NAV on 2019/07/23
|NAV on 2019/07/22
|52 week high on 2018/09/05
|52 week low on 2018/12/27
|Total Expense Ratio on 2019/06/30
|Total Expense Ratio (performance fee) on 2019/06/30
STANLIB Collective Investments (RF) Limited
95% MSCI AC World index (net) and 5% STeFI Call Deposit Rate Index
After completing his articles at Alex Aitken and Carter he joined UAL Merchant Bank in 1979, initially assisting as a portfolio manager and later working as an investment analyst. After completion of a full time MBA he relocated to the USA where he spent nine years as a stockbroker/financial consultant, mostly with Shearson Lehman Bros. He returned to South Africa in 1992 and joined Old Mutual Invesments with involvement in portfolio management and client report backs. He joined SCMB Asset Management division in 1995, after a stint in portfolio management at RMB Asset Management. Paul Hansen is responsible for managing the onshore portion and Fidelity Investment Managers the offshore portion.
Threadneedle Investments - London
STANLIB Global Equity Feeder Fund - Mar 19
The STANLIB Global Equity Feeder Fund returned 15.6% for the quarter compared with 11.9% from the composite benchmark. Equity relative gains were driven by security selection, with particularly strong picks in the financials and materials sectors. Asset allocation detracted slightly due to our real estate underweight, though our zero weight in utilities added value. At the stock level, semiconductor equipment manufacturer Lam Research and e-retailer Alibaba were our top performers. Despite recent macroeconomic uncertainty, Alibaba’s strong commerce retail sales demonstrated the resilience of its platform power, with earnings topping estimates. A more constructive outlook for trade provided further support. Lam Research rallied during the quarter as markets priced in a pick-up in wafer fab equipment (WFE) spending later in the year, and the company committed to a stock repurchase plan. Multi-line managed care enterprise Centene lagged as negative news around the Affordable Care Act persisted. Centene acquired WellCare in March, adding scale in Medicaid and bolstering Medicare capabilities. Centene retains its edge in its member risk pool and low-cost networks, which drive pricing advantages. Centene’s detraction had little overall impact in a strong period for performance.
Global equities rose strongly during the first quarter, with the MSCI AC World index rising 12.4% in local terms. While concerns around the pace of global growth persisted, investors welcomed the dovish shift of the US Federal Reserve, Chinese economic stimulus measures and apparent progress in US-China trade talks. North American equities drove appreciation in the period, supported by a wave of positive economic data. Trade developments benefited Japanese and European stocks, while China outperformed as bank lending reached record highs with stimulus measures taking hold. Despite the continued decline of bond yields, higher growth stocks outpaced their defensive peers. The technology sector led returns, aided by the resurgent semiconductor space, whilst energy rallied on oil supply restrictions. By contrast, utilities and healthcare lagged, as did rate-sensitive financials, as interest-rate-hike expectations moderated.
Global markets continue to provide evidence of the value to be found in sustainably growing, secular opportunities. With scope for further re-rating and expectations that volatility will remain elevated, we believe this backdrop is ideal for investors capable of identifying the market’s long-term winners. While factors such as technological regulation and trade remain in focus, we believe that structural factors promoting a world which is ‘lower for longer’ remain in place. This should ensure that companies which can sustain above-average growth remain attractive. We therefore retain our focus on companies with durable competitive advantages, as we believe these are best-placed to sustain high returns on capital and earnings growth through the market cycle.
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 STANLIB Global Equity Feeder Fund is a feeder fund seeking to achieve an investment
medium for investors, which shall have as its main objective to maximise long term total return.
Apart from assets in liquid form, it will consist solely of participatory interests in a single portfolio of
a collective investment scheme operated in territories with a regulatory environment which is to the
satisfaction of the manager and trustee of a sufficient standard to provide investor protection at
least equivalent to that in South Africa, namely the STANLIB High Alpha Global Equity Fund.