NAV on 2019/01/17
|NAV on 2019/01/16
|52 week high on 2018/01/25
|52 week low on 2018/10/30
|Total Expense Ratio on 2018/09/30
|Total Expense Ratio (performance fee) on 2018/09/30
STANLIB Collective Investments (RF) Limited
South African--Equity--Large Cap
FTSE/JSE Africa SWIX 40 Index
STANLIB Swix 40 ETF - Sep 18
The fund performed in line with the index in the quarter. The last quarterly review of the index saw no additions and deletions being made to fund holdings. The fund was repositioned for shares in issue and free float changes. Naspers remained the largest holding in the fund. Capitec Bank Holdings Ltd was the best performing stock in the fund for the third quarter returning 21.3% followed by Discovery Ltd with a return of 17.3%.
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 policy of the portfolio shall be to replicate the FTSE/JSE Swix 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.