STANLIB Balanced Cautious Fund and STANLIB Balanced Fund

Transcription

1 STANLIB Balanced Cautious Fund and STANLIB Balanced Fund

2 01 STANLIB Multi-Asset Franchise 01 Investment Objective of the STANLIB Multi-Asset Franchise 01 How does the STANLIB Multi-Asset Franchise achieve this objective? 01 Benefits of investing with the STANLIB Multi-Asset Franchise STANLIB Balanced Cautious Fund 02 Who should invest in the STANLIB Balanced Cautious Fund? 02 What the fund invests in 02 Fund availability on external Linked Investment Service Provider (LISP) platforms STANLIB Balanced Fund 03 Who should invest in the STANLIB Balanced Fund? 03 What the fund invests in 03 Fund availability on external Linked Investment Service Provider (LISP) platforms Our Multi-Asset Team 05 Robin Eagar 05 Herman van Velze 05 Warren Buhai 05 Kobus Nell 05 Rochelle Moodley The Specialist Teams that contribute to the Balanced Cautious and Balanced Fund 06 Equity Franchise 06 Fixed Interest Franchise 06 Listed Property Franchise 06 Global (Managed by Offshore Partners) About STANLIB 08 Our Belief 08 Our Franchise Model 08

3 You say future potential. We say STANLIB.

4 A balanced portfolio solution provides investors with the opportunity to participate in returns from a variety of domestic and foreign assets. These different asset classes give investors diversification benefits that provide them with the comfort that their exposure to downside risk is being mitigated whilst gaining the benefit of achieving inflation-beating returns. STANLIB Multi-Asset Franchise STANLIB Multi-Asset Franchise: The STANLIB Multi-Asset Franchise manages, inter alia, the following core unit trust funds: STANLIB Balanced Cautious Fund STANLIB Balanced Fund Investment Objective of the STANLIB Multi- Asset Franchise The primary objective of all investments is to deliver longterm real returns to investors. Based on an investor s risk appetite, the STANLIB Multi- Asset Franchise provides investors with long-term real return solutions from: 1. A moderately conservative risk appetite with the STANLIB Balanced Cautious Fund, targeting CPI +3% returns over a rolling 3-5 year time horizon; to 2. A moderately aggressive risk appetite with the STANLIB Balanced Fund targeting CPI + 5% returns over a rolling 5-7 year time horizon Drawdown risk is actively managed using our allocation to lower risk assets classes, such as domestic and offshore cash and treasuries at different parts of the business cycle. How does the STANLIB Multi-Asset Franchise achieve this objective? Intrinsic value forms the foundation of all our investment decision making. We believe that economic cycles do exist and our view on intrinsic value is complemented by overlaying our view of the business cycle, which influences the future direction of interest rates and informs the conviction of our positioning in the various asset classes available to us. Input is gathered from the in-house specialists on everything from economics to domestic equity sector views and global bond input. This includes input from 35 investment professionals locally, 45 across the continent and 150 globally. Љ Љ Once all the input has been debated, we formulate our view, resulting in well-informed asset allocation decisions that assist in achieving our funds stated objectives. 1

5 Benefits of Investing with the STANLIB Multi- Asset Franchise Diversification: The funds invest in a diversified spread of offshore assets, cash, bonds, property and equity (Regulation 28 compliant) Focus: All asset classes property, fixed interest and offshore - are allocated to specialist teams to manage, providing clear focus on every component of the fund Team diversity: Each member of the Multi-Asset Team brings a different skill set and experience to the decision making process of the Franchise. This provides varied perspectives and ideas Depth: The quarterly Tactical Asset Allocation (TAA) meeting, which informs the asset allocation in our Funds, relies on the input of 35 investment professionals locally, 45 across the continent, and 150 globally. This, we believe, results in well informed asset allocation decisions Conviction: Our investors entrust us to make the investment decisions and as such, we tend to hold a lot of what we like and zero of what we don t STANLIB Balanced Cautious Fund Who should invest in the STANLIB Balanced Cautious Fund? STANLIB Balanced Cautious Fund is suitable for investors who: Require an annuity income Want to preserve capital Want to achieve capital growth The Balanced Cautious Fund can be used to address the above-mentioned needs in the following products: Investment Linked Life Annuities (post retirement products) Retirement Annuities and Preservation funds (pre-retirement products) Discretionary Investment Products What the fund invests in Domestic equity maximum of 40% Property maximum of 25% Domestic fixed interest and cash Offshore assets maximum of 25% Fund availability on external Linked Investment Service Provider (LISP) platforms You can access this fund directly through STANLIB Unit trusts or via the following LISP platforms: STANLIB Glacier Investec Momentum Old Mutual 2

6 STANLIB Balanced Fund Who should invest in the STANLIB Balanced Fund? STANLIB Balanced Fund is suitable for investors who: Require growth - investors looking for a growth solution while not being completely exposed to the equity market Want reduced volatility - the fund is highly diversified, which smooths out the long-term risk-adjusted returns Have long-term investment plans - long-term investment goals such as retirement or education plans make this fund suitable for a wide range of investors Need a long-term discretionary capital strategy What the fund invests in Domestic equity maximum of 75% Property maximum of 25% Offshore maximum of 25% * Africa maximum 5% Domestic fixed interest and cash Fund availability on external Linked Investment Service Provider (LISP) platforms You can access this fund directly through STANLIB Unit trusts or via the following LISP platforms: STANLIB AIMS Allan Gray Glacier Investec Momentum Old Mutual PPS PSG * Regulation 28 stipulates that the maximum exposure to Equities and Property combined is 90% 3

7 Our Multi-Asset Team Robin Eagar Herman van Velze Warren Buhai Kobus Nell Rochelle Moodley Co-Head of Multi-Asset Franchise BSc(Eng), Accounts Conversion 17 Years industry service Co-Head of Multi-Asset Franchise BEng, MBL 27 Years industry service Senior Portfolio Manager: Multi-Asset Franchise BCompt(Hons), CA(SA), CFA 14 Years industry service Senior Portfolio Manager: Multi-Asset Franchise CA(SA), CFA 12 Years industry service Analyst SAIFM (South African Institute of Financial Markets) 18 Years industry service Each member of the Multi-Asset Team brings a different skill set and background, providing varied perspectives and ideas. Robin Eagar Robin currently co-heads STANLIB s highly successful Multi- Asset and Core Equity Franchises and has an intrinsic value orientation towards shares. Robin began his career in 1998 with Standard Bank s Corporate Finance team in Johannesburg, advising on corporate restructures, mergers and acquisitions and public to private transactions. He had previously spent five years working in private equity and corporate finance in London investing in various emerging markets and the UK. Robin joined the STANLIB investment team in 2005 as an industrial analyst and shortly thereafter became a general equity manager in the Aggressive Equity space. Robin joined the Multi-Asset team in 2007 focussing on managing larger Life Policy assets. Herman van Velze Herman currently co-heads STANLIB s highly successful Multi-Asset Franchise. He began his investment career in 1993 as a mining analyst and resource portfolio manager, and was appointed Head of Research at Standard Corporate and Merchant Bank in Following the merger with Liberty Asset Management that formed STANLIB in 2002, Herman joined the portfolio management team responsible for specialist mandate clients, and was subsequently appointed Head of Retirement Funds. Warren Buhai Warren re-joined STANLIB in 2009 and is a Senior Portfolio Manager in the Multi-Asset and Core Equity Franchises. His previous experience with STANLIB was in research and portfolio management in resources and commodity-related funds. In the interim, Warren also obtained experience in the USA, as MD of Investments for a US$500 million private client business targeting opportunities in developed, emerging and frontier markets. Warren also spent five years gaining broad experience with Standard Bank s Corporate Finance team. Warren obtained his Bachelor s and Honours degrees studying part-time while working primarily in the audit division of Ernst & Young where he qualified as a chartered accountant. He is also a CFA charter holder. Kobus Nell Kobus joined STANLIB in 2003 on completion of his auditing articles. His early career included managing roles in the unit trust pricing, corporate actions and confirmations departments, where he was instrumental in automating a number of key system processes. During this period in operations, he also learned the ropes at matching and settlements, client reporting and securities lending. Kobus joined the investment team as an equity dealer in 2007 and was promoted to an assistant equity Portfolio Manager in He has experience as a research analyst, in the Resources sector and has been managing the STANLIB Gold and Precious Metals Fund since In 2014 this fund was merged into the STANLIB Resources Fund which he is currently managing. Kobus is now a Portfolio Manager for the Multi-Asset Franchise, which he joined in He is a PricewaterhouseCoopers-trained chartered accountant and is also a CFA charter holder. Rochelle Moodley Rochelle has been an analyst with the Multi-Asset Franchise team since She has been with STANLIB and its forerunner Liberty Asset Management since 1996, and has built much of her career in the Dealing Room, rising from junior assistant to Securities Lending Trader and trainee dealer, assisting both the bond and equity teams. Rochelle also has four years experience as an assistant manager in Institutional Operations, where her responsibilities included managing the Confirmation and Settlements teams and trading in Securities Lending on behalf of the Liberty Group. 5

8 The specialist teams that contribute to the Balanced Cautious and Balanced Fund Equity Franchise The Multi-Asset Franchise is also responsible for managing the Core Equity Franchise. They have worked together for years and leverage off each other s strengths to create team synergies evidenced in their fund performance. The Core Equity Franchise overlays their own research and convictions over the broader in-house equity research before making any buy or sell decisions. The research overlay focuses on causal drivers of earnings, cash flows and returns. They require analysts to provide extensive input into the key criteria that they believe are drivers of earnings, cash flows and returns. They believe in the importance of anticipating economic cycles and determining which industries are best placed to benefit. Fixed Interest Franchise The Fixed Interest Team, which is headed up by Henk Viljoen, is highly qualified with extensive experience in the industry and has been working together for over 10 years. The Franchise houses the Money Market, Bonds, Income, Liability Driven Investments and Credit Teams. Other fixed interest managers typically develop skills that allow for outperformance of their benchmark through predominantly one strategy. Individual strategies can result in outperformance from time to time but they may not do so consistently. The Fixed Interest Franchise aims to exploit multiple strategies on a continuous basis, to be better positioned to outperform during all phases of the market. Listed Property Franchise The Listed Property Franchise is a leading Listed Property Manager in the country. In addition, the size of their Property book and their strong ties to Liberty Properties and Standard Bank Properties further strengthens their influence when it comes to voting, private placements and liquidity. The Franchise is headed by Keillen Ndlovu. STANLIB s specialist asset class management approach allows the Team to make use of an all-encompassing, thorough research process and portfolio construction process. The focus and dedication of the Team to a single asset class only, enables the use of both a broad top-down, as well as detailed asset-specific, bottom-up approach. Global (Managed by Offshore Partners) Global Equities Founded in 1994, Threadneedle is an established global asset manager with assets under management of US$150.1 billion with a compliment of over 160 investment professionals. Their sole focus is the active management of client assets across equities, fixed income, commodities, multi-asset exposures and property. Threadneedle offers emerging market exposure within a diversified global portfolio of stocks. The Threadneedle investment process is driven primarily using bottom-up fundamental analysis, although some top-down analysis is applied in the context of the macro environment. Their investment style is market driven and the portfolio is not expected to display persistent style biases over different economic cycles therefore style agnostic. Their strategy exploits value opportunities during value cycles and growth opportunities during growth cycles. Global Bonds Founded in 1986, Brandywine Global Investment Management manages US$63 billion in assets as at 31 December Core to their principles is seeking value not yet recognised by others. Brandywine applies a top-down, value-driven process when structuring global income portfolios. Real (inflation-adjusted) yield is their primary measure of value. Currency valuation is next in importance, as the real yield must be captured in US dollars. They focus on appreciating, undervalued currencies and overvalued currencies that can be hedged. Inflation trends, political risks, monetary trends, and business cycle and liquidity measures are also considered. Brandywine typically concentrate investments in eight to 16 countries that appear to offer the best total return potential. Global Cash Fidelity Worldwide Investment (FIL Limited) was established in 1969 and provides asset management services to investors all over the world. They have portfolio management and research staff in major financial centres around the world and offices in 25 countries. Fidelity International and its subsidiaries manage assets worth $276 billion (as at 30 September 2014). The cornerstone of Fidelity s investment approach is research. As well as studying financial results, analysts and fund managers visit companies, meet their managers and talk to suppliers, customers and distributors, giving the investment team a clear 360 view of each company they invest in. 6

9 About STANLIB STANLIB is a leading asset management company in South Africa and manages assets in excess of R579 billion* (USD37 billion) for over retail and institutional clients across the African continent. We have a physical presence in 10 African countries and are able to leverage from a wider Standard Bank Group Africa footprint. STANLIB Focused Investing Our Belief There is no one size fits all investment solution for clients. Diverse clients need diverse investment outcomes. We therefore look at investments through many lenses and from many angles - this gives us an in-depth understanding of an ever-changing investment landscape. Our investment model thus houses multiple focused units with unique philosophies, which cater for diverse client needs. Our Franchise Model The STANLIB investment team consists of Franchises made up of specialist teams of investment professionals. They manage clients assets in their area of expertise, namely: fixed interest, property, equities, multi-asset allocation, multi-management and alternatives. These specialist investment teams deal with market changes with agility and speed, as they are supported by dedicated research, trade, implementation, risk management and compliance teams. Our Multi-Specialist Franchise Model truly reflects the complex investment world we operate in and echoes our desire to deliver tailored solutions for diverse clients. Result A broad investment offering designed to deliver our investment promise to clients. *As at 31 December

10 Some choose not to follow their passion. Our track record is proof that we do. Our passion. Your investment s success. Compliance number: 3DR068 STANLIB is an Authorised Financial Services Provider

11 Disclaimer Collective investment schemes in securities are generally medium to long-term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. An investment in the participations of a collective investment scheme in securities is not the same as a deposit with a banking institution. Participatory interest prices are calculated on a net asset value basis, which is the total value of all assets in the Fund including any income accrual and less any permissible deductions from the Fund divided by the number of participatory interests in issue. Permissible deductions include brokerage, UST, auditor s fees, bank charges, trustee/custodian fees and the service charge levied by STANLIB Collective Investments (RF) Limited ( the Manager ). Where exit fees are applicable, participatory interests are redeemed at the net asset value where after the exit fee is deducted and the balance is paid to the investor. A Portfolio of a collective investment scheme in securities may borrow up to 10% of the market value of the Fund to bridge insufficient liquidity as a result of the redemption of participatory interests, and may also engage in scrip lending. Where different classes of participatory interests apply to certain Portfolios, they would be subject to different fees and charges. A schedule of fees and charges and maximum commissions is available on request from the Manager. Commission and incentives may be paid and if so, would be included in the overall costs. The exposure limit to a single security in this Portfolio can be greater than is permitted for other Portfolios in terms of the Collective Investment Schemes Control Act, 2002 ( the Act ). Details are available from the Manager. A Fund of Funds Portfolio only invests in other collective investment schemes, which levy their own charges, which could result in a higher fee structure for these portfolios. A Feeder Fund Portfolio only invests in the participatory interests of a single Portfolio of a collective investment scheme apart from assets in liquid form. The Manager reserves the right to close certain Portfolios from time to time in order to manage them more efficiently. More details are available from the Manager. Forward pricing is used. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. The Manager undertakes to repurchase participatory interests at the price calculated according to the requirements of the Collective Investment Schemes Control Act, 2002, and on the terms and conditions of the relevant Deeds. Payment will be made within 14 days of receipt of a valid repurchase form. Any capital gain realized on the disposal of a participatory interest in a collective investment scheme is subject to Capital Gains Tax (CGT). The Manager is obliged to report on the weighted average cost method for CGT purposes. All portfolios are valued on a daily basis at 15h30, except for some Fund of Funds Portfolios and Feeder Fund Portfolios, which are valued at 17h00. Investments and Repurchases will receive the price of the same day if received prior to 15h30. The Fund Charges document (including the Performance Fee Frequently Asked Questions) is available on ( Investment for Individuals section). Liberty is a member of the Association of Savings and Investment of South Africa. The Manager is a member of the Liberty group of companies. Contact details of Trustees: Absa Bank Ltd, 1st Floor, 15 Alice Lane, Sandton, Telephone STANLIB Collective Investments (RF) Limited (Reg. No. 1969/003468/06) Liberty is a member of the Association for Savings and Investment of South Africa. The Manager is a member of the Liberty group of companies. Compliance Number: 816HXO 10

12 17 Melrose Boulevard Melrose Arch 2196 PO Box 203 Melrose Arch 2076 T (SA only) T +27 (0) E [email protected] W stanlib.com GPS coordinates S , E W STANLIB Asset Management Limited Reg. No. 1969/002753/06 Authorised FSP in terms of the FAIS Act, 2002 (Licence No. 26/10/719) 2647_Q42012