NAV on 2019/09/16
|NAV on 2019/09/13
|52 week high on 2019/06/28
|52 week low on 2018/10/25
|Total Expense Ratio on 2019/06/30
|Total Expense Ratio (performance fee) on 2019/06/30
STANLIB Collective Investments (RF) Limited
South African--Interest Bearing--Variable Term
JSE ASSA All - Bond Non-TR Clean Price Index
Possessing a very strong academic record and a passion for financial markets, Ann joined the Beta Quants team in 2012. As a quantitative analyst, she specialises in asset allocation, portfolio construction, investment risk management and multi-factor risk modelling. She is currently a Portfolio manager at STANLIB Index Investments
responsible for the management of R 22 billion across quantitative enhanced index funds, smart beta funds, completion strategies and index tracking fund across a number of asset classes. Ann studied at Wits University, where she took a BSc in Mathematical Sciences with double majors in Pure Mathematics and Economic Sciences. She then went on to do her BSc honours degree studying Advanced Mathematics of Finance. She is currently studying towards a MSc in Statistical Science from UCT where her thesis covers 'Tactical Asset Allocation with Flexible Investor Views'.
STANLIB ALBI (non-TR) Index Tracker Fund - Mar 19
In the review of the JSE All Bond Index in the last quarter there were no deletions from and no additions to the index. The fund performed in line with the Index. The R186 Government bond remained the largest bond in the fund and its yield increased from 8.88% as at end of December to 8.60% at end of March. The modified duration of the fund moved from 5.45 in December to 5.24 in March. The yield increased from 9.46% to 9.23% over the quarter. The modified duration of the fund decreased from 7.19 to 7.28 over the quarter.
In the first quarter of 2019 equity markets shrugged off any negative sentiment arising from the second half of 2018. The majority of equity markets across the globe recorded strong positive returns, with the MSCI World Index recording 13.5%, MSCI Emerging Markets recording 11.1% and the South African equity market, as represented by FTSE/JSE All Share Index, recording 8%. Global growth continues at a slower pace with many of the major economies progressing to later stages of the business cycle. The less hawkish Fed provided some relief for financial conditions but the era of easy money has shifted towards gradual tightening of monetary policy. Locally, Eskom and corruption in other SOE’s remain in the headlines as domestic asset classes such as bonds (ALBI), property (PCAP) and cash (SteFi) recorded gains of 3.8%,1.73% and 1.9% respectively.
Against the backdrop of slowing global economic growth, there is potential for trade uncertainty to continue, resulting in higher prices and a significant drag on business and consumer confidence. We expect risk aversion will rise as the ability of developed markets and vulnerable emerging economies to weather the impact of trade wars remains uncertain. Emerging economies with sizeable dollar debts and fiscal deficits may struggle. After more than two years of steadily rising interest rates, 2019 could mark the peak for US treasury yields for the current business cycle, however the road ahead is likely to remain bumpy. Locally, uncertainty will remain high until the widely anticipated national election provides some direction on the future of SA’s economic policy. We believe investors should focus on liquid market segments with risk dialled down compared with 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 portfolio will invest in all bonds that are represented in the JSE ASSA All - Bond Non-TR Clean Price Index. The portfolio may hold cash investments as well as bonds. The portfolio will hold the constituent bonds of the JSE ASSA All -Bond Non-TR Clean Price Index in the correct weightings, as far as possible. The portfolio may differ from the index from time to time due to liquidity constraints of the underlying bonds.The portfolio may also hold listed derivatives from time to time, to effect efficient portfolio management.The portfolio will not invest in off-shore investments.For the purpose of this portfolio, 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.