NAV on 2019/09/12
|NAV on 2019/09/11
|52 week high on 2019/05/07
|52 week low on 2019/04/01
|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 IGOV sub-index of the Composite Inflation Linked 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 Infltn Lnkd Bnd Indx Trckr cmmnt - Jun 19
The review of the JSE CILI Government Bond Index (IGOV) in the last quarter saw no additions or deletions from the index. The fund performed in line with the Index. The R197 Government bond remained the largest bond in the fund and its yield decreased from 3.16% as at end of March to 2.81%, as at end of June. The modified duration of the bond moved from 4.09 in March to 3.96 in June. The yield of the fund decreased from 3.27% to 3.12% over the quarter. The modified duration of the fund decreased from 10.11 to 9.99 over the quarter.
In the second quarter of 2019, equity markets continued to shrug off any negative sentiment arising from the second half of 2018. The majority of equity markets across the globe recorded strong positive returns in the first half of 2019, with the MSCI World Index recording 15.6%, MSCI Emerging Markets recording 9.2% and the South African equity market as represented by FTSE/JSE Shareholder Weighted Index recording 9%. 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 and the pause in trade wars provided some relief for financial conditions but the era of easy money has shifted towards gradual tightening of monetary policy. Locally, Cyril Ramaphosa led the ANC to a win in the national elections promising tighter reforms and improved governance at struggling state owned entities. But, weak first quarter GDP dominated post-election headlines. Locally, domestic asset classes such as bonds (ALBI), property (PCAP) and cash (STeFi) recorded gains of 3.7%, 4.5% and 1.8% respectively.
Against the backdrop of slowing global economic growth, pause in trade war and a less hawkish Fed, there is potential for some relief to the financial markets. But if trade uncertainty continues posing 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. Additionally, 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 government provides evidence that SA’s economic policy and reforms are heading in the right direction for future growth. We believe investors should focus on liquid markets 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 investment objective of the STANLIB INFLATION LINKED BOND INDEX TRACKER FUND is to fully replicate both the interest-income and capital growth return of the iGov index ('the Index'), a sub-index of the Composite Inflation Linked Index ('CILI') calculated by the Johannesburg Stock Exchange in conjunction with the Actuarial Society of South Africa .In order to achieve this objective, investments to be acquired for the STANLIB INFLATION LINKED BOND INDEX TRACKER FUND will consist of a spread of non-equity securities issued by the South African Government to the maximum permitted by the Act, and any other securities, which may be included in a portfolio in terms of the Act and relevant legislation, which are consistent with the portfolio's investment policy, but which will be limited to bonds.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 INFLATION LINKED BOND 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 INFLATION LINKED BOND 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.