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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 818.4 million
Benchmark: FTSE/JSE All Share Index
Time Horizon: 5 years+
*As at 30 September 2017
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 1.56%
Launch Date: 26 June 1967
Fund Size: R7 818.4 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): 1.56%
*As at 30 September 2017

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 Cumulative Growth of an investment of R100

Performance

Annualised Total Return on a rolling monthly basis
(as at 30 September 2017)
Retail Class Fund (%) Benchmark (%)
1 year 5.42 10.22
3 year 5.13 7.18
5 year 11.89 12.53
10 year 9.88 9.54

Annualised return is the weighted average compound growth rate over the period measured
Highest and Lowest Annual Returns over 10 years
Highest Annual % 28.78
Lowest Annual % -18.14

Minimum Disclosure Document (Fund Fact Sheet)

Performance Fees FAQ

Cumulative Growth Over Time

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

Source of graph : Morningstar Direct

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

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.

1. Naspers -N- 17.94%
2. BTI Group 6.56%
3. Steinhoff Int Hldgs N.v 4.88%
4. Old Mutual 4.49%
5. Barclays Group Africa 4.15%
6. Sasol 4.11%
7. Stanbank 4.05%
8. MTN 3.17%
9. Mondi 3.11%
10. Anglos 2.79%
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- 17.94%
2. BTI Group 6.56%
3. Steinhoff Int Hldgs N.v 4.88%
4. Old Mutual 4.49%
5. Barclays Group Africa 4.15%
6. Sasol 4.11%
7. Stanbank 4.05%
8. MTN 3.17%
9. Mondi 3.11%
10. Anglos 2.79%

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) 1.56%

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 July 2014 to 30 June 2017
Total Expense Ratio (TER) | 1.56% 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 1.56%, a performance fee of 0.28% of the net asset value of the class of participatory interest of the portfolio was recovered. Transaction Cost (TC) | 0.27% 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) | 1.83% 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

Our smart online system is working to make investing more profitable for you. The management fee you 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%.
  • 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

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

Global growth is strong at 3.5% and is accompanied by low unemployment and improved consumer and business confidence. The Baltic dry shipping index is up by over 40% this quarter, an indication of brisk global trade and tightness in shipping supply. The US economy remains resilient and on track to exceed 2% growth this year. This is being driven by manufacturing production, which is at a thirteen-year high and is being assisted by strong export orders. The unwinding of the US reflation trade has put pressure on the US dollar and has helped emerging market currencies including the rand. Emerging market bonds have seen the best inflows in six years.

The rebalancing of the Chinese economy continues with strong double digit growth in retail spending while investment spending growth is slowing down into the single digits. The Chinese services economy is growing faster, attracting three quarters of fixed investment into the economy. Global markets, up 5% in US dollars this quarter, have remained buoyed by the $1.7 billion central bank injection this year and 13% increase in earnings growth. We have seen the fourth strongest bull market in the US in history with the S&P up over 250% since 2009 - which means that it’s the second longest on record. If the S&P posts a positive month in October then the Trump-fuelled US rally will equal a 90- year record! The concern remains that, with the VIX at a record low, global investors are too complacent at the moment.

South Africa

We are seeing some recovery in real economy data, with the increase in electricity demand and positive vehicle sales growth being good signs of slightly positive GDP growth after negative growth in the first quarter. We are importing deflation with prices dropping 10% year-on-year and a much improved terms of trade assisted by a recovery from last year’s drought. This has driven the trade balance into positive territory. We are also experiencing the weakest credit growth recovery since the 1970s. PMI in June surprised on the downside with the worst number since 2009 as new orders collapsed, a sign of weak business activity. The rand was also the worst performing currency in September, weakening some 4% against the greenback. The economy also had to weather the worst catastrophe in SA insurance history with the Western Cape flood and Knysna fires coming as a double blow. Much will depend on whether the consumer will decide to save or spend any windfall that may accrue to their wallets.

Concern remains that hefty hikes in electricity rates and taxes next year could stall a consumer recovery. In addition, politics continue to dominate the headlines with the motion of no confidence on the President , held by secret ballot in August, further fuelling speculation of a fiercely contested policy conference by the ruling party in December. Political uncertainty and recurring evidence of corruption, with the latest episode casting serious doubts over the integrity of audit firm KPMG, continue to weigh down on consumer and business confidence. This all is likely to translate into low economic growth of under 1% this year. Inflation is forecast to be below 5% going forward. It is clear that a potential sovereign risk downgrade is weighing on real rates, which are at 1.5%, when the weak economic data would suggest that lower real rates would be applicable. Against this backdrop, the fact that rates were not cut at the end of September was a missed opportunity.

The fund had a solid start to the year with the fund ranking in the top quartile in the category and posting a solid return year-to-date of over 9%. This builds on a very good long-term track record which now spans over a decade and demonstrates the robustness of our investment process. Our largest holding, Naspers, performed well (up 15%) this quarter after delivering solid numbers. Globally there is positive sentiment towards IT stocks and Naspers’ investment in Tencent, the Chinese internet company, continues to drive the share price, up 20% this quarter. It is worth noting that the Chinese stock market had its best quarter since 2009, up 15%, with Tencent performing strongly. Naspers continues to reshuffle the rest of its portfolio, which is being priced at a negative implied value by the market, unbundled its stake in the local printing business Novus and increased its stake in European company, Delivery Hero. IT stocks have led the way globally with those listed on the S&P up 26% year to date!

The General Miners were up 29% during the quarter, driven by positive data from China and a rebound in commodity prices, with oil notably up 20% and the palladium price up 5%. The palladium price is now higher than the platinum price for the first time since 2001. This drove Anglo American up 42% after delivering strong half year numbers while Glencore was up 27%. We saw billionaire Anil Agarwal boosting his stake in Anglo American by $2 billion and BHP Billiton being the subject of corporate activist activity. There is increasing pressure on mining houses to deliver value to shareholders. There were, however, contrasting fortunes for the precious metal producers. Gold was up a measly 1% this quarter with the new buzzword among our clients being the role of Bitcoin as an alternative currency - in other words as an alternative for gold! In addition, there were disappointing results from Implats, which saw its share price drop once again by 16%. The spectre of electric vehicles continues to weigh on sentiment around platinum stocks, despite a complete phasing out of diesel cars and the combustion engine being some years away.

On the downside, Steinhoff International was down over 10%, once again afflicted by unsubstantiated accusations of malpractice in Europe. The market shrugged off the successful listing of its African retail businesses, STAR, at the end of September, which added R16 billion to its coffers and should have resulted in a re-rating of the rest of the group, which is now trading on a single earnings multiple and operates mainly in developed markets.

Our strategy

The fund has positions in companies with geographically diversified footprints with a strong rand hedge component and that dominate their respective industries such as Naspers, British American Tobacco and Steinhoff international. Many positions are in businesses with self-help stories at play and where the value unlock is within management’s control. An example of this is the managed separation strategy at Old Mutual Plc.

There is a clear element of myopia ruling our markets at this point in time. Shortterm news and lack of investor confidence have an amplified impact on the markets and there is a clear aversion to bad news. Counters which have delivered results below expectation are being marked down heavily and a number of former market darlings have suddenly been marked down by investors. For instance, Brait, which was seen as a proxy to investing alongside billionaire Christo Wiese abroad, is down 38%, while Wiese’s other investment, Steinhoff, is also down 15% year-to-date. If we contrast the fortunes of overseas markets to our local one, it is clear that investor confidence is an important behavioural factor driving investment markets. As value investors, our investment process is geared to protect your capital and exploit such opportunities by focusing on the long-term fundamentals.

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

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