STANLIB fund reveals Botswana's hunger for inflation-beaters

The latest investment product from Stanbic Investments Botswana has spotlighted the high priority local investors and savers are giving to beating inflation.

Its Stanbic Managed Prudential Fund was primarily designed to meet the needs of smaller retirement funds as it creates affordable access to active portfolio management skills. The managers mandate is deliver long-term capital and income growth that is comfortably ahead of inflation without undue risk.

The balanced fund was also left open to participation by prudent retail investors - who have grabbed the opportunity with both hands.

The latest addition to the Stanbic Investments Botswana range was launched in November 2005 and after its first year has comfortably achieved all targets. To date the fund has attracted more that P60-million from small institutions and retail investors.

In the final quarter of 2006, the fund achieved a return of 7.8% - significantly ahead of prevailing inflation.

John Mackie, STANLIBs head of African funds, noted: "This is not a high-risk option, yet is still designed to give investors some long-term inflation-proofing.

"Its success at retail level spotlights significant pent-up demand for products that preserve the value of your nest-egg. Small business people, professionals and salary earners are buying into the concept as they are well aware that you can save and still lose out unless you make your money work exceptionally hard for you.

"The Stanbic Managed Prudential Fund does just that. Ready access to funds has also proved to be a winner."

The fund employs balanced mix of Botswana and offshore equities, bonds and cash. The managers seek to maintain a 40% commitment to local assets at all times - well above the 30% level prescribed by the Gaborone authorities.

Input from Gaborone-based investment professionals at Stanbic Investments Botswana helps shape asset selection and allocation. The fund simultaneously benefits from the world-class systems and protocols adopted by STANLIB's Johannesburg operations.

John Mackie added: "The success of the fund is testimony to the growing sophistication of the Botswana financial services market.

"Both individual investors and smaller pension funds face considerable retirement planning challenges. Traditional banking products will always have a role, but they rarely provide an inflation-beating solution.

"More and more investors are keen to move to the next level. To do this they need to appreciate the relationship between risk and return and the need for a long-term approach. Our success is an indication that these lessons are being absorbed and that investors are eager for growth without putting capital at undue risk."

* Minimum investment in the new fund is P2000. Income is calculated and distributed twice a year. There are no withdrawal penalties and no minimum lock-in periods.