.