The Innovation Portfolio

January 2024
Fact Sheet
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Investment Objective

The Innovation portfolios aims to provide exposure to the disruptive thematic innovation themes.

Investment Approach

The strategies are directed to achieve their investment objectives by primarily managing a focused but appropriately diversified portfolio of suitable instruments. The investment process combines quantitative equity sectoral allocation techniques with tactical sector and stock allocation analysis in determining its preferred asset class exposure and potential thematic tilts. Given the currency diversification required, the portfolios may have concentrated exposures to certain currencies and/or regions.

Top Holdings

Sector Allocation

Portfolio Information

Portfolio Manager:Sasfin Securities
Launch Date:31/12/2015
Currency:USD
Regulation 28:No
Management FeeSliding Scale
Fund Benchmark:Russell Small Cap Complete GrowthTR

Investment Growth

Returns

1 Month 3 Months YTD 1 Year 3 Years 5 Years Inception
The Innovation Portfolio -3.0% 18.7% -2.9% 10.0% -8.9% 11.3% 17.8%
Russell Small Cap Complete Growth TR -1.1% 21.2% -1.1% 19.1% -4.8% 11.2% 11.9%

Risk Profile

Risk          
  Low Low-Mod Mod Mod-High High
Term          
  1-3 years 3+ years 3-5 years 5+ years 7+ years
  • This portfolio has a high exposure to equities and therefore tends to be more volatile than most other portfolios.
  • Expected potential long-term returns are high, but the risk of potential capital losses is high as well, especially over shorter periods.
  • Where the asset allocation contained in this fact sheet reflects offshore exposure, the portfolio is exposed to currency risks.
  • Therefore, it is suitable for long-term investment horizons.

Risk-Reward

Drawdown

Monthly Returns

  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2024 -3.0 -3.0
2023 12.5 -1.0 4.4 -2.1 4.2 4.9 3.0 -4.6 -6.8 -8.5 13.0 8.2 27.5
2022 -13.1 -0.2 0.2 -13.6 -1.2 -6.0 10.1 -2.1 -9.7 3.7 4.5 -7.2 -31.7
2021 9.9 -5.8 -4.4 2.3 -1.3 8.9 -3.1 0.9 -7.5 6.5 -3.8 -2.4 -1.7
2020 -1.2 -2.4 -12.2 17.1 7.1 8.5 9.7 4.5 -1.9 2.7 17.3 10.2 71.8
2019 11.2 10.0 0.9 1.6 -4.7 6.2 2.5 -1.5 -6.6 7.2 4.0 -0.5 32.9
2018 5.9 -4.7 -1.4 -0.3 9.8 1.2 1.0 11.5 0.1 -14.0 2.0 -10.3 -2.0
2017 4.6 7.9 3.2 4.3 9.2 -0.3 7.6 1.9 6.2 1.4 1.7 0.3 59.4
2016 -9.0 2.1 6.5 1.1 4.3 -0.2 4.1 9.6 6.0 -4.6 5.7 -0.2 26.7

Risk Measures

The Innovation PortfolioRussell Small Cap Complete Growth TR
Std. Deviation 22.7% 22.0%
Sharpe Ratio 0.6 0.4
Sortino Ratio 1.2 0.8
Max Drawdown (Monthly) -39.3% -40.8%
Best Month 17.3% 19.2%
Worst Month -14.0% -17.5%
Gain/Loss Ratio 1.8 1.6
Value at Risk -10.3 -11.0

Note: All risk measures shown are annualized.

Information & Disclosures

Alpha - Excess return over benchmark.
Beta - Systematic measure of sensitivity risk with respect to a given benchmark.
Max Drawdown - Measures largest peak-to-trough decline before a new peak is achieved.
Sharpe Ratio - Calculated by dividing a fund's excess returns over the risk-free rate by its standard deviation. The higher the Sharpe ratio, the better the fund's historical risk-adjusted performance.
Standard deviation - A statistical measurement of dispersion about an average. The higher the standard deviation, the wider the range, implyng greater volatility.
Sortino Ratio - A variation of the Sharpe ratio. Differentiates harmful volatility by using downside deviation, measuring the return to volatility caused by negative returns.
Value at Risk (VaR) - is a statistical measure of the risk of loss for investments. The potential loss in value of a traded portfolio over a defined period of time for a given confidence level.
Disclaimer: Sasfin Wealth comprising: Sasfin Securities (Pty) Ltd, 1996/005886/07, a member of the JSE Ltd; Sasfin Asset Managers (Pty) Ltd, 2002/03307/07, an authorised financial services provider (FSP) no. 21664; Sasfin Financial Advisory Services (Pty) Ltd, 1997/010819/07, FSP No. 5711; and Sasfin Wealth Investment Platform (Pty) Limited FSP No. 45334 and their employees and agents. The information and opinions in this publication are of a general nature and do not constitute advice or represent the views of Sasfin Wealth. Sasfin Wealth takes all care to provide current and accurate information as at the date of publication but accepts no liability for errors, omissions or subsequent changes. Any references to historical data, assumptions, targets, benchmarks or examples are as indicators or illustrations only and are not fixed or guaranteed. Past investment performance is not necessarily indicative of future performance. Clients should not assume any performance or guarantees will apply unless such has been explicitly confirmed in writing. Clients should consult with their advisors and independently assess and confirm all material information before taking any action. Clients remain responsible for the investment, product and institutional risks of their decisions. Referenced investment portfolios or products may be contained within financial products or contracts issued by third party life offices, pension funds, collective investment schemes or other product providers and may be administered / managed by such providers or other third parties. Refer to applicable application forms for further detail. Note that not all products or features may be available at all times or from all Sasfin Wealth represented product providers. The contents of this publication are proprietary and may not be distributed or used without permission. Past investment returns are calculated using back tested model portfolios. Any returns, modelling or back-testing are not to be seen as a guide to or guarantee of future returns and individual client portfolio performance will differ to the fact sheet due to investment timing and minor variations in actual portfolio holdings over time. Historical data and market assumptions used in data construction are used as indicators only.