Alternatives

Asset management has traditionally involved the use of investment professionals who attempt to outperform the market by actively managing a portfolio. However, there has been a shift in recent times towards a more blended approach; a combination of traditional asset management and, what is referred to as, ‘alternative asset management’. Alternative asset management includes strategies that remove subjectivity from the investment decision that is associated with any human intervention, and instead relies on quantitative techniques such as indexation and optimization strategies.

STANLIB is cognisant of this shift and, in its aim to remain at the forefront of asset management in South Africa, has added an Alternative Investments division to its stable. This division is responsible for the management of funds that rely on quantitative modeling to implement asset allocation decisions, and provide low cost access to financial markets by way of index funds and ETFs.

 

Enhanced Equity Index Fund

This fund is suitable for both individuals and institutions. It targets above-market returns at a level of risk which is consistent with that of the equity market and uses a quantitative process that is both consistent and has clear links to economic intuition.

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