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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.

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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: R89.1 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: R89.1 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 31 July 2017 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 5.46 6.61
3 year 8.80 10.23
5 year N/A N/A
Since inception 11.05 12.52

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 % 16.69
Lowest Annual % 4.65

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- 22.75%
2. BTI Group 7.03%
3. FirstRand / RMBH 6.50%
4. Stanbank 5.83%
5. Capitec 3.95%
6. Clicks Group Ltd 3.66%
7. AVI 3.46%
8. GlenCore 3.44%
9. Kumba 3.38%
10. Barloworld 3.23%
Property
Cash and Money Market Assets
Equity Financials
Equity Telecommunications
Equity Consumer Services
Equity Consumer Goods
Equity Industrials
Equity Basic Materials
1. Naspers -N- 22.75%
2. BTI Group 7.03%
3. FirstRand / RMBH 6.50%
4. Stanbank 5.83%
5. Capitec 3.95%
6. Clicks Group Ltd 3.66%
7. AVI 3.46%
8. GlenCore 3.44%
9. Kumba 3.38%
10. Barloworld 3.23%

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 0.48
Total Expense Ratio (TER) 0.70
Transaction Cost (TC) 0.38

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 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

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, firstquarter 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.

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.

Portfolio performance, attribution and strategy

Despite the constructive performance of Momentum (particularly Price Momentum) strategies globally this year, the South African market has seen a very tepid recovery in this factor’s performance year-to-date. We recall that price momentum and earnings revision factors were sternly tested in the 2016 calendar year given extraordinarily high levels of economic and policy uncertainty. While globally the economic recovery tracking is well and policy uncertainty fading, our domestic economic recovery remains protracted, thus creating a challenging environment for a domestic Momentum strategy, and explaining the divergent experience relative to global Momentum. Notwithstanding the testing environment, our Momentum offering has steadily improved its rolling 12-month performance relative to the SWIX. Given that most of the stocks enjoying the highest earnings revision characters are hard commodities, the higher beta nature of these counters will likely influence the portfolio’s factors over the coming months.

Stock selection within the resource sector was the primary driver of negative relative performance over this quarter, namely Assore (ASR), Kumba Iron Ore (KIO), Sappi (SAP) and Exxaro (EXX), which were the largest detractors. On the other hand, Capitec (CPI), Clicks (CLS), Anglo American (AGL) and Naspers (NPN) lent steady support, contributing positively to the relative performance.

As we closed the quarter, we transitioned the portfolio based on the evaluation of new factor signals and the risk levels in the portfolio. Based on these signals, Spar (SPP) was removed, and Bidcorp (BID), Gold Fields (GFI), Nampak (NPK) and PSG Group (PSG) were added. Exposures in MTN Group (MTN) and Sappi (SAP) have also been reduced in line with the risk objective of the fund. 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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