NAV on 2019/07/22
|NAV on 2019/07/19
|52 week high on 2018/08/29
|52 week low on 2018/12/10
|Total Expense Ratio on 2019/03/31
|Total Expense Ratio (performance fee) on 2019/03/31
STANLIB Collective Investments (RF) Limited
South African--Equity--Large Cap
FTSE/JSE Top 40 Index
STANLIB Top 40 ETF - Mar 19
The fund performed in line with the index for the March quarter. In the last quarterly review of the index, Life Health Group Holdings and Reinet Investments were deleted and replaced with Anglo American Platinum and Gold Fields. The fund was repositioned for this change. Naspers remained the largest holding in the fund. The fund benefited from its exposure to Anglo American Platinum, British American Tobacco and the BHP Group, which were the three top performers, with Anglo American Platinum returning 38.3%. However, the fund’s exposure to Aspen Pharmacare, Mr Price Group and Sappi detracted from performance in the quarter, as these were the three worst performers in the fund. Aspen returned -31% over the quarter.
In the first quarter of 2019 equity markets shrugged off any negative sentiment arising from the second half of 2018. The majority of equity markets across the globe recorded strong positive returns, with the MSCI World recording 13.5%, MSCI Emerging Markets recording 11.1% and the South African equity market as represented by the FTSE/JSE All Share Index recording 8%. 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 provided some relief for financial conditions but the era of easy money has shifted to a gradual tightening of monetary policy. Locally, Eskom and corruption in other SOE’s remain in the headlines as domestic asset classes such as bonds (ALBI), property (PCAP) and cash (SteFi) recorded 3.8% ,1.73% and 1.9% growth respectively.
Against the backdrop of slowing global economic growth, there is potential for trade uncertainty to continue, resulting in higher prices and 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. 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 widely anticipated national election provides some direction on the future of SA’s economic policy. We believe investors should focus on liquid market 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 policy of the portfolio shall be to replicate the FTSE/JSE Top 40 Index as closely as possible by, apart from holding assets in a liquid form -
Buying only securities included in the Index, in the weightings in which they have been Included in the Index; and
Selling only securities which are excluded from the Index from time to time as a result of corporate actions or quarterly Index reviews, so as to ensure that at all times the portfolio holds securities included in the Index in the same weightings as they are included in the Index; or
Trading in derivative instruments, as permissible in terms of the Act, to replicate the Index.
The sole purpose of buying and selling securities in the portfolio is to ensure Index tracking and not a profit motive. The manager will therefore not buy or sell securities based on economic, financial, investment judgement or any market analysis. The objective of the portfolio is solely full Index replication. The composition of the portfolio will be adjusted quarterly or at any other time that the Index provider, FTSE/JSE affect changes to the index.
The portfolio shall hold securities purely for the economic rights and benefits attaching thereto and, accordingly, if there is a takeover bid or other corporate actions occurs in relation to any entity the securities of which are included in the portfolio, the portfolio shall not surrender any securities held by the portfolio which may be subject to such takeover bid or other corporate action, unless such surrender is mandatory in terms of any applicable law or under the rules of a regulatory authority or body having jurisdiction over the portfolio and/or the applicable securities. However if any takeover or corporate action results in an entity previously included in the Index no longer qualifying for inclusion in the Index, any securities in such entity held by the portfolio, shall be disposed of by the portfolio and the proceeds derived from such disposal shall be applied in effecting the appropriate adjustments to the portfolio so as to ensure same tracks the Index.
The portfolio's ability to replicate the price and income performance will be affected by the cost and expenses incurred by the portfolio.