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Satrix Property Index Fund

Investing in bricks and mortar has been around for as long as people have had access to capital. But investing in one property has disadvantages: all your eggs are in one basket, and your property may stay on the market for longer than you wish before you get your asking price. This listed property fund addresses these concerns by diversifying across liquid property instruments.

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.

Quick Facts About The Fund

Satrix Property Index Fund

Launch Date: August 2012
Fund Size: R959.5 million
Benchmark: FTSE/JSE SA Listed Property Index (J253)
Time Horizon: 5 years+
Risk Profile: Aggressive
Fund Classification: SA - Real Estate - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 0.51%
Launch Date: August 2012
Fund Size: R959.5 million
Benchmark: FTSE/JSE SA Listed Property Index (J253)
Time Horizon: 5 years+
Risk Profile: Aggressive
Fund Classification: SA - Real Estate - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 0.51%

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 Annualised Investment Performance

Performance

Annualised as at 30 June 2017 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 2.23 2.82
3 year 12.83 13.18
5 year N/A N/A
Since inception 11.50 12.11

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 % 26.06
Lowest Annual % 2.23

Minimum Disclosure Document (Fund Fact Sheet)

Performance Fees FAQ

Illustrative Annualised Investment Performance

Satrix Property Index Fund
FTSE/JSE SA Listed Property Index (J253)

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. GrowthPoint 18.15%
2. Redefine 14.28%
3. New Europe Property Investments 10.41%
4. Resilient 9.02%
5. Hyprop 7.74%
6. Fortress Income Fund 7.02%
7. Fortressa 5.26%
8. Rockcastle Global Real Estate 3.77%
9. SA Corp Real Estate 3.60%
10. Vukile 3.20%
Equity Retail REITs
Real Estate Holding & Development
Equity Industrial & Office REITs
Equity Diversified REITs
Cash and Money Market Assets
1. GrowthPoint 18.15%
2. Redefine 14.28%
3. New Europe Property Investments 10.41%
4. Resilient 9.02%
5. Hyprop 7.74%
6. Fortress Income Fund 7.02%
7. Fortressa 5.26%
8. Rockcastle Global Real Estate 3.77%
9. SA Corp Real Estate 3.60%
10. Vukile 3.20%

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)

Retail 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) 0.51%
Transaction Cost (TC) 0.05%

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 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

On the back of all the negative newsflow SA listed property stocks have had a very subdued reaction relative to the bond market. Historically, the performance of listed property shares tracked that of the bond market, but that correlation has started to wane partly because of the local listed companies’ increased offshore exposures. Will they feel the brunt in the weeks to come?

The FTSE/JSE SA Listed Property Index (SAPY) managed a total return of 1.4% over the first quarter of 2017, underperforming the FTSE/JSE All Share Index (3.8%) and SA cash (1.8%).The best-performing shares in the SAPY over the first quarter included the likes of Rebosis and Delta. By contrast, some of the worst-performing shares included rand hedge stocks or stocks with UK and EU exposure such as Nepi, Rockcastle, Intu and Capital & Counties. This was due to the rand strengthening in the first quarter, however, at the time of writing this has unfortunately (for the country) reversed sharply following President Jacob Zuma’s recall of finance minister Pravin Gordhan, and flowing from this the country’s double downgrade to junk status by S&P and Fitch. Portfolio performance and actions.

Your fund performed in line with the SAPY benchmark.

During the quarterly rebalance in March, Liberty Two Degrees replaced Stenprop in the index and some of the larger company weight changes included Fortress, Octodec, Resilient and Vukile. Total one-way turnover came to about 1%. Other corporate actions that took place was the scheme of arrangement whereby Pivotal was acquired by Redefine.

The FTSE/JSE is currently working on some changes that they want to implement on the listed property indices. They will communicate this information to the market well in advance before it happens.

Outlook

The SAPY is currently on a 7.3% clean forward yield, with two-year expected growth in dividends of about 7% p.a. This yield is now a 170 basis points (bps) premium to (i.e. below) the long-bond yield. The spread versus bonds has narrowed, however, from as high as 260bps in the first quarter of 2016, due to our local bonds rallying and the SAPY derating slightly from 6.6%, when it also yielded less than SA cash. The implied average yield of SA-specific counters is closer to 8% currently.

We consider these levels to be fair to marginally cheap in absolute terms and rather attractive on a relative basis for the long-term investor when compared to bonds and SA cash. This is considering that listed property gives you growth in income distributions while bonds and cash do not. Over the longer term, e.g. three or more years, one would still expect an inflation-beating absolute total return from listed property of 11% to 13% per annum, which is expected to comfortably beat inflation, cash and bonds.

Sanlam Life Insurance is a licensed financial service provider.
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