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.
This is a specialist index tracking fund tracking the performance of the FTSE/JSE SA Listed Property Index. It is best suited to investors with a long-term investment horizon (more than 5 years). For more information contact your financial adviser or broker.
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.
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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 April 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 at www.satrix.co.za.
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.
The FTSE/JSE SA Listed Property Index (SAPY) delivered a total return of -19.6%
during the three months to the end of March 2018, mainly due to company-specific
concerns. Relative to other asset classes, the SAPY materially underperformed
equities (FTSE/JSE All Share Index: -6.0%; cash: 1.8%; bonds: 8.1%) over this
period. On a rolling 12-month basis, the sector’s total return is -7.1% due to the
negative first quarter of 2018.
Due to the idiosyncratic nature of the SAPY’s performance for the year to date, the
typical correlation between property stocks, government bonds and the forex market
has broken down.
The best-performing shares in the SAPY for the quarter included the likes of higheryielding
domestic mid-caps such as Accelerate, Arrowhead and Emira, as well as
larger caps such as Growthpoint and Redefine, all materially outperforming the
index with returns of between 5% and 15%. The rallies in these domestic names
were driven largely by the change in the SA presidency, which in turn drove our local
bond yields lower and the rand stronger. Of the rand hedges, Echo Polska also
rebounded this year (about 10%) after its sell-off in 2017 on news of a director being
By contrast, the worst-performing shares in the quarter (which drove the average
index down close to 20%) were the shares which were by far the best performers in
2017. Their sell-off was very dramatic, offsetting all the previous year’s gains and
more. The derating of Resilient, Fortress, Greenbay and NEPI Rockcastle - on
concerns that these property counters entered into off-balance sheet loans, crossholdings
between the entities, possible insider trading, and aggressive capital
raising at high multiples - explains the decline in the SAPY index. A rough estimate
is that the SAPY would have delivered a return of about 3.5% excluding the four
companies in question.
While there may be merit to the above concerns and hence a sell-off in these shares
were justified, perhaps it has taken these particular shares, but also the average
index with it, from one extreme (overvaluation) to the other (undervaluation).
Performance and actions
The quarter was very quiet on the corporate action front. With the March 2018
FTSE/JSE SAPY rebalance there were no additions to or deletions from the index,
but the weightings of MAS Real Estate and Echo Polska increased while Resilient
decreased in the index. The one-way turnover came to 0.7%.
Your fund outperformed its benchmark slightly mainly due to cash holdings in the
portfolio (strong down market).
Following the weak first-quarter returns, the SAPY derated from a 6.8% clean
forward yield at the end of 2017 to well over an 8% clean forward yield, with a twoyear
expected growth in dividends of about 7% p.a. and, in our view, longer-run
growth in the CPI range of 4 - 6% p.a. This yield is now, for the first time in quite a
while, at a discount (i.e. above) the SA long bond yield, which has rerated to around
At a macroeconomic level, a further 25-basis point cut (50 basis points over the past
year) in domestic interest rates also benefits the sector. Indirectly this makes other
competing asset classes, such as cash and bonds, less attractive for investors,
which could lead to increased demand for riskier assets such as property and