NAV on 2019/09/16
|NAV on 2019/09/13
|52 week high on 2018/11/07
|52 week low on 2019/01/02
|Total Expense Ratio on 2017/03/31
|Total Expense Ratio (performance fee) on 2017/03/31
Standard Bank Namibia Unit Trust ManagementCo Ltd.
50% SAPY, 50% STeFI
Keillen began his property fund management career at Standard Bank Properties in 2004 managing its leveraged listed property product. He became a listed property analyst at Stanlib in 2005 and now also co-manages the Stanlib Aggressive Income Fund.
Std Bank Namibia Flex Property Income Fund - Sep18
The fund outperformed the benchmark by 2.11% with gross total return of 2.56% versus the benchmark total return of 0.45% in the third quarter of 2018. We continue to maintain an overweight position in listed property. Top 5 contributors to performance were underweight position in Growthpoint and Redefine and overweight positions in EPP, Grit and Equities. Top 5 detractors to performance were over-weight position in Oryx, Greenbay New Frontier and underweight positions in Emira and Vukile (SA listed).
On a total return basis in 3Q18, listed property (-1.0%) underperformed local bonds (+0.8%) and cash (+1.7%), while outperforming local equities (-2.0%). A 15bps weakening in the SA 10-year bond yield in 3Q18 marginally impacted the sector over the quarter, but a weak outlook from Growthpoint, a sector heavyweight stock, saw it fall -9% in the quarter. Currencies saw marginal shifts as well over the quarter, with the ZAR weakening 3% versus the US$ and 2% versus the EUR over the quarter.
SA Property Index (SAPY) stocks with double-digit positive performance in 3Q18 were limited to three counters, namely EPP (+18%), Fortress-A (+15%) and Equites (+14%). These stocks reflect a preference by investors for certainty in earnings and offshore exposure, with many of the other better performing stocks in 3Q18 also reflected an offshore earnings dynamic. Stocks with a significant SA portfolio element struggled to perform well in a deteriorating SA outlook, with Growthpoint (-9%), Hyprop (-6%) and SA Corporate (-6%) reflecting this dynamic. The quarter was also characterised by weaker outlook statements from many companies with material SA exposure, such as Rebosis (-13%), Attacq (-9%), Accelerate (-11%) and Arrowhead (-6%).
We find the local economic environment remains challenging and we do not expect a material improvement in operating conditions in 2019. Risks could potentially still be to the downside, if GDP growth does not show a market improvement in the medium-term. Earnings from companies with offshore exposure and reasonable GDP growth fundamentals are likely to outstrip growth from SA companies with property portfolios that are largely SA exposed
The Standard Bank Namibia Flexible Property Income Fund is a specialist fund which seeks to provide capital growth and an income source for investors through investment in Namibian and South African listed property shares, debentures, debenture stocks and debenture bonds. The Fund is required to hold a minimum of 30% and maximum of 60% in fixed interest securities. Furthermore the fund must have a minimum of 40% and maximum of 70% exposure to shares in listed property companies at the discretion of the portfolio manager. The portfolio aims to produce a reasonably high, sustainable and growing level of income for investors with the possibility of capital growth over the medium and longer term.
The Standard Bank Namibia Flexible Property Income Fund is suitable for investors seeking a sustainable high yield with good prospects for income and capital growth over the medium and longer-term. This fund effectively ensures that your capital and income keep pace with inflation. Furthermore, this fund is suitable for retired or retiring investors requiring a quarterly income stream without the need to access their capital at short notice. Investors of all ages and risk profiles can utilize this fund in varying proportions to diversify their portfolios.