NAV on 2019/03/19
|NAV on 2019/03/18
|52 week high on 2018/03/29
|52 week low on 2018/11/22
|Total Expense Ratio on 2018/12/31
|Total Expense Ratio (performance fee) on 2018/12/31
STANLIB Collective Investments (RF) Limited
South African--Interest Bearing--Variable Term
JSE ASSA IGOV sub-index of the Composite Inflation Linked 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 Infltn Lnkd Bnd Indx Trckr cmmnt - Sep 18
The review of the JSE CILI Government Bond Index (IGOV) in the last quarter saw no additions to the index or deletions from the index. The fund performed in line with the Index. The yield of the fund increased from 2.8% to 3.0% over the quarter. The modified duration of the fund increased from 10.7 to 10.8 over the quarter.
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 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.