The Weekly Focus. A Market and Economic Update 20 February 2017

Transcription

1 The Weekly Focus A Market and Economic Update 20 February 2017

2 Contents Newsflash... 3 Market Comment... 3 Other Commentators... 4 Economic Update... 7 Weekly Market Analysis Rates STANLIB Money Market Fund STANLIB Enhanced Yield Fund STANLIB Income Fund STANLIB Extra Income Fund STANLIB Flexible Income Fund STANLIB Multi-Manager Absolute Income Fund... 13

3 Newsflash On the home front the 2017 year is so far going similar to The mid-caps and small-caps are outperforming because of the rand. Market Comment While the US stock market has consistently edged up to new highs, the JSE has struggled so far in February, clearly battling with the strong rand (as in 2016) and perhaps also concerned about Wednesday s rather crucial budget speech, crucial from a tax point of view. So far the MSCI World Index is +4.9% in dollars in 2017, at record highs, while the MSCI Emerging Markets Index is +8.9% in dollars, at its highest level since July Thanks to the stronger rand, though, the MSCI World Index is slightly down in rand terms at -0.9%. The S&P 500 Index is +5% in dollars in 2017, but just +0.5% in rands. The S&P 500 Index has gained +12.8% since the low just after Trump s victory. Meanwhile, on the home front the 2017 year is so far going similar to SA Listed Property is back in top position so far this year with +3.2% (including dividends), followed by bonds +2.7%, then the JSE All Share Index at +2.5% and cash at +0.9%. In dollar terms, though, the JSE ALSI is +7.6%, including dividends, which is better than the US stock market and the MSCI Word Index. In dollar terms last week the JSE ALSI hit its highest level since July 2015, similar to the MSCI Emerging Markets Index. On the local front, again similar to 2016, while the ALSI 40 is up just +2.7% in 2017, the JSE Mid-Cap Index (share 41 to 100) is up +3.9% (+26.9% last year), while the JSE Small- Cap Index is up +6.2% - at a new all-time record high (did +20.9% last year). Clearly the ALSI 40 is struggling with the strong rand, while the strong rand is more of a help for the other two indices. For example last week, as the rand gained +1.7% towards the 13 level (and a bit better at times), Aspen fell by -6%, Sasol by -4%, Amplats by -5.9%, British American Tobacco by - 3.7%, Anglo American by -3.6% and Naspers by -1.2%, amongst others. Those shares with no or very low offshore exposure did well, such as PSG +5.8%, Truworths +10.3%, KAP +15.5%, Sanlam +3.7% and Imperial +5.7%. This is a bit ironic, with so many investors wanting to get their funds offshore out of fear of what President Zuma may do. From 17 rand to the dollar last January to last week (now 13.16), the rand s uptrend appears to be firmly intact. In fact on the charts the break to around 13 last week seems to have further confirmed that bull trend. What I find very interesting is that the rand to the pound at (+33% since the low last January of 24.65) is currently stronger than over 15 years ago back in late 2001, when the rand briefly touched 20 to the pound!! (see chart below).

4 Source: I-Net Bridge A number of technical analysts or chartists say the elastic is a bit stretched, so our currency could weaken in the short-term, especially if the budget is bad and/or Pravin Gordhan is replaced. But so far the rand has strengthened along with both emerging market currencies and commodity currencies. Last week Merrill Lynch s monthly Fund Manager Survey showed that local fund managers have turned bearish on cash for the first time in over 5 years and have turned a bit more bullish on SA equities and bonds. A net 42% of managers (bullish minus bearish managers) think the SA equity market will be up in six months. Also 42% of managers think the SA market is overvalued vs 60% last month. Expected returns in 12 months are at their highest in 4 years at +7.2% (athough this is still lower than the current money market yield). Fund managers see the rand at in 12 months time and the 10-year bond yield at 8.68%, similar to the current yield. 78% of managers expect a rate cut. The biggest risk to the markets locally is a government policy shift to the left. On the global front, offshore fund managers are still holding more cash at 4.9% of portfolio than the 10-year average of 4.5%. The proportion of global asset allocators overweighting European equities increased to a net 23% versus 17% last month, now slightly above the long-run average. Most managers (78%) believe US shares are overvalued, while European shares are undervalued. European politics, especially the French election, is seen as the top tail-risk to global markets (not The Donald). Other Commentators US Market Analyst, Elaine Garzarelli Garza believes that shares continue to be the best investment, compared with low-yielding bonds. Currently the odds of a March rate hike in the US are 34%, versus 74% for one in June and 78% for one in July. Garza s quants model remains at a bullish 75% reading, so she recommends full exposure to shares.

5 The combination of accelerating global growth, stimulative global monetary policy, increasing US wages, good earnings growth and the likelihood of corporate tax reform retroactively have been positive supports for shares. The number of bullish US investment advisors fell slightly to 61.8% last week from 62.7%, still a bearish contrarian reading. The US economy looks good. High consumer confidence is primarily buoyed by rising employment and net worth. Net worth has risen by +7% year-on-year in the first quarter as share and home prices have risen. Business confidence is also up and this optimism from both the consumer and business leads to more spending. Also Garza believes that the manufacturing recession in the US is over. A modest improvement is likely. With the S&P 500 Index +4.8% in 2017, IT remains the leading sector at +7.4%, then Health Care at +6.6% and Consumer Discretionary at +6.1%. Interestingly, the oil sector (Energy) is the worst at -4.6%. Sasol is also struggling locally, down -5% in rands in US real estate is +1.7%. BCA Research BCA is optimistic on the French, German and Netherlands elections, despite alarms about populism. They think French Nationalist Presidential candidate, Marine le Pen, is overrated. Merkel s demise would be an opportunity, rather than a risk. However, Italy does pose a real risk and elections there will be crucial. BCA thinks European markets are in a sweet spot this year, despite concerns about elections. Global growth is showing signs of improving, the European Central Bank will continue to stimulate (as opposed to the Fed), the EU Commission is calling for more expansionary fiscal policy in Europe and valuations continue to favour European plays over other developed market plays. Political risk is an issue, though and currently the probability of a euro currency breakup over the next 5 years is at 30.2%, up from under 20% in 2015 and 2016, but still much lower than the peak of 80% in 2011/2012. Thankfully for investors, neither a recession nor a geopolitical crisis is on the horizon for The migration crisis appears to have ended. Mediterranean Sea arrivals in Europe are down from a peak of 220,000 in late 2015 to just 5,129 now. BCA is cyclically overweight European equities relative to US equities in currency-hedged terms. On the US economy, BCA re-introduced the term goldilocks, describing an economy that is growing, but not quite hot enough to create serious inflation risks and not so cold that it fosters recession fears. The NFIB small business survey has shown a surge in confidence amongst small businesses over the past few months. Small businesses have long been considered the job engine of the US economy, so monitoring the sentiment of small business owners, their likelihood to undertake expansion plans and raise or cut prices can often give a good glimpse of the likelihood of financial market trends to be sustained on a cyclical basis. Ever the sceptics though, BCA think the high confidence readings are based on lots of hope and will probably reverse substantially in the near future. According to the survey, business conditions are the best in 30 years, except for a brief period in the early 2000s.

6 The pace of economic expansion has only gradually improved, yet investors have drastically revised up their expectations, so BCA is sceptical. So they believe that the current phase of the equity rally is high risk (short-term), although they remain overweight in small caps versus large caps. Paul Hansen Director: Retail Investing

7 Economic Update 1. SA Retail sales slow sharply in December, however fourth quarter of 2016 remains positive. 2. South African Consumer Inflation down to 6.6% in January and could slow further in South African unemployment rate eases to 26.5% in the fourth quarter of Bank of Namibia keeps rates on hold even though inflation rate rises sharply. 5. Nigeria s inflation rate continues to move upward as naira loses value on the black market. 1. Stats SA released the retail sales data for December 2016 today. According to this latest survey, retail sales fell by a significant 2.3%m/m during the month, after rising by an impressive 3.1%m/m in November, in real terms (seasonally adjusted). The month-onmonth sales performance was worse than market expectations, but the decline is off a high base in November given the Black Friday boost to retail sales in November (see previous on retail sales). Importantly, in the three months from October to December 2016, retail sales rose 1.1%q/q, heavily boosted by the November sales. While this is not a dramatic increase, it does suggest that the sector could add to GDP growth in Q4 2016, after declining sharply by 2.1%q/q in Q On an annual basis, retail spending rose by a modest 0.9%y/y (real), down from an annual growth rate of 3.1%y/y in November. The latest annual growth rate was also below market expectations. More importantly, the 12-month moving average rate of annual growth is clearly still trending weaker, despite the November boost in sales (see chart attached), and is expected to slow further in During 2015, South African consumers were helped by relatively low inflation (4.6%) compared with an average wage increase of 7.7%; but this systematically changed during 2016 as inflation moved noticeably higher, the Reserve Bank continued to hike rates in early 2016, banks have become much more circumspect in the granting of credit. The net result is that the consumer has less discretionary income available for general retail activity. At the same time consumer confidence has fallen well below the long-term average on a sustained basis. Our overall perspective on retail spending and the strength of the South African consumer remains essentially unchanged. Firstly, it is clear that although the growth in consumer spending is now slowing, the sector has been relatively resilient when compared with other key sectors in the economy, especially manufacturing, in recent years. This is because household income growth has consistently exceeded inflation due to above inflation wage increases in key sectors of the economy. However, the inflation rate has been above the target for a number of months, consumer confidence has weakened considerably, there has also been a sustained increase in user-charges (especially electricity, and water), the unemployment rate near record highs, fuel prices remains high, and interest rates are somewhat higher. Lastly, we expect a sharp increases in taxes during the February 2017 National Budget. Together, all these factors will most likely slow retail spending, on a trend basis, during the first half of In January 2017, South Africa s headline CPI inflation increased by 0.6%m/m. As a result, the annual rate of change in consumer prices eased to 6.6%y/y, down from a revised 6.7%y/y in December (based on the new weights for the CPI index). This was slightly below some market expectations (STANLIB 6.6%y/y). Food prices increased meaningfully in the month, but slowed on an annual basis due to base effects. Petrol inflation also rose sharply, as expected, given the recent additional petrol price hike, and is forecast to remain elevated throughout 2017!

8 SA consumer inflation appears to have peaked at 6.7%y/y in Dec 2016 and is expected to moderate in This slowdown in inflation is largely based on a moderation in SA food inflation (see food inflation forecast attached). Food prices rose by a substantial 1.7%m/m in January Over the past year food inflation remained uncomfortably high at 11.4%y/y, but off the peak of 12.0%y/y in Dec The monthly increase in food inflation included a further 2.8%m/m rise in meat prices (8.9%y/y), a 1.7%m/m increase in fish inflation (11.1%y/y), and a 1.3%m/m jump in diary produce (11.1%y/y). Although we still expect food inflation to remain relatively high over the coming months, we think most of the anticipated surge in food prices (as a result of the recent drought) is now reflected in the data. Furthermore, the increase in summer rainfall suggests that SA should experience a very welcome improvement in the agricultural season ahead. This should lead to a meaningful moderation in food inflation during 2017, which in-turn, will help to bring headline consumer inflation back inside the target range within the next 6 months. Already agricultural food inflation has slowed very dramatically in recent months (see charts attached). As mentioned above, there was another noticeable price increase in petrol. This increase reflects the 48c/I increase in the fuel prices during January, which added 0.2 percentage points to the monthly inflation rate. Unfortunately, there was a 29c/l increase in the fuel price during February. This will contribute a further 0.1 percentage points to SA consumer inflation next month. We also expect the Minister the Finance to hike the fuel levy sharply in next week s National Budget. CPI excluding food and petrol is still within the inflation target at 5.7%y/y, while core inflation (CPI excluding food, fuel and electricity) moved noticeably lower to 5.5%y/y, down from 5.9%y/y in December The Reserve Bank will remain concerned that core inflation is still relatively high and close to the top-end of the inflation, but it seems unlikely that core inflation will breach the upper-end of the target in the short-term. Services inflation was recorded slightly lower at 5.7%y/y, while administered price inflation moved above the target at 6.2%y/y. The inflation rate for pensioners was recorded above the target at 6.7%y/y. For 2014 as a whole, SA CPI inflation averaged 6.1%, up slightly from an average of 5.8% in 2013 and 5.6% in For 2015, SA inflation averaged an impressive 4.6%, but moved significantly higher in 2016 due to the drought, with inflation averaging 6.3%. Looking further-out in 2017, SA inflation is expected to move lower to an average of 5.7%, helped by a slowdown in food inflation as well as favourable base effects. In 2015, the SA Reserve Bank became concerned about a broadening of inflationary pressure and decided to start to increase interest rates. While this was partly in response to concerns about inflation, it also reflected their worry about South Africa s vulnerability to foreign capital outflows should the Federal Reserve hikes rates. They followed this with a further hike of 75bps in South Africa s growth outlook remains troubling and at risk of remaining weak, while the markets remain anxious about the political environment. This will encourage the Reserve Bank to remain vigilant, but not necessarily change interest rates. In other words, as we highlighted in each of the past few months, having already hiked rates by 200bps since the recent low, the Reserve Bank can afford to leave rates unchanged in the short-term, with the improved outlook for inflation suggesting that the Bank could have some scope to cut rates in late However, the scope for the SA Reserve Bank to cut SA interest rates during 2017 will be significantly impacted by any further upward adjustment to US interest rates (the Fed is expected to hikes rate two or three times in 2017, having increased rates by a further 25bps in December 2016) as well as SA s credit rating remaining at risk of being revised lower. Consequently, we currently expect SA interest rates to remain unchanged throughout 2017.

9 3. Stats SA released the Labour Force Survey (LFS) for Q today. The LFS is a quarterly household survey specifically designed to measure the dynamics of employment and unemployment in South Africa, including the informal sector as well as small-scale subsistence farmers. The following is a summary of the key trends in the labour market as at Q (see charts attached for further information). In Q4 2016, there were million people in SA aged between 15 and 64 years(up relative to Q3 2016, and up over the past year). Among these people: million were economically active (up relative to Q3 2016, and up year-on-year) million were employed (up relative to Q3 2016, but up only yearon-year) million were unemployed (down relative to Q3 2016, and up a massive year-on-year) As mentioned above, the number of employed people rose sharply in the final quarter, by This follows an increase of jobs in third quarter of (Please note that South Africa s quarterly employment data is not seasonally adjusted). However, over the past year the economy has added only jobs, mostly within the agricultural sector (which was up a more impressive jobs, helped by the improvement in rainfall and increase planting). In contrast, the formal sector lost jobs over the past year. Unfortunately, it is difficult to reconcile the improvement in employment over the past six months (a total of jobs created in the second half of 2016) with SA s lacklustre GDP performance (+0.2%q/q in Q and a possible decline in GDP during Q4 2016), a hiring freeze in government and a deep recession in private sector fixed investment. While this anomaly can be partly explained by seasonal factors, seasonality cannot fully explain the entire uplift in the second half of The increase in employment during Q was enough to bring the overall rate of unemployment down. South Africa s official rate of unemployment fell to 26.5% from 27.1% in Q The Q unemployment was the highest since the data series started. According to the expanded definition of unemployment, the unemployment rate is a very worrying 35.6%, but down slightly from 36.3% in Q (this includes discouraged workers). According to the expanded definition, the unemployment rate for the youth (younger than 25) is incredibly high at 63.8%. Clearly, the latest unemployment rate remains discouraging, although there is some comfort in the fact that eased slightly in the quarter. Overall, South Africa s labour market has failed to gain any meaningful traction over the past year (adding only jobs in the year despite large swings in the quarterly data) and unemployment rate (especially for the youth) remains exceedingly high by global standards. Fundamentally, this reflects the lack of fixed investment spending by the private sector, as well as the sustained low business confidence. Furthermore, the high rate of unemployment contributes too much of the social tension and anguish experienced in South Africa on a daily basis, especially among the youth. Increasing employment in South Africa has to be the number one economic/political/social objective, and can only be resolved meaningfully through a concerted and sustained effort to improve skills development as well as encourage private sector fixed investment spending. 4. The Bank of Namibia kept rates on hold at 7% at its monetary policy meeting in an effort to support growth. Rates have been held at that level since April 2016 when they were raised 25 basis points. The Bank feels that this level is appropriate to maintain the peg between the Namibian Dollar and South African Rand. Backing this up would be the N$22.9 billion of reserves which represent 2.8 months of import cover. Inflation in Namibia is currently at a near eight year high with real rates at -1.2%.

10 Namibia is currently in technical recession as activity in the agriculture, construction and mining sectors have slowed. Agriculture and construction were affected by a drought with construction being further affected by the pulling back on some projects by government. Mining was disrupted by a fire which shut down one of the key mines in the country. The mine is soon to be re-opened which should be mining production going forward. Inflation in Namibia accelerated to 8.2% y/y in January 2017 from 7.3% y/y in each of the previous 3 months. This is the highest it has been since October Inflation has now been out of the Bank of Namibia s target band of 3 6% for past 12 months. Monthon-month inflation has accelerated to 3.2% m/m and this is the highest monthly inflation has been in Namibian history. Although this increase is seasonal, it is likely to keep inflation levels elevated for the rest of the year. Goods inflation increased to 8.1% y/y and services inflation to 8.3% y/y. Inflation was mainly driven by food prices, hotels and cafes, furnishings as well as higher house rental and administered prices (water, electricity, gas etc.). It is important to note that housing, water, electricity, gas and other fuels represent the biggest portion of the CPI basket with a weighting of 28.36%. NamWater has increased tariffs as water shortages from the drought continue. Food inflation accelerated to 13.2% driven mainly by Fish (23.3%), Sugar, Syrups (19.7%) and Fruit (15.8%). Although the Southern African region has had the effect of the drought alleviated through rains, Namibia is still in a drought which has continued to keep food prices elevated. This is contrary to the trend in the rest of the region where food inflation is starting to subside with the help of a high base effect. Inflation is likely to accelerate further in the month of February and stay above target for most of As such the interest rate is likely to remain at 7% with a tightening bias. The Bank of Namibia will be conscious of the low growth and will tread carefully in terms of raising interest rates. The low growth in environment is expected to continue in the Southern African Customs region with only a modest improvement in The Nigeria Bureau of Statistics released inflation statistics for the month of January. The latest data release revealed that inflation in Nigeria had accelerated to 18.7% from 18.6% in December 2016 and 18.5% in November This was the highest inflation rate recorded Nigeria since Month-on-month inflation was recorded at 1% from 1.1% in the previous period. Nigeria s inflation rate has now been above target for nearly two years with the real rate now at a 6 year low of -4.7%. However this seems as if this could be the peak of inflation (from our previous estimate of November 2016). The February data point is likely to be slightly lower on favourable base effects. Encouragingly core inflation had moderated further to 17.9% in January 2017 from 18.1% in December and 18.2% in November. This figure is expected to continue to moderate as the year progresses. Meanwhile food inflation accelerated to 17.82% in January 2017 from 17.4% in December. Although imported food contributes less than 25% to overall food prices, the increase could be explained by the exporting of food stuffs. The Naira (especially on the black market) has made Nigerian agricultural goods more competitive. The higher costs of producing and transporting agricultural goods have also filtered into food inflation. We expect the Naira to continue to weaken as a lack of liquidity and policy uncertainty surrounding the currency are still prevalent in the economy. The Naira to the US Dollar is currently trading at 315 on the interbank (i.e. official) market and as high as 510 to the Dollar on the black market.

11 The Central Bank of Nigeria has proven to be reluctant to raise rates in the midst of a recession. There are signs that there could possibly be further moves from the CBN concerning the currency. Whether that is further devaluations or (proper) freefloating of the currency remains unclear. This could maybe start changing rhetoric from the CBN towards tightening policy further (rates were last raised in July 2016 from 12% to 14%). However what could be said is that double digit inflation will most probably stay with us for the rest of 2017 putting the consumer under further pressure. Please follow our regular economic updates on Kevin Lings, Laura Jones & Kganya Kgare (STANLIB Economics Team)

12 Weekly Market Analysis Currencies / Indices / Commodities Friday s Close 17/02/17 Weekly Move (%) YTD (%) Indices * MSCI World US Dollar * MSCI World Rand * MSCI Emerging Market US Dollar * MSCI Emerging Market Rand All Share Index US Dollar All Share Index Rand All Bond Index Listed Property J Currencies US Dollar/Rand Euro/Rand Sterling/Rand Euro/US Dollar Commodities Oil Brent Crude Spot Price ($/bl) Gold Price $/oz Platinum Price S/oz Source: I-Net Bridge

13 Rates These rates are expressed in nominal and effective terms and should be used for indication purposes ONLY. STANLIB Money Market Fund Nominal: 7.10% Effective: 7.33% STANLIB is required to quote an effective rate which is based upon a seven-day rolling average yield for Money Market Portfolios. The above quoted yield is calculated using an annualised seven-day rolling average as at 17 February This seven- day rolling average yield may marginally differ from the actual daily distribution and should not be used for interest calculation purposes. We however, are most happy to supply you with the daily distribution rate on request, one day in arrears. The price of each participatory interest (unit) is aimed at a constant value. The total return to the investor is primarily made up of interest received but, may also include any gain or loss made on any particular instrument. In most cases this will merely have the effect of increasing or decreasing the daily yield, but in an extreme case it can have the effect of reducing the capital value of the portfolio. STANLIB Enhanced Yield Fund Effective Yield: 8.13% STANLIB is required to quote a current yield for Income Portfolios. This is an effective yield. The above quoted yield will vary from day to day and is a current yield as at 17 February The net (after fees) yield on the portfolio will be published daily in the major newspapers together with the all-in NAV price (includes the accrual for dividends and interest). This yield is a snapshot yield that reflects the weighted average running yield of all the underlying holdings of the portfolio. Monthly distributions will consist of dividends and interest. Interest will also be exempt from tax to the extent that investor s are able to make use of the applicable interest exemption as currently allowed by the Income Tax Act. The portfolio s underlying investments will determine the split between dividends and interest. STANLIB Income Fund Effective Yield: 8.74% STANLIB Extra Income Fund Effective Yield: 8.29% STANLIB Flexible Income Fund Effective Yield: 8.23% STANLIB Multi-Manager Absolute Income Fund Effective Yield: 5.88% 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. A schedule of fees and charges and maximum commissions is available on request from the company/scheme. CIS can engage in borrowing and scrip lending. Commission and incentives may be paid and if so, would be included in the overall costs. The above quoted yield will vary from day to day and is a current yield as at 17 February For the STANLIB Extra Income Fund, Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down.

14 Disclaimer The price of each unit of a domestic money market portfolio is aimed at a constant value. The total return to the investor is primarily made up of interest received but, may also include any gain or loss made on any particular instrument. In most cases this will merely have the effect of increasing or decreasing the daily yield, but in an extreme case it can have the effect of reducing the capital value of the portfolio. 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. A fund of funds is a portfolio that invests in portfolios of collective investment schemes, which levy their own charges, which could result in a higher fee structure for these portfolios. Forward pricing is used. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. TER is the annualised percent of the average Net Asset Value of the portfolio incurred as charges, levies and fees. 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. Portfolios are valued on a daily basis at 15h00. Investments and repurchases will receive the price of the same day if received prior to 15h00. 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. As neither STANLIB Wealth Management Limited nor its representatives did a full needs analysis in respect of a particular investor, the investor understands that there may be limitations on the appropriateness of any information in this document with regard to the investor s unique objectives, financial situation and particular needs. The information and content of this document are intended to be for information purposes only and STANLIB does not guarantee the suitability or potential value of any information contained herein. STANLIB Wealth Management Limited does not expressly or by implication propose that the products or services offered in this document are appropriate to the particular investment objectives or needs of any existing or prospective client. Potential investors are advised to seek independent advice from an authorized financial adviser in this regard. STANLIB Wealth Management Limited is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 37 of 2002 (Licence No. 26/10/590) Compliance No.: HX Melrose Boulevard, Melrose Arch, 2196 P O Box 202, Melrose Arch, 2076 T: (SA Only) T: +27 (0) E: contact@stanlib.com Website: STANLIB Wealth Management Limited Reg. No. 1996/005412/06 Authorised FSP in terms of the FAIS Act, 2002 (Licence No. 26/10/590) STANLIB Collective Investments Limited Reg. No. 1969/003468/06