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Satrix Momentum Index Fund Satrix Momentum Index Fund

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  • 0860 100 266

Satrix Momentum Index Fund

Those who support the momentum style of investing believe that rising shares tend to continue rising, and falling shares tend to continue falling. They seek to take advantage of these trends by quickly moving from one rising star to the next.

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Quick Facts About The Fund

Satrix Momentum Index Fund

Launch Date: Oct 2013
Fund Size: R123.0 million
Benchmark: Proprietary Satrix Momentum Index
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): 0.95%
Launch Date: Oct 2013
Fund Size: R123.0 million
Benchmark: Proprietary Satrix Momentum Index
Time Horizon: 3 – 5 years
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 l Monthly: R500
Total Expense Ratio (TER): 0.95%

Fund Strategy

Momentum is defined for the index in terms of a composite of price momentum and earnings momentum as measured by analyst revisions. The index is reviewed monthly with cognizance given to the liquidity of individual counters and the turnover of the benchmark as a whole. The benchmark is also moderated in terms of sector and stock specific risks. The universe for selection of stocks to be included in the Satrix Momentum Index is all stocks on the JSE that meet the applicable liquidity screening requirements referred to in the calculation methodology, excluding listed property stocks.


Illustrative Annualised Investment Performance

Performance

Annualised as at 30 Jun 2016 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 4.52 5.57
3 year N/A N/A
5 year N/A N/A
Since inception 12.98 14.57

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 % 15.81
Lowest Annual % 4.52

Minimum Disclosure Document (Fund Fact Sheet)

Illustrative Annualised Investment Performance

Satrix Momentum Index
(ASISA) South African EQ General

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- 19.75%
2. FirstRand / RMBH 6.41%
3. BTI Group 6.05%
4. Steinhoff Int Hldgs N.v 5.81%
5. Investec 15.95%
6. Mediclinic International PLC 4.20%
7. MTN 3.73%
8. Sasol 3.70%
9. Brait 3.46%
10. Sibanye Gold Ltd 3.44%
1. Naspers -N- 19.75%
2. FirstRand / RMBH 6.41%
3. BTI Group 6.05%
4. Steinhoff Int Hldgs N.v 5.81%
5. Investec 15.95%
6. Mediclinic International PLC 4.20%
7. MTN 3.73%
8. Sasol 3.70%
9. Brait 3.46%
10. Sibanye Gold Ltd 3.44%
Property
Equity Health Care
Cash and Money Market Assets
Equity Financials
Equity Telecommunications
Equity Consumer Services
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 (When you invest via a 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 0.42
  • Total Expense Ratio (TER) 0.95
  • Transaction Cost (TC) 0.64

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.

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 since inception 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 BoE and ECB 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 riskon. 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%), while 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. 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.

Portfolio performance, attribution and strategy

Amid an ever tightening environment both locally and globally the price momentum and earnings revision factors continued to struggle in the first half of 2016. The lack of visibility emanating from the surprising and severe Brexit event and its contagion posed further challenge to the trending momentum factors as we closed out the first half of the year. Momentum stocks with significant EBITDA exposure to the UK economy found it particularly hard-going and detracted most over the quarter.

The factor’s weakness over the quarter was primarily due to stock selection in the financial and resource sectors. Stock that detracted most in the financial sectors were overweight positions in Brait (BAT), Investec Ltd (INL) and Investec plc (INP); the overweight position in Truworths (TRU) also detracted. Our overweight positions held in Clicks (CLS) and Mediclinic (MEI) and the underweight positions in Richemont (CFR) and Sanlam (SLM) contributed positively to the relative performance experience.

As we closed the quarter, we transitioned the portfolio based on the evaluation of new factor signals and the risk levels in the portfolio, with new entrants coming in the form of Anglo American (AGL), Anglo Platinum (AMS) and the Johannesburg Stock Exchange (JSE) that demonstrated very strong price and earnings momentum attributes. Exxaro (EXX), Woolworths (WHL) and KAP Industrial (KAP) completely exited the portfolios based on waning factor signals.

We remain convinced of the factor’s medium- to long-term significance and the premium it offers in the South African capital market and remain disciplined in our implementation and extraction of the factor.

Sanlam Life Insurance is a licensed financial service provider.
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