The information on the Adviser and Institutional areas of this site have been tailored for investment professionals. Appropriate product, fund and service information
for private investors can be accessed on the Personal area of our site. Terms & conditions.
We believe that the benchmark choice and resulting returns form the most important elements of an equity strategy - by investing in a passive vehicle the returns to investment strategies are known. By applying a full replication strategy there is no risk of deviation from the chosen benchmark.
Illustrative Cumulative Growth of an investment of R100
Minimum Disclosure Document (Fund Fact Sheet)
Cumulative Growth Over Time
Source of graph: Morningstar Direct
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 by this graph happened in the past and is not guaranteed. The performance is calculated by taking into account initial and ongoing fund manager fees and assumes that you reinvested all the income earned by the fund over this period.
The other line on the graph is for the performance of the designated benchmark of the fund – normally either an index or other funds in the industry that are comparable to the fund you’ve chosen.
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 more Satrix forms
All portfolios are managed and monitored by the Satrix investment team, a group of individuals highly skilled in portfolio management, quantitative research, risk management and portfolio solutions. The Satrix team offers unparalleled experience in efficiently managing index-tracking portfolios. Under leadership of CIO Kingsley Williams and its head of Portfolio Management, Johann Hugo, the team manages index tracking assets in excess of R70 billion.
Retail Class (%)
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.
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 April 2017 to 30 March 2018. 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
Satrix is a South African ETF pioneer and caused a shake-up in the SA investment space when it introduced the country to ETFs in 2000 by launching the first ETF listed on the JSE. The Satrix TOP 40 ETF needs no introduction and serves as the go-to broad market exposure investment option for professional and amateur investors alike. So transformative have the Satrix product set and access options been to South Africans that people often (erroneously) refer to all index trackers as Satrix.
Since 2000 Satrix has listed 12 more ETFs. In fact, in 2017 alone it added a property ETF, an inflation-linked bond ETF, a Quality factor ETF and three offshore ETFs to its range. You can now build a completely diversified portfolio of local asset classes using only low-cost Satrix ETFs.
To make investing ever easier and cheaper (and online) we started working with the ground-breaking team at EasyEquities. The low-cost, no-minimum, online platform they had developed, which allowed fractional share trading, is perfect for our clients too. In no time at all we had our very own www.SatrixNOW.co.za platform up and running, which allows you to do everything online with no annual fees and extremely low trading costs. With SatrixNOW there really are no excuses as you can invest as little as R10.
In the US, equities began 2018 strongly, buoyed by ongoing strength in economic
data, robust earnings and the confirmation of a major tax reform package. US
business confidence reached an unexpected, multi-decade high in March, while
GDP for Q4 2017 was revised upwards to show growth of 2.9%. The latter part of
the quarter, however, saw a marked increase in volatility as investors first digested
the destabilising potential of an elevated US inflation reading and the possibility that
the Fed may need to become more proactive in raising interest rates, as well as
escalating US-China trade sanctions, which precipitated a renewed bout of
turbulence in March.
In the Eurozone, the economic backdrop remained encouraging over the three
months. GDP growth for Q4 2017 was confirmed at 0.6% quarter-on-quarter.
Unemployment was stable at 8.6% in January 2018. However, forward-looking
surveys painted a picture of slower future growth. The composite PMI hit a 14-month
low in March, albeit the reading of 55.3 still implies solid growth. European Central
Bank chairman Mario Draghi reiterated that interest rates would not rise until well
past the end of the quantitative easing programme. On the political front, the key
event of the quarter was Italy’s election, which yielded no overall winner. Germany
formed a new government after its inconclusive elections in September 2017.
Angela Merkel remains as chancellor after her centre-right CDU/CSU agreed
another grand coalition with the centre-left SPD.
Emerging markets saw positive returns in the first quarter despite a rise in market
volatility stemming from tensions over global trade. Brazil former president Luiz
Inácio Lula da Silva saw his criminal conviction upheld, while in Russia the central
bank cut interest rates and the country’s debt was upgraded to investment grade by
ratings agency S&P. In China, macroeconomic data remained broadly stable, albeit
there were ongoing signs of a gradual slowing in momentum, with official PMI
easing to 50.3. By contrast, there was concern in India over a reported fraud case at
a state-owned bank.
Global equity markets declined in Q1 2018 with investors unnerved first by concerns
about the path of US interest rate rises and then worries over trade. US equities
began the year strongly, boosted by tax reforms, but ended the quarter lower amid
concerns over inflation and the impact of US-China trade sanctions. Following a
10% correction from its January highs and rallying back 8% by early March, the S&P
500 Index suffered another 5% pullback in the last few weeks, ending the month of
March down 2.5% and losing 0.8% over the last three months, which was the first
negative quarter since the third quarter of 2015. Eurozone equities posted negative
returns as worries over US rates and trade affected other markets. Italy’s election
was inconclusive but had limited impact on the equity market.
Emerging market equities outperformed, delivering a positive return in US dollars.
The MSCI Emerging Markets Index was up +1.5% (total returns) in Q1 2018, ahead
of the MSCI World (Developed Market) Index, which was down 1.2% - the first
quarterly loss in two years. Over the last three months the FTSE/JSE All Share
Index posted a total return of -6.0%. This has been its worst quarterly performance
in eight years (Q2 2010: -8.2%). SA Industrials were the worst performer, returning -
in eight years (Q2 2010: -8.2%). SA Industrials were the worst performer, returning -
8.0% (Naspers and Tiger Brands were both down 12%). SA Resources lost 3.8%
(rising global uncertainty) and SA Financials lost 3.6%.
Of the equity sectors, the top first-quarter performance came from Non-life
Insurance (+24.4%), Fixed Line Telecoms (+10.0%) and General Retailers (+9.2%).
The worst performance came from Real Estate Development and Services (-31.2%),
Software (-30.5%) and Household Goods (-29.0%).
After a fantastic performance during the 2016 calendar year, Value measures have
experienced a disparate 2017 and start to 2018. The divergence between deep
value measures (e.g. price-to-book) and yield measures (e.g. dividend yield) has
been substantial, with the former struggling, and the latter continuing to perform well
as investors seek defensive qualities during a period of high levels of uncertainty
and flight to safety.
The impact of the news in December regarding the accounting irregularity at
Steinhoff still has investors on edge, with further speculation surrounding Capitec
and technology shares continuing to weigh on market sentiment. Further to these
stock-specific issues, global forward macro momentum has slowed, which has
largely favoured defensive shares with high dividend yields, in particular domesticorientated
shares, of which the Stable Dividend strategy has significant exposure to.
During Q1 2018, exposure to Foschini (TFG), Nedbank (NED), Truworths (TRU) and
Telkom (TKG) played a strong positive role here, while an underweight position in
Naspers (NPN) added a significant amount of excess return. Holdings in Exxaro
(EXX), African Rainbow Minerals (ARI) and Kumba Iron Ore (KIO) detracted from
the index’s relative performance.
In terms of changes to the FTSE/JSE Dividend Plus Index over the prior quarter,
Coronation (CML), Glencore (GLN) and MMI Holdings (MMI) were additions in
March, while Bidvest (BID), Mr Price (MRP) and Sibanye Gold (SGL) were