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-1.23  /  -0.73%

169.28

NAV on 2019/01/18
NAV on 2019/01/17 170.5133
52 week high on 2018/03/27 186.3241
52 week low on 2018/10/25 164.3247
Total Expense Ratio on 2018/09/30 0.85
Total Expense Ratio (performance fee) on 2018/09/30 0
NAV Incl Dividends
1 month change 0.47% 2.7%
3 month change 1.43% 3.68%
6 month change -1.95% 2.4%
1 year change -2.2% 6.49%
5 year change -0.54% 7.92%
10 year change 0.24% 8.47%
Price data is updated once a day.
  • Sectoral allocations
Fixed Interest 0.19 0.01%
Gilt 0.08 0.00%
Gilts 3487.78 98.06%
Liquid Assets 68.70 1.93%
  • Top five holdings
U-SBKIMM 0.19 0.01%
AIRNAM04 0.08 0%
  • Performance against peers
  • Fund data  
Management company:
STANLIB Collective Investments (RF) Limited
Formation date:
2000/03/13
ISIN code:
ZAE000051561
Short name:
U-SLBOND
Risk:
Unknown
Sector:
South African--Interest Bearing--Variable Term
Benchmark:
BEASSA All Bond index
Contact details

Email
contact@stanlib.com

Website
http://www.stanlib.com

Telephone
011-448-6000

  • Fund management  
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 Bond Fund - Sep 18

2019/01/03 00:00:00
Fund review
The size of the Stanlib Bond Fund increased by R500m during the third quarter to R4bn. We started the quarter with a slight overweight duration position and a sizeable overweight position in the 12+ area of the yield curve. These positions were unwound during the quarter as bond markets continued to face headwinds and we resolved to assume a cautious position. The duration of the Fund was cut to be largely in line with the benchmark for most of the quarter, and the yield curve position was also aligned to the benchmark post the negative second quarter GDP print as we anticipated the possible announcements of increases in issuance would steepen the yield curve. The Fund retained its overweight in credit although slightly smaller than the previous quarter.
Market overview
Emerging market currencies and assets continued to sell off in the third quarter amid a stronger US dollar environment as trade and geopolitical tensions heightened, monetary conditions continued to tighten and global inflation expectations accelerated. Risk aversion due to US sanctions on Turkey and Russia and the debt crisis in Argentina contributed to the rand weakening by 3% against the US dollar, with bonds following suit as foreign investors sold R16bn of South African government bonds in the quarter. The US Fed raised interest rates by 25bps in September as widely expected, and indicated that they are planning on raising rates once more this year and three more times in 2019 as growth remains robust and inflation continues to increase.
Local GDP surprised by contracting again in the second quarter, tipping the economy into a technical recession and sparking fears of a possible ratings downgrade by Moody’s on the 12th of October. Longer dated bonds sold off as a result, as markets were pricing in a higher probability of an increase in government bond issuance as tax revenue was likely to come under pressure. The spread between the 30 year maturity bond and the 10 year maturity bond increased by 10 basis points to end the quarter at 93 basis points, reflecting these risks. Headline Inflation increased from 4.4% to 4.9% in August due to higher fuel prices and higher VAT but core inflation remains subdued as the economic activity remains subdued. The Reserve Bank as a result left interest rates unchanged leaving the markets pricing in higher probabilities of an interest rate hike at their November meeting should the current negative environment persist.
Looking ahead
The fourth quarter comes with a number of event risks with possible significant impact on returns. The three major rating agencies will give their rating updates on South Africa; with the Moody’s decision the most important one as a downgrade from them would result with major outflows due to South Africa being excluded from the World Government Bond Index. In September the government tabled measures to stimulate economic growth, details of which will be shared in the Medium Term Budget Policy Statement in late October. The stimulus package was well received by the markets and the details in the budget will be assessed for the impact on National Treasury’s debt consolidation plans. The Land Reform Committee is also expected to report back to parliament on its recommendations, which can have material impact on markets. Internationally, elections in Brazil in October and in the US in November will also be watched with keen interest as they can influence the risk environment.
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 Bond Fund aims to achieve capital growth and income generation by investing in long-term fixed-interest securities. These securities will normally consist of a spread of gilts, semi-gilts, loan stock, debentures, debenture bonds, approved securities, notes and liquid assets and any other securities which are consistent with the portfolio's investment policy. This portfolio may not have any direct and/or indirect foreign exposure.
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