Products

STANLIB Swaziland Institutional Business

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

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

We do this through a variety of both domestic and offshore- money market, equity and fixed income investment products for Corporates, Parastatal 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 management of Fixed Deposits.

Institutional investors can enjoy the following benefits: 

  • 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.
  • 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 
    • Principle/Fixed Income Investments: The assets will be held in term deposits ensuring principal/capital protection at a minimum
  • Client’s Oversight – our feedback on the investment guidelines and parameters is primarily to the clients. 
  • 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 annualised 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.
 

Standard Bank Swaziland Money Market

What is the Standard Bank Swaziland Money Market Fund?

The Standard Bank Swaziland 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 Swaziland, 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 Standard Bank Swaziland 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 Standard Bank 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 than 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 Amount E 15 000 
Minimum Monthly Debit Order  E 2000 

Fees Structure  
 Initial Fee  1.00% 
 Net of Annual Management Fee 0.50% 
 

Standard Bank Swaziland Managed Fund

What is the Standard Bank Swaziland Managed Fund?

The Standard Bank Swaziland Managed Unit Trust Fund is a specialised investment designed to provide medium-term capital growth and reasonable levels of current income. The fund provides investors with access to growth opportunities in Swaziland as well as exposure to international markets.

The Standard Bank Swaziland Managed Fund’s investment objective is to deliver superior long-term capital and income growth which is comfortably in excess of inflation. The Fund aims to achieve this objective through a balanced mix of investments in the following asset classes: Swaziland and South African Equities, Swaziland and South African Bonds, Swaziland and South African Cash, International Equities, International Bonds and International Cash. Asset Allocation is managed actively in order to secure consistent outperformance and our stock selection process is designed to combine performance with low risk. Maximum use is made of international investment opportunities, as this is critical both for performance and risk diversification.

Who Should Invest?

The Standard Bank Swaziland Managed Fund is suitable for smaller pension funds, private individuals seeking medium-term capital and income growth through exposure to local Swaziland and offshore equity and fixed interest markets. Furthermore, this fund offers the smaller investor access to an actively managed investment suitable for planning towards medium-term financial goals such as education and retirement.

Why Invest in the Standard Bank Swaziland Managed 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 Standard Bank Swaziland Managed 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 medium-term investment needs such as their children’s education and additional pension savings.

Investment Amounts  
Minimum Initial Investment Amount E 500 
Minimum Monthly Debit Order  E 200 

Fees Structure  
 Initial Fee  5.00% 
 Annual Management Fee 1.00% 
 

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.