NAV on 2017/06/22
|NAV on 2017/06/21
|52 week high on 2017/03/16
|52 week low on 2016/11/25
|Total Expense Ratio on 2017/03/31
|Total Expense Ratio (performance fee) on 2017/03/31
STANLIB Collective Investments (RF) Limited
South African--Real Estate--General
FTSE/JSE SA Listed Property index (SAPY)
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 Property comment - Mar 16
The first quarter of 2016 saw a strong recovery in emerging market assets on the back of recovering commodity prices and the weakening US dollar. The US Federal Reserve maintained a dovish stance regarding the timing of its next rate hike and this put some pressure on the dollar against major currencies but provided upside for EMs and commodities. Elsewhere in the world, the European Central Bank (ECB) continued its efforts to stimulate growth – it cut its deposit rate to -0.4% and increased its quantitative easing (QE) programme from €60 billion to €80 billion per month. The long-anticipated South African budget was tabled in February and while it had some positive aspects, it failed to allay fears of a sovereign credit downgrade. The 2015-winning theme of overweight global assets relative to domestic faced some headwinds as EM currencies strengthened. In rand terms, global equities retreated 4.2%, global cash lost 1.2% and global bonds returned a modest 1.9%. SA equities were up 5.9% led by a strong recovery in Gold and Platinum miners, which were up 93% and 75% respectively. The bond market rallied 6.6%, driven by the long end of the curve. Property returned 10.1% as domestic large caps rallied while UK exposed shares fell on the back of Brexit uncertainty. SA cash was up 1.7%.
Despite lagging its benchmark over the quarter, the Fund’s long-term performance remains ahead of the SAPY Index. Following a strong performance in 2015, the PCAP pulled back over the quarter as rand hedge shares struggled. This was due to a stronger rand, which weighed heavy on inward listed shares like Capco PLC and Intu PLC. Catalyst was a strong performer in 2015 and performed in line with the SAPY over the quarter. Its long-term performance continues to be ahead of benchmark owing to good stock selection in Hyprop, Nepi and Rockcastle. STANLIB’s decision to avoid expensive shares – Rockcastle and Resilient – hurt performance as these have continued to rally. Grindrod underperformed but its performance was in line with our expectations. Its low exposure to rand hedges and large cap shares hurt returns. Over the long-term, Fund performance continues to be ahead relative to the ASISA South Africa RE General Category.
Portfolio positioning and outlook
The Fund remains tilted towards rand hedge stocks with offshore sources of income. On the economic front, we still expect the South African economy to grow by less than 1% in light of rising electricity prices and the drought that is crippling the agriculture sector and pushing up food prices. The threat of a further foreign debt ratings downgrade to junk status remains a possibility. SA bond yields have however, priced some of this and our spreads are now similar to BBB rated countries. The political environment has been a dominating factor since the fourth quarter of 2015 and remains a key aspect to monitor. We believe the Fund remains positioned to deliver on its mandate of capturing most of the property market upside, while protecting on the downside.
The Fund adopts a multi-managed approach to investing and blends experienced property managers with different investment philosophies and strategies.
The Fund aims to provide investors with high income and long term capital growth by investing in listed property shares.
The Fund's objective is to outperform the FTSE/JSE SA Listed Property Index (SAPY) and produce returns in excess of the ASISA Real Estate General Sector average.