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for private investors can be accessed on the Personal area of our site. Terms & conditions.
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
Minimum Disclosure Document (Fund Fact Sheet)
Performance Fees FAQ
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.
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.
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.
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
SO YOU’RE ONLY CHARGED THE RELEVANT FUND-MANAGEMENT FEE
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.
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/$, again wiping out much of the idiosyncratic risk premium. Some of
these gains were, however, reversed towards the end of the quarter with the news of
The rand strengthened somewhat over the quarter from R13.68/$ 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.
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.
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