NAV on 2020/02/24
|NAV on 2020/02/21
|52 week high on 2019/05/03
|52 week low on 2020/02/24
|Total Expense Ratio on 2019/12/31
|Total Expense Ratio (performance fee) on 2019/12/31
STANLIB Collective Investments (RF) Limited
STANLIB Sector Neutral Value 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 SN Value Index Tracker comment - Sep 19
In the last quarterly review of the index, Reunert Ltd and Foschini Group Ltd, amongst others, were added and Liberty Holdings Ltd and AVI Ltd were deleted. The fund has been repositioned for this change. The fund performed in line with its benchmark in the third quarter of 2019. It benefitted from its allocation to Clover Industries Ltd and Imperial Logistics Ltd while its allocations to Blue Label Telecoms Ltd and Intu Properties Plc detracted from performance.
Post a strong run of equity markets across the globe in the first half of 2019, global markets have since slowed down due to increased tension in the trade wars and continued slowdown in global economic data. Europe and USA continued with monetary easing to offset economic slowdown. Returns have hence been flat for the quarter apart from the emerging markets, with the MSCI World at 1.1% and MSCI EM at -2.1% for the quarter. Locally, GDP was 3.1% Q/Q in Q2 2019 reversing the Q1 2019 contraction, SARB cut rates by 25bps in line with census in their July meeting but left it unchanged in September. The national treasury published a white paper on structural reform including SOE reform, marking one of the first signs of structural reforms in the new Presidency. Locally, domestic asset classes such as equities (SWIX ALSI), bonds (ALBI), and cash (STeFi) recorded mixed returns of -2.14%, 1.5% and 1.8% respectively.
Against the backdrop of slowing global economic growth, a pause in trade war, could provide 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. 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 portfolio invests in the constituents of the Index. It aims to replicate the performance of the Index by holding the constituents in the same weightings that are held in the index. This customised Index includes the top 33% ranked stocks by the value score from each sector in the S&P South Africa Composite Index. These are then weighted according to a combination of the value score and market capitalisation. The portfolio is rebalanced quarterly. The portfolio may also hold a small portion in cash instruments and listed derivatives to effect efficient portfolio management.