The Standard Bank Namibia Money Market Fund is a unit trust fund (collective investment scheme) that aims to maximise income while preserving capital over the medium term, and to ensure liquidity of funds invested. It invests in a wide range of highly marketable short-term debt securities, which include short-term government securities like treasury bills, corporate financial instruments such as bankers’ acceptances, negotiable certificates of deposit (NCDs), commercial paper and other debt securities.
The Fund invests in five major banking groups or other similar rated institutions. In addition, certain government issues as well as issues from top-rated corporations are also included in this investment universe. In accordance with Namibian regulations no less than 35% of the Fund’s assets are invested in Namibia.
The Fund is a pure money market fund with a maximum average duration of 90 days and is an interest distributing fund with interest accruing daily and distribution accruing monthly.
The fund caters for corporates, institutions and private investors who have cash available to invest over the medium-term, who require the flexibility to withdraw funds at relatively short notice.
This fund is suitable for:
- Investors who require a wholesale interest rate on cash
- Short-term investors requiring a ‘parking bay’ for their cash
- Investors who require low-risk, secure investments with yields in excess of traditional banking products
- Retirement funds, Trusts, Non-profit organisations, Non-government organisations
- Any other investor that can benefit from the tax treatment of interest.
In the past, investors have relied on savings accounts as a saving vehicle for a home purchase, children’s education, retirement or for emergencies. Investors now have the opportunity to utilise the Standard Bank Namibia Money Market Fund for all their savings needs, at higher yields on cash deposits than traditional savings accounts and term deposits.
The economies of scale achieved through pooling of investments enables the fund manager to purchase higher yielding instruments that individual clients and medium sized corporates and institutions would not normally have access to through traditional savings and normal bank deposits. The fund also gives investors direct access to the expertise and experience of one of Africa’s leading money market investment teams.
Investment Amounts |
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Minimum Initial Investment Amount | N$ 10 000 |
Minimum Monthly Debit Order | N$ 500 |
Fees Structure |
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Initial Fee (Negotiable) | 0.00% |
Annual Management Fee | 0.6% |
Intermediary Fee | 0.1% |
The Standard Bank Namibia CashPlus Fund was created in response to demand for cash management with a conservative bias. The Standard Bank Namibia CashPlus Fund is designed for clients who traditionally hold large cash balances but whose funds need to remain liquid for operational reasons.
Clients benefit from wholesale cash management yields at competitive fees. The Standard Bank Namibia CashPlus Fund invests in five major banking groups or other similar rated institutions. In addition, certain government issues as well as issues from top-rated corporations are also included in this investment universe. In accordance with Namibian regulations no less than 35% of the Fund’s assets are invested in Namibia.
The Fund is a pure money market fund with a maximum duration of 90 days and the fund is a non-distributing fund with daily unit pricing reflecting the return of the fund.
The Standard Bank Namibia CashPlus Fund is designed for individuals who have cash available to invest over the medium-term. The fund caters for corporates, institutions and private investors who have cash available to invest over the medium-term, who require the flexibility to withdraw funds at relatively short notice.
This fund is suitable for:
- Investors who require a wholesale interest rate on cash
- Short-term investors requiring a ‘parking bay’ for their cash
- Investors who require low-risk, secure investments with yields in excess of traditional banking products
- Retirement funds, Trusts, Non-profit organisations, Non-government organisations
- Any other investor that can benefit from the tax treatment of interest.
In the past, investors have relied on savings accounts as a saving vehicle for a home purchase, children’s education, retirement or for emergencies. Investors now have the opportunity to utilise the Standard Bank Namibia CashPlus Fund for all their savings needs, at higher yields on cash deposits than traditional savings accounts and term deposits.
The economies of scale achieved through pooling of investments enables the fund manager to purchase higher yielding instruments that individual clients and medium sized corporates and institutions would not normally have access to through traditional savings and normal bank deposits. The fund also gives investors direct access to the expertise and experience of one of Africa’s leading investment teams.
Investment Amounts |
|
Minimum Initial Investment Amount | N$ 10 000 |
Minimum Monthly Debit Order | N$ 500 |
Fees Structure |
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Initial Fee (Negotiable) | 0.75% |
Annual Management Fee | 0.45% |
Intermediary Fee | 0.50% |
The Standard Bank Namibia Income Fund is a medium-term collective investment scheme that invests in a diversified spread of fixed-income securities with the primary objective being to seek income generation and long-term capital growth consistent with conservative investment risk from a wide range of fixed income securities.
The portfolio’s primary objective is to provide a reasonable level of current income and maximum stability for capital invested. Securities normally to be included in the portfolio will consist of fixed income securities embracing non-equity securities, stock, financially sound preference shares, debenture stock, debenture bonds and unsecured notes to be acquired at fair market prices. The weighted average maturity of this portfolio may not exceed two years. This portfolio may not have any direct/indirect foreign exposure.
The Standard Bank Namibia Income Fund is suitable for investors who are prepared to accept a moderate amount of risk for an increase in potential income – individuals who are looking for a professionally managed conservative to moderate risk investment option that provides exposure to an array of interest-bearing investments. It provides access to investment vehicles that normally would not be available to the individual investors. The Fund enables investors to further diversify their funds and supplement their income – all whilst growing capital.
The Income Fund is designed for institutional investors who traditionally hold large cash balances but who need extra returns at moderate risk. Institutional Investors benefit from a well-diversified investment at marginal fees. The Fund is suitable for institutional investors who require undivided participation in a well-diversified portfolio of market instruments. The Fund is also well suited for Individual Retirement Benefits Scheme.
Fixed income instruments are the key sources of generating a regular income coupled with the fact that debt offers diversification and safety of capital, it proves to be an excellent case for investments.
Investing in the Standard Bank Namibia Income Fund also gives investors the benefit of professional management, diversification, easy access to funds and investment flexibility.
Investment Amounts |
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Minimum Initial Investment Amount | N$ 2 000 |
Minimum Monthly Debit Order | N$ 200 |
Fees Structure |
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Initial Fee (Negotiable) | 1.00% |
Upfront Intermediary Fee | 0.60% |
Annual Asset Management Fee | 1.00% |
Annual Intermediary Fee | 0.25% |
The Standard Bank Namibia InflationPlus Fund is a unique investment designed to provide long-term capital growth and enhanced levels of short-term income. By investing in a combination of asset classes, the Fund seeks to outperform Namibian inflation by 4% over a rolling three-year period and seeks to preserve capital over a rolling 36-month period.
There is an interest-bearing element to this portfolio which results in a lower level of volatility when compared to a pure equity fund, which provides you with enhanced capital protection.
This investment is the ideal option if you are looking for a professionally managed, moderate risk investment that provides exposure to equities, property and interest-bearing investments. In addition, certain government issues as well as issues from top-rated corporations are also included in the investment universe. The fund aims to invest a minimum of 35% in Namibia.
The Standard Bank Namibia InflationPlus Fund is the ideal option for individual investors looking for a professionally managed, moderate risk investment that provides exposure to equities, property, bonds and interest-bearing investments.
The Fund is designed for institutional investors who traditionally hold large cash balances but who need extra returns at moderate risk. Institutional Investors benefit from a well-diversified investment at marginal fees. The fund is suitable for institutional investors who require undivided participation in a well-diversified portfolio of market instruments. The Fund is also well suited for Individual Retirement Benefits Scheme.
- The fund targets a rate of return of inflation plus 4% over a rolling three-year cycle
- The fund manager has the flexibility to invest in whichever asset class is showing value
- Investors get the benefits of diversification across asset classes
- The equity exposure in the fund allows the fund to participate in higher long-term returns commensurate with the expected long-term asset class outperformance of equities.
Investment Amounts |
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Minimum Initial Investment Amount | N$ 2 000 |
Minimum Additional Investment | N$ 200 |
Fees Structure |
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Initial Fee (Negotiable) | 5.00% |
Upfront Intermediary Fee | 3.00% |
Annual Asset Management Fee | 1.50% |
Annual Intermediary Fee | 0.50% |
The Standard Bank Namibia Flexible Property Income Fund is a specialist fund which seeks to provide capital growth and an income source for investors through investment in Namibian and South African listed property shares, debentures, debenture stocks and debenture bonds.
The Fund is required to hold a minimum of 30% and maximum of 60% in fixed interest securities. Furthermore, the fund must have a minimum of 40% and maximum of 70% exposure to shares in listed property companies at the discretion of the portfolio manager. The portfolio aims to produce a reasonably high, sustainable and growing level of income for investors with the possibility of capital growth over the medium and longer term.
This fund is suitable for investors seeking exposure to the property market without the potential difficulties and capital outlay of direct property investments. The investor can accept the volatility of investing in the property sector.
The Standard Bank Namibia Flexible Income Fund is designed for institutional investors who require sector specific exposure to real estate securities as part of their overall investment strategy, with both income generation and capital appreciation as their primary goal over the long-term.
The benefits to investing in property shares, some of which include a reasonable predictability of income with leases in place; good returns as income is taxable and volatility is relatively low in the share price. On a long-term view, listed property remains attractively priced relative to other asset classes.
An investment in listed property offers investors three key benefits:
- A high starting income yield
- Inflation-hedged income growth
- Inflation-hedged capital growth over longer investment horizons
The relationship between income growth and capital growth is important and has often been overlooked by investors when assessing the merits of an investment in listed property.
Investment Amounts |
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Minimum Initial Investment Amount | N$ 2 000 |
Minimum Additional Investment | N$ 200 |
Fees Structure |
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Initial Fee (Negotiable) | 5.00% |
Upfront Intermediary Fee | 3.00% |
Annual Asset Management Fee | 1.50% |
Annual Intermediary Fee | 0.30% |
The Standard Bank Namibia Managed Fund is a prudential fund, which seeks to generate long-term capital growth with rising levels of income. It offers the combined investment expertise of STANLIB Namibia, STANLIB South Africa, the Fidelity Group and Liberty Ermitage to smaller pension funds as well as individuals.
The Managed Fund provides the investor with access to growth opportunities in Namibia, South Africa and globally. The Managed Fund is a balanced portfolio providing access to opportunities in all major asset classes, equities, bonds, cash and offshore investments. This fund complies with Namibian legislation and is subject to Prudent Investment Guidelines (PIGS) as stipulated in the Pensions Funds Act.
The Standard Bank Namibia Managed Fund is suitable for smaller pension funds, private individuals seeking medium to long term capital and income growth through exposure to local Namibia and offshore equity and fixed interest markets. Furthermore, this fund offers the smaller investor access to an actively managed investment suitable for planning towards a successful future retirement.
The Standard Bank Namibia Managed Fund is suitable for smaller pension funds, private individuals seeking medium to long term capital and income growth through exposure to local Namibia and offshore equity and fixed interest markets. Furthermore, this fund offers the smaller investor access to an actively managed investment suitable for planning towards a successful future retirement.
See more information about STANLIB’s Collective Investment Schemes in the tab below.
Traditionally, investments in local and global equity and bond markets have been seen as complicated, time consuming or only accessible to large investors. The Standard Bank Namibia Managed Fund gives smaller investors access to these types of investments through professional expertise that is normally only available to larger investors.
This investment is particularly suited to those wishing to provide for long-term investment needs such as their children’s education and additional pension savings.
Investment Amounts |
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Minimum Initial Investment Amount | N$ 2 000 |
Minimum Monthly Debit Order | N$ 200 |
Fees Structure |
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Initial Fee (Negotiable) | 5.00% |
Upfront Intermediary Fee | 3.00% |
Annual Asset Management Fee | 1.50% |
Annual Intermediary Fee | 0.50% |
Collective Investment Schemes are investments where investors’ funds are pooled and managed by professional portfolio managers.
Investing in shares has traditionally yielded unrivalled returns, offering investors the opportunity to build real wealth. Yet, the large amounts of money required to purchase these shares are often out of reach for smaller investors. The pooling of investors’ funds makes Collective Investment Schemes the ideal alternative, providing cost effective access to a wide variety of local and international shares / equities (companies listed on a stock exchange), bonds, and money market instruments such as fixed deposits, treasury bills and call accounts.
Pooling enables investors to reduce transactional costs involved in buying and selling of securities and gives investors the ability to negotiate for better returns than they would get if investing individually.
The collective investment schemes industry is strictly regulated by the Central Bank of Lesotho Collective Investment Scheme (CIS) Regulations, of 2018. The regulations allow the investor to enjoy total transparency of fees, charges and investment performance.
However, the Central Bank of Lesotho does not take any responsibility for the financial soundness of a scheme for correctness of any statements made or opinions expressed in this regard.
- Identify your goal (these should be realistic)
- Establish a time frame
- Identify your level of risk based on your current responsibilities
- Understand the volatility of return associated with different investment types
- Shares are usually identified as having the potential for the highest return of all the investment classes, but with a higher level of risk i.e. share investments have the most volatile returns over the short term.
An investment of this type of asset should be based on the investors’ objectives but it is recommended that it be viewed on a medium to long-term horizon e.g. over five years.
Property
Property yields are normally stable and predictable as they comprise many contractual leases, the rentals of which are passed through to investors.
Property share prices however fluctuate with supply and demand and are counter cyclical to the interest rate cycle.
Property is an excellent inflation hedge as rentals escalate with inflation, ensuring distribution growth, and property values escalate with inflation ensuring net asset value growth.
Bonds
Bonds generally have a lower risk than shares because the holder of a bond has the security of knowing that they will be repaid in full by government authorities. Corporate bonds can also be included and have a slightly higher risk than government-issued bonds. An investment in this type of asset should be viewed with a 3 to 6 year horizon.
Cash
Cash is generally regarded as the safest investment. Whilst it is theoretically possible to make a capital loss investing in cash due to the effects of inflation etc., it is highly unlikely.
Due to its stable nature, cash has a relatively low return in comparison to the other investment classes. An investment in this type of asset may be viewed with a horizon less than 3 years.
Equity Portfolios
These portfolios invest in selected shares across all the industry sectors of Stock Exchanges and offer medium to long-term capital growth as their primary investment objective.
Balanced Portfolios
Balanced portfolios invest in a wide spread of investments in the equity, bond, money markets and aim to provide capital appreciation together with interest income over the medium to long-term.
Fixed Interest Portfolios
Fixed Interest Portfolios invest in bonds, money market instruments and other income earning securities and aim to provide interest income over the short to medium-term. They also provide the opportunity for capital growth.
Stanlib Namibia fact sheets
| Fund Name | Quarterly Commentary |
Comprehensive Factsheet |
|---|---|---|
| Standard Bank Namibia CashPlus Fund |  |
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| Standard Bank Namibia Flexible Property Income Fund | |
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| Standard Bank Namibia Income Fund | |
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| Standard Bank Namibia Inflation Plus Fund | |
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| Standard Bank Namibia Managed Fund | |
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| Standard Bank Namibia Money Market Fund | |
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