NAV on 2019/01/17
|NAV on 2019/01/16
|52 week high on 2018/01/26
|52 week low on 2018/12/27
|Total Expense Ratio on 2018/09/30
|Total Expense Ratio (performance fee) on 2018/09/30
STANLIB Collective Investments (RF) Limited
South African--Real Estate--General
FTSE/JSE Africa SA Listed Property Index
STANLIB SA Property ETF - Sep 18
Since inception the fund has performed well against its peer group and in-line with its tracking benchmark. The September FTSE/JSE rebalance saw the replacement of Greenbay Properties Ltd by Stenprop Limited as well as shares in issues and free float changes. Though property was the best performing asset class in South Africa over the last 15 years, we remain positive on future returns as currency and income diversification has increased in the sector over the recent past. This year thus far, the sector was unsettled by events surrounding Resilient and it’s three sister companies, namely, Fortress REIT Ltd; Nepi Rockcastle and Greenbay Properties, however, we expect that in the long term the fund will provide healthy returns that surpass both government bonds and cash through the cycle.
Over the third quarter US equities led, driven by the strong growth environment and confidence in the US economy. In contrast to the attractive returns of US equities, fixed income returns have been uninspiring. Strong US data has kept the Fed on track to hike rates. Global growth has however not been as synchronised as last year. UK markets have been sensitive to suspicions of a no-deal on Brexit, and there has been a slowdown in manufacturing in the Eurozone, led by fewer exports into China. The rebound in the US dollar has made emerging markets especially vulnerable to negative sentiment and fear. Dollar denominated assets took the lead over local assets as the Rand lost 3.03% to the Dollar over the third quarter. In Rand terms foreign equity delivered the highest returns (MSCI World +8.17%) and outperformed foreign bonds (Barclays Global Treasury Bond Index +1.26%). In South Africa the second quarter saw a decline in consumer confidence and an increase in consumer spending. Cash (STEFI +1.74%), bonds (ALBI +0.81%) and inflation-linked bonds (ILBI +0.44%) outperformed both property (PCAP -2.22%) and equities (SWIX -3.34%). Seasonally adjusted GDP shrunk for a second consecutive period, driven by falling output from agriculture, transport and trade.
Against the backdrop of strong US economic growth, there is potential for the trade conflict directed from the US to deepen, resulting in higher prices and a significant drag on business and consumer growth, and ultimately global growth. While growth appears healthy currently, we expect risk aversion to rise as the ability of developed markets and vulnerable emerging economies to weather the impact of trade wars remains uncertain. Additionally, emerging economies with sizeable dollar debts and sizable fiscal deficits may struggle. We believe investors should focus on liquid markets segments with risk dialled down versus 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.