Standard Bank Index comment - Jun 2003 - Fund Manager Comment20 Aug 2003
For the quarter The Standard Bank Index Fund returned 10% against its benchmark the FTSE/JSE All Share index, which was up 9.68%. The Telco stocks were the star performers of the second quarter, gaining 37.1%, followed by software & computer services sector up 33%. The tracking error continued to decrease from 4.4% the previous quarter to 3.87% this quarter. The fund is currently being run on a forecast tracking error range of, 0.5% to 0.75%. This tighter constraint should ensure that the tracking drops closer to 2% by the end of next quarter.
Standard Bank Index comment - March 2003 - Fund Manager Comment12 May 2003
The continued outflow out of equities has once again resulted in the fund 's performance deviating from that of its stated benchmark, the FTSE/JSE All Share Index, as the fund manager was forced to liquidate positions. On a one-year view, the portfolio incurred a tracking error of 4.4%against its benchmark, which is unacceptable. The information ratio has dropped to -0.46.With Unit Trusts no longer required to hold 5%in liquid assets, the performance of the fund relative to its benchmark will steadily improve. The stated objective of a tracking error of around 2%per annum and an information ratio of 0 is attainable.
Standard Bank Index comment - December 2002 - Fund Manager Comment18 Feb 2003
Market Performance
South African equities continued their downward trend over the 4th quarter losing another 2%. Most of the weakness can be attributed to a strong rand or more so to a weakening dollar. In Q4 2002 alone the rand gained 23% against the dollar and an impressive 40% over the year. The JSE/All Share Index has been range bound most of the quarter trading between 9200 and 9800.Unfortunately rand sensitive companies dominate the JSE/All Share index.
Fund Performance
Due to the five-percent cash requirement, the fund was able to outperform the market on its way down. The fund however slipped in relative performance in the middle of the quarter when we saw some recovery in the market.
Fund Management Philosophy
The Standard Bank Index Fund performance is designed to track the returns of the FTSE/JSE All Share Index by optimised sampling of the All Share composite stocks. This implies that no bets are taken to outperform the benchmark, but rather the fund objective is to duplicate the JSE market 's returns. The BARRA Aegis Risk Management System is hence used to ensure that the fund 's tracking error volatility is always positioned at lower than 1% relative to the FTSE/JSE All Share benchmark.