NAV on 2019/07/18
|NAV on 2019/07/17
|52 week high on 2018/08/28
|52 week low on 2019/05/28
|Total Expense Ratio on 2019/03/31
|Total Expense Ratio (performance fee) on 2019/03/31
STANLIB Collective Investments (RF) Limited
South African--Real Estate--General
FTSE/JSE Africa SA Listed Property Index
STANLIB SA Property ETF - Mar 19
The fund performed in line with its benchmark for the quarter. The last FTSE/JSE rebalance saw the replacement of Rebosis Property Fund by the Hospitality Property Fund (B), as well as changes to shares in issue and free-float. The fund benefited from its exposure to NEPI Rockcastle, which returned 7.5%, together with Fortress REIT A and Growthpoint, which were the other top performers. However, exposure to Fortress REIT B, Hyprop Investments and Redefine Properties detracted from performance, as these were the three worst performers. Fortress REIT B returned -20.4% over the quarter.
In the first quarter of 2019 equity markets shrugged off any negative sentiment arising from the second half of 2018. The majority of equity markets across the globe recorded strong positive returns, with the MSCI World Index recording 13.5%, MSCI Emerging Markets recording 11.1% and the South African equity market, as represented by FTSE/JSE All Share Index, recording 8%. Global growth continues at a slower pace with many of the major economies progressing to later stages of the business cycle. The less hawkish Fed provided some relief for financial conditions but the era of easy money has shifted towards gradual tightening of monetary policy. Locally, Eskom and corruption in other SOE’s remain in the headlines as domestic asset classes such as bonds (ALBI), property (PCAP) and cash (SteFi) recorded gains of 3.8%,1.73% and 1.9% respectively.
Against the backdrop of slowing global economic growth, there is potential for trade uncertainty to continue, resulting in higher prices and a significant drag on business and consumer confidence. We expect risk aversion will rise as the ability of developed markets and vulnerable emerging economies to weather the impact of trade wars remains uncertain. Emerging economies with sizeable dollar debts and fiscal deficits may struggle. After more than two years of steadily rising interest rates, 2019 could mark the peak for US treasury yields for the current business cycle, however the road ahead is likely to remain bumpy. Locally, uncertainty will remain high until the widely anticipated national election provides some direction on the future of SA’s economic policy. We believe investors should focus on liquid market segments with risk dialled down compared with market benchmarks.
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.
The aim of the portfolio is to provide returns linked to the performance of the SA Listed Property Index ('the Index') in terms of both price performance as well as income from the component securities of the index.
The portfolio will aim to track the performance of the index.
In order to achieve the abovementioned objective, the portfolio will generally invest in all of the component securities of the Index in proportion to their weighting in the Index and will under normal circumstances aim to invest at least 90% of its total assets in the shares, or equivalent securities, composing the Index.
However, due to various factors, including the costs and expenses involved as well as illiquidity of
securities, it may not be possible or practicable to purchase the entire component securities in their
weightings or purchase them at all. In such event, the Investment Adviser may use quantitative techniques to hold a representative sample of the Index. Such techniques involve considering the inclusion of each security based on its investment characteristics, fundamental characteristics and liquidity.
In no event will the portfolio be managed according to the traditional approach of active investment
management, rather a passive approach will be applied.
The portfolio may hold liquid assets on an ancillary basis.
The portfolio aims to hold component securities in the Index so that the weighting of each security it holds does not diverge substantially from the weighting of that component in the Index.
The portfolio will not exercise any voting rights in respect of constituent securities.