Contents Newsflash Market Comment Other Commentators Economic Update Weekly Market Analysis... 8

Transcription

1 04 August 2014

2 Contents Contents... 2 Newsflash... 3 Market Comment... 3 Other Commentators... 4 Economic Update... 6 Weekly Market Analysis... 8 STANLIB Money Market Fund... 9 STANLIB Enhanced Yield Fund... 9 STANLIB Income Fund... 9 STANLIB Flexible Income Fund STANLIB Multi-Manager Absolute Income Fund... 10

3 Newsflash As far as the current correction goes in the markets, no-one knows whether it is over yet or how far it has left Market Comment The JSE All Share Index is down 2.0% from its record high last Tuesday (as of Friday s close), trading back at levels seen on 19 th June. The total return so far in 2014 is 11.8%, down from the 14.7% peak last week. The ALSI is down just 0.93% from its end of month level by 12.30pm on Monday 4 th August. During July the ALSI gained 0.93% (same as the MSCI SA Index in dollars), with Mid-caps (3.2%) outperforming Small-Caps (1%) and Large Caps (0.6%). Resources did best on the JSE in July, with 4.75% (mining did 6.45%), while Financial & Industrials did just % (Industrials -0.95% and Financials +1.15%). The All Bond Index gained 1%, Cash 0.4% and SA Listed Property 1.9%. The rand weakened by 0.6% against the strong dollar, but gained 1.6% against the weaker euro in July. The MSCI World Index lost 1.6% in dollar terms in July, while the Emerging Markets Index gained 2%. China was the best EM, doing 8.2%, while Russia did worst (-8.2%). Europe pulled back quite sharply from its good rally, amidst the Ukrainian and Russian shenanigans, with France (-6.1% in dollars) and Germany (-6.5% in dollars) hurting. In complete contrast the Hang Seng in Hong Kong did 7.5% in dollars as China and emerging markets gained. Interestingly, Brent Crude oil was -6% in July and -1.9% for the past 12 months (good for economies). The best share in July was, can you believe it, Arcelor Mittal with 22.3%, followed by Astral Foods (chicken) with 18%, Merafe Resources with 18%, Brait with 15.2%, Mr Price with 12.3%, then Pioneer Foods 11.8%, Anglo 11.3%, Nampak 10.9% and Kumba 10.6% year-to-date the best share has been Sibanye Gold with 113% (despite being the worst share -10.9% in July), then Telkom 77.4%, Anglogold 48.9% and Brait 43.5%. Tongaat is 5 th best in 2014 with 38%. As far as the current correction goes in the markets, no-one knows whether it is over yet or how far it has left. Garzarelli says typically 4-7% in dollars for the US market, which is down 3.2% so far (although the futures are positive 0.3% today). It is probably fair to say that we could have a 5-10% correction, but this is by no means a done deal. It is impossible to say. To be more cautious, one can invest in a lower risk profile with new cash and then switch to a higher risk profile if one is more confident. Although we don t know about the correction, the bull market remains firmly intact globally and here on the JSE. At least there appears to be a cease-fire from Israel today and the Portugese are bailing out the troubled bank there. Below we show a chart of the MSCI Europe excluding the UK Index, in dollars, showing the 7.35% correction (in strong dollars) from the recent peak, taking the index back to October levels.

4 Source: I-Net Bridge Other Commentators US Market analyst, Elaine Garzarelli Garza notes that while the S&P 500 Index is -3.2% so far in the correction, the smaller share Russell 2000 Index is - 7.8%, in line with its better returns in the bull market and higher volatility. Garza says the Fed reiterated last week that they would keep interest rates near zero for a considerable time after the end of QE. Inflation is restrained with average hourly earnings in the US up only 2% year-on-year. Garza s quantitative system is still bullish at 64%, but down from 71% the previous week, because of a downgrading of the junk bond ratio and Bloomberg Financial Conditions Index. She is a buyer of equities into the correction, believing it will be short-term and associated with improving US economic data and Fed normalisation. The number of bullish financial advisors declined to 55.6% from 56.5%, but is still too high and therefore bearish. Because of better earnings so far in the US, consensus estimates for 2 nd quarter earnings have risen to 10% from 5% year-on-year. Pricing power has helped with commodity prices down; brent oil was down $7 in July and the maize price -$95. Housing data has been poor, but Garza expects it to recover. The Case/Schiller House price index fell 0.3% in May, although it is still up 9.3% year-on-year. BCA Research Chen Zhao thinks the world economy still has a deflationary undertone and the US economy remains dependent on zero rates. This means the Fed must tread carefully; it cannot change its language or message too abruptly. Sustained economic strength is needed before the Fed can begin to normalize policy, a condition that is still absent. Chen thinks the current correction in share prices may persist for a while, given the extremely low volatility, overbought momentum and much expanded equity PE ratios. So the 3 rd quarter could be a tumultuous one for share investors. BCA s asset allocation model has cut its equity weighting to 75% for August from 87%. Conservative investors could consider bringing down risk exposure even more to conserve capital.

5 Investors out there are trying to de-risk their portfolios in preparation for the end of QE and the possible beginning of a rising-rate cycle. Chen s view is that given the excess of savings in the world, low inflation and possible deflation in the euro zone, he sees limited scope for a meaningful tightening in monetary conditions in the US in 2015, which is good news for shares and property. Meanwhile the BCA model portfolio has further increased its allocation to Emerging Market shares within the equity universe. Signs of improvement in the Chinese economy are mounting. The US and China account for more than 35% of the global economy, so a rebound in these two countries is unambiguously positive for global corporate profitability. Meanwhile the BCA model has dropped its weight in Eurozone equities substantially. Chen thinks it might make more sense to reduce an overweight in Europe to a neutral stance. Paul Hansen Director: Retail Investing

6 Economic Update Locally last week, June, private sector credit extension (PSCE) growth accelerated more than expected, to 8.7% y/y from 8.3% in May The increase was mainly due to the general loans and advances of the corporate sector, which are extremely volatile m/m. Total loans and advances rose R25.7bn m/m in June, of which R19bn was attributed to the increase in other loans and advances and is mainly because of the R20.6bn m/m rise in respect of the corporate sector s other loans and advances (mainly general loans, which rose R14.4bn m/m and a R6.1bnm/m increase in overdrafts). There was a small neutralising effect from the R1.6bn m/m decline in households other loans and advances (i.e. unsecured loans). From the R19bn m/m increase in other loans and advances, the increase in total loans and advances were supported by a R4.9bn m/m increase in mortgages (mainly to the corporate sector). There was a modest increase in instalment sales (R1.8bn m/m) and a small decline in leasing finance (down R58mn m/m). The (financial) investments category recorded a modest increase of R2.1bn m/m, while the bills discounted component rose R1.8bn m/m. In contrast, household credit take-up remained fairly subdued, with total outstanding loans rising only R1.4bnm/m which was mainly driven by the R1.8bn increase in mortgages and the R1.3bn increase in instalment sales. These increases were offset by the R1.6bn m/m decline in unsecured loans and the R0.1bnm/m decline in leasing finance. Looking ahead Stats SA s quarterly labour force survey (QLFS) for 2Q14 reported a 0.3% q/q (not seasonally adjusted) increase in total employment. This was attributed to job growth in the informal (non-agricultural) economy (up 1.8% q/q) as well as by private households (up 4.9% q/q). Jobs in the agricultural and formal non-agricultural sectors fell (by 5.5% q/q and 0.2% q/q respectively). The unemployment rate rose marginally to 25.5% in Q from 25.2% in Q (and 25.3% in Q2 2013). On a q/q basis, aggregate employment increased, but formal non-agricultural employment as well as employment outside of community services (which basically represents government employment) suggests that employment is trending sideways. The recent government employment growth is most likely attributed to the expanded public works programme. Overall, Q employment data, outside of government employment remains unimpressive. Job creation is not merely a function of the cost of labour. A range of important policies play a crucial role in facilitating job creation, including labour regulation, education (skills development), competition policy (regulation of industry), industrial policy, trade policy, and infrastructure development. SA s on-going high unemployment requires a more complete and bolder solution. The Kagiso PMI index declined to 45.9 from 46.6 and has been contracting for 5 consecutive months now. Business activity declined from an already low 39.5 to a lower 39.4, suggesting recessionary levels in manufacturing. New sales orders recovered 1.5pts from 43.9 to The fall in purchasing commitments for the fourth consecutive month, to 39.4, confirms softness in demand. Expectations declined in July but still remain well above actual activity. The decline in expectations from 58.3 to 55.4 in July was most likely as a result of the NUMSA's strike, but remains relatively optimistic (above 50), in anticipation of a pick in domestic activity after the strike on the back of pent up demand. Employment dropped sharply by 5.4pts, from 49.3 to 43.9 in line with the QLFS data, the fall in employment alongside subdued indications of the backlog of new orders, which remains low at 37.3, illustrating a sector which is scaling down in terms of capacity. Inventories averaged 56 in Q1 2014, and 54 in Q2 2014, and fell significantly from 58.8 in June to 47.3 in July, indicating that manufacturers may not be restocking. The prices index rose 2.7 points from 73.8 to Prices in July were driven by the exchange rate and increases in diesel and petrol prices of 14c/l and 31c/l respectively. Looking ahead, the resolution of the PGM and NUMSA strikes and the resumption of motor vehicle production at Mercedes Benz, alongside a global recovery, will hopefully be supportive of manufacturing gaining some growth in the second half of In the emerging markets, the National Bank of Angola cut its interest rate by 50 basis points to 8.75% as it expects inflation to continue its downward trend whilst it attempts to stimulate credit to the economy. This is the first move the bank has made in interest rates since it last cut rates in November The rate on the standing lending facility was also lowered by 25 basis points to 9.75% and the rate for absorbing liquidity was kept at 1.75%. Inflation recorded another historical low in Angola at 6.89% in June 2014 from 6.95% in May (even though Luanda, the capital, is regarded as one of the most expensive cities in the world). The easing in inflation rate gave the bank some space to loosen monetary policy as inflation is expected to continue its downward trend after a once off increase from a new import tariff schedule. The tariff was implemented in an attempt boost local production of agricultural goods as well as the industry sector as most of these goods are imported. The inflation rate is expected to continue a downward trajectory once the effects of the tariff start to fade. The Food and Non-Alcoholic Beverages sector, which constitutes 55% of the CPI basket, recorded a low monthly increase at 0.4% however some food items are expected to be affected by the new tariff.

7 After its latest visit the IMF is forecasting growth to moderate to 3.9% as agricultural output decelerates from last year s high growth base. Gross international reserves are at a healthy US$ 31.2 billion. The currency has appreciated by 0.08% from May until June 2014 and by 0.67% since the beginning of the year. Inflation in Kenya has breached the upper bound of the central bank s target range of % and came in at 7.67% y/y in July 2014 from the 7.39% recorded in June. The inflation rate has been within the target band for the last eight months but the trend started turning upwards in April This was mainly driven by food prices as there was a poor harvest in the recent agricultural season. Food & Non-Alcoholic Beverages category rose by 9.06% y/y (0.5% m/m) and makes up 36.04% of the CPI basket so this category has high influence on overall inflation. This should be temporary as the base effects from the implementation of taxes on certain commodities wear off. The second biggest category, Housing, Water, Electricity, Gas & Other Fuels increased by 7.7% y/y (0.57% m/m) as rents and power tariffs increased. However the upward trend is expected to continue and the inflation rate could breach the target again at the end of the fourth quarter of this year. This could prompt the central bank to maintain its current accommodative policy until the end of the year as it also attempts to increase credit to the economy this is seen through initiatives such as the introduction of the Kenya Bank s Reference Rate (KBRR). On a monthly basis prices increased by 0.46% with the biggest increase coming from Furnishings, Household Equipment and Routine Household Maintenance at 0.8%. Remittances, which are a vital source for foreign inflows, increased by 16.3% y/y in June 2014 to US$ billion however declined when compared to the previous month by 3%. Cumulatively, remittances have increased 13.22% in June 2014 as compared to the year to June Most of the inflows originated from North America at 45.5% of all flows which shows a declining trend followed by Europe at 27.7% however flows from the rest of the world are becoming a bigger portion. The inflation rate in Uganda has fallen the fourth consecutive month to 4.3% for July 2014 as compared to 5% in June and 5.4% in May. Again the main reason for the lower inflation number was from the lower food prices which on a monthly basis decreased by 1.7%. The inflation number has been trending downwards for the past four months however this could be reversed by the weakness experienced by the currency especially after the country passed its anti-gay law. Core inflation came in at 3% in July up from 2.9% in June. The inflation reading in Zambia came in at 8% in July 2014 as compared to June where it recorded 7.9%. This continues the upward trend that began end of last year when the inflation rate was as low as 6.9% in October This month s increase was mainly due to a 25% hike in electricity tariffs which contributed 0.7 percentage points to overall inflation. Therefore the inflation rate is expected to continue its current direction, above the 6.5% target, as the base effect reflects in the inflation numbers in the coming months. The weakness in the currency has provided a boost to the trade surplus, as opposed to last month when it shrank. The trade surplus was K47.7 million in June 2014 from K41.1 million in May. The Bank of Mauritius kept rates on hold at 4.65% however attempts to maintain stability provided some forward guidance that rates could increase by at least 25 basis points at its first meeting in Members of the Monetary Policy Committee of the bank agreed on the timing of the normalisation of rates as the rest of the world starts increasing the interest rates. The interest rate will be maintained at the current 4.65% until the end of the year subject to the inflation rate staying below 4% in the year and no changes to the growth outlook. According the Monetary Policy Committee s communiqué the current accommodative stance was taken to allow the private sector to reform and restructure balance sheets and has until year end to do so. The bank s committee was worried that sustained negative real rates are leading towards unhealthy consequences such as fewer savings, more consumption and higher corporate indebtedness. The bank expects 2014 growth to be in the region of % as compared to the IMF and World Bank s forecast of 3.7% and 4.1% respectively. Please follow our regular economic updates on Kevin Lings, Laura Jones & Kganya Kgare (STANLIB Economics Team)

8 Weekly Market Analysis Currencies/ Indices/ Commodities Friday s Close 01/08/14 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 * MSCI - Morgan Stanley Capital International

9 Rates These rates are expressed in nominal and effective terms and should be used for indication purposes ONLY. STANLIB Money Market Fund Nominal: Effective: 5.86% per annum 6.02% per annum 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 01 August 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: 6.34% 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 01 August 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: 7.02% 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 01 August 2014.

10 STANLIB Extra Income Fund Effective Yield: 6.44% 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. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. The above quoted yield will vary from day to day and is a current yield as at 01 August STANLIB Flexible Income Fund Effective Yield: 6.65% 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 01 August STANLIB Multi-Manager Absolute Income Fund Effective Yield: 6.17% 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 01 August 2014.

11 Glossary of terminology Bonds A bond is an interest-bearing debt instrument, traditionally issued by governments as part of their budget funding sources, and now also issued by local authorities (municipalities), parastatals (Eskom) and companies. Bonds issued by the central government are often called gilts. Bond issuers pay interest (called the coupon ) to the bondholder every 6 months. The price/value of a bond has an inverse relationship to the prevailing interest rate, so if the interest rate goes up, the value goes down, and vice versa. Bonds/gilts generally have a lower risk than shares because the holder of a gilt has the security of knowing that the gilt will be repaid in full by government or semi-government authorities at a specific time in the future. An investment in this type of asset should be viewed with a 3 to 6 year horizon. Cash Collective Investments Compound Interest Dividend Yields Dividends Earnings per share An investment in cash usually refers to a savings or fixed-deposit account with a bank, or to a money market investment. Cash is generally regarded as the safest investment. Whilst it is theoretically possible to make a capital loss investing in cash, it is highly unlikely. An investment in this type of asset should be viewed with a 1 to 3 year horizon. Collective investments are investments in which investors funds are pooled and managed by professional 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 is often out of reach of smaller investors. The pooling of investors funds makes collective investments the ideal option, providing cost effective access to the world s stock markets. This is why investing in collective investments has become so popular the world over and is considered a sound financial move by most investors. Compound interest refers to the interest earned on interest that was earned earlier and credited to the capital amount. For example, if you deposit R1 000 in a bank account at 10% and interest is calculated annually; your balance will be R1 100 at the end of the first year and R1 210 at the end of the second year. That extra R10, which was earned on the interest from the first year, is the result of compound interest ("interest on interest"). Interest can also be compounded on a monthly, quarterly, half-yearly or other basis. The dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its share price. The higher the yield, the more money you will get back on your investment. When you buy equities offered by a company, you are effectively buying a portion of the company. Dividends are an investor s share of a company s profits, given to him or her as a part-owner of the company. Earnings per share is a measure of how much money the company has available for distribution to shareholders. A company s earnings per share is a good indication of its profitability and is generally considered to be the most important variable in determining a company s share price.

12 Equity Financial Markets Fixed Interest Funds Gross Domestic Product (GDP) Growth Funds Industrial Funds Investment Portfolio JSE Securities Exchange Price to earnings ratio Property Resources and Basic Industries Funds A share represents an institution/individual s ownership in a listed company and is the vehicle through which they are able to share in the profits made by that company. As the company grows, and the expectation of improved profits increases, the market price of the share will increase and this translates into a capital gain for the shareholder. Similarly, negative sentiment about the company will result in the share price falling. Shares/equities are usually considered to have 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 in this type of asset should be viewed with a 7 to 10 year horizon. Financial markets are the institutional arrangements and conventions that exist for the issue and trading of financial instruments. Fixed interest funds invest in bonds, fixed-interest and money market instruments. Interest income is a feature of these funds and, in general, capital should remain stable. The Gross Domestic Product measures the total volume of goods and services produced in the economy. Therefore, the percentage change in the GDP from year to year reflects the country's annual economic growth rate. Growth funds seek maximum capital appreciation by investing in rapidly growing companies across all sectors of the JSE. Growth companies are those whose profits are in a strong upward trend, or are expected to grow strongly, and which normally trade at a higher-thanaverage price/earnings ratio. Industrial funds invest in selected industrial companies listed on the JSE, but excluding all companies listed in the resources and financial economic groups. An investment portfolio is a collection of securities owned by an individual or institution (such as a collective investment scheme). A funds portfolio may include a combination of financial instruments such as bonds, equities, money market securities, etc. The theory is that the investments should be spread over a range of options in order to diversify and spread risk. The primary role of the JSE Securities Exchange is to provide a market where securities can be freely traded under regulated procedures. Price to earnings ratio or p: e ratio is calculated by dividing the price per share by the earnings per share. This ratio provides a better indication of the value of a share, than the market price alone. For example, all things being equal, a R10 share with a P/E of 75 is much more expensive than a R100 share with a P/E of 20. Property has some attributes of shares and some attributes of bonds. Property yields are normally stable and predictable because they comprise many contractual leases. These leases generate rental income that is 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. This ensures real returns over the long term. These funds seek capital appreciation by investing in the shares of companies whose main business operations involve the exploration, mining, distribution and processing of metals, minerals, energy, chemicals, forestry and other natural resources, or where at least 50 percent of their earnings are derived from such business activities, and excludes service providers to these companies.

13 Smaller Companies Funds Value Funds Growth Funds Smaller Companies Funds seek maximum capital appreciation by investing in both established smaller companies and emerging companies. At least 75 percent of the fund must be invested in small- to mid-cap shares which fall outside of the top 40 JSE-listed companies by market capitalisation. These funds aim to deliver medium- to long-term capital appreciation by investing in value shares with low price/earnings ratios and shares which trade at a discount to their net asset value. Growth funds seek maximum capital appreciation by investing in rapidly growing companies across all sectors of the JSE. Growth companies are those whose profits are in a strong upward trend, or are expected to grow strongly, and which normally trade at a higher-thanaverage price/earnings ratio. Sources: Unit Trust and Collective Investments (September 2007), The Financial Sector Charter Council, Personal Finance (30 November 2002), Introduction to Financial Markets, Personal Finance, Quarter , Investopedia ( and The South African Financial Planning Handbook 2004.

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 15h30. Investments and repurchases will receive the price of the same day if received prior to 15h30. 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.: H324X5 17 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