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 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 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.
With the listed property sector outperforming most asset classes over the last 10
years, 2017 is proving to be a bit more subdued with the FTSE/JSE SA Listed
Property Index (SAPY) returning a total of 5.7% in Q3’17 and 8.2% year to date
(YTD). From January 2017, the SAPY has outperformed bonds and cash, but it has
meaningfully underperformed the FTSE/JSE All Share Index (Alsi) (12.5%).
The best performing shares in the SAPY for the quarter included shares with a high
foreign exposure such as MAS Real Estate, NEPI Rockcastle as well as Greenbay
Properties, which only recently entered the SAPY Index. This was driven by good
fundamental earnings growth, which was partly driven by rand weakness.
Conversely, shares with more pure-play SA exposure were some of the
underperformers, such as Hyprop Investments, which derated substantially from
well under a 6% dividend yield (DY) to over a 6.5% DY in the course of the quarter.
In terms of recent earnings releases, while cautious on the outlook in South Africa,
some of the larger, predominantly SA-focused REITS such as Growthpoint
Properties and Hyprop still actually delivered healthy growth in dividends of 6.5%
and 13% respectively, with guidances of 6% and 8% for the next year respectively.
During the September 2017 FTSE/JSE quarterly index rebalance there were no
constituent deletions or additions to the SAPY Index. Shares with the largest weight
changes included Resilient (up-weighted) and Growthpoint (down-weighted). The
one-way turnover came to 1.8%, which was the lowest in quite some time.
As has become customary in the sector, there were again numerous capital raisings
via bookbuilds, which included Equites Property Fund, MAS Real Estate, NEPI
Rockcastle, Greenbay Properties and Resilient Property Fund.
Your fund is a full replication tracker and any performance difference relative to the
benchmark could be related to cash flows.
The SAPY Index is currently trading on a 7.2% clean forward yield, with two-year
expected growth in dividends of about 7% p.a. This yield is now a 140 basis points
(bps) premium to (i.e. below) the long-bond yield. This spread versus bonds has
narrowed from as high as 260 bps in Q1’16, on account of local bonds
outperforming the SAPY, with the SAPY derating over that 18-month period from
6.6%, as capital values haven’t really moved to keep pace with dividend growth. The
implied average yield of just SA-specific counters is much higher, at 8.5%.
We consider these levels to be marginally cheap on average, in absolute terms, and
rather attractive on a relative basis, especially for the long-term investor, when compared to bonds and SA cash