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Skip Navigation LinksCore Funds

Satrix Momentum Index Fund

Those who support the momentum style of investing believe that rising shares tend to continue rising, and falling shares tend to continue falling. They seek to take advantage of these trends by quickly moving from one rising star to the next.

Quick Facts About The Fund

Satrix Momentum Index Fund

Launch Date: October 2013
Fund Size: R95.8 million
Benchmark: Proprietary Satrix Momentum Index
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): 0.65%
Launch Date: October 2013
Fund Size: R95.8 million
Benchmark: Proprietary Satrix Momentum Index
Time Horizon: 5 years +
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 l Monthly: R500
Total Expense Ratio (TER): 0.65%

Fund Strategy

Momentum is defined for the index in terms of a composite of price momentum and earnings momentum as measured by analyst revisions. The index is reviewed monthly with cognizance given to the liquidity of individual counters and the turnover of the benchmark as a whole. The benchmark is also moderated in terms of sector and stock specific risks. The universe for selection of stocks to be included in the Satrix Momentum Index is all stocks on the JSE that meet the applicable liquidity screening requirements referred to in the calculation methodology, excluding listed property stocks.


Illustrative Annualised Investment Performance

Performance

Annualised as at 30 Apr 2017 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 2.14 3.38
3 year 10.13 11.70
5 year N/A N/A
Since inception 9.96 11.46

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 % 31.53
Lowest Annual % -0.57

Minimum Disclosure Document (Fund Fact Sheet)

Performance Fees FAQ

Illustrative Annualised Investment Performance

Satrix Momentum Index Fund
Proprietary Satrix Momentum 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- 20.27%
2. BTI Group 7.26%
3. FirstRand / RMBH 6.38%
4. Stanbank 5.78%
5. MTN 3.81%
6. Capitec 3.70%
7. Kumba 3.63%
8. AVI 3.58%
9. Glencore 3.49%
10. Clicks Group Ltd 3.43%
Property
Equity Health Care
Cash and Money Market Assets
Equity Financials
Equity Telecommunications
Equity Consumer Services
Equity Consumer Goods
Equity Industrials
Equity Basic Materials
1. Naspers -N- 20.27%
2. BTI Group 7.26%
3. FirstRand / RMBH 6.38%
4. Stanbank 5.78%
5. MTN 3.81%
6. Capitec 3.70%
7. Kumba 3.63%
8. AVI 3.58%
9. Glencore 3.49%
10. Clicks Group Ltd 3.43%

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

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.

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 0.51
Total Expense Ratio (TER) 0.65
Transaction Cost (TC) 0.43

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.

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 2016 to 31 March 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.sanlamunittrustsmdd.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

Market review | Global and local equity markets

With the first three months of the year now done on a normalisation in investor sentiment (in Q1 2017 the VIX Index had its lowest average quarter since Q4 2006), the general call for the second quarter is to remain overweight equities and underweight bonds/cash, reflecting the view that real rates are in a bubble and there's risk of a significant repricing in the medium term as the rate hike cycle gathers steam. The Trump put may have a bit more to go. By avoiding a drawn-out battle over the health care bill, investors' focus has shifted to tax reform and as this takes centre stage, stimulus-fuelled optimism could wane as friction around funding the tax bill rears its head. Stocks have been boosted by accelerating global growth and improving confidence.

But the risk today is that, just as the Trump put may begin to fade, data could grow choppier. With positive economic surprises at five-year highs, the math alone makes it difficult for data to accelerate from here. With the French elections, Turkish referendum, OPEC, and Brexit all on the calendar at a time when global central banks are transitioning to a tightening bias, we see a chance that the markets might take a breather at some time this year.

As anticipated, rating agency Standard & Poor’s (S&P) eliminated South Africa's foreign currency sovereign investment-grade (IG) rating, downgrading it to BB+ from BBB- with a negative outlook. While SA currently remains IG, SA’s IG status could be impacted following the review scheduled for this Friday by Moody’s, but it should be noted that Moody’s currently rates SA two notches above a sub-IG rating. Fitch is also likely to pull forward its decision earlier, likely to result in forced selling, as SA loses its IG status. Numbers involved here could be substantial.

The MSCI SA Index (-0.1%) underperformed the MSCI EM Index (+2.5%) in March in dollars, as the rand (+2.6%) was the worst-performing EM currency, on the back of a Cabinet reshuffle, with finance minister Pravin Gordhan removed. The FTSE/JSE All Share Index (ALSI) managed to deliver a good return of 3.8% over the last three months, with the best-performing sector being Consumer Discretionary, which was driven by the very good returns of Richemont, British American Tobacco and Naspers. In the basic materials sector Coal Mining and Forestry and Paper experienced a very good quarter. Laggards were Healthcare (-7%), heavily influenced by Netcare (-18%), and Banks (-6%), which were down on a weaker rand, weighing on the inflation outlook and consumer confidence. The worst-performing sector was Industrial Engineering, down a massive 15%.

The FTSE Shareholder Weighted All Share Index (Swix) managed a total return of 3.3%, which was slightly worse than that of the ALSI, mainly driven by the higher weighting of resource companies in the latter.

For our many of our clients, the question is why does a downgrade matter?

There is an obvious risk that, in order to balance the books, taxes will rise, import tariffs will increase the cost of living and higher interest rates will discourage private sector investment and job creation. The key concern remains our local currency debt junk rating, which could make it more expensive to meet our fiscal commitments in the long term. The Cabinet changes have had a significant impact on financial markets to date. South Africa relies on foreign capital flows to fund its deficits, and with increasingly likely downgrades of its sovereign debt looming, further sharp declines in the rand is possible. The importance of the loss of independence of an institution like the Treasury is not something that should be underestimated.

While SA domestic equities might appear close to the bottom, failure to deliver on a turnaround in confidence in the political landscape could see the likelihood of a further near-term sell-off (with a vote of no confidence unlikely until early May). Therefore we think that domestic equities such as Banks and Retail should offer better entry opportunities in the weeks to come. On the upside one could see some further outperformance of some industrial rand hedges, on the back of a further weakening in the currency.

Portfolio performance, attribution and strategy

Price momentum and earnings revision factors have been sternly tested in the 2016 calendar year. This last calendar year has brought with it extraordinarily high levels of economic and policy uncertainty on both the domestic and international stages keeping us pensive. The first quarter of 2017 has not failed to disappoint in contributing to the uncertain outlook. On the international stage the price and earnings revision factors have also been among the poorer performers. There has, though, been a continuing recovery in the factor during this first quarter of 2017 mainly driven by the earnings revision factor while price momentum was more muted. Given that most of the stocks enjoying the highest earnings revision characteristics are hard commodities, the higher beta nature of these counters will likely influence the portfolio’s factors over the coming months. In spite of this the portfolio weathered the uncertainty of the first quarter rather well posting a positive relative performance above the market benchmark (Swix).

Once again stock selection within the resource sector was the primary driver of positive relative performance over this quarter. Industrials were benign in effect while financials were slightly negative. Stocks that detracted most were Bidvest (BVT), FirstRand (FSR) and SPAR (SPP). In the resources sector the overweight position in Kumba Iron Ore (KIO) added most. British American Tobacco (BTI) and Exxaro (EXX) also lent steady support contributing to the positive result.

As we closed the quarter, we transitioned the portfolio based on the evaluation of new factor signals and the risk levels in the portfolio with two shares (Blue Label Telecom (BLU) and JSE Ltd (JSE)) being removed. Glencore (GLN) and Barloworld (BAW) have been additions over the quarter while exposures in Mediclinic (MEI), Steinhoff (SNH) and Anglo American plc (AGL) have been reduced. Underweights to MTN Group (MTN) and Sasol (SOL) were narrowed to keep tracking error limits within bounds. 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. We remain convinced of the factor’s medium- to long-term significance and the premium it offers in the South African capital market and remain disciplined in our implementation and extraction of the factor.

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