Skip Ribbon Commands
Skip to main content

Skip Navigation Linkssimgeneralequity Sanlam Investments Management General Equity Fund

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.

continue
Do not show this again.

Contact

Call me back

Advice

Back

Email us

Skip Navigation LinksCore Funds

Sanlam Investment Management
General Equity Fund

If you’re willing to take the bold step towards a share portfolio, there’s a team of investment professionals who carefully select these companies for you, scouting everywhere for good value.

Quick Facts About The Fund

Sanlam Investment Management (SIM) General Equity Fund

Launch Date: 26 June 1967
Fund Size: R7 818.2 million
Benchmark: FTSE/JSE All Share Index
Time Horizon: 5 years+
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 1.60%
Launch Date: 26 June 1967
Fund Size: R7 818.2 million
Benchmark: FTSE/JSE All Share Index
Time Horizon: 5 years+
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 1.60%

Fund Strategy

This fund aims to outperform the FTSE/JSE All Share Index through active stock selection across all sectors and market capitalisation on the JSE. The fund may at any time hold a maximum of 25% in offshore assets. This fund may also invest in derivatives for efficient portfolio management.


Illustrative Annualised Investment Performance

Performance

Annualised as at 31 July 2017 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 5.06 7.59
3 year 3.96 5.47
5 year 12.79 13.12
10 year 10.12 9.96

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 % 29.33
Lowest Annual % -10.25

Minimum Disclosure Document (Fund Fact Sheet)

Performance Fees FAQ

Illustrative Annualised Investment Performance

Sanlam Investment Management (SIM)
General Equity Fund
FTSE/JSE All Share Index

Source of graph : Morningstar

Sanlam Investment Management (SIM) General
Equity Fund
FTSE/JSE All Share Index

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. Naspers -N- 16.42%
2. BTI Group 7.27%
3. Steinhoff Int Hldgs N.v 5.73%
4. Barclays Group Africa 4.51%
5. Sasol 4.41%
6. Old Mutual 4.40%
7. Stanbank 3.74%
8. MTN 3.31%
9. Mondi 3.20%
10. Investec 2.23%
Cash And Money Market Assets
International Assets
Exchange Traded Funds
Equity Technology
Equity Financials
Equity Telecommunications
Equity Consumer Services
Property
Equity Health Care
Equity Consumer Goods
Equity Industrials
Equity Basic Materials
Preference Shares
1. Naspers -N- 16.42%
2. BTI Group 7.27%
3. Steinhoff Int Hldgs N.v 5.73%
4. Barclays Group Africa 4.51%
5. Sasol 4.41%
6. Old Mutual 4.40%
7. Stanbank 3.74%
8. MTN 3.31%
9. Mondi 3.20%
10. Investec 2.23%

Patrice Rassou

Head of Equity – Sanlam Investment Management

Chartered Accountant, Patrice has a BSc (Econ) in Monetary Economics with first class honours and an MSc (Econ), both from the London School of Economics. He also has an MBA with distinction from Manchester Business School, which he completed in 2003. Initially, he worked at PricewaterhouseCoopers in London and Johannesburg, then moved to Old Mutual Asset Managers where he won the Raging Bull and S&P award for top performance in 2004. Now, he is treasurer of the Association of Black Securities Professionals (ABSP) in the Western Cape and Head of Equity at Sanlam Investment Management. He managed the SIM Top Choice unit trust from the end of 2006 and in 2007 was promoted to voting member of the Model Portfolio Group, where he has a direct impact on the core house view equity portfolio.

Patrice Rassou

Head of Equity – Sanlam Investment Management

Chartered Accountant, Patrice has a BSc (Econ) in Monetary Economics with first class honours and an MSc (Econ), both from the London School of Economics. He also has an MBA with distinction from Manchester Business School, which he completed in 2003. Initially, he worked at PricewaterhouseCoopers in London and Johannesburg, then moved to Old Mutual Asset Managers where he won the Raging Bull and S&P award for top performance in 2004. Now, he is treasurer of the Association of Black Securities Professionals (ABSP) in the Western Cape and Head of Equity at Sanlam Investment Management. He managed the SIM Top Choice unit trust from the end of 2006 and in 2007 was promoted to voting member of the Model Portfolio Group, where he has a direct impact on the core house view equity portfolio.

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

Retail Class (%)

Advice initial fee (max.) 3.42%
Manager initial fee N/A
Advice annual fee (max.) 1.14%
Manager annual fee 1.25%
Total expense Ratio (TER) 1.60%

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.

Obtain a personalised cost estimate before investing by visiting www.sanlamunittrustsmdd.co.za and using our Effective Annual Cost (EAC) calculator. Alternatively, contact us at 0860 100 266. 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.

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

Total Expense Ratio (TER) | PERIOD: 1 April 2014 to 31 March 2017
Total Expense Ratio (TER) | 1.60% 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. Inclusive of the TER of 1.60%, a performance fee of 0.31% of the net asset value of the class of participatory interest of the portfolio was recovered. Transaction Cost (TC) | 0.28% 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) | 1.88% of the value of the Financial Product was incurred as costs relating to the investment of the Financial Product.

Manager Performance Fee (incl. VAT) | Performance Fee Benchmark: FTSE/JSE All Share Index Base Fee: 1.25%, Fee at Benchmark: 1.25%, Fee hurdle: FTSE/JSE All Share Index Sharing ratio: 20%, Minimum fee: 1.25%, Maximum fee: 3.42%, Fee example: 1.25% p.a. if the fund performs in line with its Performance Fee benchmark being FTSE/JSE All Share Index. The performance fee is accrued daily, based on performance over a rolling one year period with payment to the manager being made monthly. Performance fees will only be charged once the performance fee benchmark is outperformed and only if the fund performance is positive. A copy of the performance fee FAQ is available on www.sanlamunittrusts.co.za.

Total Expense Ratio (TER) | PERIOD: 1 April 2014 to 31 March 2017
Total Expense Ratio (TER) | 1.60% 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. Inclusive of the TER of 1.60%, a performance fee of 0.31% of the net asset value of the class of participatory interest of the portfolio was recovered. Transaction Cost (TC) | 0.28% 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) | 1.88% of the value of the Financial Product was incurred as costs relating to the investment of the Financial Product.

Manager Performance Fee (incl. VAT) | Performance Fee Benchmark: FTSE/JSE All Share Index Base Fee: 1.25%, Fee at Benchmark: 1.25%, Fee hurdle: FTSE/JSE All Share Index Sharing ratio: 20%, Minimum fee: 1.25%, Maximum fee: 3.42%, Fee example: 1.25% p.a. if the fund performs in line with its Performance Fee benchmark being FTSE/JSE All Share Index. The performance fee is accrued daily, based on performance over a rolling one year period with payment to the manager being made monthly. Performance fees will only be charged once the performance fee benchmark is outperformed and only if the fund performance is positive. A copy of the performance fee FAQ is available on www.sanlamunittrusts.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%

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

Investors could not have predicted that global stock markets would have a bumper first half of the year. In fact, 26 of the 30 largest stock exchanges in the world registered gains. The MSCI World Equity Index, up over 10%, had its fourth best half on record! Unfortunately for South African investors, the FTSE/JSE Shareholder Weighted Index was flat this year, a reflection of our self-inflicted wounds. This is despite attempts by our new Finance Minister to reassure investors locally and abroad that fiscal consolidation would remain a priority, and with the South African bond market enjoying record inflows of more than R30 billion from abroad. The 10-year bond yield rallied from 9% to 8.5%, but weakened in unison with global bonds to 8.9% at quarter end. Yet concerns abound as to whether Moody’s would downgrade South Africa’s local credit rating, which could precipitate a downgrade from other credit rating agencies and force the country’s debt out of global sovereign bond indices into the less followed high-yield indices and lead to outflows estimated at US$10 billion.

First-quarter GDP growth was the sum of all fears at a dismal -0.7%, plunging the economy into a technical recession. The business cycle downturn has now been running for 46 months with the previous record lasting 51 months ahead of the 1994 democratic elections. The PMI number came in below 45 in April - the lowest since Nenegate - which was a direct impact of the unexpected Cabinet reshuffle and subsequent credit downgrades on business confidence. Nominal household expenditure during the current cycle has been one of the weakest on record, with four successive years of single-digit growth. We are witnessing a double dip in manufacturing fixed-investment plans further adding to the worrying picture. In June, the third draft of the Mining Charter caused much consternation, not because it upped its BEE requirements to 30%, but because key stakeholders such as labour unions and the Chamber of Mines had not been consulted. Furthermore, a deadline of 12 months had been set for compliance with onerous new requirements. In an industry which has shed an estimated 70 000 jobs over the past few years, the uncertainty and court challenge around the Charter is unlikely to foster much investment, furthering the rate of decline of deep level mines. There is a 1% revenue royalty proposed to be paid to BEE owners; this would amount to some R6 billion, which is equivalent to the total dividend paid to shareholders last year, denting future pay-outs.

Therefore, a series of obstacles have beleaguered the JSE this year and the economy remains at the mercy of another downgrade by credit rating agencies, which would increase the cost of financing our budget deficit. As risk appetite remains high globally with the VIX fear index of volatility at record lows, we are missing out on the opportunity to attract foreign equity flows to our shores. As stock pickers, the current environment is truly distinguishing the true contrarian value investors from the rest, and the proof remains our actions of capitalising on mispriced opportunities.

What added to, and detracted, from performance?

The fund had a solid start to the year, ranking among the top 25 funds in the category and posting a solid return year to date. This builds on a very good long- term track record, which stretches over a decade and demonstrates our robust investment process.

The largest position in the portfolio remains Naspers, up 10% this quarter. Naspers The largest position in the portfolio remains Naspers, up 10% this quarter. Naspers associate Tencent, which is vying for the top spot as the largest emerging market stock together with Alibaba, reported earnings up 46%, showing that the company’s growth trajectory remains intact. Tencent is solidifying its gaming and social network offering, while its advertising business has become a new growth vector. With strong cashflow generation, the company can now take more long-dated bets such as its investment in Elon Musk’s Tesla. With Naspers owning a third of Tencent, we therefore offer our clients the opportunity to gain exposure to this global technology theme without having to take money offshore.

Steinhoff International outperformed for the quarter, despite posting a noisy set of results which incorporated a series of acquisitions. However, the stock is still down substantially for the year with the main concern relating to the acquisition of Mattress Firm, the largest retailer of mattresses in the US. Mattress Firm had to discontinue its relationship with Tempur Sealy, the premium brand in the US, and liquidate all its stock, putting pressure on margins. It also made a number of other acquisitions, such as discount retailer Poundland in the UK and Australian furniture firm Fantastic. We remain confident that the global scale benefits of these acquisitions are under-appreciated by the market and that the stock now trades at levels where much of the bad news is discounted into the price.

This quarter was not a very favourable one for financial stocks, given the turmoil which followed the Cabinet reshuffle. We used the opportunity of Barclays Plc for its 33% stake in Absa, which was done at an attractive discount, to build a sizeable position in the stock. On a valuation basis, the stock trades at a discount to its peers and offers a dividend yield of some 8%, a premium to its peers. The fact that it is the largest book build in the history of the JSE, and still oversubscribed, shows that there is further appetite for SA assets if they are priced correctly.

Our strategy

The fund has positions in companies with geographically diversified footprints, with a strong rand hedge component and who dominate their respective industries, such as Naspers, British American Tobacco and Steinhoff international. The recent sell-off in financial stocks has provided us with the opportunity to accumulate quality financial stocks at attractive valuations and high yields such as Barclays Africa and Standard Bank. The fund has positions in a number of businesses with self-help stories where the value unlock is within management’s control, such the management separation strategy at Old Mutual plc. As value investors, our focus remains on using accumulating stocks where valuations are well below their intrinsic value as a result of other investors getting excessively bearish. The fund aims to deliver steady excess returns over the long term without taking too much risk.

Invest Online

Quick, smart and convenient.



Find an Adviser

A professional financial adviser is an invaluable aid along your savings journey.

Invest Online

Quick, smart and convenient.

Find an Adviser

A professional financial adviser is an invaluable aid along your savings journey.

Sanlam Life Insurance is a licensed financial service provider.
Copyright © Sanlam