The STANLIB Global Balanced Feeder Fund shall be a general equity feeder fund portfolio.
STANLIB Global Balanced Feeder Fund is a feeder fund seeking to achieve an investment
medium for investors, which shall have as its main objective, to maximise long term total return.
Apart from assets in liquid form, it will consist solely of participatory interests in a single portfolio of
a collective investment scheme operated in territories with a regulatory environment which is to the
satisfaction of the manager and trustee of a sufficient standard to provide investor protection at
least equivalent to that in South Africa, namely the STANLIB Global Balanced Fund, under the
STANLIB Funds Limited Scheme domiciled in Jersey.

Fund Review

The fund did -1.2% in rands and -1.5% in dollars during the second quarter of 2015, as the rand lost -0.3% to the dollar, -5.8% to the pound and -2.9% to the euro. Over the twelve months to end June the fund did +11% in rands and -3% in dollars. During the same period the euro return was +19.3% and the pound return was +5.8% as the dollar thumped most currencies.

The fund has been managed by Threadneedle Investments of London since early 2014. The equity portion of the fund (upped from 54.1% of fund to 61.5% because of an increase in the benchmark at the end of the quarter from 50% to 60%) is identical to the STANLIB Global Equity Feeder Fund portfolio. During the quarter to end March, the cash portfolio (12.5% of fund) did best with a return of 2.5%, followed by the Equity return of 1.8%, both in dollars. Both Fixed Interest (-2.2%) and Property (-6.9%) had negative dollar returns.

Looking Ahead

Threadneedle on balance still prefers equities over bonds, although more cautiously so than before because of the higher valuations of equities. Secular growth stories are being emphasised, such as Japan, where corporate reform continues. Given the macroeconomic uncertainties, they expect global monetary policy to remain accommodative.