NAV on 2019/03/20
|NAV on 2019/03/19
|52 week high on 2018/08/28
|52 week low on 2019/01/02
|Total Expense Ratio on 2018/12/31
|Total Expense Ratio (performance fee) on 2018/12/31
STANLIB Collective Investments (RF) Limited
South African--Multi Asset--Flexible
SA Multi Asset Flexible sector average
Patrick joined STANLIB in 1999 holding various positions including bond trader, portfolio manager and chief investment officer. He holds a B. Com (UCT), a B. Com Honours (UNISA) and is a CFA charter holder. Patrick is the head of Alternative Investments at STANLIB.
Teboho joined STANLIB in 2007 as an analyst. He holds a Master’s degree in Quantitative Risk Management from North West University and is currently assistant fund manager responsible for passive and active quantitative funds.
STANLIB Quants Fund - Apr 18
The fund underperformed the benchmark (peer group average of the flexible asset allocation category) in the first quarter of 2018. The fund’s average effective exposure to domestic equities was 75% for the quarter whilst the remaining 25% of the fund was held in fixed interest instruments. The performance of the fund benefitted from positive returns of bonds (ALBI) up by 8% this quarter. Whilst the funds equity allocation detracted from funds’ performance with the equity market (ALSI) being down 6% this quarter. Overall, sector allocation within the fund’s equity allocation contributed negatively to fund performance for the quarter. With most major sectors in local equity markets down this quarter on the back on global fears of higher than expected inflation resulting in sell off in equities both locally and globally.
The global recovery across China, Japan, Europe and the United States continued to support commodity prices and emerging market currencies in the first quarter of 2018. The Fed hiked rates by 25 basis points in their March meeting and there was growing tension in world trade between the US and China. Higher rates and potential for a trade war triggered volatility in global equity markets which posted a loss of 1.15% (MSCI World) over the quarter. In South Africa, Cyril Ramaphosa was sworn in as South Africa’s president and his State of the Nation address was favourably received. Over the quarter local property fell 19.61% (SAPY) and equities were down 5.97% (ALSI). Losses in equities were driven by poor performance of rand hedge stocks, and by a sell-off in Naspers, following the announcement it would be trimming its shareholding in Tencent Holdings. Property’s decline was due to losses in the Resilient stable. The local bond market rallied impressively to +8.06% (ALBI) over the quarter, signalling the pricing out of political risk with 10-year SA government bond yields falling sharply to their current levels of 8.04%. February’s budget offered significant fiscal consolidation with VAT being raised to 15%. National Treasury cut the size of its weekly bond auction by a third, and the SARB cut its benchmark repo rate by 25bps. The bond market momentum was further reinforced by Rating’s Agency Moody’s decision to keep the countries investment grade credit rating and improve the countries outlook to stable.
We expect continued rate increases in the US and escalating trade friction to add further anxiety to global equity markets over the short to medium term. While the changing political and economic environment is a positive for South Africa, uncertainty remains around the direction of the land restitution debate and the implications for agricultural investment and property rights. Given this uncertainty, we continue to be positioned in segments of the market where we see long-term return opportunities.
The STANLIB Quants Fund's main aim is to achieve stable medium to long-term capital growth with lower volatility than that of general equity portfolios. Income generation is a secondary objective.
In order to achieve these aims, the portfolio makes use of quantitative techniques in respect of style analysis, sector rotation and stock selection. The equity selections style will rotate between growth and value shares. The portfolio will invest in South African listed securities and non-equity securities, such as ordinary shares, preference shares, convertible securities, futures, options, warrants, bonds as well as money market instruments. This portfolio may not have any direct and/or indirect foreign exposure.