Skip Ribbon Commands
Skip to main content

Skip Navigation Linkssatrixdividendplus Satrix Dividend Plus Index Fund

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.

continue
Do not show this again.

Contact

Call me back

Advice

Back

Email us

Skip Navigation LinksCore Funds

Satrix Dividend Plus Index Fund

Companies with high dividend payouts are popular because they are often mature, profitable, and stable, i.e. good, reliable businesses to invest in.

Quick Facts About The Fund*

Satrix Dividend Plus Index Fund

Launch Date: August 2011
Fund Size: R102.5 million
Benchmark: FTSE/JSE Dividend Plus Index (J259)
Time Horizon: 5 years +
*As at 30 November 2017
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 0.55%
Launch Date: August 2011
Fund Size: R102.5 million
Benchmark: FTSE/JSE Dividend Plus Index (J259)
Time Horizon: 5 years +
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 0.55%
*As at 30 November 2017

Fund Strategy

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

Performance

Annualised Total Return on a rolling monthly basis
(as at 30 November 2017)
Retail Class Fund (%) Benchmark (%)
1 year 21.19 22.02
3 year 3.94 4.83
5 year 6.54 7.53
Since Inception 9.21 10.31

Annualised return is the weighted average compound growth rate over the period measured
Highest and Lowest Annual Returns since inception
Highest Annual % 21.19
Lowest Annual % (17.24)

Minimum Disclosure Document (Fund Fact Sheet)

Cumulative Growth Over Time

Satrix Dividend Plus Index Fund
FTSE/JSE Dividend Plus Index

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.

1. Kumba 7.33%
2. Barclays Group Africa 5.13%
3. Libhold 4.66%
4. Telkom 4.49%
5. Nedbank 4.36%
6. MTN 4.18%
7. Foschini 3.82%
8. Woolies 3.77%
9. Vodacom 3.72%
10. Stanbank 3.68%
Cash And Money Market Assets
Equity Financials
Equity Telecommunications
Equity Consumer Services
Equity Health Care
Equity Consumer Goods
Equity Industrials
Equity Basic Materials
1. Kumba 7.33%
2. Barclays Group Africa 5.13%
3. Libhold 4.66%
4. Telkom 4.49%
5. Nedbank 4.36%
6. MTN 4.18%
7. Foschini 3.82%
8. Woolies 3.77%
9. Vodacom 3.72%
10. Stanbank 3.68%
Application form: Satrix Individual Investors (new investors only) ENG
Application form: Satrix Tax-Free Unit Trusts (new investors only) ENG

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.

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.

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 0.38%
Total expense Ratio (TER) 0.55%
Transaction Cost (TC) 0.23%

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 January 2017 to 31 December 2017. A higher TER does not imply a poor return nor does a low TER imply a good return.

The TER is calculated from 01 October 2016 to 30 September 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 https://satrix.co.za/products

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.

Macro review

In the US, the fourth quarter saw two Republican defeats in Senate contests spur House and Senate Republicans into action, resulting in the long-awaited tax reform bill. Markets rallied on the news, with big permanent cuts for corporations as the centrepiece of the package. US equities were largely also supported by generally positive macroeconomic data, including better-than-expected third-quarter GDP growth of 3.0% (annualised) and stronger-than-expected non-farm payrolls. As had been widely anticipated, the US Federal Reserve (Fed) lifted interest rates by 25 basis points (bps) in December. The Fed also raised its growth forecasts for 2018 to 2.5% from 2.1%. The quarter also saw robust corporate earnings, particularly from the technology sector.

In the Eurozone, data showed the region’s economic recovery continuing. GDP grew by 0.6% in the third quarter, albeit a slight slowdown from 0.7% in the second quarter. In October, the European Central Bank (ECB) announced that quantitative easing would be extended to September 2018 but that the pace of purchases would be reduced from €60 billion per month currently to €30 billion. In Germany, coalition talks collapsed, while in Spain, Catalonia held a regional election which failed to resolve the independence issue. In the UK, despite a sluggish economy, the Bank of England (BoE)’s monetary policy committee raised interest rates for the first time in 10 years as annual CPI reached 3.1% in November, breaching the BoE’s upper target. Furthermore, hopes rose around progress with Brexit negotiations, with an agreement struck to allow talks to proceed to the future of trade arrangements. Emerging markets experienced largely positive political developments. In South Africa, pro-reform candidate, Cyril Ramaphosa, was elected as leader of the African National Congress. This development increased the prospect for a return to more orthodox policy after elections in 2019. In Greece, agreement was reached with international creditors over reforms, paving the way for the dispersal of further bailout funds, while India also announced plans for a major recapitalisation for statecontrolled banks.

Global and local market review

For the first time on record, global equity markets rallied in all 12 months of a year, advancing +5.8% in US dollars during the fourth quarter and 24.6% over 2017, one of the strongest years since 2009. The S&P 500 Index ended a strong year with a fourth-quarter gain of +6.6%, buoyed by hopes of tax reform, while Eurozone equities declined amid some profit-taking and simmering political risk, although economic data remained positive. The UK’s FTSE All Share Index also saw positive returns, supported by gains for resource stocks and progress on Brexit negotiations. Emerging market (EM) equities however outperformed their developed world counterparts, returning +7.5% during the fourth quarter and 37.8% in 2017. Top EM performers in the fourth quarter were South Africa (+21.5%), Greece (+13.6%) and India (+11.8%). The MSCI South Africa Index rallied +36.8% in US dollar terms in 2017 broadly in line with EM, driven by Media (Naspers), a metals rally, while a Ramaphosa win buoyed SA domestic-demand sectors into year-end. However, the MSCI SA ex Naspers was up only +16%.

In rand terms, SA equities (Capped SWIX) delivered a healthy 16.5% during 2017, outperforming bonds (+10.2%) and cash (+7.5%). Over the quarter, the Capped SWIX return was +8.4%, driven by Industrial Metals (+62.7%), Banks (+27.1%) and SWIX return was +8.4%, driven by Industrial Metals (+62.7%), Banks (+27.1%) and General Retail (+22.3%). Underperforming sectors over the quarter were Household Goods (-92.3%), Fixed Line Telecommunications (-18.8%) and Paper (-9.9%).

In 2017, SA equities recorded outflows of US$2.5 billion, significantly lagging inflows into EM equities of US$77.2 billion. However, dissecting the flows, it appears that, excluding the outflows from dual-listed stocks, the Barclays and Vodacom sell-down, SA equities saw inflows of just more than R60 billion in 2017.

Portfolio performance, attribution and strategy

After a fantastic performance during the 2016 calendar year, Value measures have experienced a disparate 2017. 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, particularly during the fourth quarter.

The reasons for these are multiple. Firstly, the emergence of news in December that an accounting irregularity had occurred at Steinhoff had investors scrambling. Not often has one stock moved the entire benchmark that much, as companies with defensive characteristics and high dividend yields benefited from this uncertain environment. Notwithstanding this seismic shift, any portfolios (such as the Dividend Plus strategy) that managed to have less exposure than benchmarks - or even better, zero exposure - were treated to substantial relative performance outcomes after the Steinhoff share price plummeted.

Secondly, leading up and subsequent to Cyril Ramaphosa’s election as the new ANC president, the rand rallied strongly relative to the dollar (appreciating 10.9% over 2017), with investors beginning to price in a positive macroeconomic impact supporting a cyclical recovery. To this end, shares with domestic cyclical exposure rallied hard during the fourth quarter, including General Retail (+15.9%), Banks (+15.2%) and Industrial Transportation (+8.9%). The Dividend Plus strategy had substantial exposure to all these sectors through its strong rand exposure. During the fourth quarter, exposure to Kumba Iron Ore (KIO), Foschini (TFG), Barclays (BGA) and Imperial (IPL) played a strong positive role here, while an underweight position in Steinhoff (SNH) added a significant amount of excess return. The concentrated nature of our market index proxies and its Naspers exposure also largely contributed to the relative underperformance; this index holds no Naspers exposure. Holdings in Telkom (TKG), Vodacom (VOD) and Mondi (MND) detracted from the index’s relative performance.

There were no changes to the FTSE/JSE Dividend Plus Index during the prior quarter.

Find an Adviser

Advanced Search

or
or

Find your nearest BlueStar

Sanlam Life Insurance is a licensed financial service provider.
Copyright © Sanlam