Franchise-driven STANLIB tops for net sales

Transformation works for Stanlib, according to statistics from the Association of Collective Investments (ACI) for the final quarter of 2007.

ACI figures show that by net sales (excluding money market) STANLIB tops the competitor rankings.

The country’s largest unit trust company re-invented itself 18 months ago when it moved to a franchise model that makes asset managers individually accountable by abandoning house view consensus and creating ‘specialisms’ that develop best-of-breed solutions within their focus areas.

The challenge, articulated by new CEO George Brits, was to “build excellence across the entire book”.

Under this strategy, STANLIB’s traditional strength in cash, fixed-interest and property products was to be complemented by improved performance in a wide range of equity and balanced funds.

Industry statistics show that STANLIB assets under management (AUM) in all funds, including money market funds, are R77.5 billion, with an 11.86% AUM market share, confirming the asset manager’s top ranking. If money market funds are excluded, STANLIB’s emergence as a leading equity performer is clear to see.

STANLIB’s market share of net sales (Q4) is up from 12% to 23%, making STANLIB No.1 in net sales in areas outside the money market.

AUM (excluding money market) is up to R42.7 billion (up from R40.2 billion in the previous quarter) and AUM market share continues to grow – up from 8.34% to 8.68%, taking fifth spot in the industry rankings when the focus falls squarely on AUM that exclude money market allocations.

Mike Galloway, Head of Retail at STANLIB commented: “The ACI numbers are further indication that our franchise strategy is a winner with investors. For over a year, our equity funds have significantly improved their positions in investment industry surveys, but the acid test, as always, is net sales growth.

“We see substantial net inflows into STANLIB general equity funds of R540 million at a time when the industry is experiencing net outflows in this category. Our Value, Growth, Nationbuilder, Sha’riah-compliant and Small cap funds are proving particularly attractive to investors.”

“These developments indicate that STANLIB today offers a lot more than pockets of excellence. We deliver on the promise of professional, specialist performance in numerous areas.” For the balanced investor the Stability fund also continues to make it’s mark.

Though STANLIB has made significant changes to its structures and positioning, it remains faithful to its strategy of relying on the intermediary as its dominant market channel.

Galloway added: “Our partnership with the intermediary is one of the biggest success stories in the industry. Our sales penetration would not be possible without their buy-in.

“We benefit from their market insights as well as their advisory strengths and could not be more appreciative of their support for our new strategy. The relationship with our intermediaries is one of our most valuable assets.”