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Satrix Balanced Index Fund

You are saving for the long term and looking for a well-diversified portfolio – some shares, some listed property and some fixed interest assets. You are comfortable with fluctuations in your capital value over the short term.

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.

Quick Facts About The Fund

Satrix Balanced Index Fund

Launch Date: October 2013
Fund Size: R1 723.0 million
Benchmark: Proprietary Satrix Balanced Index
Time Horizon: 5 years
Risk Profile: Moderate Aggressive
Fund Classification: SA - Multi-Asset - High Equity
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 0.79%
Launch Date: October 2013
Fund Size: R1 723.0 million
Benchmark: Proprietary Satrix Balanced Index
Time Horizon: 5 years
Risk Profile: Moderate Aggressive
Fund Classification: SA - Multi-Asset - High Equity
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 0.79%

Fund Strategy

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

Asset class Index exposures

Smart SA equity core (55%) 25% Proprietary Satrix Stable Dividend Index
25% S&P Quality Index
50% Proprietary Satrix Momentum Index
SA bonds (8%) FTSE/JSE All Bond Index
SA property (6%) FTSE/JSE SA Listed Property Index
SA inflation-linked bonds (6%) Barclays SA Gov Inflation-Linked Bond Index
SA cash (5%) SA Nominal Cash
International equities (15%) MSCI World Equity Index
International bonds (5%) Barclays Global Treasury Index

The asset composition of the index aims to target a CPI+5.5% return over the long term.

Illustrative Annualised Investment Performance

Performance

Annualised as at 31 July 2017 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 4.00 5.05
3 year 6.33 7.76
5 year N/A N/A
Since inception 7.68 9.01

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 % 8.71
Lowest Annual % 4.00

Minimum Disclosure Document (Fund Fact Sheet)

Performance Fees FAQ

Illustrative Annualised Investment Performance

Satrix Balanced Index Fund A1
Proprietary Satrix Balanced Index

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.

1. Naspers -N- 6.19%
2. FirstRand / RMBH 3.22%
3. Stanbank 3.04%
4. Capitec 2.37%
5. Bidvest 2.23%
6. Sanlam 2.12%
7. Clicks Group Ltd 2.02%
8. Mr Price Group Limited 2.02%
9. BTI Group 1.92%
10. AVI 1.79%
Cash And Money Market Assets
Inflation Linked Bonds
International Assets
Equities
Property
Bonds
1. Naspers -N- 6.19%
2. FirstRand / RMBH 3.22%
3. Stanbank 3.04%
4. Capitec 2.37%
5. Bidvest 2.23%
6. Sanlam 2.12%
7. Clicks Group Ltd 2.02%
8. Mr Price Group Limited 2.02%
9. BTI Group 1.92%
10. AVI 1.79%

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 – Individual Investors Download PDF
Unit Trust Tax-Free Application Form Download PDF
Unit Trust Application Form - Non-Individual Investors Download PDF
Unit Trust Additional Investment Form Download PDF
Unit Trust Switching Form Download PDF
Unit Trust Investor Details Update Form Download PDF

View additional forms

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

HChief 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)

A1-Class (%)

Advice initial fee (max.) N/A
Manager initial fee N/A
Advice annual fee (max.) 1.14
Manager annual fee 0.63
Total Expense Ratio (TER) 0.79
Transaction Cost (TC) 0.08

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.

Where this fund invests into other unit trusts, it does so into zero fee classes except for offshore equity (0.30%) and offshore bonds (0.15%).

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 from 01 July 2016 to 30 June 2017. 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. Obtain the costs of an investment prior to investing by using the EAC calculator provided at www.satrix.co.za.

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 from 01 July 2016 to 30 June 2017. 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. Obtain the costs of an investment prior to investing by using the EAC calculator provided at www.satrix.co.za.

When you invest online

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

  • No initial account set-up fees – usually charged at 2.28%.
  • 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: 1.14%

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

Visit the Satrix website for more information

Macro review

Globally, real GDP and industrial production momentum has been firm year to date, with consensus forecasts for global real GDP growth on track for 3.3% for 2017. In the US, rates was raised by 25 basis points while the median market participant still expect one more hike this year and another two to three next year. The Federal Open Market Committee appeared unfazed by the slew of weak inflation prints, believing it to be temporary. Additionally, US consumer spending data remained resilient, adding to hopes the US economy would bounce back in the second quarter following GDP growth of 1.4% in the first quarter (annualised). In Europe, the most recent European Central Bank meeting revealed the bank was optimistic on growth and inflation and expected tapering to start early next year. Recently released macroeconomic data is pointing towards a steady near-term growth path for China. Political uncertainty remained an important feature globally, as US President Donald Trump dismissed FBI director James Comey, which raised doubts over the ability of the administration to push its fiscally expansive policies. In Europe, French and Italian political uncertainty faded, as the moderate Emmanuel Macron won the French presidential and later parliamentary elections convincingly, while the possibility of an early election in Italy was ruled out.

South Africa started the last quarter on the wrong foot with the unexpected Cabinet reshuffle at the end of March. This markedly increased political uncertainty, and coupled with credit downgrades, weighed heavily on domestic confidence and subsequent consumer sentiment. As such, a business cycle recovery will likely be protracted until such time that confidence recovers. To add insult to injury, first- quarter GDP posted a dismal -0.7%, plunging the economy into a technical recession. Growth expectations for 2017 is seen at 0.75% (down from about 1.5% at the start of the year), with a recovery to 1.25% in 2018, mostly driven by a rebound in household demand.

Global and local market review

Global equity markets advanced in the second quarter of 2017 with the MSCI World Index returning 4.2% in US dollars, and 12% year-to-date. A strong corporate earnings season and generally positive economic data supported gains, while political risk eased in Europe. Emerging market (EM) equities however outperformed their developed world counterparts, returning 18.2% during the first half of 2017. This streak of outperformance is now six months long, as this region continues to benefit from a supportive global backdrop. Top performers in EM were Poland (+33%), Turkey (+29%) and South Korea (+28%), while Russia experienced a sharp decline (-15%) amid a fall in Brent crude prices. In terms of global style performance, Growth (+7.0%), Quality (+5.1%) and Price Momentum (+5.5%) have been the clear outperformers since the start of the year.

Global government bond yields were well supported for most of the quarter, but a sell-off in the final week reversed earlier gains for Bunds and gilts and pared gains for US Treasuries. This sell-off was drawn by comments from central bank leaders in the US, Europe and the UK, taken as signalling increased hawkishness. High-yield (+6%) and investment-grade bonds (+4%) also delivered positive returns for the period.

The Bloomberg Commodities Index declined in the second quarter, with Energy the weakest component as Brent crude fell 9.3%. Industrial metals were down, with iron weakest component as Brent crude fell 9.3%. Industrial metals were down, with iron ore falling heavily on concerns of weaker demand from China and elevated stockpiles in the country.

Year to date, South African equities (SWIX) delivered a mild 3.3%, slightly underperforming bonds (+4.0%) and cash (+3.7%) as expectations of a delayed economic recovery and political uncertainty weighed on equities. Within equities we saw divergent sector performances, as Industrials added 9.0%, while Resources fell 4.6% and Financials added 1.1% over the first half of 2017.

Over the last three months, the SWIX return was flat. In terms of major contributions to this return, Media (Naspers) was the star performer, as Tencent continued to improve its competitive position and market share, although June saw profit-taking in the global tech sector. Some noticeable contributions also came from Steinhoff (+4.5%), which outperformed as it announced the proposed listing of its SA retail assets. Aspen (+4.5%) also bounced back, driven by a rally in the euro/US dollar exchange rate. Materials (-6.7%) detracted the most, given weaker precious metal prices, exacerbated by the introduction of the new Mining Charter. This was followed by Discretionary Retailers (-9.3%), out of favour, as business/consumer confidence nosedived. Telecoms also contributed negatively, as MTN (-6.5%) fell again, partly driven by oil prices declining (Nigeria) over the quarter.

The year ahead

Despite the rollercoaster of emotions, global equities hit record highs during the past quarter. Looking ahead, a global economic slowdown with a concomitant lack of earnings delivery would be a major risk to equity markets. We also cannot discount further political uncertainty and monetary tightening as a threat; however, there is sufficient earnings momentum to support gains in global equity markets over the short term. Return expectations in other asset classes are still at multi-year lows, and it is hard to see major rotation out of equities into defensive assets just yet. Domestically, lacklustre corporate earnings growth will be a key determinant that will impact JSE company margins and share price performance. Recent discussions around the South African Reserve Bank’s mandate and ownership have been market negative, and along with the new proposed Mining Charter, we continue to monitor the impact of these developments on our local currency. Continued deterioration in the macro outlook and political noise will in our view increase the likelihood of a further downgrade in local currency debt rating. The S&P investment- grade status on local currency debt is likely to be lost mid-2018 with a follow up from Moody’s downgrade in the second half of 2018. A commodity rally would be a tailwind, but a meaningful rally seems unlikely at present with the expected growth in China moderating. We stay very cautious on the returns from local equities for the immediate future.

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