Products

STANLIB Botswana Institutional Business

We aim to adopt the best values and techniques as practiced internationally into the Botswana investment management industry. Our main areas of business:

  • Management of Employee Retirement Benefits (Pension/Provident funds)
  • Institutional Cash Management Provision
  • Property Investments
  • Insurance Funds
  • Advisory Services
  • Private Equity

We do this through a variety of both domestic and offshore investment instruments for Corporates, Governments & Paratstatals , International Organizations and Non Governmental Organizations.

We believe that we are able to add value to the treasury and cash management functions of any institution through active investment management.

Institutional investors can enjoy the following benefits:

  • Competitive Yield - we can provide a competitive yield thus enhancing investment returns and ultimately stretching your resources. We believe that this is an important aspect of our service. Unlike a traditional commercial bank our goal is not to fund our book of assets but to optimize client returns
  • Return on Investment - we seek to generate a total annualized rate of return above the agreed benchmark. The investment portfolio shall be designed with the objective of attaining a REAL RATE OF RETURN on its investments consistent with the constraints imposed by its safety objectives and cash flow considerations
  • Safety - several attributes lend themselves to the safety and security of assets:
    • Assets are held off our balance sheet and in the client’s name to enhance transparency
    • Principal/fixed income investments: The assets will be held in near cash instruments ensuring principal/capital protection at a minimum.
  • Liquidity - portfolios will comprise of term deposits which will be selected and managed with active client participation and input into the investments to ensure adequate liquidity at all times
  • Client’s Oversight - our feedback on the investment guidelines and parameters is primarily to the clients.
 

STANLIB Botswana Money Market Fund

What is the STANLIB Botswana Money Market Fund?

The STANLIB Botswana Money Market Fund is a unit trust (collective investment scheme) fund that aims to maximise income while preserving capital over the medium term, and to ensure liquidity of funds invested. It invests in a wide range of highly marketable short-term debt securities, which include short-term government securities like treasury bills, corporate financial instruments such as bankers’ acceptances, negotiable certificates of deposit (NCDs), commercial paper and other debt securities. There is currently a great demand for alternative cash products in Botswana, and this fund is ideally positioned for investors who are looking for investment returns that are stronger than local bank deposits with the convenience of a call account.

Who Should Invest?

The fund caters for corporates, institutions and private investors who have cash available to invest over the medium-term, who require the flexibility to withdraw funds at relatively short notice.

This fund is suitable for:

  • Investors who require a wholesale interest rate on cash
  • Short-term investors requiring a ‘parking bay’ for their cash
  • Investors who require low-risk, secure investments with
    yields in excess of traditional banking products

Why Invest in the STANLIB Botswana Money Market Fund?

In the past, investors have relied on savings accounts as a saving vehicle for a home purchase, children’s education, retirement or for emergencies. Investors now have the opportunity to utilise the STANLIB Botswana Money Market Fund for all their savings needs, at higher yields on cash deposits than traditional savings accounts and term deposits.

The economies of scale achieved through pooling of investments enables the fund manager to purchase higher yielding instruments that individual clients and medium sized corporates and institutions would not normally have access to through traditional savings and normal bank deposits. The fund also gives investors direct access to the expertise and experience of one of Africa’s leading money market investment teams.

Investment Amount  
Minimum Initial Investment BWP 15 000 
Amount  
Minimum Additional Investment BWP 2000 
Minimum Balance Requirement BWP 15 000
Minimum Repurchase Amount BWP 2 000

Fees Structure  
 Initial Charge (for retail clients only)   1.00% 
 Annual Management Fee 1.00% 
 

STANLIB Botswana Income Fund

What is the STANLIB Botswana Income Fund?

The STANLIB Botswana Income Fund aims to provide investors with a reasonable level of current income while maintaining maximum stability for capital invested. This fund provides exposure to a wide range of fixed income securities, non-equity securities, preference shares, debentures and unsecured notes. The Fund invests locally and regionally with the primary offshore investment destination being South Africa.

The fund invests in fixed income securities embracing non-equity securities, stock, financially sound preference shares, debenture stock, debenture bonds and unsecured notes to be acquired at fair market prices. The portfolio is subject to the following restrictions

  • Maximum weighted average duration of 2 years
  • Maximum exposure to unlisted credit of 10% of the portfolio’s assets
  • Minimum 5% of the portfolio’s assets in cash
  • Minimum 20% of the portfolio’s assets in Botswana Government bonds
  • Maximum foreign exposure (offshore and regional) 30% of the portfolio

Who Should Invest?

The STANLIB Botswana Income Fund is designed for both retail and institutional investors who require an alternative short-term diversification which will provide a yield enhancement.

It is designed for investors looking for a relatively liquid investment with exposure to fixed instruments, which may suffice as a stand-alone investment solution or form part of a diversified portfolio of investments, but who also understand the additional risks associated with the fund.

Why Invest in the STANLIB Botswana Income Fund?

Investors have relied on more on the STANLIB Botswana Income Fund to as a short- and medium-term saving vehicle for a home purchase, children’s education or for emergencies. Investors now have the opportunity to utilise the STANLIB Botswana Income Fund for all their medium-term savings needs, at higher yields than traditional savings accounts, term deposits and money market funds.

The economies of scale achieved through pooling of investments enables the fund manager to purchase higher yielding instruments that individual clients and medium sized corporates and institutions would not normally have access to through traditional savings and normal bank deposits. The fund also gives investors direct access to the expertise and experience of one of Africa’s leading fixed income investment teams in managing instruments of different durations.

Investment Amount  
Minimum Initial Investment Amount BWP 100 000 
Minimum Additional Investment BWP 100 000 
Minimum Balance Requirement BWP 100 000
Minimum Repurchase Amount BWP 100 000
Minimum Monthly debit N/A

Fees Structure  
Initial Charge Up to 1.00%
Annual Management Fee 1.00%
 

STANLIB Botswana Managed Prudential Fund

What is the STANLIB Botswana Managed Prudential Fund?

The STANLIB Botswana Managed Prudential Fund is a specialised investment designed to provide medium to long term capital growth and reasonable levels of current income. The fund provides investors with access to growth opportunities in Botswana as well as exposure to international markets.

The STANLIB Botswana Managed Prudential Fund investment objective is to provide a medium whereby investors can obtain undivided participation in a diversified portfolio of securities of companies or concerns listed on a recognised stock exchange and to generate a reasonable level of current income and capital for the investor. The fund aims to achieve this objective through a balanced mix of investment in local Botswana and offshore equities, bonds and cash. Asset allocation is managed effectively in order to try and secure consistent out-performance, while the stock selection process is designed to combine performance with acceptable risk.

Who Should Invest?

The STANLIB Botswana Managed Prudential Fund is suitable for smaller pension funds, private individuals seeking medium to long term capital and income growth through exposure to local Botswana and offshore equity and fixed interest markets. Furthermore, this fund offers the smaller investor access to an actively managed investment suitable for planning towards a successful future retirement.

Why Invest in the STANLIB Botswana Managed Prudential Fund?

Traditionally, investments in local and global equity and bond markets have been seen as complicated, time consuming or only accessible to large investors. The STANLIB Botswana Managed Prudential Fund gives smaller investors access to these types of investments through professional expertise that is normally only available to larger investors.

This investment is particularly suited to those wishing to provide for long-term investment needs such as their children’s education and additional pension savings.

Investment Amount  
Minimum Initial Investment BWP 2 000 
Amount  
Minimum Additional Investment BWP 2 000 
Minimum Balance Requirement BWP 2 000
Minimum Repurchase Amount BWP 2 000
Minimum Monthly debit BWP 300

Fees Structure  
 Initial Charge (for retail clients only)   5.00% 
 Annual Management Fee 2.00% 
 

STANLIB Botswana Equity Fund

What Is The STANLIB Botswana Equity Fund? The STANLIB Botswana Equity Fund provides investors with access to growth opportunities in Botswana as well as exposure to international markets. The fund is a specialised investment that aims to achieve high growth of capital and income, a reasonable level of current income and relative stability of invested capital to obtain long-term wealth accumulation. To achieve its objective, the fund invests in shares with high potential earnings values that are listed on the Botswana Stock Exchange as well as stock exchanges in other countries.

The fund invests in shares with a high potential earnings value. These include ordinary and preference shares listed on the Botswana Stock Exchange as well as shares listed on stock exchanges in other countries. This portfolio uses the following exposure guidelines:

  • Minimum equity exposure: 70% of the portfolio
  • Minimum Botswana exposure 30% of the portfolio
  • Maximum foreign exposure (offshore and regional) 70% of the portfolio

Who Should Invest?

The fund caters for corporates, institutions and private investors who have cash available to invest over the medium to long-term, who require the flexibility to withdraw funds at relatively short notice.

This fund is suitable for investors:

  • Seeking steady long-term capital growth
  • Typically have an investment horizon of more than five years
  • Investors who require returns commensurate with medium to high risk.

Why Invest in the STANLIB Botswana Equity Fund?

Over the years, equities as an asset class, have certainly justified their reputation as a reliable, long-term builder of personal wealth. The share price appreciation from equity investments can generate significant profits and the regular distribution of dividends offers investors an on-going stream of income. Equities also have the ability to outperform inflation over time.

The STANLIB Botswana Equity Fund, therefore, offers an attractive investment solution for investors whose aim is long term wealth creation.

Investment Amount  
Minimum Initial Investment BWP 1 000 
Amount  
Minimum Additional Investment BWP 1 000 
Minimum Balance Requirement BWP 1 000
Minimum Repurchase Amount BWP 1 000
Minimum Monthly debit BWP 300

Fees Structure  
 Initial Charge (for retail clients only)   5.00% 
 Annual Management Fee 2.50% 
 

General Information - Collective Investment Schemes

What is a Collective Investment Scheme?
Collective Investment Schemes are investments where 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 are often out of reach for smaller investors. The pooling of investors' funds makes Collective Investment Schemes the ideal alternative, providing cost effective access to a wide variety of local and international shares / equities (companies listed on a stock exchange), bonds, and money market instruments such as fixed deposits, treasury bills and call accounts.

Pooling enables investors to reduce transactional costs involved in buying and selling of securities and gives investors the ability to negotiate for better returns than they would get if investing individually.

Safety and transparency
The collective investment industry is strictly regulated by the Capital Markets Authority's Collective Investment Scheme (CIS) Regulations, 2001. The regulations allow the investor to enjoy total transparency of fees, charges and investment performance.

However, the Capital Markets Authority does not take any responsibility for the financial soundness of a scheme for correctness of any statements made or opinions expressed in this regard.

Tips for successful investing:
Identify your goal (these should be realistic)
Establish a time frame
Identify your level of risk based on your current responsibilities
Understand the volatility of return associated with different investment types
Shares
Usually identified as having the potential for the highest return of all the investment classes, but with a higher level of risk i.e. share investments have the most volatile returns over the short term.

An investment of this type of asset should be based on the investors' objectives but it is recommended that it be viewed on a medium to long-term horizon e.g. over five years.

Property
Property yields are normally stable and predictable as they comprise many contractual leases, the rentals of which are passed through to investors.

Property share prices however fluctuate with supply and demand and are counter cyclical to the interest rate cycle.

Property is an excellent inflation hedge as rentals escalate with inflation, ensuring distribution growth, and property values escalate with inflation ensuring net asset value growth.

Bonds
Bonds generally have a lower risk than shares because the holder of a bond has the security of knowing that they will be repaid in full by government authorities. Corporate bonds can also be included and have a slightly higher risk than government-issued bonds. An investment in this type of asset should be viewed with a 3 to 6 year horizon.

Cash
Cash is generally regarded as the safest investment. Whilst it is theoretically possible to make a capital loss investing in cash due to the effects of inflation etc., it is highly unlikely.

Due to its stable nature, cash has a relatively low return in comparison to the other investment classes. An investment in this type of asset may be viewed with a horizon less than 3 years.

Equity Portfolios
These portfolios invest in selected shares across all the industry sectors of the Nairobi Stock Exchange and offer medium to long-term capital growth as their primary investment objective.

Balanced Portfolios
Balanced portfolios invest in a wide spread of investments in the equity, bond, money markets and aim to provide capital appreciation together with interest income over the medium to long-term.

Fixed Interest Portfolios
Fixed Interest Portfolios invest in bonds, money market instruments and other income earning securities and aim to provide interest income over the short to medium-term. They also provide the opportunity for capital growth.