NAV on 2019/11/14
|NAV on 2019/11/13
|52 week high on 2019/06/13
|52 week low on 2019/01/04
|Total Expense Ratio on 2019/06/30
|Total Expense Ratio (performance fee) on 2019/06/30
STANLIB Collective Investments (RF) Limited
South African--Multi Asset--Low Equity
Malcolm Holmes has 11 years investment experience and has been a portfolio manager in his own right, which makes him the perfect candidate to oversee the evaluation of the underlying managers and their portfolios. As the head portfolio manager, Malcolm is the key person responsible for product development and design at STANLIB Multi-Manager. He is responsible for ensuring that our products meet their investment objectives and that the underlying managers meet their mandates.
STANLIB Multi-Manager was established in 1999 and is the centre of excellence for multi-managed solutions within STANLIB. The investment team, led by Chief Investment Officer Joao Frasco, consists of an experienced team with a diverse set of investment skills. We have offices in Johannesburg and London, and currently have mandates in excess of R90 billion under stewardship.
STANLIB Multi-Manager Funds are designed to deliver superior investment returns more consistently than through a single asset manager or mandate. Our approach allows investors’ to outsource the fund / manager selection decision, which includes the ongoing due diligence of managers and construction of portfolios, to meet pre-defined objectives over time.
Risk management is a fundamental component of our investment philosophy and process and is therefore approached holistically. It permeates every part of our investment process, requiring participation and accountability from all individuals involved in the process.
Richo transferred to the Multi-Manager Research and Development Team from within STANLIB. He started his career at STANLIB as a Portfolio Compliance Manager before starting and heading up the STANLIB Implementation Team. The team subsequently merged into the STANLIB Risk, Analytics and Implementation Team and his role broadened to include risk management and analytical related responsibilities. Prior to STANLIB, Richo worked within the Collective Investments Schemes Department at the Financial Services Board. He started his career in 2004 at Life Healthcare as an Information Analyst.
STANLIB MM Defensive Balanced comment - Mar 19
Global equity markets recovered strongly from the significant sell-off in the fourth quarter of 2018, gaining 12.6% in rand terms as trade tensions between the US and China eased following months of negotiations. The US Federal Reserve provided further impetus to the recovery with their more dovish tone. European equities bucked the trend, retreating 0.8% for the quarter on the back of a broad economic slowdown in the region. The European Central Bank (ECB) retaliated and pledged more support for the economy, committing to keep rates unchanged this year and pledging additional stimulus when needed. SA equities benefited from the global recovery and the JSE All Share Index returned 8.0% for the quarter. The Capped SWIX gained 3.9%. Resource shares returned an impressive 18.0% while listed property lagged equity. Local bonds rose 3.8%.
The Fund returned 4.5% for the quarter, 0.4% ahead of the average peer fund. The overweight exposure to resources and high global allocation assisted performance relative to peers. Sizeable allocations in Naspers and British American Tobacco (BTI) also contributed and it was pleasing to see BTI recovering after a tough 2018. Coronation had an exceptional quarter, with many of the stock picks that took strain during 2018 recovering. Big contributors include Naspers, BTI, Anglo American, Northam Platinum and Impala Platinum. Coronation’s relatively high allocation to SA equities further assisted performance. They maintain their position in MTN and large property exposure.
STANLIB’s Absolute team sees a future environment that is more conducive to risk-taking - largely acceptable valuations, easier monetary policy, subdued inflation in the US, stabilising PMI’s and an improving earnings outlook. Locally, they continue to manage event risks around the upcoming elections and sovereign credit ratings. Their preference is to take risk on globally-exposed assets and to be more cautious domestically.
Investec did particularly well for the quarter, driven by global equities and local bonds. Investec’s preferred asset class remains high quality global companies generating high and sustainable returns on invested capital. Locally, they believe the best opportunity remains government bonds. In their opinion, these instruments offer far higher risk-adjusted return potential than the retail, banking and property sectors.
Prudential had a satisfactory quarter in their domestic inflation plus mandate, but longer-term performance remains negatively affected by large positions in property and inflation-linked bonds. They prefer resource shares with exposure to global growth and find value in financials such as Standard Bank and Old Mutual.
The Fund’s global allocation performed well in rands, fuelled by global optimism. Please refer to our global equity and bond factsheets for more detailed information.
Portfolio positioning and outlook
SA still faces many headwinds and we are of the opinion that solid growth is not likely if severe load-shedding persists. A sustainable solution to the power crisis is critical. Our managers are cautiously optimistic around valuations for many of the SA centric companies in the Fund, while many of the global shares held provide excellent diversification benefits. There are some concerns around the negative global earnings revisions that we currently monitor, but optimism is expected to continue into the second quarter of 2019. Local bonds and income-type assets are expected to deliver promising real returns and are key ingredients in the Fund’s composition. On balance, we believe the Fund is well positioned to deliver on its long-term objectives.
The Fund is a multi-asset class portfolio that is diversified across asset classes, sectors, various strategies and asset managers - both in South Africa and internationally.
The Fund aims to provide modest long-term growth of capital and income with volatility at levels consistent with low equity (max 40% equity) portfolios.
The objective of the Fund is to outperform the average of the ASISA Multi-Asset Low Equity category, at risk levels consistent with that of the sector.