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0.05  /  0.04%

137.96

NAV on 2019/09/16
NAV on 2019/09/13 137.9089
52 week high on 2019/06/28 138.129
52 week low on 2018/10/01 134.9919
Total Expense Ratio on 2019/06/30 0.85
Total Expense Ratio (performance fee) on 2019/06/30 0
NAV Incl Dividends
1 month change 0.74% 0.74%
3 month change 0.22% 2.22%
6 month change 0.29% 4.38%
1 year change 0.55% 9%
5 year change 0.14% 8.55%
10 year change 0.03% 7.91%
Price data is updated once a day.
  • Sectoral allocations
Derivatives 1.24 0.00%
Fixed Interest 2286.93 6.06%
Gilt 3.20 0.01%
Gilts 31326.13 83.03%
Liquid Assets 199.36 0.53%
Money Market 3912.16 10.37%
  • Top five holdings
U-SBKIMM 2286.93 6.06%
MM-03MONTH 843.27 2.24%
MONEYMARK 807.42 2.14%
MM-06MONTH 682.93 1.81%
MM-10MONTH 507.48 1.35%
  • Performance against peers
  • Fund data  
Management company:
STANLIB Collective Investments (RF) Limited
Formation date:
1987/04/01
ISIN code:
ZAE000020079
Short name:
U-SLINCR
Risk:
Unknown
Sector:
South African--Interest Bearing--Short Term
Benchmark:
STeFI Composite Index
Contact details

Email
contact@stanlib.com

Website
http://www.stanlib.com

Telephone
011-448-6000

  • Fund management  
Henk Viljoen
Henk started his career in 1984 as a bursary student at the marketing division of Telkom, moving to the treasury division after one year. Henk became an economist at Senbank in 1986, before rejoining the treasury environment in 1989 at Senbank. Henk joined Liberty Asset Management in 1990 and assumed responsibility for STANLIB's cash and fixed-interest teams in 2000. Henk is regarded as one of the best fixed-interest managers in the country due to his consistent performance in respect of STANLIB's Bond and Income Funds.
Victor Mphaphuli
Victor joined SCMB Treasury in 1996 as a trainee dealer in the foreign exchange markets and later moved to Nedcor Investment Bank as a capital markets dealer. In early 2001, he joined Libam's fixed interest team as a capital markets dealer and assistant to Henk Viljoen.


  • Fund manager's comment

STANLIB Income Fund - Jun 19

2019/08/29 00:00:00
Fund review
The STANLIB Income Fund continued to deliver good performance for the quarter bringing the one year return to 8.8%. We maintained a defensive positioning, slightly reducing modified duration of the Fund to 0.36 years from 0.4 years. Credit spreads generally moved sideways during the second quarter. Inflows into the Fund continued throughout the second quarter, with the Fund size increasing from R37.7 billion to end the quarter at R41.3 billion.
Market overview
South Africa experienced a weaker than expected GDP growth as the economy contracted 3.2% on an annualized basis in the second quarter, highlighting the growth challenges facing President Ramaphosa following the May election victory. The decline in GDP was largely broad-based, with manufacturing and mining production contributing the most, leading to the rand to weaken to R15/$ for the first time since September 2018. The ruling party officials entered a debate on the role of the South African Reserve Bank to expand its mandate with some calling for measures such as quantitative easing to support growth. However, this did not gain much traction with President Ramaphosa later issuing a statement affirming the SARB mandate in addition to the joint statement issued by the SARB and National Treasury assuring the independence of the reserve bank.
The MPC remains dedicated to anchoring inflation expectations to the 4.5% midpoint of the CPI target range, but acknowledged inflation expectations have declined fuelling speculation they may ease policy. This is reflected by the Forward Rate Agreement (FRA) curve which is fully pricing in a 25bp rate cut in July.
The prospect of policy easing has driven bonds in the short-end and belly part of the yield curve to rally, but long dated bonds have been negatively impacted by the country’s deteriorating fiscal position and lacklustre economic growth. Moreover, the government was also forced to pay R5 billion in emergency funds to meet Eskom's debt obligations in April, a move that possibly prompted Moody’s to consider incorporating the utility’s debt a part of the government debt. President Ramaphosa recently announced that additional support will be provided to Eskom by bringing forward part of the R230 billion rand reserved for the utility over the next 10 years. The impact on bond issuance remains unclear, but the spread between the SA benchmark bond yield and the 25 year bond yield widened to an all-time high of 185 basis points before tracking back to 161 basis points by end of the quarter.
Trade war uncertainties continue to negatively affect global markets, reduce confidence and global economic growth. Negotiations between US and China fell apart in May after the threat by the US President Trump to raise tariffs further escalated tensions between the 2 countries. A month later at the summit of leaders of the Group of 20 (G20) U.S. President Trump and Chinese President Xi Jinping agreed to resume negotiations at their meeting. Subdued U.S. economic growth and muted inflationary pressures has tilted the U.S. Fed into a dovish stance with the market fully pricing in a 25bp cut at the Fed’s July meeting.
Looking ahead
The improved backdrop for global interest rates will dominate global market movements potentially boosting risk assets around the globe, but SA may lag if investors choose to focus on the relatively unattractive domestic story. The Fed is set to dominate global markets, with communication from Fed Chairman Jerome Powell signalling that they are open to rate cuts for the first time since the global financial crisis, which is positive for EM markets. Moreover, ECB officials are worried about the economy and inflation with outgoing ECB President Mario Draghi citing the possibility of another round of monetary stimulus. This creates an opportunity for SARB to also cut rates given the challenging growth environment and benign inflation outlook. Rating agency Moody’s is not expected to move on the sovereign rating as they look to further assessing government on implementing policies to resolve credit challenges and boost economic growth. Plans to deal with the country’s deteriorating fiscal position and funding Eskom along with other SOE’s will be the key focus for National Treasury, details of which will be shared in the Medium Term Budget Policy Statement in late October.
The commentary gives the views of the portfolio manager at the time of writing. Any forecasts or commentary included in this document are not guaranteed to occur.
  • Fund focus and objective  
The STANLIB Income Fund's primary objective is a reasonable level of current income and maximum stability for capital invested.
Securities normally to be included in the portfolio will consist of fixed income securities embracing non equity securities, stock, financially sound preference shares, debenture stock, debenture bonds and unsecured notes to be acquired at fair market prices.
The weighted average maturity of this portfolio may not exceed 2 years. This portfolio may not have any direct and/or indirect foreign exposure.
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