THE FUND

The Sigma Select Global Leaders Fund is a globally diversified investment portfolio, comprising a selection of the world’s best international equity managers, in a single unitised, cost-effective vehicle. The Fund is intended for investors seeking to achieve a high real rate of return, over the long-term, and who are able to tolerate the short-term volatility that may be associated with global equity markets.

 

The Fund invests in a carefully considered composite of underlying equity strategies, specifically selected by Ginsburg & Selby Private Wealth. Each of the selected managers has demonstrated the ability to outperform through varying market cycles over the long-term, after costs. We consider our selected managers to be amongst the best investors that we have encountered globally.

 

The underlying strategies vary widely, resulting in a portfolio that is diversified in terms of investment themes, exposures and markets. The Fund owns shares in businesses that range from contrarian “deep value” opportunities in traditional industries at one extreme, to high growth opportunities characterised by innovation and disruption, at the other.

 

The name, Sigma Select Global Leaders Fund, was conceived to represent the composition of the portfolio with Sigma being the sum of a Select blend of Global strategies implemented by managers that we regard as Leaders in their respective areas of specialisation.

 

The Fund is approved by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securities (UCITS), and by the Financial Sector Conduct Authority of South Africa in terms of Section 65 of the Collective Investment Schemes Control Act. The Fund is denominated in US dollars.

INVESTMENT APPROACH

Our investment approach is predicated on the following principles:

We invest with exceptional investment managers

We believe that no single manager is likely to excel in all markets and at all points in the economic cycle. We therefore allocate capital to managers with different styles and strategies, each of whom have been identified as having competitive advantages in their area of specialisation.

We have a bias towards active asset management

Through experience in our institutional and private advisory business, we have a proven track record of identifying managers that add value through stock picking and/or superior risk management over the long term, after costs.

We invest alongside our clients

Our directors and staff co-invest alongside our clients. This ensures that our interests remain aligned with those of our clients.

We diversify globally

Restricting investment to one country or market strikes us as inherently risky. Our portfolio is well diversified across all major countries and markets.

We avoid exotic products

We do not believe that the benefits of investing in exotic products warrant the associated costs and risks. We consequently only invest in regulated investment structures that offer the necessary transparency and liquidity.

We value transparency

We believe in open communication and provide full disclosure in respect of the Fund investments and fees. We expect the same from the investment managers that manage our underlying strategies.

Our independence gives us the flexibility to carefully select who we believe to be the best managers globally and in whom we have utmost conviction. This objectivity enables us to diversify the Fund across a blend of managers and strategies that is consistent with our best view.

 

We only invest in strategies that we believe to be intrinsically sound, where the benefits out-weight the costs and where managers stand up to our scrutiny. We only allocate capital to portfolios that offer the levels of transparency that we demand.

THE MANAGERS

Egerton
Veritas_nw
Contrarius
Platinum

EGERTON CAPITAL PARTNERS

 

The Egerton Capital Equity Fund is a long-only equity strategy, with an objective of outperforming global equity markets meaningfully over time. The fund was launched in March 1995 and is managed by John Armitage (CIO) out of the UK.

VERITAS ASSET MANAGEMENT

 

The Veritas Izoard Fund is a global equity strategy which invests in a concentrated portfolio of global companies. The fund was launched in December 2014 and is co-managed by Charles Richardson and Andy Headley out of the UK.

CONTRARIUS

 

 

Contrarius is a UK-based fund manager. The Global Equity Fund is managed by Stephen Mildenhall (ex Allan Gray) and was launched in January 2009. The objective of the fund is to earn a higher total rate of return than the MSCI World Index, without greater risk of permanent capital loss, over the long-term.

PLATINUM ASSET MANAGEMENT

 

Platinum Asset Management is an Australian based fund manager, started by Kerr Neilson in 1994. We invest in both their Asia and Japan strategies, managed by Dr Joseph Lai and Scott Gilchrist respectively. The funds launched in March 2003 (Asia) and June 1998 (Japan) and invest in undervalued companies across their respective regions.

lindsell
Sandscapital
Bailliegifford
Orbis_sm

LINDSELL TRAIN

 

Lindsell Train is a UK based manager, established in 2000 by Michael Lindsell and Nick Train. The Global Equity Fund is co-managed by Michael Lindsell, Nick Train and James Bullock. The funds objective is to increase the value of shareholders capital over the longer term through investing in a focused portfolio of global equities.

SANDS CAPITAL PARTNERS

 

Sands Capital was founded in 1992 by Frank M. Sands Snr, and is based in Virginia, US. The Investment team is led by Frank Sands Jnr (CIO). The Sands Global Growth Fund is a long-only global equity fund with a bias towards large cap stocks. This is a relatively concentrated portfolio with an objective of delivering significant wealth creation through stock selection over time.

BAILLIE GIFFORD

 

Baillie Gifford is a UK-based investment manager, founded in 1908. The Worldwide Discovery Fund is an equity long-only strategy, benchmarked against the MSCI All Country World Small Cap Index. The fund typically invests in global small or young companies that the Investment Manager considers to have strong future growth prospects.

ORBIS

 

Orbis is a Bermuda based investment management firm, established in 1989 by Allan Gray. The Orbis Global Equity fund, managed by William Gray, aims to earn higher long-term returns than global equity markets at lower levels of risk. The fund ignores market sentiment and buys shares in companies across the globe which the manager believes to be undervalued.

THE STRATEGY

The primary objective of the Fund is to outperform global equity markets, as measured by the MSCI All Country World Index over five-year rolling periods, after all costs. The Fund is appropriate for investors who wish to achieve a high level of capital growth over a long-term investment horizon and who are willing to tolerate the short-term volatility that may be associated with the level of risk asset exposure required to achieve this target.

 

The Fund capital is allocated to a carefully considered blend of independently managed investment strategies. The Fund is constructed by optimally blending the various manager styles and strategies to achieve the return target over the long-term.

 

A rigorous investment process underpins the identification and selection of managers according to their key strengths and specialisation. These comprise the best active investment managers that we have encountered globally. Each manager is constantly assessed relative to their appropriate benchmarks and must consistently comply with our stringent due diligence criteria.

 

The Fund exposure is constantly monitored and reviewed, and may be adjusted from time to time, having regard to the prevailing market conditions.

 Underlying Manager Allocation *

* The underlying portfolio exposures are as at 31 January 2020.

Fund Regional Exposure *

* The Fund regional exposures are as at 31 January 2020.

Fund Sector Exposure *

* The Fund sector exposures are as at 31 January 2020.

FUND STRUCTURE

Ginsburg & Selby Private Wealth have partnered with Prescient Fund Services Ireland to offer investors a highly diversified global equity portfolio through a single US dollar-denominated collective investment scheme.

 

The Fund is approved by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securities (UCITS), and by the Financial Sector Conduct Authority of South Africa in terms of Section 65 of the Collective Investment Schemes Control Act. The Fund is denominated in US dollars.

 

The underlying investment managers and funds are all registered and regulated in their respective jurisdictions and have passed the due diligence requirements of Ginsburg & Selby Private Wealth. Investments in the underlying funds is subject to and in line with legislative requirements.

 

Ginsburg & Selby Private Wealth is registered as a Category I and II Financial Services Provider with the Financial Sector Conduct Authority of South Africa (FSP licence number 42594) and an authorised investment manager with the Central Bank of Ireland.

* The Effective Annual Cost (EAC) is a measurement that aims to standardise cost disclosures across different investment products. It is expressed as an annualised percentage and is made up of four components (investment management charges, advice charges, administration charges and other charges), which are added together.

 

The EAC expressed in the table is inclusive of manager, advisory and administration costs, excluding trading costs and any underlying manager performance fees. Given the short history of the Fund, the EAC is an estimate based on the Fund having reached an AUM of $50 million. The EAC shown is for the Founders (D) share class.

Fund Classification Global Equity
Risk Profile High
Benchmark MSCI All Country World Index
Fee Class Launch Date 28 March 2019
Portfolio Launch Date 28 March 2019
NAV at Launch
$100
Minimum Investment
Lump Sum : $1 000 000
Effective Annual Cost * 1.17%
ISIN IE00BJDQ3Q47
Bloomberg PGSSGLD
Tax Status Non UK Reporting Fund
Dealing Weekly on Thursdays by 3.00 pm (Irish Time)
Fund Domicile Ireland
Fund Type UCITS
Fund Currency USD
Investment Manager Ginsburg & Selby Private Wealth (Pty) Ltd
FSP Licence No. 42594
Management Company Prescient Global Funds (Ireland) Plc
Registration: 275468
Fund Depositary Northern Trust Fiduciary Services (Ireland) Ltd

HOW TO INVEST

Application forms for investing in the Fund are available for download below:

 

Application Form – Individual Investors (new investors only)
Additional Investment Form (for existing investors)

 

On page 2 of the application form, under Investment Option Details, please ensure that you enter Sigma Select Global Leaders Fund and the relevant fund Class and investment amount into the Options table.

 

Completed forms can be sent, along with the necessary supporting documents to : info@prescient.ie

 

A comprehensive list of the supporting documents needed to be submitted alongside your application can be found under our FAQ on How to Invest

 

You are more than welcome to contact us for assistance with your application.

FREQUENTLY ASKED QUESTIONS

Q1. What is the aim of the Fund?

The Sigma Select Global Leaders Fund has been developed to capture our best global equity investment view in one regulated unit trust for long-term investors. The Fund seeks to provide investors with returns in excess of the MSCI All Country World Index (Total Return), over the long-term (i.e. 5 years +), after all costs.

Q2. Why use the MSCI All Country World Index?

The MSCI All Country World Index is the Morgan Stanley Capital International World Index which is a free float-adjusted market capitalisation index that is comprised of stocks from both developed and emerging markets and is designed to measure the full equity opportunity-set with no gaps or overlaps. MSCI ACWI represents the relevant passive benchmark for a global equity mandate and captures all sources of equity returns in 23 developed and 24 emerging markets.

Q3. Is the Fund appropriate for me?

The Fund is intended for investors who are seeking to allocate capital to a strategy that is designed to generate a high real rate of return over the long term (5 years +) and who are willing to tolerate the volatility associated with real growth.

 

It is an ideal investment vehicle for investors who are seeking access to a US$ denominated, tax efficient and globally diversified equity portfolio.

Q4. What’s in a name?

The name, the Sigma Select Global Leaders Fund, was conceived to represent the composition of the portfolio, with Sigma being the sum of a Select blend of Global strategies managed by those managers who we regard as Leaders in asset management.

Q5. What are the benefits of investing via the Fund relative to direct investment with the underlying managers?

The benefits include:

  • access to our best investment view within a single, managed, unitised vehicle
  • accommodating investors with capital sums that that would not ordinarily qualify for the minimums of the underlying portfolios independently
  • accommodating investors who wish to achieve prudent manager diversification through a single fund
  • passing on any preferential fee bases associated with the underlying classes of portfolios accessed via the Fund (i.e. relative to their retail equivalents)
  • providing access to potentially hard/soft-closed funds as a result of our long-term relationships
  • facilitating a tax-efficient mechanism where underlying re-balancing, manager inclusion/termination does not create a capital gains event (subject to the investors tax regime)
  • facilitating a tax-efficient mechanism whereby distributions (i.e. dividend, interest) are re-invested and “rolled-up” (i.e. no tax is payable until final units in the fund are sold in certain jurisdictions including South Africa)
  • facilitating simple access to multiple underlying portfolios without the compliance burden associated with application to several different administrators (i.e. in respect of FICA, AML, KYC, FATCA etc)

Q6. Who is the investment manager?

The investment manager of the Sigma Select Global Leaders Fund is Ginsburg & Selby Private Wealth (Pty) Ltd. The underlying manager selection and portfolio construction is determined by our investment committee.

 

Ginsburg & Selby Private Wealth (Pty) Ltd is a registered Category I & II Financial Services Provider with the Financial Sector Conduct Authority of South Africa (FSP 42594) and an authorised investment manager with the Central Bank of Ireland.

 

The company profile can be requested directly by emailing info@ginsburg.co.za or by referencing our website http://www.ginsburg.co.za

Q7. What are the underlying investments of the Fund?

The Fund capital is allocated across a blend of independently managed investment portfolios, as selected by Ginsburg & Selby Private Wealth. The managers of these portfolios are those who we believe to be amongst the leading active investment managers that we have encountered globally.

 

The Fund capital is allocated to the following underlying manager portfolios (as at June 2019):

 

Veritas Izoard
Egerton Capital Equity
Contrarius Global Equity
Lindsell Train Global Equity
Sands Capital Global Growth
Platinum World Portfolios – Asia
Platinum World Portfolios – Japan
Baillie Gifford Worldwide Discovery

 

It should be noted that the allocation to the respective managers within the Fund may change from time-to-time depending on our views and preferred tactical positioning. Individual managers/portfolios may also the switched in/out from time to time, as determined by our investment committee. At any one point, the allocation will represent out best view for achieving the investment objective.

 

The Fund has an unconstrained mandate and is able to invest in a portfolio of direct securities, funds, segregated accounts and/or liquid assets, as the manager (Ginsburg & Selby Private Wealth) deems appropriate. The Fund may invest 100% of its Net Asset Value (NAV) in collective investment schemes that are eligible for investment by a UCITS in accordance with the requirements of the Central Bank of Ireland. Investment in one underlying collective scheme may not exceed 20% of NAV of the Fund and no more than 30% on aggregate can be invested in alternative investment funds.

Q8. What are the fees associated with the product?

We pride ourselves in having created a Fund that provides all the elements of a holistically managed investment strategy, including prudent geographic, style and manager diversification, at a comparatively low fee basis.

 

We offer several fee classes, depending on the nature of the investor. These include:

  • Retail
  • Institutional
  • IFA
  • Founders (availability of which will be subject to a limited period from inception)

 

Access to specific fee classes is determined by certain qualifying criteria and at the discretion of the investment manager (Ginsburg & Selby Private Wealth).

 

The administration fees within the fund are calculated according to a sliding scale, based on quantum of assets invested. The total estimated fee within the Fund at a fund size of $50 million equates to approximately 1.4% per annum, for the Founders class. This includes the advisory costs, the underlying manager fees (excluding any performance fees) and all operational costs (excluding underlying transaction costs).

 

We do not charge performance-based fees, as the investment manager. We have negotiated access to preferential fees with the underlying managers where possible. Some of the underlying managers may charge a performance-based fee for generating a return above their respective benchmark. The total fee may, therefore, change from time to time, based on manager out- or underperformance.

 

The full detail of the fees is provided below:

 

Ginsburg & Selby 0.25% advisory fee
Fund Manager Fee 0.73% weighted-average flat fee of the underlying managers
Operational Fees 0.33% Prescient administration, audit, Trustee, etc
Total Estimated Fees 1.31% at a fund size of $50 million

 

We anticipate the total cost (excluding underlying manager performance fees, where applicable, and transaction costs), to reduce to approximately 1.25% once the Fund reaches invested capital of $100 million.

 

This fee basis is the all-inclusive estimated annual fee that is incurred, with the exception of the trading costs within the portfolios which will be insignificant. This fee is deducted within the Fund and is included in the daily price (i.e. the daily Net Asset Value). The unit price, therefore, reflects the Fund performance, after all costs.

 

We do not charge any entry or exit commissions of any kind on investment into the Fund. We are extremely mindful of the impact of fees on investment returns and believe that costs in the industry will come under greater scrutiny going forward. We endeavour to negotiate fees with managers and vendors to the Fund, where possible, to ensure that investors incur the lowest possible total cost.

 

Furthermore, we have no commission or trailer fee arrangements with any of the manager’s selected within the Fund. We do not receive any rebates (undisclosed incentive fees) or any other form of remuneration from product/service providers. This fee methodology is consistent with our principles of transparency and independence in respect of the selection of asset managers, platforms and service providers.

Q9. Please provide an overview of the regulatory framework and fund structure?

The Fund is a sub-fund of Prescient Global Funds plc, an open-ended umbrella fund with segregated liability between Funds.

 

The Fund is approved by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securities (UCITS), and by the Financial Sector Conduct Authority of South Africa in terms of Section 65 of the Collective Investment Schemes Control Act.

 

Ginsburg & Selby Private Wealth is registered as a Category I and II Financial Services Provider with the Financial Services Sector Authority of South Africa (licence number 42594).

 

The underlying investment managers and funds are all registered and regulated in their respective jurisdictions passing the regulatory due diligence requirements of both the Trustees and Ginsburg & Selby Private Wealth. The investment in the underlying fund is compliant in terms of the UCITS Regulations and the Central Bank UCITS Regulations.

Q10. What role does Prescient Fund Services (Ireland) Limited play?

Prescient Fund Services (Ireland) Limited (PSFI) is an approved administrator of regulated funds in Ireland, and provides specialist outsourced fund services to external asset managers, multi-managers and other institutional investors globally. PFSI acts as the manager and administrator for the Prescient Global Funds plc scheme (UCITS scheme), of which the Sigma Global Select Leaders Fund is a sub-fund. The responsibilities of the Manager includes share registration and transfer agency services, portfolio administration and fund accounting.

 

Ginsburg & Selby Private Wealth chose to partner with Prescient due to their long term track record, financial stability and their knowledge of the South African and Irish regulatory environment.

 

PSFI is a wholly-owned subsidiary of Prescient Holdings (Pty) Ltd and falls within the Prescient Investment Cluster. PFSI currently has $1.1 billion in Assets under Administration across 21 funds with 3 new sub-funds to launched in December 2018

Q11. How long has Prescient Fund Services (Ireland) Ltd been in existence?

Prescient Fund Services (Ireland), originally Stadia Fund Management, was incorporated in September 2008 and is authorised by the Central Bank of Ireland as a UCITS management company and Alternative Investment Fund Manager. Prescient Fund Services (Ireland) provide a white label service via the Prescient Global Funds plc scheme and the Prescient Global Qualified Investor Fund plc scheme.

Q12. Who are the different role players of the Fund?

The role players and their responsibilities are illustrated below:

 

Investment Manager Ginsburg & Selby Private Wealth (Pty) Ltd
Management Company Prescient Fund Services (Ireland) Limited
Depositary Northern Trust Fiduciary Services (Ireland) Limited
Secretary Tudor Trust Limited
Auditors KPMG

Q13. Are there any constraints in terms of liquidity or access to my capital?

The Fund trades weekly on a Thursday (i.e. is a weekly dealing fund) and therefore offers weekly liquidity. The payment is reliant on the settlement period of the underlying funds which need to be redeemed in order to provide for liquidity. With this in mind, the redemption proceeds are typically paid within 5 business days after dealing day, but can be paid up to 10 business days after dealing day.

 

Where an investor’s redeemed assets comprise 10% or more of shares outstanding, a ‘ringfencing’ process may be implemented on redemption, so as not to compromise the other investors in the fund.

Q14. Does the Fund make distributions ?

The Fund is a roll-up fund which means all income and dividends are reinvested within the fund, and therefore no distributions are paid.

Q15. What is the minimum Investment and additional contributions?

The minimum initial subscription for investment into the retail fund class is $100 000, while the minimum investment into the institutional class is $1 000 000. Additional subscriptions of $10 000 and above are accepted into each.

 

Each of the different fund classes and their respective investment minimums are detailed in the Sub Fund Prospectus, available from Ginsburg & Selby Private Wealth and Prescient Fund Services. The Investment Manager may, at their discretion, waive the minimum investment restriction.

Q16. How can I Invest?

Application forms can be requested from Ginsburg & Selby Private Wealth or Prescient Fund Services. Once completed, the form can be sent, along with the necessary supporting documents to Prescient Fund Services: info@prescient.ie

 

The Application Form with the required original documents must be received by Prescient Fund Services together with cleared funds before 3.00 p.m. (Irish time) on the Relevant Dealing Day. Any applications and/or cleared funds received after 3.00 p.m. Irish time on the Relevant Dealing Day will be held over until the next Dealing Day.

 

The signed originals of the initial Application Forms should be sent to arrive within ten Business Days after subscription has taken place. Original documentation should be sent to:

Prescient Global Funds plc
c/o Prescient Funds Services (Ireland) Limited
49 Upper Mount Street
Dublin 2
Ireland

 

The following supporting documents will need to accompany your application:

  • Proof of Bank Account (less than 3 month’s old)
  • Proof of Deposit
  • Anti-Money Laundering and Counter Terrorist Financing Documentation
  • Self-certification for Tax purposes – Complete Appendix 1A or 1B on the application form (pages 9-14)

 

Anti-Money Laundering and Counter Terrorist Financing Documentation for different entities:

Individuals

  • Certified copy of a document verifying name and date of birth (e.g., current valid full passport); and
  • Original or certified copy verifying the Investor’s residential address (e.g. recent utility bill, bank statement, tax statement)

Private Companies

  • Certified copy of the Certificate of Incorporation or Certificate to Trade
  • Certified copy of Memorandum and Articles of Association
  • Certified list of directors’ names, occupations, residential and business addresses and dates of birth
  • Certified copy of a properly authorised mandate of the directors to open/operate an account
  • Certified copy of Investor’s authorised signatory list with specimen signatures on company letterhead and
  • A copy of a company bank statement
  • Individual documentation as per 1 above must be supplied by at least two directors of such company and all persons authorised to operate the account
  • In the case of shareholders holding more than 25% of the share capital then the documentation as per 1 above

Trust

  • Full name of trust and certified copy of trust deed
  • Nature and purpose of the trust
  • Country of establishment
  • Name of all the trustees, with certified copies of identification documentation to be supplied for two of the trustees as per 1 above for an individual or as per 2 above for a company
  • Evidence of the trustee’s authority to make investments on behalf of the trust and an appropriate certified authorised signatory list

 

General information when investing

  • To be valid, the Application Form (incorporating the Declaration required by the Irish Revenue Commissioners) must be completed by the investor.
  • Where there is more than one Investor, each person must sign. If this Application Form is signed by any Investor under power of attorney, such power of attorney or a duly certified copy thereof must accompany this Application Form.
  • If the Investor is a company, the Declaration must be signed by the Company’s Secretary or an authorised officer and a list of authorised signatories must accompany this Application Form.
  • The dealing deadline for redemption requests shall be 10.00 a.m. Irish time on the Relevant Dealing Day.
  • Redemptions will not be processed on non-cleared/verified accounts.
  • No redemption payment may be made until the original subscription application form has been received from the Investor and all documentation required by the scheme and anti-money laundering and counter terrorist financing procedures have been completed.

 

You are more than welcome to contact us for assistance with your application.

Q17. How can I redeem my investment ?

Investors will need to complete, sign and email the redemption form prior to the dealing deadline. The administrators will process the redemption on the date that the scanned copy of the redemption form has been received by email, but will only pay the proceeds once the original form has been received. The fund trades weekly on Thursday’s and the redemptions will typically take 3 days to process.

CONTACT US

Belmont Square, Belmont Road, Rondebosch, Cape Town

+27 (0) 21 685 6364

info@ginsburg.co.za

CLICK HERE TO FIND US

GET IN TOUCH

Please feel free to contact us, should you have any queries with regards the Fund or the application process. We will gladly attend to any questions that you may have.