STANLIB Inflation Plus 5% Fund
Factsheet / Minimum Disclosure Document as at 31 March 2016
Highlights
Investment Policy and Objectives
. Managed along real return principles by STANLIB’s Absolute
Return Franchise.
. Investors gain access to sophisticated absolute return technology
and methodology.
The Portfolio's main objective is high growth of capital and income, a reasonable level of current
income and relative stability for capital invested to obtain long-term wealth accumulation.
The Portfolio will comprise of a mix of financially sound securities of companies listed on
exchanges and non-equity securities. The Portfolio will from time to time be invested in equity
securities to the maximum permitted by the Act, or will be invested in non-equity securities to the
maximum permitted by the Act, or any combination of the above. This portfolio may also include
participatory interests of other collective investment schemes.
Performance (%)
1 year
3 years
5 years
10 years
Since Inception
-1.23
4.67
7.02
6.14
8.52
Class A
Sector
Benchmark
Rank (Class A)
4.55
10.58
11.45
9.96
-
11.97
10.66
10.77
11.33
10.85
135/141
92/97
71/74
40/41
-
Lowest Return over 12 Rolling
Months
-1.23
-1.23
-1.23
-11.88
0.00
Highest Return over 12 Rolling
Months
9.13
12.60
13.54
27.93
0.00
-1.16
4.60
6.98
6.12
Class A (incl. ABIL)
1
Cumulative Performance - Last 5 years
*Annualized Return: is the weighted average compound growth rate over the performance period measured. The performance
is calculated for the portfolio. The individual investor performance my differ as a result of initial fees, the actual investment
date,the date or reinvestment and dividend withholding tax. Figures quoted are from Morningstar for the period ending 31
January 2016 for a lump sum, using NAV-NAV prices and do not take any upfront manager's charge into account. Income
distributions are declared on the ex-dividend date. Actual investment performance will differ based on the upfront manager's
charge applicable, the actual investment date and the date of reinvestment of income.
1 The performance of this fund was affected by the African Bank event and the investors would have been issued with units in a
retention fund. The combined performance of the retention fund and the Class A fund - for comparative purposes - is indicated
above.
Asset Allocation (%)
Portfolio
Deviation from Benchmark
Sector (%)
Portfolio Facts
Portfolio Size
Sector Classification
Income Distribution
Income Declaration
Benchmark
R 1'085.20 million
South African - Multi Asset - High Equity
Net revenue is calculated daily and distributed bi-annually.
30 June & 31 December
Income Distribution
CPI + 5%
Paid in the last 12
months
Paid during
2015
8.90 cpu
8.90 cpu
Class A
2015 payments as
a % of year end
price
4.11 %
Class A
Launch Date
04 Jan 1999
Minimum Investment
JUN16 ZAUS PUT 14.50 13/06/2016
Lump Sum
R5,000
Debit Order Per Month
R500
ISIN No.
ZAE000021648
JSE Code
STMF
Total Expense Ratio *
1.72%
Maximum Portfolio Charges **
*
**
Top Holdings (%)
23.20
STANDARD BANK FIXED RATE 10.50% 21/12/2026
8.22
STANLIB Inst. Money Market Fund B4
7.65
STANLIB Income Fund Class B1
7.24
FIRSTRAND BANK LIMITED 9.5% 01/10/2026
5.43
STANLIB Global Property Fund B
5.03
POWERSHARES DB US DOLLAR INDEX BULLISH
4.82
Upfront Charge: Manager
0.00%
INVESTEC CPI-LINKED 2.6% 31/03/2028
4.73
Upfront Charge: Intermediary
3.42%
JUN16 YMJQ CAN DO FUTURE 15/06/2016
4.52
Total Service Charge
1.71%
STANDARD BANK ESKOM CLN 3MJ+293BPS 20/09/
3.23
Service Charge Intermediary Portion
0.57%
Risk Rating
Please refer to page 2 under “Statutory Disclosure and General Terms & Conditions”
Additional Information can be obtained from Portfolio Charges Brochure on www.stanlib.com
Factsheet ID : 69442
Conservative
Please refer to page 2 for more details regarding this portfolio as well as other important information for consideration
pg 1 of 3
Moderate
Aggressive
STANLIB Inflation Plus 5% Fund
Factsheet / Minimum Disclosure Document as at 31 March 2016
Franchise
Portfolio Manager
Our philosophy to managing absolute return funds is to manage portfolios consisting of the widest
possible array of Global and Domestic asset classes that exhibit low or negative correlations to each
other, in such manner as to achieve the target performance and risk control objectives.
Our views about financial markets can be summed up into three key points:
1. We believe that markets are reasonably, but not perfectly, efficient due to behavioural biases. As
a result, we believe that active management can exploit the instances when the markets are
“wrong”.
2. We believe that over time, financial markets revert to their means. As result we employ the past
as a “guide” to the future in portfolio construction and security selection.
3. We believe that diversification reduces portfolio risk. However, we recognise that diversification
has its limitations in addressing tail risks and so we complement it with bespoke protection in order
to limit downside capture at the portfolio level.
Our approach is simple; we believe that if we avoid/limit losses then we allow our clients the
opportunity to compound returns on an increasingly higher capital base. Over time, this
compounding then allows us to deliver on our clients’ objectives. History has shown that by limiting
fund losses during the equity market downturn, we are able to compound fund returns to deliver
comparable performance to the equity market post the recovery, but with substantially lower volatility
and capital risk.
Marius Oberholzer
Before STANLIB, Marius was Managing
Partner at Sarala Capital, responsible for
strategic direction. Prior to this he worked at
TT International (London & Hong Kong)
where he managed the Asian Opportunities
Long Short Equity Hedge Fund. He holds a
BCom and MSc(Global Finance).
Fund Features
Quarterly Comments
The Fund targets a return of CPI +5% on a rolling 36 month basis, while simultaneously aiming to
avoid potential negative performance returns over any 12 month period.
The Fund invests in a broad set of assets and has the following strategic asset allocation: 50%
growth assets, 40% defensive assets and 10% offshore assets.
Risk
General market risks:
• A decline in property values and bond yields,
• price fluctuations
• unstable economic conditions
• exchange rates.
Where foreign securities are included in the portfolio there may be additional risks, such as potential
constraints on liquidity and the repatriation of funds, macroeconomic risks, political risks, tax risks,
settlement risks, and potential limitations on the availability of market information.
Statutory Disclosure and General terms & Conditions
Collective Investment Schemes in Securities (CIS) 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 CIS in securities is not the same as a deposit with a banking institution. CIS are
traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and
maximum commissions is available on request from STANLIB Collective Investments Ltd (the Manager).
Commission and incentives may be paid and if so, would be included in the overall costs. Forward pricing is used.
Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up
or down. Liberty is a full member of the Association for Savings and Investments of South Africa. The Manager is a
member of the Liberty Group of Companies.
This portfolio is valued on a daily basis at 15h30. Investments and repurchases will receive the price of the same
day if received prior to 15h30. This is a current yield as at 31 March 2016.
The Total Expense Ratio (TER) of a portfolio is a measure of the portfolio’s assets that were relinquished as
operating costs expressed as a percentage of the daily average value of the portfolio calculated over a period of
usually a financial year. Typical expenses which are deducted from a portfolio include service charges, taxes,
trustee fees and audit fees.
The manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The
manager has a right to close the portfolio to new investors in order to manage the portfolio more efficiently in
accordance with its mandate
Investors are breathing a sigh of relief as a difficult investment
period punctuated by robust volatility seems behind us.
Downside pressures were felt until late February before risk
assets finished the quarter off in fine form. At one point in January
South African Top40 Equities were trading down by 10% on the
year and listed property was down in excess of 8%.
This volatility was driven largely by global fears which added to
familiar local political and economic woes. We remain gripped in a
world of low economic growth, currency dislocations, questions
around commodity prices and especially fears of oil oversupply.
Oversupply should lead to lower oil prices which have fed into
corporate credit markets. Additionally, equity markets are
digesting a continued “earnings recession” as companies and
analysts revise their estimates lower.
The above non-exhaustive list of concerns explains some of the
volatility which seemingly was pushed to the back of investors’
minds post the Shanghai meeting between the G20 nations.
While there was no formal announcement from Shangai, it
became clear that Europe and Japan approved the “agreement”
to allow their currencies to strengthen against the dollar, but by
virtue, also strengthen against the Chinese Yuan which in turn
removed some of the concerns around China needing to devalue
its currency. Chinese devaluation concerns had previously
resulted in market fragility in August 2015 and January 2016 and
rightly investors have been grappling with the negative impact a
one-off devaluation would bring on asset prices globally.
Post this “Shanghai Accord” we seem to have now progressed to
a world where it appears the Fed who hiked rates in December
realize some of the unintended consequences of their actions,
and appear now to be more dovish than was previously the case
over the last few months. Additionally, the ECB has brought about
more accommodative policy in Europe amidst continued
economic weakness, lack of inflation and negative nominal yields.
It appears that we are back into a coordinated policy environment
between the world’s most powerful Central Bankers. This has
provided some relief or support for asset prices amidst the
continued earnings recessions (weaker earnings).
While currencies have reacted to the new environment quickly it
remains to be seen if this is sustainable since Yen and Euro
strength will increase deflationary effects in these countries. How
long until coordinated response is too painful and the status-quo
is unsettled and we head into another round of volatility or will
equities trend lower given the expected earnings trajectory
despite the appearance of a status quo.
Additional information about this product, including brochures, application forms and annual or quarterly reports, can
be obtained from the Manager, free of charge, and from the website: www.stanlib.com. The prices of unit trust funds
are calculated and published on each working day. These prices are available on the Manager's website and in the
South African printed news media.
The Total Expense Ratio (TER) for this class or portfolio is indicated above, for the period from 01 Jan 2015 to 31
Dec 2015. A higher TER ratio does not necessarily imply a poor return, nor does a low TER imply a good return. The
current TER cannot be regarded as an indication of future TERs.
Contact Details
STANLIB Collective Investments (RF) Limited
Reg. No. 1969/003468/06
Trustees :
17 Melrose Boulevard
Melrose Arch
Johannesburg
South Africa
PO Box 202
Melrose Arch
2076
Contact Centre
0860 123 003
www.stanlib.com
Compliance No :
HX0470
Standard Chartered Bank, 4 Sandown Valley Crescent, Sandton, 2196, Tel: 011 217 6600
pg 2 of 3
STANLIB Inflation Plus 5% Fund
Factsheet / Minimum Disclosure Document as at 31 March 2016
Total Expense Ratio,Transaction Costs & Total Investment Charge
Total Expense Ratio (TER): This shows the charges, levies and fees relating to the management of
the portfolio and is expressed as a percentage of the average net asset value of the portfolio,
calculated over a rolling three years (where applicable) and annualised to the most recently
completed quarter. A higher TER does not necessarily imply a poor return, nor does a low TER imply
a good return. The current TER cannot be regarded as an indication of future TERs.
Transaction Costs (TC): The percentage of the value of the fund as costs relating to the buying and
selling of the Fund's underlying assets.Transaction costs are a necessary cost in administering the
Fund and impacts fund returns. It should not be considered in isolation as returns may be impacted
by many other factors over time including market returns, the type of Fund, investment decisions of
the investment manager and the TER.
Total Investment Charges (TIC): The percentage of the value of the Fund incurred as costs, relating
to the investment of the Fund. As fund returns are reported after deducting all fees and expenses,
these costs (the TER & TC) should not be deducted from the fund returns. It is the sum of the TC &
TER.
TER and Transaction Costs Breakdown
Fund Class
TER
TC
TIC
A
1.72%
0.35%
2.07%
TER + TC = TIC
Where a transaction cost is not readily available, a reasonable best estimate has been used.Estimated
transaction costs may include Bond, Money Market and FX Costs (where applicable)
pg 3 of 3