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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 496.1 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): 0.78%
Launch Date: October 2013
Fund Size: R1 496.1 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): 0.78%

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 Mar 2017 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 1.32 2.52
3 year 6.84 8.15
5 year N/A N/A
Since inception 7.14 8.46

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 % 15.64
Lowest Annual % 1.32

Minimum Disclosure Document (Fund Fact Sheet)

Performance Fees FAQ

Illustrative Annualised Investment Performance

Satrix Balanced Index 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- 5.52%
2. FirstRand / RMBH 3.27%
3. Sanlam 2.49%
4. Steinhoff Int Hldgs N.v 2.32%
5. Capitec 2.01%
6. BTI Group 1.98%
7. Stanbank 1.91%
8. Bidvest 1.78%
9. Kumba 1.65%
10. Truworths 1.62%
Cash And Money Market Assets
Inflation Linked Bonds
International Assets
Equities
Property
Bonds
1. Naspers -N- 5.52%
2. FirstRand / RMBH 3.27%
3. Sanlam 2.49%
4. Steinhoff Int Hldgs N.v 2.32%
5. Capitec 2.01%
6. BTI Group 1.98%
7. Stanbank 1.91%
8. Bidvest 1.78%
9. Kumba 1.65%
10. Truworths 1.62%
Cash And Money Market Assets
Inflation Linked Bonds
International Assets
Equities
Property
Bonds

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 .0.68%
  • Total expense Ratio (TER) 0.78%
  • Transaction Cost (TC) 0.29%

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.

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

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 trajectory.

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 quarter.

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 momentum products.

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 enhancer.

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 portfolio construct.

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.

In closing

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.

Sanlam Life Insurance is a licensed financial service provider.
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