A challenging short-term environment for long-term investors
Throughout most of 2025, global equity markets have been driven by short-term optimism — influenced by shifting political narratives and selective sector rallies. In such an environment, funds with a disciplined, long-term investment approach, such as the STANLIB Global Select Fund, may experience periods of relative underperformance.
Despite this, the fund remains well-positioned for sustainable long-term growth, offering investors a resilient, “all-weather” solution designed to deliver consistent outcomes across market cycles.
A globally diversified, style-agnostic approach
The STANLIB Global Select Fund is sub-managed by J.P. Morgan Asset Management (JPMAM). Drawing on JPMAM’s extensive global research network, the fund invests in 70 to 80 carefully selected stocks, each chosen for its ability to generate long-term value based on fundamental risk and return characteristics.
Since inception more than 15 years ago, the fund has demonstrated strong performance over the long term. While returns to end-August 2025 trailed the benchmark MSCI World Index Net TR (7.75% vs 15.79%), this reflects the fund’s disciplined positioning for capital protection and sustainable growth, rather than short-term momentum participation.
Global markets driven by a narrow band of stocks
Global equity markets have rallied strongly over the past six to eight months, despite ongoing policy uncertainty related to US elections, global trade, and geopolitical tensions. Much of this performance has been concentrated in the so-called “Magnificent 7” technology companies, supported by strong earnings and cash flow generation.
At the same time, European financials, particularly large banks such as Unicredit, have rebounded significantly in 2025, highlighting the importance of maintaining broad global diversification and access to high-quality research across regions and sectors.
Adjusting to shifting market dynamics
While market momentum remains positive, the potential for a general correction persists should valuations extend further. However, current conditions appear less exuberant than in 2021, with corporate fundamentals — including earnings growth and leverage levels — remaining broadly healthy.
In response to evolving market dynamics, the STANLIB Global Select Fund has undertaken measured portfolio rebalancing. Exposure to defensive holdings such as Coca-Cola and Johnson & Johnson has been reduced, while exposure to higher-quality cyclical industrials, including Trade Technologies and Eaton, has been increased following periods of attractive valuation.
The fund maintains a regionally neutral stance, focusing on valuation-driven opportunities rather than geographic allocation. Exposure has been increased to the US and Japan, with new positions initiated in China. Within the US, which represents approximately 60–70% of the benchmark, the fund holds selective positions in Meta, Microsoft, and Amazon, while avoiding overconcentration in any single group of stocks.
Positioning through opportunity and risk
The fund continues to consider structural themes such as artificial intelligence (AI), tariffs, inflation, interest rate trends, and commodity price movements. JPMAM has integrated AI tools to enhance research efficiency and data analysis while maintaining human oversight in investment decision-making.
Tariff-related impacts remain nuanced across sectors. The fund holds companies with varying degrees of exposure, including Volvo, TSMC, and Heineken, which differ in how they absorb or pass on tariff-related costs depending on their operational footprints.
The fund is not positioned specifically for interest rate cuts, but includes holdings such as first-tier banks that may benefit from potential easing cycles. While inflationary pressures are being closely monitored, current data does not suggest the onset of a broad market downturn.
The STANLIB Global Select Fund has no direct exposure to gold, offering diversification benefits for South African investors who may already hold commodity-heavy portfolios.
Staying disciplined in uncertain times
Amid global uncertainty and market concentration, the STANLIB Global Select Fund continues to apply a proven, three-decade investment process focused on research depth, valuation discipline, and capital preservation.
The fund’s consistent, style-agnostic approach seeks to capture long-term opportunities while managing downside risk. This disciplined process is designed to deliver stable performance across market environments, ensuring that investor portfolios remain positioned for the long term rather than driven by short-term sentiment.
In summary
In an era of heightened volatility and concentrated market leadership, the STANLIB Global Select Fund offers investors a diversified, fundamentally researched global portfolio managed by one of the world’s leading investment teams. Its long-term orientation, balanced risk management, and disciplined investment process provide investors with a robust solution for achieving sustainable capital growth across all market conditions.
To find out more about the STANLIB Multi-Asset Cautious and Growth Funds, speak to your STANLIB Asset Management Investment Specialist.
