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0.08  /  0.07%

110.06

NAV on 2019/07/18
NAV on 2019/07/17 109.9816
52 week high on 2019/03/29 110.784
52 week low on 2019/01/02 107.3623
Total Expense Ratio on 2019/03/31 0.86
Total Expense Ratio (performance fee) on 2019/03/31 0
NAV Incl Dividends
1 month change 0.24% 1%
3 month change 0.78% 1.56%
6 month change 1.56% 4.69%
1 year change 0.93% 8.44%
5 year change -0.87% 6.8%
10 year change 0.38% 7.98%
Price data is updated once a day.
  • Sectoral allocations
Fixed Interest 142.19 13.25%
Gilts 831.00 77.43%
Liquid Assets 1.65 0.15%
Money Market 19.67 1.83%
Real Estate 78.68 7.33%
  • Top five holdings
U-SBKIMM 142.19 13.25%
U-SLPROPI 78.68 7.33%
MM-04MONTH 15.63 1.46%
MM-03MONTH 4.03 0.38%
  • Performance against peers
  • Fund data  
Management company:
STANLIB Collective Investments (RF) Limited
Formation date:
2004/04/29
ISIN code:
ZAE000048658
Short name:
U-SLFLEXI
Risk:
Unknown
Sector:
South African--Multi Asset--Income
Benchmark:
BEASSA All Bond 1 to 3 year split
Contact details

Email
contact@stanlib.com

Website
http://www.stanlib.com

Telephone
011-448-6000

  • Fund management  
Henk Viljoen
Henk started his career in 1984 as a bursary student at the marketing division of Telkom, moving to the treasury division after one year. Henk became an economist at Senbank in 1986, before rejoining the treasury environment in 1989 at Senbank. Henk joined Liberty Asset Management in 1990 and assumed responsibility for STANLIB's cash and fixed-interest teams in 2000. Henk is regarded as one of the best fixed-interest managers in the country due to his consistent performance in respect of STANLIB's Bond and Income Funds.
Victor Mphaphuli
Victor joined SCMB Treasury in 1996 as a trainee dealer in the foreign exchange markets and later moved to Nedcor Investment Bank as a capital markets dealer. In early 2001, he joined Libam's fixed interest team as a capital markets dealer and assistant to Henk Viljoen.


  • Fund manager's comment

STANLIB Flexible Income Fund - Mar 19

2019/05/31 00:00:00
Fund review
The fund size remained flat during the first quarter at R1.1 billion, while the modified duration was largely unchanged at 1.9 years at the end of the quarter. The fund’s positioning in property was brought down from 16% to 7% as the property sector recovered earlier in the quarter. We took a more cautious approach to exposure to property by reducing our overweight position when we saw opportunities, as the sector continues to face headwinds. Market overview
In the first quarter of 2019 there were a number of key risk events, starting with the Budget speech when the Finance Minister presented worsening fiscal projections. The budget showed debt to GDP figures exceeding 60% in the medium term along with R69 billion support needed for financially distressed Eskom over the next three years. The cash injection came at a much-needed time, as Eskom was allocated a lower tariff increase by NERSA than it applied for and the power utility was also reaching a point where it was unable to service its debt. This, with loadshedding, contributed to weaker business confidence. Credit rating agency Moody’s gave SA a rating reprieve by deciding not to issue a sovereign credit review on 29 March, but later issued a credit opinion affirming SA’s credit rating at Baa3 with a stable outlook. The credit opinion mostly highlighted positives, causing markets to rally, with the SA benchmark bond yield reaching a low of 8.42% for the quarter and the rand strengthening to R14.15/$ from a low of R14.60/$. The five-year credit default swap (CDS) spread consolidated to 185bps, down from 227bps at the beginning of Q1 2019, but still higher than the low of 140bps seen in 2018. Despite volatility, the bond market managed to produce a return of 3.76% during Q1 2019.
At its December meeting, the US Fed emphasised slowing global growth and benign inflation, which encouraged it to pause from hiking interest rates and announce an early end to its balance sheet reduction in Q3 2019. The Fed’s changed stance, along with other global central banks remaining accommodative, has rallied high-yield emerging markets. The US 10-year bond yield has since strengthened to 2.37% following a high of 2.75% earlier during the quarter. However this caused the US yield curve to invert, which raised concerns of a possible recession in future. In line with a benign global inflation outlook, inflation data in SA remained subdued, supporting the bond market.
Looking ahead
The market will be closely watching the national elections taking place on 8 May and the outcome may influence direction. The risk of an imminent sovereign downgrade may have subsided but it is not completely ruled out as Moody’s continues to monitor the turnaround in SA growth and fiscal metrics. Moreover, Moody’s rating review of the SA sovereign scheduled for November will consider the structural reforms undertaken at financially troubled state-owned companies such as Eskom. Inflation in SA is expected to remain stable inside the target band of 3-6% and the SARB is likely to keep rates on hold for the year.
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 portfolio seeks to maximise overall return, in the form of both income and capital growth. It will be consistent with the investment of funds in a flexible mix of predominantly non-equity securities.
3.1 The STANLIB Flexible Income Fund shall be a portfolio predominantly investing in non-equity securities.
3.2 The investment objective of the STANLIB Flexible Income Fund is to provide an efficient investment medium whereby investors can participate in a portfolio that will seek to provide the maximum overall return, in the form of both income and capital growth, which will be consistent with the investment of funds in a flexible mix of predominantly non-equity securities. The portfolio will be managed in compliance with the Prudential Investment Guidelines that are applicable to retirement funds from time to time.
3.3 The STANLIB Flexible Income Fund will predominantly invest its assets in South African investment markets at all times and will be permitted to make investments in a flexible mix of non-equity securities, to the maximum permitted by the Act, and any other securities, which may be included in a portfolio in terms of the Act and relevant legislation, which are consistent with the portfolio's investment policy, and which will include but will not be limited to preference shares. The manager may from time to time invest in participatory interests or any other form of participation in portfolios of collective investment schemes or other similar collective investment schemes, that predominantly invest in non-equity securities, as the Act may allow from time to time. Where the aforementioned schemes are operated in territories other than South Africa, participatory interests or any other form of participation in portfolios of these schemes will be included in the portfolio only where the regulatory environment is to the satisfaction of the manager and the trustee and of sufficient standard to provide investor protection at least equal to that in South Africa.
3.4 Nothing contained in this supplemental deed shall preclude the manager from varying the ratios of securities and non-equity 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 thereto.
3.5 The STANLIB Flexible Income Fund may from time to time invest in financial instruments, in accordance with the provisions of the Act, in order to achieve the portfolio's investment objective.
3.6 The STANLIB Flexible Income Fund will further be permitted to invest its assets in foreign investment markets, within the implied limitations of the portfolio's industry association portfolio classification, in a flexible mix of non-equity securities, to the maximum permitted by the Act, and any other securities which are consistent with the portfolio's investment policy, which will include but will not be limited to preference shares, and which may be included in a portfolio in terms of the Act and relevant legislation.
3.7 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.
3.8 The trustee shall ensure that the investment policy set out in this supplemental deed is carried out.
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