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Satrix Low Equity Balanced Index Fund Satrix Low Equity Balanced Index Fund

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Satrix Low Equity Balanced Index Fund

Humans experience the pain from a financial loss twice as acutely as the pleasure derived from a gain of the same size. That’s why investing fully in shares is perhaps not for everybody, even though it has been the outperforming asset class over the very long term.

This diversified fund are for those who are not comfortable with large fluctuations in their investment value over the short term.

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Quick Facts About The Fund

Satrix Low Equity Balanced Index Fund

Launch Date: Jul 2014
Fund Size: R256.9 million
Benchmark: Proprietary Satrix Low Equity Balanced Index
Time Horizon: 3 – 5 years
Risk Profile: Cautious
Fund Classification: SA - Multi Asset - Low Equity
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 0.6%
Launch Date: Jul 2014
Fund Size: R256.9 million
Benchmark: Proprietary Satrix Low Equity Balanced Index
Time Horizon: 3 – 5 years
Risk Profile: Cautious
Fund Classification: SA - Multi Asset - Low Equity
Min Investment Amount: Lump sum: R10 000 l Monthly: R500
Total Expense Ratio (TER): 0.6%

Fund Strategy

The composite benchmark of the fund comprises the following asset class building blocks:

Asset class Index exposures

SA equity (25%) FTSE/JSE Shareholder Weighted Index
SA bonds (20%) FTSE/JSE All Bond Index
SA property (5%) FTSE/JSE SA Listed Property Index
SA inflation-linked bonds (10%) Barclays SA Inflation-Linked Bond Index
SA cash (20%) SA Nominal Cash
International equities (10%) MSCI World Equity Index
International bonds (5%) Barclays Global Treasury Index
International cash (5%) International Cash Index (Notional)

 

Illustrative Annualised Investment Performance

Performance

Annualised as at 30 Jun 2016 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 8.65 8.65
3 year N/A N/A
5 year N/A N/A
Since inception 8.15 8.66

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 % N/A
Lowest Annual % N/A

Minimum Disclosure Document (Fund Fact Sheet)

Illustrative Annualised Investment Performance

Satrix Low Equity Balanced Index
(ASISA) South African MA Low Equity

Source of graph : Morningstar

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 for satrix:

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

1. Naspers -N- 4.20%
2. GrowthPoint 1.27%
3. BTI Group 1.24%
4. MTN 1.11%
5. Sanlam Global USD Liquidity Fund Class C 1.11%
6. Sasol 0.97%
7. Steinhoff Int Hldgs N.v 0.95%
8. Redefine 0.92%
9. SAB Miller 0.80%
10. FirstRand / RMBH 0.75%
1. Naspers -N- 4.20%
2. GrowthPoint 1.27%
3. BTI Group 1.24%
4. MTN 1.11%
5. Sanlam Global USD Liquidity Fund Class C 1.11%
6. Sasol 0.97%
7. Steinhoff Int Hldgs N.v 0.95%
8. Redefine 0.92%
9. SAB Miller 0.80%
10. FirstRand / RMBH 0.75%
Cash And Money Market Assets
Inflation Linked Bonds
Property
International Assets
Bonds
Equities

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 (When you invest via a Financial Adviser or other)

  • Advice initial fee (max.) 1.14%
  • Manager initial fee 1.14
  • Advice annual fee (max.) 1.14
  • Manager annual fee 1.14
  • Total Expense Ratio (TER) 1.26

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

Total Expense Ratio (TER) | PERIOD: 2 January 2013 to 31 December 2015
Total Expense Ratio (TER) | 1.26% of the value of the Financial Product was incurred as expenses relating to the administration of the Financial Product. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER may not necessarily be an accurate indication of future TER’s.

Transaction Cost (TC) | 0.09% of the value of the Financial Product was incurred as costs relating to the buying and selling of the assets underlying the Financial Product.
Transaction Costs are a necessary cost in administering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of Financial Product, the investment decisions of the investment manager and the TER.

Total Investment Charges (TER + TC) | 1.35% of the value of the Financial Product was incurred as costs relating to the investment of the Financial Product.

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.

Amid the turmoil that greeted an end to a dramatic second quarter domestic fixed interest asset classes again proved their defensive mettle. Both nominal bonds and inflation-linkers contributed handsomely to the Balanced Fund, returning 4.4% and 4.7% respectively. Despite the volatility experienced in both local and global equity markets, both managed to render a positive return as well. The ALSI and SWIX returned 0.4% and 1.3% respectively over the quarter while the MSCI World delivered a steady return of 1.0% in USD. Foreign bonds also provided welcome diversification posting a healthy 2.9% return in USD. Domestic property was the only asset class that faltered over the quarter, posting a return of -0.4%.

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 Shareholder Weighted Index (SWIX) still managed to end the quarter up about 1.3% and the All Share Index up 0.4%, 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 Bidcorp, just to name 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 returning 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. 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. While the capital markets have provided a less than pleasant experience in the riskier asset classes in the recent short term (year), we remain convinced of the medium- to long-term investment strategy of having measured strategic exposure to all the necessary asset classes for the purpose of diversification.

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A professional financial adviser is an invaluable aid along your savings journey.

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