NAV on 2019/11/20
|NAV on 2019/11/19
|52 week high on 2019/10/31
|52 week low on 2018/12/27
|Total Expense Ratio on 2019/09/30
|Total Expense Ratio (performance fee) on 2019/09/30
STANLIB Collective Investments (RF) Limited
95% MSCI AC World index (net) and 5% STeFI Call Deposit Rate Index
STANLIB Asset Management
-The fund is managed by Richard Middleton.
-It is managed similarly to the Stanlib Growth Fund which Richard has been the portfolio manager of since the last quarter of 2002.
-The fund has a growth style and philosophy. He invests in companies that are growing their earnings faster than the market over the following 2 years. Valuation plays a key, but companies first have to demonstrate a strong earnings profile before being considered.
-Earnings, valuation and company management are key inputs into the process.
-He is not benchmark aware and weightings in companies are fairly evenly spread across the portfolio.
-The manager has a very active style and trades to reduce opportunity costs in the fund.
Threadneedle Investments - London
STANLIB Global Equity Feeder Fund - Jun 19
The STANLIB Global Equity Feeder Fund returned +4.4% for the quarter compared with +1.4% from the composite benchmark. Security selection drove the relative gains, led by our picks within financials and industrials. Asset allocation was neutral. Gains from the underweight in energy were offset by detraction from the underweight in materials. Sports equipment manufacturer Adidas led performance; its shares rose to a record high after quarterly earnings exceeded estimates. This was supported by strong gross margin expansion. With a rapidly growing, high margin online business, we believe that Adidas remains attractively valued. Gaming company Nintendo also performed strongly, following reports that Tencent had been granted initial approval to distribute Nintendo's Switch console in China, as well as a test version of its New Super Mario Bros. title. Additionally, Nintendo’s results showed that it had maintained its game sales per console ratio. We feel that drivers for the company remain in the pipeline as it broadens its intellectual property monetisation and grows international sales. Google’s parent company Alphabet underperformed after its revenue fell short of expectations and reports of potential competition probes in the digital space surfaced. We feel that the market is underestimating the scale and durability of Alphabet's growth, which derives from its market position and broad network.
Global equities had a positive second quarter, with the MSCI AC World index rising 3.4% in local currency terms. Dovish central bank signals, well-received election outcomes and hopes that the US and China could resolve their ongoing trade dispute provided support. This helped to offset May’s sell-off, in which concerns around tariffs, political relations and economic growth prompted caution. Europe ex UK equities performed well as mainstream parties held their ground in the EU elections. Later on, easing debt pressure on Italy from the European Commission was also well-received. US equities outperformed as the Federal Reserve’s dovish pivot saw investors overlook mixed economic data. Emerging market and Japanese stocks were among the hardest hit by the escalation of trade concerns in May, while Brexit worries weighed on UK equities. Economically sensitive stocks outpaced their defensive peers. The technology sector performed well, buoyed by software names, while optimism around trade propelled industrials higher. Utilities and real estate lagged amid appetite for higher growth, while declining oil prices weighed on the energy sector.
Global equity markets continue to provide evidence of the value to be found in secular winners which can sustainably outgrow their peers. With scope for these names to positively re-rate and expectations that volatility will remain somewhat elevated, we believe this backdrop is ideal for investors with the ability to identify undervalued, long-term opportunities. While factors such as technological regulation and trade may remain in focus in the short-term, we feel that structural factors driving a world which is ‘lower for longer’ will shape markets further into the future. We therefore retain our focus on companies with durable competitive advantages, as we believe these names 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.