NAV on 2019/01/16
|NAV on 2019/01/15
|52 week high on 2018/09/04
|52 week low on 2019/01/04
|Total Expense Ratio on 2018/09/30
|Total Expense Ratio (performance fee) on 2018/09/30
STANLIB Collective Investments (RF) Limited
South African--Multi Asset--High Equity
FTSE/JSE SWIX Index, BEASSA ALBI Index, STeFI Call Deposit, FTSE/JSE SAPY Index, MSCI AC World IMI Index, Barclays Global Multiverse Index, 50% Overnight Dollar Libor Rate, 50% Overnight Euro Libor Rate
Malcolm Holmes has 11 years investment experience and has been a portfolio manager in his own right, which makes him the perfect candidate to oversee the evaluation of the underlying managers and their portfolios. As the head portfolio manager, Malcolm is the key person responsible for product development and design at STANLIB Multi-Manager. He is responsible for ensuring that our products meet their investment objectives and that the underlying managers meet their mandates.
STANLIB Multi-Manager was established in 1999 and is the centre of excellence for multi-managed solutions within STANLIB. The investment team, led by Chief Investment Officer Joao Frasco, consists of an experienced team with a diverse set of investment skills. We have offices in Johannesburg and London, and currently have mandates in excess of R90 billion under stewardship.
STANLIB Multi-Manager Funds are designed to deliver superior investment returns more consistently than through a single asset manager or mandate. Our approach allows investors’ to outsource the fund / manager selection decision, which includes the ongoing due diligence of managers and construction of portfolios, to meet pre-defined objectives over time.
Risk management is a fundamental component of our investment philosophy and process and is therefore approached holistically. It permeates every part of our investment process, requiring participation and accountability from all individuals involved in the process.
Naweed joined the STANLIB Multi-Manager Research and Development Team at as a Quantitative Analyst. Prior to STANLIB, Naweed was a Portfolio Risk Analyst at Eminence Partners, a Johannesburg-based long/short equity hedge fund operated under the Peregrine fund platform.
Stanlib MM High Equity FoF Comment - Sep 18
The global trade war between the United States and China continued to dominate headlines during the quarter. The US intensified tariffs on Chinese goods and China retaliated. Despite the tussle between the two economic giants, the US economy remains strong. This is visible in the rally of the US dollar and their robust labour market. These positive developments gave the Fed room to hike interest rates in September from 2.0% to 2.3%.
Unfortunately, the higher developed market (DM) interest rates and stronger US dollar do not bode well for emerging market (EM) assets such as South Africa, and most EM countries saw their currencies weaken. SA fared worse than its EM peers as signs of poor economic growth surfaced during the quarter, resulting in SA moving into a technical recession.
SA equities lost 1.6% over the quarter, driven largely by poor returns from industrials. SA property lost 1.0%, while SA bonds returned 0.8%, driven largely by short-dated instruments, which gained 1.9%. SA cash was up 1.7%. The weaker rand provided a boost to offshore returns leading to a 4.3% total return from global equities.
The Fund delivered a reasonable return of 1.8% net of fees, for the quarter. This was pleasing considering the performance of risky assets in a largely declining investment environment. Over the longer term, the Fund remains ahead of its peer group, marginally outperforming over a three-year period. The Fund is constructed using underlying STANLIB Multi-Manager building blocks to gain exposure to various asset classes. Performance of the local bond building block was in line with both peers and the index benchmark for the quarter, while maintaining its outperformance of peers on a 12-month basis. The local cash building block also performed well, outperforming its benchmark by 0.3% due to its portfolio construction that includes income-oriented managers. The absolute income building block was marginally behind peers for the quarter, but remains comfortably ahead for the 12-month and 36-month periods. The property building block outperformed its benchmark for the quarter and remains a solid long-term performer despite the recent turmoil in the property sector. The local equity building block was ahead of its benchmark for the quarter, showing solid recovery following the Steinhoff debacle.
Long-term performance of the Fund over the 5-year period ending September remains pleasing and ahead of its peer group benchmark.
Portfolio positioning and outlook
Despite trimming some of the global equity exposure, our outlook remains positive and we maintain an overweight exposure to global equities. While a lot of uncertainty remains locally, we see the potential for positive changes that may come through in the coming few months. We believe that a lot of the uncertainty has already priced in, thus providing a good entry point for investors to benefit from positive changes. On this basis, we are slightly overweight local equities and property while maintaining a relatively sizeable overweight to income assets for cushion in the short term.
In addition to further rate hikes in the US, we expect trade wars to continue dominating headlines and this could weigh heavily on EM sentiment. The global and SA environment remains highly uncertain and we continue to emphasize the importance of having a long-term focus when making
The Fund adopts the specialist approach whereby exposure to each asset class is gained via a multi-managed building block. It is well diversified across domestic and foreign asset classes. Its main objective is to provide long-term growth of capital and modest income, with a low probability of capital loss over the long term. The Fund aims to achieve CPI+6% p.a over 6-year rolling periods.
The Fund is exposed to multiple best-of-breed managers, investment styles, asset classes and strategies providing investors with additional diversification benefits. The tactical exposure to each asset class is actively managed - expected total equity content of between 65% and 75%. The Fund is regulation 28 compliant.