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.
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
Minimum Disclosure Document (Fund Fact Sheet)
Performance Fees FAQ
Cumulative Growth Over Time
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.
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.
Retail Class (%)
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.
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.
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) | 1.19% 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 1.19%, a performance fee of 0.14% of the net asset value of the class of participatory
interest of the portfolio was recovered.
Transaction Cost (TC) | 0.49% 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) | 1.68% 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: Composite benchmark:
FTSE/JSE SWIX: 97% |STeFI: 3%, Base Fee: 1.02%, Fee at Benchmark: 1.02%, Fee hurdle:
Composite benchmark: FTSE/JSE SWIX: 97% |STeFI: 3%, Sharing ratio: 15%, Minimum fee:
1.02%, Maximum fee: 2.28%, Fee example: 1.02% p.a. if the fund performs in line with its
Performance Fee benchmark being Composite benchmark: FTSE/JSE SWIX: 97% |STeFI: 3%.
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.
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
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.
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
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.
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 in August held by secret ballot 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 FTSE/JSE Shareholder Weighted Index (SWIX) was up 7% for the quarter, with
the resources sector up close to 18%! 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 at 20% and the palladium price up 5% - now higher than the platinum
price for the first time since 2001. This drove Anglo American up 42% after
delivering strong half year numbers with billionaire Anil Agarwal boosting his stake in
Anglo American by $2 billion and BHP Billiton the subject of corporate activists,
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 regarding platinum stocks, despite a complete phasing out of diesel
cars being some time away.
Our largest holding, Naspers, performed well (up 15%) this quarter after delivering
sold 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 zero value by
the market, unbundling local printing business Novus and increasing its stake in
European company Delivery Hero. IT stocks have lead the way globally with those
listed on the S&P up 26% year to date!
Financial stocks delivered lacklustre interim numbers. Old Mutual, one of our
largest positions in the financial sector, was up a pleasing 10% with the managed
separation of the group early next year taking shape. The group is focusing on a
separate listing of its UK wealth business, which would help re-rate the counter.
On the downside, Steinhoff International was down over 10%, once again afflicted
by unsubstantiated accusation 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 operates mainly in developed markets.
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 darling
stocks have suddenly been marked down by the market. 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.
The fund reflects the best views of SIM’s equity unit trust portfolio managers and
holds approximately 20 stocks. It is not benchmark-cognisant and owns no offshore
stocks. We believe that this portfolio provides the best of both worlds in terms of
representing our investment ideas aggressively, while providing adequate
diversification. The fund’s largest holdings are companies that are leaders in their
respective sectors but whose valuations are below our estimate of fair value. For the
five years ended August 2017, the fund was the best performing equity fund in the
non-benchmark cognisant category of the Alexander Forbes Large Manager watch,
a testimony of consistent outperformance.
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