NAV on 2019/07/22
|NAV on 2019/07/19
|52 week high on 2018/09/04
|52 week low on 2019/01/04
|Total Expense Ratio on 2019/03/31
|Total Expense Ratio (performance fee) on 2019/03/31
STANLIB Collective Investments (RF) Limited
Domestic Equity General Micropal Sector Mean
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.
Naweed joined the STANLIB Multi-Manager Research and Development Team at as a Quantitative Analyst. Prior to STANLIB, Naweed was a Portfolio Risk Analyst at Eminence Partners, a Johannesburg-based long/short equity hedge fund operated under the Peregrine fund platform.
STANLIB MM All Stars Equity FoF Comment- Mar 19
Global equity markets recovered strongly from the significant selloff at the end of 2018, gaining 12.6% for the quarter as trade tensions between the two economic influences, US and China, eased. The ECB’s decision to maintain lower interest rates and the announcement of a Chinese fiscal stimulus package also contributed positively to market liquidity and confidence. SA markets rallied 3.9%, driven primarily by resources, which gained17.8% and in particular, iron ore, palladium and platinum. Low consumer confidence led to a 12% drop in retail shares. Notably higher quality rand hedges such as BTI, AB InBev and Richemont enjoyed a strong recovery from oversold levels. This has supported the overall Fund’s outperformance relative to the index.
The Fund outperformed it peer benchmark by 0.75% for the quarter and continued to maintain its pleasing long-term track record relative to peers.
At an underlying manager level, the Allan Gray SA Equity Fund returned 1.8% ahead of the index for the first quarter. Performance was driven in part by holding onto the MultiChoice Group shares that were unbundled from Naspers. While the Nedgroup Entrepreneur Fund underperformed the index benchmark, it outperformed peers. Positions in Naspers and BTI contributed to performance.
The STANLIB Multi-Manager SA Equity Fund returned 5.6% for the quarter outperforming the index benchmark by almost 1.7% and 3% alpha over 12 months. Most of the underlying managers outperformed the benchmark, with Coronation being the top performer for the quarter.
STANLIB Multi-Manager Global Equity underperformed the benchmark for the quarter. Overweight positions to emerging markets and financials dragged on performance. Sanders and AB were the two worst performers. Both allocation and selection detracted from their performance. Good performance from Sands continued with another positive quarter of alpha, where stock selection contributed strongly. The fund’s one-year gross returns remain ahead of the benchmark.
Portfolio positioning and outlook
We caution that global equity markets are back to their highs, presenting some vulnerability especially as US economic activity is losing momentum. Going into quarter two, the Fund continues to have a small overweight position to global equity, and we will use rand weakness opportunities to trim this overweight. On the positive side, our underlying managers continue to see value in domestic shares. However, uncertainty surrounding the upcoming national elections and Brexit remain. The Fund is therefore, close to its strategic weight in local equities.
The Fund's investment objective is to provide long-term capital growth through investment in local and global equity markets. It is a fully invested, multi-managed equity portfolio managed within the guidelines of the ASISA South African Equity General Sector (currently a maximum of 25% global equity) allowed.
The Fund aims to achieve CPI+7% p.a over 7-year rolling periods.
The Fund is not regulation 28 compliant.