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area of our site. Terms & conditions
This fund is suitable for long-term retirement savings and offers diversified exposure to all the key local and international asset classes, with a smart SA equity (shares) core. The fund tracks a composite index, with a long-term strategic asset allocation. This fund is best suited to investors with at least a medium-term investment horizon (3-5 years). For more information contact your financial adviser or broker.
The composite benchmark of the fund comprises the following asset class building blocks:
Asset class Index exposures
The asset composition of the index aims to target a CPI+5.5% return over the long term.
Illustrative Annualised Investment Performance
Minimum Disclosure Document (Fund Fact Sheet)
Performance Fees FAQ
Source of graph : Morningstar
This graph illustrates how an investment of R100 would have grown had you invested for the time period displayed. 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 Manager has the right to close the portfolio to new investors in order to manage it more efficiently in accordance with its mandate. The actual fund performance can be viewed on the Minimum Disclosure Document. Annualised return is the weighted average compound growth rate over the period measured.
View, print and complete the form of your choice.
Email or fax the completed form to UTinstructions@sanlaminvestmentssupport.com or 0860 724 467
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.
HChief Executive Officer – Satrix
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.
Where this fund invests into other unit trusts, it does so into zero fee classes except for offshore
equity (0.30%) and offshore bonds (0.12%).
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 1 year. The TER is calculated since inception for 1 October 2015 to 30 September 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 1 year on an annualised basis.
Traditionally, investment advice come with a fee of up to 1.14%. But our smart online system is working to make investing cheaper and more profitable for you and hence no initial or annual advice fees will be charged. 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
SO YOU’RE ONLY CHARGED THE RELEVANT FUND-MANAGEMENT FEE
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.
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 ReturnsAnnualised return is the weighted average compound growth rate over the period measured.
The year 2016 was definitely full of surprises starting with the Bank of Japan
stunning the market with a surprise move to negative interest rates, muted Chinese
GDP growth and the Brexit vote that wiped out about $2 trillion of global stocks
overnight and knocked the British pound to 31-year lows. This was followed by
Trump winning the presidency in a historic election upset in the US, which led to the
dollar reaching a 14-year high in November and also the long-awaited Fed interest
rate hike in December, with probably more to come in 2017.
The standout event over the last quarter must be the spectacular sell-off in US long
bonds following the election of Donald Trump as president. The yield of the 30-year
bond increased from 2.3% in October to 3.2% in mid-December as markets priced in
the likelihood of fiscal stimulus with the Republicans firmly in control. The Fed
continued on a path of vigilance against inflation as leading indicators point to growth
and the first signs of wage inflation become visible. Both these events are a
harbinger for a process that is likely to lead to higher global bond yields in future.
The 2016 performance of global equity markets was reasonable at best. The USD
return of the MSCI Developed Markets Index was 8.2% and that for the MSCI
Emerging Markets (EM) Index was 11.6%. Foreign bonds had a particularly tough
final quarter of 2016 (-7.1% in USD), but returned 2.1% in USD for the full calendar
year. The global bond sell-off (post the Trump victory) came on the back of higher
inflation and economic growth expectations accompanied by a steeper interest rate
It is our view that global growth will be driven by an acceleration in the US with stable
growth in the Eurozone. The Chinese economy will probably grow at a slightly lower
rate as fiscal stimulus and the leveraging of the property sector slow down.
We also expect stable growth in emerging markets in general and SA recovering
from a low base as commodity prices stabilise. The MSCI SA Index (+18.4%)
outperformed the MSCI EM Index (+11.6%) in dollar terms in 2016, as the rand
(+12.6%) recovered to end 2016 as the third-best performing EM currency, helped
by the political landscape stabilising somewhat, SA avoiding the foreign currency
ratings downgrade and an improvement in commodity prices and EM sentiment.
However, in local currency terms, the FTSE/JSE All Share Index (+2.6%)
underperformed SA bonds (+15.5%), SA property (10.2%), cash (+7.4%) and SA
inflation-linked bonds (6.3%) in 2016. From a sector perspective 2016 was a year for
value cyclicals with General Mining (+61.6%), Platinum (+50.5%) and Banks
(+33.6%) among the best performing sectors. The eventual appointment of Finance
Minister Pravin Gordhan, who helped SA avoid the ratings downgrade in 2016, and
an improvement in EM risk sentiment helped the rand to achieve its best year since
2009, appreciating by 12.6% in 2016.
Momentum: Price momentum and earnings revision factors have been sternly high
levels of economic and policy uncertainty on both the domestic and
tested in the 2016 calendar year. This last year has brought with it extraordinarily)
high levels of economic and policy uncertainty on both the domestic and
international stages keeping us pensive as we embark on 2017. The last time the
momentum factor experienced a drawdown to this extent was during the 2008 global
financial crisis; the difference here in 2016 was that the market factor did not
spectacularly collapse as it did in 2008 - one might say strange things happen as we
emerge from an environment of financial repression.
On the international stage the price and earnings revision factors have also been
among the poorer performers. There has, though, been a recovery in the factor during
the last quarter of 2016.
Stock selection within the resource sector was the primary driver of positive relative
performance. Financials were benign in effect while industrials were slightly
negative. Stocks that detracted most were Naspers, British American
Tobacco and Mediclinic. In the resources sector the overweight position in Assore
added most after being the heaviest detractor in the previous quarter. Kumba Iron Ore
and Anglo American plc were also among the top value-adding positions over the
As we closed the year, we transitioned the portfolio based on the evaluation of new
factor signals and the risk levels in the portfolio with only one share (AngloGold
Ashanti) being removed. The portfolio has now completed its exit from all
shares with outright gold exposure. The biggest fundamental change in the portfolio’s
positioning over the course of 2016 has been the rotation into the hard commodity
stocks whose price and earnings revision signals remain strongest in our domestic
universe. It is important to mention and note that within this uncertain environment
our risk management overlays in our portfolio have added value when one
compares our performance to other similar, competing, passive and active
Stable Dividend: Strong dividend yield and cash flow-related value attributes
helped steer this index home to a strong display in 2016. Accompanied exposure
from shares with strong foreign sensitivity exposure enhanced the performance of
this factor in the last quarter of 2016. Simultaneous underexposure to price
momentum and large-cap shares (Naspers in particular) was a helpful
As mentioned, the largest relative performance value-add came from the
underweight position to Naspers while overweight positions in the Foschini
Group, Truworths and Barloworld made positive contributions.
The overweight position in Woolworths and underweight positions in Anglo
American plc and Sasol detracted ever so slightly.
As long as the extraordinarily uncertain market environment persists this factor is
likely to provide investors with the necessary defensive character inside their
Quality: The S&P Quality Index had a largely indifferent 2016 and final quarter of
2016 delivering a return which was largely similar to the market (SWIX). In spite of
this, its diversification benefits have been of significant value within this factor
portfolio construct. As experienced in the third quarter of 2016, exposure to the mid
and smaller-cap counters proved a helpful enhancer to the Quality factor over the
fourth quarter. The low beta character inherent in this factor detracted most among
the other factors as resources started to dominate in the fourth quarter. The
performance of the Quality factor in the first quarter of 2016 and around the Brexit
(June 2016) event reminded us of its strong defensive attributes alongside that of
value in mid to deep (intense) periods of market stresses. The policy and economic
uncertainty capitulated slightly in the third and fourth quarters and so the Quality
factor retraced a little.
As with the Stable Dividend factor, the largest relative performance value-add came
from the underweight position to Naspers and overweight positions in RMB
Holdings and Merafe Resources Overweight positions in Mediclinic
International PLC, Brait and Pan African Resources detracted
most. At the December S&P Index review there were significant changes:
The index and portfolio remain focused in its extraction of Quality and should
markets give way to further risk aversion, the defensive character of the basket
should prove rewarding.
We remain convinced of all equity factors’ medium to long-term significance and the
premium they offer in the SA capital market and remain disciplined in our
implementation and extraction of all factors.
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.