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0.02  /  0.02%

86.39

NAV on 2019/11/20
NAV on 2019/11/19 86.3726
52 week high on 2019/07/31 86.657
52 week low on 2019/02/01 86.0056
Total Expense Ratio on 2019/09/30 0.86
Total Expense Ratio (performance fee) on 2019/09/30 0
NAV Incl Dividends
1 month change -0.03% 0.59%
3 month change -0.03% 1.83%
6 month change 0.04% 3.87%
1 year change 0.04% 7.82%
5 year change -0.21% 7.9%
10 year change -0.25% 7.07%
Price data is updated once a day.
  • Sectoral allocations
Fixed Interest 763.65 6.28%
Gilts 7323.82 60.19%
Liquid Assets 241.90 1.99%
Money Market 3839.10 31.55%
  • Top five holdings
U-SBKIMM 763.65 6.28%
MM-10MONTH 611.00 5.02%
MM-04MONTH 508.28 4.18%
MM-03MONTH 451.37 3.71%
MM-01MONTH 413.66 3.4%
  • Performance against peers
  • Fund data  
Management company:
STANLIB Collective Investments (RF) Limited
Formation date:
1978/11/28
ISIN code:
ZAE000021572
Short name:
U-SLEINCR
Risk:
Unknown
Sector:
South African--Interest Bearing--Short Term
Benchmark:
STeFI Composite index
Contact details

Email
contact@stanlib.com

Website
http://www.stanlib.com

Telephone
011-448-6000

  • Fund management  
Mary Hartigan
Mary trained as a money market dealer at CM Interbank in 1989 before moving to Brait, Decillion and Grindrod Bank. She joined STANLIB’s institutional sales desk in 2008 before moving over to the dealing room as a
money market dealer and assistant portfolio manager.


  • Fund manager's comment

STANLIB Extra Income Fund - Sep 19

2019/10/29 00:00:00
Fund review
For the quarter under review the fund increased in size from R11.1 billion to R12 billion. The modified duration of the fund remained at 0.11 years at the end of September. The fund continued to deliver cash-plus returns over the quarter.
Market overview
Ongoing global trade tensions continued to negatively affect confidence in the third quarter of 2019, putting further strain on emerging market assets. The rand was on the back foot, losing about 6% against the dollar, while the 10-year benchmark government bond was almost 20 basis points weaker at the end of the quarter. The global backdrop still remains supportive of emerging market bonds due to an increasing number of negative-yielding bonds and lower-trending inflation globally. The US Federal Reserve Bank cut interest rates for the first time since the financial crisis, indicating that these are mid-cycle cuts to provide “insurance” against weaker growth rather than a longer-term policy change. The Fed’s cuts have encouraged emerging market central banks, including the SARB, which are facing declining inflation and slowing growth, to follow suit. This provides further support for emerging market yields to perform well despite the volatility driven by the US/China trade war. South African headline inflation moderated to a low of 4% y/y in the quarter and is expected to average 4.2% for the year. The government issued a Eurobond that was over-subscribed, raising $5 billion instead of the $4 billion that was planned initially. This will go a long way towards improving the government’s funding requirements ahead of the MTBPS late in October. There has been some compression in the yield curve as the government is not considering any more switch auctions for this calendar year, easing pressure in the ultra-long end of the curve with issuances. At a conference held in SA in September, Moody’s stated that SA’s fiscal deterioration over the past decade has been in line with the median Baa3 countries. This improves SA’s prospects of avoiding a downgrade, with the worst-case scenario being an outlook change from stable to negative. Moody’s sees the structure of SA’s debt as having lower refinancing risk than its peers. The South African CDS spread is trading wider than comparable peers that are already in junk territory, meaning that the markets have already priced in a downgrade to junk status. A reprieve from Moody’s would give SA an opportunity to produce a credible economic restructuring plan to deal with persistent fiscal slippage and stimulate economic growth prospects. If there is no downgrade, this will be positive for the bond market.
Looking ahead
With survey data in the US and eurozone continuing to point to a slowdown in growth, coupled with dim growth prospects locally and inflation that is firmly inside the target range, local bonds are still expected to offer attractive returns given their compelling real yields in comparison to their peers. The wider currency and credit risk premiums built into bond prices are expected to gradually unwind after the October MTBPS and Moody’s rating announcements. Globally, the ECB will resume its open-ended quantitative easing programme in the fourth quarter and the Fed is expected to continue cutting interest rates to manage the slowdown in the US economy. This leaves room for the SARB to cut rates in November.
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.
  • Fund focus and objective  
The STANLIB EXTRA INCOME FUND will invest its assets in South African markets at all times and will be permitted to invest in a flexible mix of non-equity securities, including but not limited to money market instruments, bonds, fixed deposits, listed debentures and other high yielding securities, as well as any other securities which may be approved by the Registrar from time to time and which are consistent with the investment policy of the portfolio, to the maximum levels permitted by the Collective Investment Schemes Control Act, No. 45 of 2002, and the Regulations thereto, as amended from time to time. In respect of the flexible nature of this portfolio, the portfolio may thus be fully invested in any of the above-mentioned asset classes at any particular time, while complying with the maximum weighted average modified duration of 2 years of the portfolio.
The portfolio will be managed in compliance with the Prudential Investment Guidelines that are applicable to retirement funds from time to time.Nothing contained in this supplemental deed shall preclude the manager from varying the ratios of securities to best position the portfolio to achieve its objective in a changing economic environment or market conditions or to meet the requirements, if applicable, of any exchange recognised in terms of the Act and from retaining cash or placing cash on deposit in terms of the deed and any supplemental deeds.The STANLIB EXTRA INCOME FUND may from time to time invest in financial instruments, in accordance with the provisions of the Collective Investment Schemes Control Act, No. 45 of 2002, and the Regulations thereto, as amended from time to time, in order to achieve the portfolio's investment objective.The STANLIB EXTRA INCOME FUND will be permitted to invest its assets in foreign investment markets.
For the purpose of this portfolio, the manager shall reserve the right to close the portfolio to new investors on a date determined by the manager. This will be done in order to be able to manage the portfolio in accordance with its mandate. The manager may, once a portfolio has been closed, open that portfolio again to new investors on a date determined by the manager.The trustee shall ensure that the investment policy set out in this supplemental deed is carried out.'
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