NAV on 2019/05/24
|NAV on 2019/05/23
|52 week high on 2018/12/31
|52 week low on 2018/10/01
|Total Expense Ratio on 2019/03/31
|Total Expense Ratio (performance fee) on 2019/03/31
STANLIB Collective Investments (RF) Limited
South African--Multi Asset--Income
BEASSA All Bond 1 to 3 year Split index
Malcolm Holmes has 11 years investment experience and has been a portfolio manager in his own right, which makes him the perfect candidate to oversee the evaluation of the underlying managers and their portfolios. As the head portfolio manager, Malcolm is the key person responsible for product development and design at STANLIB Multi-Manager. He is responsible for ensuring that our products meet their investment objectives and that the underlying managers meet their mandates.
STANLIB Multi-Manager was established in 1999 and is the centre of excellence for multi-managed solutions within STANLIB. The investment team, led by Chief Investment Officer Joao Frasco, consists of an experienced team with a diverse set of investment skills. We have offices in Johannesburg and London, and currently have mandates in excess of R90 billion under stewardship.
STANLIB Multi-Manager Funds are designed to deliver superior investment returns more consistently than through a single asset manager or mandate. Our approach allows investors’ to outsource the fund / manager selection decision, which includes the ongoing due diligence of managers and construction of portfolios, to meet pre-defined objectives over time.
Risk management is a fundamental component of our investment philosophy and process and is therefore approached holistically. It permeates every part of our investment process, requiring participation and accountability from all individuals involved in the process.
In addition to investment knowledge, Jennifer brings valuable experience and diversity to the team and it is expected that she will contribute at the highest level. Jennifer joined the team from Standard Bank Group Securities where she was an Equity Analyst covering Media, Electronic and IT stocks. She has over seven years of investment experience and has been highly rated in her area of expertise.
STANLIB MM Absolute Income comment - Jun 17
The first quarter’s rally in global and domestic growth assets subsided in June as economic and political risks resurfaced. In an attempt to hedge against these risk, investors sought solace in fixed income securities. In South Africa (SA), a third rating agency - Moody’s - downgraded SA’s local and foreign currency sovereign debt to one notch above junk status, citing lower growth prospects and a weaker fiscus as part of its concerns. This was a third ratings agency to downgrade SA sovereign bonds in 2017. On the back of this, cash outperformed bonds, returning 1.9% against 1.5%. Equities retreated 1.0% while property companies returned 0.9%.
The Fund outperformed its benchmark for the quarter, driven largely by the positive performance from two of its asset managers, Aluwani and Prescient. Over the three-year period, the Fund is 0.90% ahead of its benchmark - an outcome that we find pleasing. Aluwani started defensively positioning its portfolio in the latter part of 2016 due concerns over the normalisation of US bond yields and the impact on local assets. This was rewarded over the quarter as short-dated instruments rallied, outperforming the long end of the curve. Prescient’s performance was largely driven by holding higher yielding floating rate instruments. The manager remained very low on duration. Investec struggled relative to the benchmark due to its higher credit exposure. The Fund outperformed peers over quarter and the one-year period. Performance is 0.80% ahead of peers for the three-year period ending June, ranking in the second quartile.
Portfolio positioning and outlook
The Fund’s defensive positioning reduced over the quarter. Cash reduced from 35.9% at the end of the first quarter, to 30.6% at end of June as managers started taking advantage of attractive valuations in selected longer-dated bonds.
Looking forward, we expect the US Fed to raise rates once more in 2017 as its economy improves. We do not anticipate this to have a big impact on SA assets. In SA, the political environment remains fragile and our expectations of economic growth are now lower than they were at the beginning of the year. The Fund has exposure, however, to high quality asset managers who can navigate through such periods. In this environment of increased uncertainty, we encourage clients to have a long-term focus when making and evaluating investment decisions.
The Fund is a flexible income solution which aims to provide investors with regular and stable income. It targets a higher return than a traditional money market fund and intends to manage the investor's exposure across the entire fixed interest yield curve, using a flexible duration strategy.
The Fund does not rely solely on cash to generate income, nor does it rely on the investment view of any single manager. The Fund is regulation 28 compliant.
The objective of the Fund is to outperform the average of the ASISA MA Income category, at risk levels consistent with that of the sector.