Newsflash Market Comment... 3 Larry Hatheway of UBS calls an end to the 31 year Global Bond Bull Market... 5 Snippets of Info...

Transcription

1 19 March 2012

2 Contents Newsflash... 3 Market Comment... 3 Larry Hatheway of UBS calls an end to the 31 year Global Bond Bull Market... 5 Snippets of Info... 7 Economic Update... 8 Weekly Market Analysis Rates Standard Bank Money Market Fund STANLIB Enhanced Yield Fund STANLIB Dividend Income Fund Glossary of terminology

3 Newsflash Global financial shares are recovering sharply, which is a healthy sign Market Comment Source: I-Net Bridge The graph above shows the MSCI World Financial Index, covering mostly the financial shares in the developed markets. It is a very healthy sign for all of us to see the recovery underway in global financials (up 19.6% so far in 2012 in dollar terms and up 31% from November s low). In many ways the health of financial shares (banks, insurance companies etc) reflects the health or otherwise of the world economy. Last year the shares tumbled 34% from the high in February to the low in late November on the back of the European mess and property worries in the US. If banks are in trouble and the system is seizing up, as happened in Europe last year, then this is likely to flow through to weak lending. The recovery in the financials reflects STANLIB s house view that the ship of the world economy is heading back out to sea, after hiding in the harbor during the past few months. Typically, as with mining shares, financial shares around the world tend to run in tandem. So when the index above was struggling, so were our SA financial shares, and vice versa. 3

4 Last week s release in the US of the bank stress test results, showing that 15 out of the top 19 banks passed severe stress tests (assuming a severe recession and high unemployment) with flying colours, gave the bank shares and general financials the boost they needed (see the sudden sharp jump in the index above). Meanwhile the Financials Index in the European Monetary Union is up 22.6% in dollars so far in 2012, even better than the World Index, as European shares bounce back from a severe thumping last year. However, it must be noted that their financials index is still down 69% from its peak in Fortunately, European shares as a whole are back at levels reached last July, before the collapse in August and September. The sharp drop-off in risk levels is reflected in the European volatility index (or fear gauge ) known as the VSTOXX, which is at its lowest level since Much of this has to do with confidence in the system generated by the one trillion euros lent to the banks at 1% (the socalled LTRO or long-term refinancing operation) by the European Central Bank, instituted by one of the super Marios, namely Mario Draghi, the ECB President. The other super Mario is Mario Monti, the Italian Prime Minister, who is doing such a good job in Italy. Even after the sharp rally in European shares, share valuation levels remain relatively low, with the Euro STOXX 50 Index (of the 50 biggest shares in Europe) trading at 9.2 times 12-month forward earnings, even after earnings forecasts have been slashed by 15% recently, well below its 10-year average of 11.6 times (the forward PE ratio). This compares with a forward price-to-earnings ratio of 12.6 times for Wall Street s S&P 500 Index and 10.2 times for the MSCI Emerging Markets Index. So far in 2012 the JSE Financials Index is up 12% in rand terms and the JSE Banks Index is up 14.5%, both well ahead of the JSE All Share Index s 6.9% return. On the other side of the coin the JSE Resources Index has struggled and is now up less than 1% in 2012, partly because of rand strength (up 7% against the dollar) and partly because of worries about China s growth rate. One could have thought that a recovery in the world economy would boost resource shares, but it appears that it is China and worries about its growth rate in the short-term, for example the first quarter growth year-on-year, to be released in early April, that is so far having a bigger effect. Last week China s premier dampened hopes that China would lower interest rates soon (in response to lower inflation), saying that property speculation was still rife. In our view, Resource shares continue to offer what looks like good value... in a recovering world economy, so we think patience and resilience are called for here. 4

5 Meanwhile, US market analyst, Elaine Garzarelli, continues with her bullish call on the US stock market. She recommends an overweight position in IT (25% of US portfolios versus 20.3% for the S&P 500 Index), Financials (20% weight versus 14.6% for the S&P 500 Index), Consumer Discretionary (15% versus 10.9%), Industrials (21% versus 10.7%) and Mining (7% versus 3.5%). If she s right on the US stock market, then the implication is the bull market should continue for world markets, including emerging markets and including the JSE. It does seem as if investors remain quite cautious and sceptical about rising share markets, which is good news. Scepticism is both healthy and normal in a bull market ( how can this possibly be happening with all the gloom around? is a common question). Remember that although share prices might look a bit steamy because of their recent run, the earnings and dividends reported by companies validates this run, as does the improving condition of the world economy, along with low interest rates and money being pumped into economies. It is interesting that so far in 2012 foreign investors have been net sellers of shares on the JSE to the tune of R7bn, whereas they have so far bought R17bn of SA bonds, meaning a net R10bn has flowed into the country, boosting the rand. Why have foreign investors sold SA equities (been wrong so far)? Part of the reason is that our stock market is perceived to be a lower -risk market in the emerging market universe. So if investors want to move to higher-risk markets to take advantage of an environment conducive to more risk taking, they would sell SA shares and buy shares in other higher-risk emerging markets that have lagged. Larry Hatheway of UBS calls an end to the 31 year Global Bond Bull Market Source: I-Net Bridge 5

6 Considering how long this bull market (particularly in government developed market bonds) has lasted - 31 years so far, this is a big and gutsy call. We have a high regard for Larry and his team at UBS. The US 10 year government bond yield has suddenly jumped from 2% to 2.3% (see chart above) and Hatheway is of the view that a long-term bear market in these bonds has begun. The source of the sell-off is an improved and more durable global economic recovery, particularly in the US, in his words. Barring an unexpected slowdown in the US or abroad, or an oil supply shock, UBS believes the trend toward higher yields in the months, quarters and years ahead is established. Higher government bond yields will also push corporate bond yields higher, so if UBS is right most bonds will lose value, with possibly only high yield bonds holding their value, at least initially, because they also benefit from a better economy. This does have some implications for SA government bond yields, which also jumped a bit last week (causing some capital loss) on the back of the US move. Bond moves in the US do tend to influence SA bond yields to some extent, although our yields are at 8%, a lot higher than theirs. Rising bond yields, if they continue here, would negatively affect listed property prices too. Coincidentally, our Reserve Bank Governor did give a speech last week in which she raised the spectre of interest rate hikes in SA in response to more generalized inflation in the country, rather than just administered price and food/petrol price increases. What about the implications for US and global equities? Hatheway says that provided the higher yields reflect improved growth expectations and reduced cyclical risk, global equity markets should remain underpinned. In particular - and this has been Bank of America Merrill Lynch s big point - equities should benefit from an eventual asset allocation shift (which has not yet occurred) from bonds to shares in the US, Europe and elsewhere. Bonds have taken in huge amounts of investor funds over the past few years because they ve done so well amidst the Great Recession et al. UBS recommends cutting exposure to global bonds and remains overweight in global equities, real estate and select commodities. UBS notes, amongst other factors, that the European recession (the worse the recession, the better for government bonds) is not as bad as feared and a European recession is in any event unlikely to pose major downside risk to the global economy. On the US economy, UBS expects a more sustainable US recovery, helped by better job creation, more discretionary spending power amongst consumers, a pick-up in money and credit growth, stabilizing house prices in the near future, a receding risk of deflation and therefore no more quantitative easing from the Fed. Of course, they openly admit they could be wrong on this big call, but that s always the case in trying to make a call in a forever uncertain future. 6

7 We ll have to watch development particularly closely offshore, including any further effects on our own bond market. We are on guard! Snippets of Info Traditional Wall Street bear (he s always a bear) David Rosenberg, Chief Economist & Strategist of Gluskin Sheff in the US, says that so far there has been very little participation in the stock market s 27% run since early October from the retail (individual) investor in the US. US equity-based unit trusts (mutual funds) have experienced 10 months of net outflows - and $5.4bn of outflows so far just in It is 7 years since there has been a year of net inflows (2005), as private clients have repeatedly used rallies in the stock market as opportunities to lighten up. India, the biggest importer of gold in the world, has almost doubled the import duty on gold to around 4% because of the impact that imports are having on the Indian current account deficit. Greek caretaker Prime Minister, Lucas Papademos (A US-trained Economist - at Massachusetts Institute of Technology) is quoted in today s Financial Times saying he is convinced that Greece is more than halfway along the path to economic recovery. Positive growth rates should be achieved within less than two years, he says. The FT also says some Portugese citizens are leaving their troubled land for Mozambique, whose economy is forecast to grow 7.5% this year. It is estimated there are 20,000 Portugese people in Maputo. US analysts are forecasting that S&P 500 first quarter earnings will come in 0.5% lower than in the first quarter of 2011, the first decline in earnings in nearly 3 years. That could cause volatility after a 27% jump in the index since early October. Commodity price inflation is one of the culprits, not least of all the oil price. Revenue is expected to grow 3.5% but profit margins are expected to fall for the first time in 2 years. Paul Hansen (Director: Retail Investment Marketing - Investments) 7

8 Economic Update Locally, Stats SA have released retail sales data for January Retail sales fell by a disappointing 0.6%m/m in January, in real terms, seasonally adjusted. On an annual basis, retail sales growth slumped to a very disappointing 3.9%y/y, well down from growth of 8.7%y/y recorded in the final month of 2011, also below market expectations for growth of around 6.7%y/y. Retail sales (measured on an annual basis) have been extremely volatile over the past 12 to 18 months, especially during the first six months of This volatility reflected a combination of base effects with annual comparisons distorted by the World Cup in 2010 as well as the timing of various public holidays. During the second half of 2011, sales became a little more consistent. For 2012 as a whole, retail spending rose by 6.0% (real), up from 5.0% in 2010 and the recession (-3.7 y/y) in The strong phase in retail activity, which became evident in 2010, is mostly explained by relatively high wage increases (many workers secured wage increases well above inflation during 2010 and 2011), an increase in government employment (reflected in a substantial rise in government s salary), and double digit growth in social grant payments. The combination led to a strong rise in real household disposable income has been spent on a range of consumer goods and services (hence robust retail spending). Also, there has been a surge in unsecured credit, which has helped to buoy retail spending. Unfortunately, while it could be argued that the fall-off in retail activity during January 2012 is a little exaggerated, SA retail activity is likely to face increasing strain in This is due to a range of cost-push factors that are systematically eroding the household sector s retail spending power. These include higher energy costs, transport costs, education fees, medical service costs and water costs. Households cannot avoid these increases, as they relate to necessities, forcing consumers to either cut-back on non-essential purchases or take on additional debt. The situation is aggravated by the relatively high increase in food inflation. The strains on the consumer are rising, despite historically low interest rates. Hopefully the labour market will keep improving and thereby alleviate some of the recent pressur4e on household income. The Reserve Bank Governor, Gill Marcus, made some key comments last week about SA inflation and interest rates. Her comments focussed on unemployment and its socioeconomic consequences, inflation and its effects on the poor and on long term investment and short-term economic growth. She noted that the risks appear to be coming from the international oil price however administered prices also remain a concern. The most recent data suggests that inflation is becoming more generalised, and could reflect the emergence of demand pressures. This is something that the Bank will monitor very carefully. Her statement implies, that the Reserve Bank is highlighting the upside risk to inflation. There is clear concern that underlying inflationary pressures are broadening. A perception has emerged, that the Reserve Bank is comfortable to leave interest rates low for an extended period, and that the Bank is soft on inflation. The Governor s statement suggests now that this is not the case. 8

9 The Reserve Bank is still forecasting that inflation will fall back into the target range by the end of the year. However, it is clear that the Reserve Bank feels that there is an upside risk to inflation and they are suggesting that they will hike rates even if growth is fairly modest. Offshore, US money supply (M2) in January 2012 grew by 1.3% m/m (seasonally adjusted) and by 10.1% y/y (non-seasonally adjusted). The growth in M2 money supply has risen in the past year from only 4.4% in January 2011 to the current 10.1%y/y. While a portion of the annual increase relates to base effects, the three-month annualized rate of increase is up 9.3% which is high by historical standards. Unfortunately, the growth in US money supply can be volatile, providing misleading signals in both directions. In the past few decades the relationship between growth in money supply and the performance of the US economy has become much weaker, and emphasis on the money supply as a guide to monetary policy has waned. Overall we are leaning on the side of caution in drawing a hard conclusion about the US economy based on changes in money supply. Many relationships involving money supply growth are not strong enough. Emerging Markets: China reported a surprisingly high current account deficit. Export and import growth rebounded to 18.4% and 39.6% y/y in February from -0.5% and -15.3% in January, while trade balance slumped to US$31,5bn in February from US$27.3bn in January. These large swings can be explained by the distortion of the Chinese New Year, which started on 22 January this year but 2 February last year. The weaker export growth in January to February is mainly attributable to the falling export price inflation and the Euro. January s export price inflation decelerated to 4.4% y/y from 10.4% in Q Hence, more than half of the drop in nominal export growth could be driven by smaller price inflation. Ghana inflation slowed marginally to 8.6% y/y in February, from 8.7% y/y previously. This was mainly on the back of slowing food prices, which rose 4.3%y/y in February from 4.5% in January while non-food prices rose 11.2% y/y in February from 11.3% for the previous month. The January inflation reading indicated an uptick from the December number. The Central bank recently hiked interest rates and the uptick in inflation is most likely seasonal and therefore m/m inflation will most likely fall. For the short-term, prices will probably remain stable below the 9% target, with an upside risk to inflation being international oil prices and world food prices moving upward. 9

10 Kenya s Central Bank indicated that the current account deficit in November 2011 reached 10.3% of GDP on a 12 month trailing basis. On the financial accounting side, errors and omissions rose by 133% in the year to November 2011 while private inflows dropped 94%. Private credit growth remained high at 32.5%, although down from about 37% in September. This result shows the need for the Central Bank of Kenya to keep monetary policy tight and rates high, particularly given the dramatic fall in private inflows and largely high credit growth number. The recent IMF mission also re-iterated the need to maintain a tight monetary policy to achieve low and stable inflation. This will also be important for the Kenyan Shilling, which faces major pressures given the political risk assumed with upcoming elections. Kevin Lings, Laura Jones and Xhanti Payi (STANLIB Economics Team) 10

11 Weekly Market Analysis Currencies/ indices/ Friday s Close Weekly Move YTD commodities 16/03/12 (%) (%) 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 * MSCI - Morgan Stanley Capital International Source: I-Net Bridge 11

12 Rates These rates are expressed in nominal and effective terms and should be used for indication purposes ONLY. Standard Bank Money Market Fund Nominal: Effective: 5.32% per annum 5.47% 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 16 March 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: 5.89% STANLIB Dividend Income Fund Effective Yield: 4.21% 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 16 March 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 (currently tax exempt) and taxable 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. The Manager has received a circular, (CISCA Circular No.11), from the Registrar of Collective Investment Schemes regarding a joint investigation of National Treasury, SARS and the FSB, which is currently in progress with regard to dividend income fund type portfolios. The Manager is obliged, in terms of this circular, to bring the following to your attention with regard to this investigation. The outcome of the investigation could affect certain structures and SPVs (special purpose vehicles) used by underlying investments of these types of portfolios, which may result in possible adverse tax consequences, and may require amendments to existing legislation. The abovementioned regulators still have concerns which could impact negatively on the future of these portfolios and the continuation of these portfolios can therefore not be guaranteed. The Manager however do not believe that there is any current cause for concern regarding the STANLIB Dividend Income Fund and should there be a more definitive outcome from the investigation investors in our STANLIB Dividend Income Fund will be informed timeously of any legislative changes that may affect their investment. 12

13 Liberty Investments Life Annuities Current Rates for 19 th March nd March 2012 Payments are assumed to be paid monthly in advance with no guarantee period or annual escalation in income. Ages indicated assume client is the exact age shown. No tax has been deducted. Gender Male Female Age last birthday Contribution R 100,000 R 787 R 828 R 888 R 716 R 752 R 803 R 250,000 R 2,037 R 2,139 R 2,290 R 1,858 R 1,947 R 2,076 R 500,000 R 4,120 R 4,323 R 4,626 R 3,763 R 3,939 R 4,196 R 1,000,000 R 8,287 R 8,693 R 9,298 R 7,572 R 7,924 R 8,437 The table above shows the monthly annuity that an annuitant will receive for life in return for the single premium in the left hand column. Note that the annuity depends on the annuitant s exact age and gender. The rates above were calculated assuming maximum commission and will be enhanced if a commission discount is selected. 13

14 Glossary of terminology Bonds Cash Collective Investments Compound Interest Dividend Yields Dividends Earnings per share Equity 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. 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. 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. 14

15 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 Smaller Companies Funds Value Funds 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-than-average 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. 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. 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

16 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) 17 Melrose Boulevard, Melrose Arch, 2196 P O Box 202, Melrose Arch, 2076 T (SA Only) T+27(0) E contact@stanlib.com Website 24 Ameshoff Street, Braamfontein, 2001 P O Box 10499, Johannesburg, 2000 T E info@liberty.co.za Website STANLIB Wealth Management Limited Reg. No. 1996/005412/06 Authorised FSP in terms of the FAIS Act, 2002 (Licence No. 26/10/590) Liberty Group Limited Reg. No. 1957/002788/06 Authorised FSP in terms of the FAIS Act (Licence No. 2409) STANLIB Collective Investments Limited Reg. No. 1969/003468/06 LN