NAV on 2020/05/27
|NAV on 2020/05/26
|52 week high on 2019/06/20
|52 week low on 2020/03/19
|Total Expense Ratio on 2020/03/31
|Total Expense Ratio (performance fee) on 2020/03/31
STANLIB Collective Investments (RF) (Pty) Limited
FTSE/JSE All Share index
From 1989 to December 1998, Theo worked for UAL/NIB Asset Management and then joined Liberty Asset Management in January 1999 as a research sector head. His expertise covers the luxury goods, beverages, tobacco, food retail and food manufacturing subsectors.
Herman van Velze
With a mining engineering background, Herman started his asset management career in 1993 as a mining analyst. Winner of several awards in 2007, he has successfully managed the STANLIB Balanced Fund since 2005 and is currently Head of Balanced Funds.
STANLIB SA Equity comment - Dec 19
The STANLIB SA Equity Fund delivered a -5.4% return for Q3 2019 compared with a benchmark (FTSE/JSE SWIX All Share Index) return of -4.3%. The one-year return for the fund is -3.6% compared with the benchmark return of 0.2%.
Contributing to the relative performance of the SA component of the fund were our overweight exposures to Northam, ABInbev, and Capitec and underweight positions in Anglo American and ABSA. Sasol, Discovery, Sappi, and underweight positions in Platinum and Gold shares detracted from performance.
During the quarter, we exited our position in British American Tobacco and introduced Anglo American and Motus as new holdings in the fund. We reduced our holdings in Discovery, African Rainbow Minerals and Shoprite while adding to Capitec, ABInbev, Bidvest and Multichoice.
The FTSE/JSE SWIX All Share Index’s total return for Q3 2019 was -4.3%, continuing to underperform SA bonds and SA cash over the short term. SA Industrials shed 2.5% in Q3, while SA Financials and SA Resources lost 6.8% and 6.4% respectively. Over the one-year period to 30 September 2019, the FTSE/JSE SWIX All Share Index delivered 0.2%, with Resources remaining the best performing sector (+7.8%) for the year. Financials remain the laggard at -4.2%. Global equities delivered weak performance during the quarter, with the MSCI World Index up 0.7% (in US dollar terms). The MSCI Emerging Markets Index lost 4.1% while the MSCI South Africa declined by 1.2% during the quarter.
Trade deals, slowing global growth and fears of a US recession continue to dominate news flow and drive investor sentiment. Central banks continue to reduce interest rates and take other measures to support global growth.
SA and other Emerging Market equities have been supported by the Fed’s dovish stance (this should limit further dollar strength) and selective stimulus by Chinese policymakers, while uncertainty around US-China trade talks has swayed market sentiment. In SA, the SARB reacted to slow growth and low levels of business and consumer confidence by reducing interest rates by 0.25% during Q3. We expect further easing in Q4. Lower interest rates and positive developments such as the restructuring and refinancing of Eskom together with further fiscal policy announcements should be mildly positive for growth in the medium term.
The valuation case for equities remains compelling, with metrics below their historical means. This asset class offers investors an attractive opportunity into quality businesses supported by structural growth trends.
The STANLIB SA Equity Fund's objective is the steady growth of income and capital in the longer term. Investments will consist of ordinary shares from a broad spectrum of the sectors of the JSE and when appropriate, other securities, including non-equity securities and preference shares. The trustees shall ensure that the composition of the assets and their respective proportions in this portfolio will not be identical to the STANLIB Wealthbuilder Fund at all times. This portfolio may not have any direct and/or indirect foreign exposure.