NAV on 2019/01/16
|NAV on 2019/01/15
|52 week high on 2018/01/17
|52 week low on 2019/01/02
|Total Expense Ratio on 2018/09/30
|Total Expense Ratio (performance fee) on 2018/09/30
STANLIB Collective Investments (RF) Limited
South African--Real Estate--General
FTSE/JSE Capped Property Index
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 Capped Prprty Index Trckr Comment - Sep 18
Since inception the fund has performed well against its peer group and in-line with its tracking benchmark. The September FTSE/JSE rebalance saw the replacement of Greenbay Properties Ltd by Emira Property Fund Ltd as well as shares in issues and free float changes. Though property was the best performing asset class in South Africa over the last 15 years, we remain positive on future returns as currency and income diversification has increased in the sector over the recent past. This year thus far, the sector was unsettled by events surrounding Resilient and it’s three sister companies, namely, Fortress REIT Ltd; Nepi Rockcastle and Greenbay Properties, however, we expect that in the long term the fund will provide healthy returns that surpass both government bonds and cash through the cycle.
Over the third quarter US equities led, driven by the strong growth environment and confidence in the US economy. In contrast to the attractive returns of US equities, fixed income returns have been uninspiring. Strong US data has kept the Fed on track to hike rates. Global growth has however not been as synchronised as last year. UK markets have been sensitive to suspicions of a no-deal on Brexit, and there has been a slowdown in manufacturing in the Eurozone, led by fewer exports into China. The rebound in the US dollar has made emerging markets especially vulnerable to negative sentiment and fear. Dollar denominated assets took the lead over local assets as the Rand lost 3.03% to the Dollar over the third quarter. In Rand terms foreign equity delivered the highest returns (MSCI World +8.17%) and outperformed foreign bonds (Barclays Global Treasury Bond Index +1.26%). In South Africa the second quarter saw a decline in consumer confidence and an increase in consumer spending. Cash (STEFI +1.74%), bonds (ALBI +0.81%) and inflation-linked bonds (ILBI +0.44%) outperformed both property (PCAP -2.22%) and equities (SWIX -3.34%). Seasonally adjusted GDP shrunk for a second consecutive period, driven by falling output from agriculture, transport and trade.
Against the backdrop of strong US economic growth, there is potential for the trade conflict directed from the US to deepen, resulting in higher prices and a significant drag on business and consumer growth, and ultimately global growth. While growth appears healthy currently, we expect risk aversion to rise as the ability of developed markets and vulnerable emerging economies to weather the impact of trade wars remains uncertain. Additionally, emerging economies with sizeable dollar debts and sizable fiscal deficits may struggle. We believe investors should focus on liquid markets segments with risk dialled down versus market benchmarks. 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.
The investment objective of the STANLIB CAPPED PROPERTY INDEX TRACKER FUND is to fully replicate the capital and income return of the FTSE/ JSE Capped Property Index. The FTSE/ JSE Capped Property Index caps any individual company's weighting in the index at 15% to increase the diversification of the fund relative to a market capitalisation weighted index.
In order to achieve this objective, the STANLIB CAPPED PROPERTY INDEX TRACKER FUND will invest in 20 equity securities listed and traded on the Johannesburg Stock Exchange and forming part of the FTSE/ JSE Capped Property Index.The manager will, at all times, endeavour to track the performance of the index by replicating its constituents, in their correct weightings as closely as possible. In the ordinary course of business the manager anticipates a tracking error of approximately 25 basis points (0.25%).The manager may from time to time invest in participatory interests or any other form of participation in portfolios of collective investment schemes or other similar collective investment schemes as the Act may allow from time to time, and which are consistent with the portfolio's investment policy.
The STANLIB CAPPED PROPERTY INDEX TRACKER FUND may from time to time invest in both listed and unlisted financial instruments, in accordance with the provisions of the Act, in order to achieve the portfolio's investment objective.
For the purpose of the STANLIB CAPPEDPROPERTY INDEX TRACKER FUND, the manager shall reserve the right to close the portfolio to new investors on a date determined by the manager. This will be done in order to be able to manage the fund in accordance with its mandate. The manager may, once a portfolio has been closed, open that portfolio again to new investors on a date determined by the manager.The Trustee shall ensure that the investment policy set out in this Supplemental Deed is carried out.