STANLIB’s Corporate Money Market Fund takes a top position for April

THE SA Money Market Manager Watch Survey, which measures funds aimed at the institutional and corporate markets, shows STANLIB’s Standard Bank Corporate Money Market Fund as top performer in the 90 day instrument category for April 2008. The fund returned 0.96% for the month, beating the STeFI benchmark – the short term fixed interest rate index – which came in at 0.87%. The Corporate Money Market Fund was also top performer for the three month quarter February to April 2008 with a return of 2.84% versus the benchmark of 2.62%.

Managed by Ansie van Rensburg, STANLIB Head of Money Market, funds under management in this fund now sit at R7.2 billion.

Van Rensburg says it is challenging to achieve and then maintain a competitive edge in this asset class where returns are in a narrow range and only a point or two return differentiates the leader. “This is especially so in the corporate money market sector where mandates are conservative.”

The Corporate Money Market Fund is ideally suited to companies wanting to house operating cash over the short-term that can be accessed within 24 hours if required. It is a unit trust, regulated by the SA Financial Services Board and underlying instruments are 90-days maximum average duration. The conservative nature of the fund comes from the profile of the counterparties, being the big five SA banks and offshore banks with AA ratings that have branches in SA.

STANLIB’s Standard Bank Institutional Money Market Fund was also in the top quartile for the month of April in the 90 day category with a return of 0.92%.

The Manager Watch survey is compiled by Alexander Forbes Financial Services based on information supplied by the participating funds.