Fund Review

The STANLIB Inflation Linked Bond Index Tracker Fund is a passively managed fund. The aim is to replicate the performance of the JSE ASSA Inflation Linked Government Issued Bonds Index ("the Index") as closely as possible.

The fund is aimed at investors who seek exposure to the Inflation linked bond market at a reduced cost. This exposure is achieved by holding the index constituents in their index proportions.

The fund performed in line with the index in the first quarter of 2016. The last quarter saw the inclusion of I2033 to the index. There were also a number of weight changes to various constituent bonds. The fund was repositioned for all these changes.

Looking ahead

We continue to maintain a low tracking error to the index whilst keeping track of and adjusting for index reweightings and reconstitutions as and when they happen.

The STANLIB Inflation Linked Bond Index Tracker Fund is a passively managed fund. The aim is to replicate the performance of the JSE ASSA Inflation Linked Government Issued Bonds Index ("the Index") as closely as possible.

The fund is aimed at investors who seek exposure to the Inflation linked bond market at a reduced cost. This exposure is achieved by holding the index constituents in their index proportions.

The fund performed in line with the index in the fourth quarter of 2015. The last quarter saw the exclusion of R211 with a maturity of 1 year from the index. There were also a number of weight changes to various constituent bonds. The fund was repositioned for all these changes.

We continue to maintain a low tracking error to the index whilst keeping track of and adjusting for index reweightings and reconstitutions as and when they happen.

Maximum foreign exposure is as per the maximum foreign exposure limits of the South African - Interest Bearing - Variable Term classification as amended from time to time.