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Skip Navigation LinksCore Funds

Sanlam Investment Management Active
Income Fund

When you rely on your investment to provide you with a regular, stable income you cannot afford to take on too much risk, but you need some share exposure for your income to keep up with inflation over time.

Quick Facts About The Fund

Sanlam Investment Management (SIM) Active Income Fund

Launch Date: 03 November 2006
Fund Size: R6 848.6 million
Benchmark: STeFI+1% p.a.
Time Horizon: 1 - 2 years
Risk Profile: Conservative
Fund Classification: SA - Multi Asset - Income
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 0.92%
Launch Date: 03 Nov 2016
Fund Size: R6 848.6 million
Benchmark: STeFI+1% p.a.
Time Horizon: 1 - 2 years
Risk Profile: Conservative
Fund Classification: SA - Multi Asset - Income
Min Investment Amount: Lump sum: R10 000 l Monthly: R500
Total Expense Ratio (TER): 0.92%

Fund Strategy

Returns are sought through tactical asset allocation and high conviction bets across the income-yielding universe, including corporate and government bonds, money market instruments, preference shares and listed property. Opportunities are taken across the entire duration and credit spectrum. The fund is mandated to invest in unlisted financial instruments (derivatives) for efficient portfolio management. This portfolio may also invest in participatory interests of underlying unit trust portfolios.


Illustrative Annualised Investment Performance

Performance

Annualised as at 30 Apr 2017 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 9.08 8.59
3 year 7.80 7.82
5 year 7.37 7.40
10 year 8.35 8.20

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 % 15.80
Lowest Annual % 5.52

Minimum Disclosure Document (Fund Fact Sheet)

Performance Fees FAQ

Illustrative Annualised Investment Performance

Sanlam Investment Management (SIM) Active
Income Fund
STeFI +1%

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. Investec F/R 310717 1.61%
2. FirstRand F/R 051217 1.22%
3. Standard Bank F/R 250417 1.20%
4. Standard Bank F/R 190617 1.15%
5. FirstRand F/R 020218 1.13%
6. Nedbank F/R 04052021 1.13%
7. ABSA F/R 30042020 1.12%
8. Standard Bank F/R 110918 1.12%
9. FirstRand F/R 040917 1.10%
10. ABSA F/R 160717 1.08%
Cash And Money Market Assets
Inflation Linked Bonds
Property
Bonds 12+ years
Bonds 7 - 12 years
Bonds 3 - 7 years
Bonds 0 - 3 years
1. Investec F/R 310717 1.61%
2. FirstRand F/R 051217 1.22%
3. Standard Bank F/R 250417 1.20%
4. Standard Bank F/R 190617 1.15%
5. FirstRand F/R 020218 1.13%
6. Nedbank F/R 04052021 1.13%
7. ABSA F/R 30042020 1.12%
8. Standard Bank F/R 110918 1.12%
9. FirstRand F/R 040917 1.10%
10. ABSA F/R 160717 1.08%

Melville du Plessis

Portfolio Manager - Sanlam Investment Management

Melville du Plessis joined Sanlam Investment Management in 2011 as a Portfolio Manager in the fixed interest team. He is responsible for a range of actively managed mandates, including local Bond Funds, Enhanced Yield Funds and International Debt Portfolios. Prior to SIM he was with Novare Investments, having joined in 2006 as an analyst in the Fund of Hedge Funds and Investment Research teams, and later taking responsibility as portfolio manager of the Multi-Asset Class and Multi-Manager products. Melville has a BComm (Institutional Investments) and a BCommHons (Financial Risk Management), both from the University of Stellenbosch. He is also a CFA charter holder, a CAIA charter holder and a certified FRM.

Melville du Plessis

Portfolio Manager - Sanlam Investment Management

Melville du Plessis joined Sanlam Investment Management in 2011 as a Portfolio Manager in the fixed interest team. He is responsible for a range of actively managed mandates, including local Bond Funds, Enhanced Yield Funds and International Debt Portfolios. Prior to SIM he was with Novare Investments, having joined in 2006 as an analyst in the Fund of Hedge Funds and Investment Research teams, and later taking responsibility as portfolio manager of the Multi-Asset Class and Multi-Manager products. Melville has a BComm (Institutional Investments) and a BCommHons (Financial Risk Management), both from the University of Stellenbosch. He is also a CFA charter holder, a CAIA charter holder and a certified FRM.

Traditional Investing (When you invest via a Financial Adviser or other)

A1-Class (%)

Advice initial fee (max.) 1.14%
Manager initial fee N/A
Advice annual fee (max.) 1.14%
Manager annual fee 0.91%
Total Expense Ratio (TER) 0.92%

Sanlam Reality members may qualify for a discount on the Manager annual fee.

Please note that African Bank (ABL) has had a name change to African Phoenix Investments Ltd (AXL), with the effective date being 01/02/17. The suspension of the bank has been lifted.

Total Expense Ratio (TER) | PERIOD: 2 January 2014 to 31 December 2016
Total Expense Ratio (TER) | 0.92% of the value of the Financial Product was incurred as expenses relating to the administration of the Financial Product. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER may not necessarily be an accurate indication of future TER’s.

Transaction Cost (TC) | 0.01% of the value of the Financial Product was incurred as costs relating to the buying and selling of the assets underlying the Financial Product. Transaction Costs are a necessary cost in administering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of Financial Product, the investment decisions of the investment manager and the TER.

Total Investment Charges (TER + TC) | 0.93% of the value of the Financial Product was incurred as costs relating to the investment of the Financial Product.

Income funds derive their income from interest-bearing instruments as defined. The yield is a current yield and is calculated daily.

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. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down.

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%

Sanlam Investment Management (SIM) is the local active asset management house within Sanlam Investments. When choosing a fund managed by us, you have on your side one of SA’s largest and most reputable, risk conscious investment teams, consistently meeting or exceeding our benchmarks. Sanlam Collective Investments has appointed SIM as the asset manager for its unit trust funds, catering for the full spectrum of risk profiles.

Market Review

The first quarter of 2017 was a good (or bad?) mix of Trumponomics, populism and another bout of local political instability towards the end of the quarter. A significant cabinet reshuffle occurred on the evening of 30 March, including the removal of finance minister Pravin Gordhan. Global equity markets had a healthy quarter with tailwinds still prevailing from the promises of the Trump presidency while an uptick in developed market inflation was quite welcoming. After a pronounced sell-off in global fixed-income assets last quarter, most markets stabilised during the quarter. The Federal Open Market Committee raised US rates in March, as expected, but disappointed with a fairly balanced outlook on rates for the remainder of the year. We can write a few pages on domestic issues, but we’ll stick to a few highlights (or lowlights). Minister Gordhan’s Budget hit consumers fairly hard and the fiscal space left in future has diminished significantly. During the quarter South African bond yields reached levels last seen prior to Nenegate while the rand reached lows of about R12.30/$, again wiping out much of the idiosyncratic risk premium. Some of these gains were, however, reversed towards the end of the quarter with the news of Gordhan’s replacement.

The rand strengthened somewhat over the quarter from R13.68/$ to R13.42/$ at the end of March. The 10-year RSA bond yield closed the quarter at 8.84% from 8.92% at the end of December. Generally, emerging market currencies did quite well over the quarter supported by upbeat commodity prices. Nominal bonds returned 2.5% for the quarter, inflation-linked bonds lost 0.6% and cash returned 1.8%. Listed property posted a gain of 1.4% for the quarter.

What we did

During the quarter bond yields reached levels last seen before the dismissal of former finance minister Nhlanhla Nene. A more favourable inflation outlook, stronger emerging market currencies and some initial stability on the local political front provided us an opportunity to reduce nominal bonds during the quarter. Some of these proceeds were reinvested into inflation-linked bonds as the breakeven inflation rate came down closer to 6%. Inflation-linked bonds at a real yield of above 2% are starting to look attractive on a relative basis. As mentioned, over the quarter the overall fund duration was reduced somewhat, while we continued to invest in selected corporate debt.

Our strategy

Credit spreads have, for the first time in a couple of quarters, started to narrow on robust demand from investors. But we still believe spreads are generally fairly priced, although some corporates appear to be on the expensive side. We remain of the opinion that South African fixed-income assets are still an attractive investment destination. Real yields of between 2% and 3% are on offer against the backdrop of declining inflation. Breakeven inflation levels have come down from previous highs, but we still prefer nominal bonds over inflation-linked bonds over the medium term. A portfolio yield of between 8.5% and 9.0% is achievable and bodes well for income- seeking investors. Now let’s hope for some domestic political stability over the medium term.

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