The fund suits investors looking for a reasonable income from investments that also provide for some capital growth over the longer term. The fund is made up of a diversified spread of investments in local and offshore assets including equity, cash, bonds and property. Equity exposure is capped at 40% of the portfolio. The fund invests in South African and foreign investment markets, up to the limits allowed by the ASISA South African Multi Asset-Low Equity classification.
Additional Fund Information
Classification: South African – Interest Bearing – Variable Term
Benchmark: BESA All Bond Index
Regulation 28: Complies
STANLIB’s Absolute Return team adopts a unique multi-dimensional investment framework as well as a proactive approach to risk management to deliver investors stable and real returns over the medium to longer term whilst protecting their capital. Risk management is integral to the investment process, and portfolios are constructed on a marginal contribution to risk basis. Portfolio construction begins with the setting of clear risk parameters that are deliberate and not an afterthought.
Our multi-dimensional framework enables us to identify risks and opportunities across the global investment landscape. This framework includes several dimensions and is not solely valuation-focused. This allows us to draw on a pool of possible opportunities offering different risks, asset classes, geographies and sectors. We evaluate our performance not only on a pure return basis but, more importantly, on a risk-adjusted basis.
We take a broad view of markets and interrogate our views. Our scenario-based tactical asset allocation process then allows us to, take into account a wide range of possible eventualities that could affect markets and the consequent implication for specific assets, their volatility and in some cases correlations. This process forces us to factor in alternate outcomes and contrary views. It gives us a distinct advantage in managing risk and makes our process dynamic and versatile in an ever-changing market environment.
STANLIB Absolute Returns team’s philosophy is anchored on three core beliefs:
- Risk is inherent in all assets, even cash. Cash delivers a poor real return in the long term, and is always denominated in a particular currency, so currency risk must be actively managed.
- Generating long-term returns is all about managing risk. Managing risk in a portfolio requires more than simply diversifying with traditional asset classes where correlations vary in times of market stress as correlations generally converge. Preserving our clients’ capital during these market events requires a different approach to portfolio construction.
- The concentration of risks in equities requires careful management. It is important to include a wide source of returns rather than relying on equities as the predominant growth asset.
Portfolio managers within the Absolute Returns team bring relevant but differentiated skills drawn from their diverse backgrounds.
Differences of opinion and perspective are actively encouraged and accommodated. This is the bedrock on which our philosophy and thinking is built. It is a significant element that makes our team different from any other.
Marius Oberholzer with more than 20 years’ experience, leads the team of highly experienced, passionate investment professionals who collectively hold more than 60 years of investment experience.
We aim to deliver absolute returns through a flexible asset allocation framework to embrace growth and management of downside risk to protect capital. We have a diverse skillset and use a mutli-dimensional framework to identify risks and opportunities. We use a wide-ranging toolkit and apply a risk-based approach to assest allocation.
The STANLIB Balanced team has extensive experience in the management of investments across asset classes and through investment cycles.
Our Funds combine the expertise and research resources of STANLIB’s specialist investment teams and our global partners, managed within a clearly defined process by our team’s asset allocation experts.
We believe that behavioural biases create investment opportunities. We use bottom-up fundamental analysis to identify these opportunities and to construct diversified portfolios that deliver consistent risk-adjusted returns and build long-term wealth for our clients.
We do this by:
- Collaborating with and leveraging off the expertise of STANLIB asset class specialists;
- Challenging and validating specialist views with our own bottom-up fundamental analysis;
- Looking through short-term market events; and
- Determining medium-term asset class returns.
Our highly experienced team manages diversified portfolios that balance potential returns with appropriate risk to deliver long-term, consistent returns. We draw on deep specialist expertise across asset classes and provide business cycle insights to build multi asset portfolios in the true sense of the word.
The team consists of highly skilled and seasoned investment professionals in the field of asset allocation and bottom-up stock selection.
Herman van Velze
Herman van Velze who holds more than 25 years of investment experience is head of both the equity and balanced teams at STANLIB.
STANLIB Credit Alternatives is one of the largest and well-resourced credit businesses in South Africa and across the African continent. We are a team of over 30 specialists with deep relationship networks and manage in excess of R55 billion in assets.
Credit provides investors with diversification across their portfolio, allowing investors to gain access to alternative sources of return in a less volatile asset class. We aim to construct asset portfolios that produce predictable and superior risk adjusted return outcomes through economic cycles.
We believe credit markets are non-transparent and informationally inefficient, often leading to mispriced opportunities.
Extracting value from this complex asset class requires a high degree of technical expertise, a rigorous investment process and a focused approach to downside risk management.
By drawing on our strengths, we aim to deliver attractive, risk-adjusted returns over the long term.
- One of the largest and most experienced credit specialist teams in South Africa, managing over R55 billion in assets.
- Offer investors access to investment opportunities in credit assets
- Specialise in downside risk management, credit reviews and governance processes
- Follow a robust investment process and offer superior transaction monitoring and support functions
- Leverage internal recoveries capability and expertise
- Have a ten-year track record across a diverse portfolio of credit assets
Investing in unlisted credit assets requires in-depth knowledge of the various sectors, geographical locations, markets and instruments that form part of the investment universe of this asset class.
Johan Marnewick is Head of STANLIB’s Credit Alternatives. He has 17 years of experience within credit markets, building diversified credit portfolios in South Africa and across the African continent.
We have over 30 professionals with diverse backgrounds and experience and over 350 years of collective experience. We offer our investors:
- A deep understanding of South African credit markets
- An independent and well-resourced credit risk team
- An experienced origination function
- A dedicated credit portfolio analytics and optimisation team
- A dedicated legal function and internal recoveries capability.
Our key portfolio offerings are:
- Diversified Credit
- Impact and Development Credit
- Pan Africa Fixed Income
- Pan Africa Private Debt
STANLIB Equity uses fundamental bottom-up research and analysis to construct diversified equity portfolios that deliver consistent risk-adjusted returns and build long-term wealth for our clients. We invest in quality sustainable businesses and therefore the consideration of environmental, social and governance (ESG) factors is fully integrated into our investment activities.
Our philosophy is premised on a belief that:
- By investing in companies with the right combination of quality and growth we will be able to outperform our benchmark;
- We can achieve superior returns by investing in quality businesses that have a competitive advantage over their peers and also portray attractive medium- to long-term growth prospects;
- In the long run, share prices follow earnings and an investment process that focuses on earnings growth will deliver positive active returns.
We define quality growth companies as organisations that:
- Show potential for long-term growth earnings;
- Have high or rising return on capital;
- Are able to generate inflation-beating returns through cyclical downturns; and are able to benefit from thematic trends
Our differentiated investment strategy combines quality and growth – a proven rewarding investment strategy.
Depth and breadth of experience
We are a diverse and highly experienced team focused on bottom-up research
Quality of growth
We invest in companies that predominantly display both quality and growth characteristics
We think broadly about investment opportunities and look at trends and themes that may impact multiple sectors and companies
We take advantage of changing environments to make informed connections that lead to investment opportunities
STANLIB Equity is an highly experienced and diverse team of active equity managers focused on bottom-up research. The essence of STANLIB team construct is to promote investment independence whilst leveraging the specialist skills within the business and sharing ideas.
Herman van Velze
Herman van Velze who holds more than 25 years of investment experience is head of both the equity and balanced teams at STANLIB.
STANLIB Fixed Income is one of the largest fixed income asset managers in South Africa with one of the strongest and broadest fixed income capabilities in the country.
We have a compelling investment philosophy and process which has delivered great results for our clients over many years and different market environments. We add value through the implementation of a multi-dimensional approach to active management using interest rate cycles, yield curve shape changes, duration management, credit positioning and relative value analysis.
STANLIB Fixed Income believes that over time fixed income markets are efficient and will revert to fair value levels. In the short term inefficiencies can exist that lead to valuations deviating from these fundamental values, providing tactical opportunities to generate enhanced returns. As an active fixed income manager, we regularly exploit these inefficiencies to add value to our client portfolios.
We believe that by employing our extensive experience, resources, expertise and leveraging off the size of our business, we can exploit market inefficiencies, by actively identifying diverse sources of value-add opportunities.
Our investment philosophy is strongly rooted in economic fundamentals. All our investment decisions are backed by sound research, market experience and our ability to execute quickly when markets move. Unlike many other fixed income managers, we do not simply buy and hold but stay close to the markets to identify and take advantage of opportunities. The core of our investment philosophy and process has remained the same for over 20 years. This has created consistency and team-wide deep knowledge of what we do and why we do it.
We are one of the largest fixed income managers in SA, which gives us a competitive advantage in negotiating preferential interest rates on investment opportunities. We have a highliy experienced team who create tailored solutions. As a significant industry player, we deliver consistent outcomes.
The investment team is headed by Victor Mphaphuli and our investment professionals hold 200 years of collective investment experience.
As STANLIB Index Investment we ensure that we fulfill our investment promise to clients by establishing clear and simple objectives using rules-based strategies backed by sound academic research and practical experience. Investors have access to our range of capabilities, from simple Index strategies to Single-Factor, Multi-Factor and Enhanced Index Solutions. They can use these solutions to achieve their objectives for core allocation, risk management or tactical allocation in an efficient, transparent and cost-effective way.
We are a leading provider of a broad range of index and quantitative investment solutions in SA, providing cost-effective local and offshore market exposure for a wide variety of clients.
Low tracking error
We manage over R50bn of assets and have one of the lowest tracking error records in SA.
Our larger scale allows us to manage strategies in the most efficient manner to benefit investors.
We strive to deliver a seamless and efficient proposition that puts our clients’ needs and requirements first.
We value innovation and through consultation we empower our clients in the design of portfolio strategies.
How we invest
We believe that by taking an evidence based, systematic and rules-based investment approach we can create portfolios that will achieve our client’s desired outcomes in a transparent, cost effective and pragmatic manner.
Different circumstances require different investment strategies. We provide investors with the building blocks and tools to enable flexibility in maximising the chances of achieving their investment goals.
- Beta is the more important determinant of portfolio returns in the long term as opposed to alpha.
- Persistent drivers of investment returns exist which deliver returns over and above the market. We call these factors.
- Diversification within and across both asset classes and factors improves portfolio outcomes.
- Cost effective solutions improves investment outcomes.
The STANLIB Index Investments team has nine highly qualified investment professionals with strong experience and diverse backgrounds. The team boasts a strong reputation, is optimally sized, and has flexibility that sets us apart. This team of passionate, dedicated individuals are fully aligned to the business philosophy, which ultimately improves the outcome for all.
STANLIB Infrastructure offers investors a compelling opportunity to invest across a range of infrastructure development projects through a private equity vehicle. We focus mainly on the power, renewable energy, rail roads, airports, water and telecommunication sectors.
We promote socially responsible and environmentally sustainable business practices and implement the highest standards of corporate governance and responsibility.
Track record and trusted team
Experienced team with deep complementary industry, technical and geographic investment experience and a proven track record across the capital structure.
Diversification through scale
STANLIB intends to provide its investors with a platform in which to achieve significant scale that allows for diversification across infrastructure assets and asset classes
STANLIB Infrastructure has the ability to achieve enhanced risk adjusted returns through unique deal sourcing via key investment professionals’ industry networks and risk reduction through deal diversification.
We believe that investment in the infrastructure asset class in South Africa not only offers investors diversified, risk appropriate, stable, long-term returns but is a powerful means of making a tangible and sustainable difference to South African communities.
A highly-regarded team of six private equity professionals, the STANLIB Infrastructure team has the experience, expertise and deal-making track record required to successfully bring infrastructure opportunities to market.
The team is headed by Greg Babaya, Managing Principal and Andy Louw, Principal.
Greg joined STANLIB in 2012 bringing more than 18 years of experience in energy financing, project finance and infrastructure investing in Africa, North America and Latin America. He also has a proven track record in private equity investing as well as in the establishment and capital raising of Infrastructure Funds.
Andy joined STANLIB in 2013 after having spent the past 13 years in mergers and acquisitions, project finance advisory and infrastructure investing in Africa. Andy has extensive deal making experience and a proven track record in infrastructure investing.
STANLIB Listed Property is one of the largest listed property managers in South Africa in both the domestic and global listed property market. Our listed property research and investment experience spans the globe including South Africa, pan-Africa, developed markets and emerging markets. Through this depth of experience and expertise, the team manages STANLIB’s local and global property portfolios.
Our fund management objective is to provide a stable, predictable and growing income source and generate capital growth over time. We are active managers who invest with high conviction through in-depth bottom up fundamental research.
- Generate quality, long-term earnings;
- Have a portfolio of assets that generate sustainable growth in rental streams;
- Have proactive, credible management;
- Have appropriate tenant, lease and debt profiles; and
- Are trading at attractive values relative to their quality and income growth prospects.
To learn more about our Global property offering click here.
Our experienced, passionate team of property specialists holds a diverse and complementary skillset.
The team led by Keillen Ndlovu has over 70 years combined experience in real estate investing.
We are one of the largest listed property managers in SA, investing primarily in quality real estate with the potential to generate incremental growth in rental streams. Our size enables us to support good governance in the listed property industry and to negotiate favourable terms to the benefit of investors.
With our global reach, our strong specialist team invests with high conviction.
We recognise that our success depends on helping investors achieve their investment goals. As the leading solutions’ provider in the Group our approach is to simplify an increasingly complex investment universe and simultaneously provide investors with the convenience of a single investment decision. Along with our unlimited investment scope, global intelligence network and our total impartiality, we ensure that our solutions can always take advantage of the right opportunities no matter where and when they arise.
Founded in 1999, STANLIB Multi-Manager is the centre of excellence for multi-managed solutions within the Group, with an excess of 20 years of multi-asset know-how.
We bring together experienced professionals that put our investors at the centre of our business.
We are one of the largest multi-manager solution providers in SA with over R170 billion of assets under stewardship.
We have a unique value proposition in that we can blend our abilities across different asset classes and strategies (including passive and alternative investments) but also provide additional diversification by including external managers to provide tailored investment outcomes for investors
How we think about investments
Our objective is to deliver superior net investment returns more consistently than through a single asset manager or mandate. We do this by drawing on various sources of return, while diversifying across multiple sources of risk.
We select managers not stocks – We follow a rigorous and disciplined manager research and selection process that starts by analysing the sector for which the portfolio is being built, and determining the key drivers of outperformance.
We maintain a collaborative culture, so when you work with us, you have access to our collective expertise and well-informed management team. Strong alignment exists between the various business units, and together with our global network of experts, serves as the foundation of the overall business.
STANLIB’s offshore capabilities span equity, bond and property asset classes ensuring we offer clients sufficient choice to diversify their local portfolios. Our Listed property team has established deep experience in offshore investing whilst for equity (including balanced) and bond portfolio management we have chosen to partner with global experts. Alignment of culture and investment thinking is critical in chosing an offshore partner while the benefit of “having feet on the ground” and experts in their fields enables us to deliver an optimal offshore solution to our clients.
STANLIB partners with Brandywine Global Investment Management to manage STANLIB’s global bond funds .
Brandywine has significant expertise and a proven track record in bond markets with over 30 years’ experience managing global bonds. They currently manage over $70 billion in global assets and have managed STANLIB’s global bond portfolios since inception. The firm’s headquarters are in Philadelphia, with offices in London, Singapore, San Francisco, Toronto and Montreal.
Brandywine is a pioneer of unconstrained investing and takes a differentiated approach to global bond selection. Portfolio managers use a top-down, bottom-up, macro-driven, value-oriented approach to portfolio construction. The team believes global bond benchmarks are flawed due to their construction methodology, resulting in opportunities for investors.
Our partner in the management of global equity and balanced funds is Columbia Threadneedle, the asset management arm of Fortune 500 company, Ameriprise Financial.
Columbia Threadneedle manages over $400 billion in assets, employing over 2 000 professionals across the globe. They have a proven track record in global equity and multi-asset investing and are dedicated to generating outperformance for investors.
The portfolio management teams at Columbia Threadneedle aim to deliver competitive, repeatable risk-adjusted returns by taking an active approach to asset management. Portfolio managers apply a quality and growth style strategy, which has produced highly successful results since inception. Using a combination of macro and micro insights, the team appropriately and carefully allocates risk to deliver outperformance. Columbia Threadneedle’s process is team-based and performance-driven.
STANLIB’s Listed Property team depth and breadth of experience and expertise in global property assets is anchored on having worked in various offshore regions as well as regular travel to relevant locations ensuring they maintain “on-the-ground” research to inform optimal investment decisions.
The team believes that markets are at times inefficient and stock prices do not always reflect all available information. We believe we can use our experience, resources, and expertise to select stocks that will outperform.
We focus on stocks that will provide high and sustainable income and capital growth over time. We ensure our portfolios are well diversified by choosing stocks across different sectors, such as office, industrial and retail space as well as those exposed to different geographies.
Our focus on fundamental analysis means we are not shy to take contrarian views and our portfolios may look different from prevailing market trends and sentiment.
Why Choose STANLIB to manage your offshore funds?
We offer world-class investment expertise in global cash, bond, equity, multi-asset and property funds through our global partnerships.
Our global partners and local teams are experts in their field with many years of experience in managing funds.
Research teams, spread across many regions and countries, focus on finding the best global investment opportunities.
Client focused offering
We meet regularly with our global specialists, building relationships with their teams so they understand our clients’ needs and expectations.
Our global specialists focus on constructing portfolios that will add value and deliver appropriate returns for each asset class.