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.
Cumulative Growth Over Time
Minimum Disclosure Document (Fund Fact Sheet)
Performance Fees FAQ
Source of graph : Morningstar and Sanlam Investments
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.
View, print and complete the form of your choice.
Email or fax the completed form to UTinstructions@sanlaminvestmentssupport.com or 0860 724 467
Note: Fund minimums change from 1 April 2017.
The debit-order contribution minimum will increase from R200 p.m. to R500 p.m.
The lump-sum contribution minimum will increase from R5 000 to R10 000.
This will apply to all funds except the Money Market Fund, which will remain at R1 000 p.m. for debit orders and R20 000 for lump-sum contributions.
*Total expense Ratio - September 2016 Download PDF
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.
Traditionally, investment advice come with a fee of up to 1%. 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.
Investors could not have predicted that globally stock markets would have a bumper
first half. In fact 26 of 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 us, the 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 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
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
The FTSE/JSE Shareholder Weighted Index (SWIX) was flat for the quarter, with the
industrial sector posting another strong quarter, up over 3%. Industrial stocks with a
global footprint performed strongly, particularly Naspers, which was up 10%. The
financial sector was flat, with the Cabinet reshuffle leading to fears of a repeat of
Nene-gate. During the period, the fund outperformed its benchmark and posted a
positive return for the year, ranking in the top 10 best performing general equity
positive return for the year, ranking in the top 10 best performing general equity
funds year to date. This adds to the excellent long-term track record of the fund for
over a decade, with 4,6% per annum outperformance of the general equity peer
group for over ten years. This means that it is ideally placed to create wealth for
investors over the long term and often short-term volatility provides the opportunity
to accumulate quality assets at a discounted price.
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 its 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 cash flow 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.
Our ability to do detailed stock research has allowed us to identify Dischem as an
investment opportunity early on, and we accumulated a stake at listing. This has
done well for the fund, with the stock up 24% since listing. There is considerable
visibility in the stock as it rolls out more stores and tries out a convenience format
and expands its franchise offering to grab its share of the independent pharmacy
market. The economics of the business are very attractive and are led by
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 the
largest book build in the history of the JSE and was oversubscribed shows that there
is still appetite for SA assets if they are priced correctly.
Demand for emerging market equities and quality stocks remains selective. Barclays
Plc placed shares of Absa in the largest accelerated book build in history with R37.7
billion of stock (34% shareholding) oversubscribed in the space of 38 minutes. This
eclipses the placing done by AngloGold Ashanti in 2007 for R20 billion -
interestingly, both placings amounted to US$2.9 billion. This is despite the Public
Protector claiming that Absa needs to repay money used to bail out Bankorp, while
launching a nefarious attack on the independence of the South African Reserve Bank.
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.