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.

For many years there has been a debate waged about which investment strategy is best – active management or passive management. There has been no clear winner; each strategy has its advantages and disadvantages and may be the better strategy depending on prevailing market conditions.

What has become clear, however, is that these two approaches to managing assets are not necessarily exclusive of one another and are, in fact, complementary. While passive, index tracking products provide low-cost access to particular asset classes, the overall portfolio does benefit from an active strategy to asset allocation.

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This is as a moderate risk flexible domestic asset allocation fund suitable for both individuals and institutions. It targets returns that are above those of a median balanced fund by using a quantitative process that is both consistent and has clear links to economic intuition.

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.

The STANLIB ALSI Tracker is a passively managed index-tracking fund. The aim is to replicate the performance of the FTSE /JSE All Share Index. The Fund purchases a portfolio of stocks, which should very closely track the performance of the FTSE /JSE All Share Index. It is aimed at both individual and institutional investors who seek exposure to the All Share Index at a reduced cost.