Mandate Overview02 Mar 2020
The Fund aims to provide modest long-term growth of capital and income with volatility at risk levels consistent with low equity (< 40% equity) portfolios.
The objective of the Fund is to outperform the average of investable peer’s returns i.e ASISA Multi-Asset Low Equity category, at risk levels consistent with that of the sector. Given our standard assumptions- , we expect the Fund to deliver real returns of 4% p.a. i.e. CPI+4% p.a. over the long term (net of fees). To minimise the chance of capital loss, investors should expect to invest over periods of at least four years.
The real return objectives are derived from our long-term real return expectations for a range of asset classes, our expected systematic exposure to those asset classes in each of the funds, and the alpha expected from the managers managing the funds (from security selection and asset allocation).
STANLIB MM Defensive Balanced comment - Dec 19 - Fund Manager Comment02 Mar 2020
Equities continued to show signs of weakness in the third quarter, undoing the positive momentum of the first half of the year. Global equities returned 7.3% in rand terms for the quarter, driven mostly by the rand losing 7.4% of its value against the US dollar. The sell-off happened in July and August when market participants became more concerned about slowing global trade as a result of the US/China trade war. Central banks tried to soften the blow by engaging in expansionary monetary policies, but their efforts fell short. SA equities were not spared from the sell-off and lost 5.1%. Chemicals company, Sasol, lost 27.7% of its value after announcing further delays in its financial results pending an in-depth investigation into the Lake Charles project. Listed property continued to feel the strain of a difficult economic environment and retreated 4.2%. SA bonds returned 0.7% for the quarter while SA cash gained 1.8%.