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Satrix Dividend Plus Index Fund Satrix Dividend Plus Index Fund

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Satrix Dividend Plus Index Fund

Companies with high dividend payouts are popular because they are often mature, profitable, and stable, i.e. good, reliable businesses to invest in.

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Quick Facts About The Fund

Satrix Dividend Plus Index Fund

Launch Date: Aug 2011
Fund Size: R193.0 million
Benchmark: FTSE/JSE Dividend Plus Index (J259)
Time Horizon: 3 – 5 years
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 0.59%
Launch Date: Aug 2011
Fund Size: R193.0 million
Benchmark: FTSE/JSE Dividend Plus Index (J259)
Time Horizon: 3 – 5 years
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 0.59%

Fund Strategy

We believe that the benchmark choice and resulting returns form the most important elements of an equity strategy - by investing in a passive vehicle the returns to investment strategies are known. By applying a full replication strategy there is no risk of deviation from the chosen benchmark.


Illustrative Annualised Investment Performance

Performance

Annualised as at 30 Jun 2016 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 6.70 5.76
3 year 3.17 4.23
5 year N/A N/A
Since Inception 7.19 8.36

Annualised return is the weighted average compound growth rate over the period measured
Actual highest and lowest annual figures for rolling 10 years
Highest Annual % 15.29
Lowest Annual % 6.70

Minimum Disclosure Document (Fund Fact Sheet)

Illustrative Annualised Investment Performance

Satrix Dividend Plus Index
FTSE/JSE Dividend Plus Index

Source of graph : Morningstar

This graph illustrates how an investment of R100 would have grown had you invested in 2010 until 2016. Like everything in life, all investments can change and come with some degree of risk. That’s why we need this disclaimer, to tell you that past performances are not necessarily a guide to future performances, and that the value of investments/units/unit trusts may go down as well as up. The performance shown in the table above is a graphical representation of your selection (of the benchmark’s past performance of the fund you selected) – including your investment objective, risk profile and fund choice – and is based on the past performance of the fund in relation to your investment. This performance is indicative and not guaranteed. The graph is for illustrative purposes only and investment performance is calculated by taking into account initial fees and all ongoing fees that you have to pay and the income reinvested on the reinvestment date. The actual fund performance can be viewed on the Minimum Disclosure Document. The Manager has the right to close the portfolio to new investors in order to manage it more efficiently in accordance with its mandate

1. MTN 4.90%
2. Nampak 4.82%
3. Coronation 4.61%
4. Barclays Group Africa 4.27%
5. MMI Holdings 4.16%
6. Nedbank 4.02%
7. Imperial 3.96%
8. BHP Billiton 3.82%
9. Stanbank 3.79%
10. Vodacom 3.74%
1. MTN 4.90%
2. Nampak 4.82%
3. Coronation 4.61%
4. Barclays Group Africa 4.27%
5. MMI Holdings 4.16%
6. Nedbank 4.02%
7. Imperial 3.96%
8. BHP Billiton 3.82%
9. Stanbank 3.79%
10. Vodacom 3.74%
Cash And Money Market Assets
Equity Financials
Equity Telecommunications
Equity Consumer Services
Equity Health Care
Equity Consumer Goods
Equity Industrials
Equity Basic Materials

Unit Trust application forms

View, print and complete the form of your choice.
Email or fax the completed form to UTinstructions@sanlaminvestmentssupport.com or 0860 724 467

Unit Trust Application Form – Individuals Download PDF
Unit Trust Tax-Free Application Form Download PDF
Unit Trust Application Form Download PDF
Unit Trust Additional Investment Form Download PDF
Unit Trust Switching Form Download PDF
Unit Trust Investor Detail Update Form Download PDF

Helena Conradie

Chief Executive Officer – Satrix

With a CFA and multiple degrees in Maths and Applied Maths, Helena clearly knows numbers. She started in a small start-up investment team, cut her teeth as a statistical research officer at Sanlam Life and also worked on the creation of Sanlam’s linked-product company, now known as Glacier. Since rejoining Sanlam Investment Management in 2000, Helena has built up a smart-thinking team that manages the largest equity portfolio of exchange traded funds (ETFs) in South Africa. They also have more than R30 billion in assets under management. That's quite a number.

Helena Conradie

Chief Executive Officer – Satrix

With a CFA and multiple degrees in Maths and Applied Maths, Helena clearly knows numbers. She started in a small start-up investment team, cut her teeth as a statistical research officer at Sanlam Life and also worked on the creation of Sanlam’s linked-product company, now known as Glacier. Since rejoining Sanlam Investment Management in 2000, Helena has built up a smart-thinking team that manages the largest equity portfolio of exchange traded funds (ETFs) in South Africa. They also have more than R30 billion in assets under management. That's quite a number.

Traditional Investing (Financial Adviser or other)

  • Retail Class (%)
  • Advice initial fee (max.) N/A
  • Manager initial fee N/A
  • Advice annual fee (max.) 1.14
  • Manager annual fee 0.35
  • Total Expense Ratio (TER) 0.59
  • Transaction Cost (TC) 0.28

Advice fee | Any advice fee is negotiable between the client and their financial advisor. An annual advice fee negotiated is paid via a repurchase of units from the investor.

The portfolio manager may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. This fund is also available via certain LISPS (Linked Investment Service Providers), which levy their own fees.

Total Expense Ratio (TER) | The Total Expense Ratio (TER) is the charges incurred by the portfolio, for the payment of services rendered in the administration of the CIS. The TER is expressed as a percentage of the daily NAV of the CIS and calculated over a period of 3 years on an annualised basis. The TER is calculated from 01 April 2013 to 31 March 2016. A higher TER does not imply a poor return nor does a low TER imply a good return.

The Transaction Cost (TC) is the cost incurred by the portfolio in the buying and selling of underlying assets. This is expressed as a percentage of the daily NAV of the CIS and calculated over a period of 3 years on an annualised basis.

When you invest online

Traditionally, investment advice come with a fee of up to 1%. But our smart online system is working to make investing cheaper and more profitable for you. The management fee you do pay is based on the fund selected and calculated on your total contributions, and then applied to the overall value of your portfolio.

YOUR INVESTMENT WILL NOT CHARGE THE FOLLOWING FEES

  • No initial account set-up fees – usually charged at 1.14%.
  • No switching fees
  • No exit fees
  • No account changes fees
  • No rebalancing fees
  • No commissions
  • No debit order fees
  • No fund manager rebates

SO YOU’RE ONLY CHARGED THE RELEVANT FUND-MANAGEMENT FEE

  • Total Annual Fee: 1.0%

Satrix, pioneers in the passive management space are now fully owned by Sanlam. It was the first to market with a passive solution and recently launched SA’s first smart beta multi-asset fund. The Satrix range is Sanlam’s answer to the growing demand for low-cost investments with a predictable index-linked outcome.

Disclaimer
Sanlam Collective Investments (RF) (Pty) Ltd and Satrix Managers (RF) (Pty) Ltd, a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. Past performance is not necessarily a guide to future performance, and that the value of investments / units / unit trusts may go down as well as up. A schedule of fees and charges and maximum commissions is available from the Manager on request. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio.

Annualised Total Returns
Annualised return is the weighted average compound growth rate over the period measured.

The UK vote to leave the EU surprised almost everyone, especially market participants and it left unprecedented uncertainty about future economic and political relations between the UK and the EU. From a US perspective, the market sell-off has been large but orderly.

The short-term Brexit issues seemed to wash out of markets during the last few days of June with almost all global market indices recovering to pre-Brexit levels, largely on the back of hints from both the Bank of England and the European Central Bank that stimulus may again be on the cards if required. That being said, longer-term trade policy and UK political leadership issues will still be a concern for a long time to come. Whereas spot prices have stabilized, there appears to be little conviction amongst financial market participants about the course of exchange rates and asset prices going forward. Interestingly, gold also remained high despite sentiment shifting back towards risk-on. Maybe the market is trying to tell investors something?

In terms of central bank policy, there is now a growing belief that, in light of the recent global uncertainty, the Fed might keep interest rates unchanged this year. This renewed belief in easy money - as well as lower yield in the US - has also led to some renewed interest from international investors in emerging markets. In local markets, the trade surplus for May came in significantly higher than expected at R18.7 billion, giving further impetus to an already strengthening rand. Being one of the most volatile emerging market (EM) currencies, the rand was the second best EM performer in June against the dollar, gaining 6.7% over the month. Given this currency improvement, somewhat stronger economic data, the fact that credit agencies left SA’s credit rating unchanged and a recent inflation reading coming in lower than expected, investors will be eager to see whether the MPC decides to halt its rates upcycle, for now.

In South Africa the FTSE/JSE All Share Index (ALSI) still managed to end the quarter up about 0.44%, despite all the volatility and the very poor performance from the basket of SA corporates, with exposure to UK earnings - namely INTU Properties, Capital and Counties, Redefine, Brait, Investec and Netcare, to name just a few. During the quarter we saw strong performances from Resources (+6.4%), whilst Industrials also managed a positive return of 0.5% and Financials returned a very weak -4.3%.

South Africa also saw significant inflows into equities (R58bn) during the month of June, reversing year-to-date numbers to a positive figure of around R20 billion.

Portfolio performance and changes

After the very strong return of the FTSE/JSE Dividend Plus Index of about 18% during the first quarter, there was definitely some profit taking over the last three months where the index managed a more disappointing return of -1.8%, underperforming the All Share return by close to 2%. For the year to date the plus 15% return should still go some way in restoring the confidence in the payoff profile of the yield factor. The performance difference, relative to the market, was mainly due to the higher exposure to Financials (all high-yielding shares), which were seriously affected by the Brexit event in late June. The Financials index lost more than 4% over the last three months. Although Gold shares performed well, the Dividend Plus Index only had exposure to Sibanye Gold, which managed a return of -11% against that of the Gold index of plus 16%. The overweight positions in PPC, Nampak and the underweight exposure to BHP Billiton destroyed some further value. This underperformance was somewhat negated by overweight positions in Telkom and Southern Sun Holdings.

The Dividend Plus Index only get reviewed twice a year in March and September. The forward dividend yield of the index is currently around 5.5%. Your fund managed to perform in line with its benchmark.

Conclusion

Market sentiment remains tentative and small catalysts could be very disruptive in future. Uncertainty can induce a significant drag on economic growth. The Brexit vote amplifies uncertainty with unprecedented economic and political considerations whose impact on global economic activity is difficult to discern.

Sanlam Life Insurance is a licensed financial service provider.
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