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Skip Navigation LinksCore Funds

Sanlam Investment Management
Value Fund

A big portion of the long-term outperformance by value managers – relative to other share portfolio managers - comes from their focus on preserving capital when shares are expensive.

Fund Summary*

Sanlam Investment Management (SIM) Value Fund

Launch Date: 01 October 1998
Fund Size: R1 750.2 million
Benchmark: FTSE/JSE All Share Index
Time Horizon: 10 years+
Quick Facts: Download
*As at 31 October 2018
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 1.75%
Fees: View Fees
Launch Date: 01 October 1998
Fund Size: R1 750.2 million
Benchmark: FTSE/JSE All Share Index
Time Horizon: 10 years+
Quick Facts: Download
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 1.75%
Fees: View Fees
*As at 31 October 2018

Fund Strategy

This fund may invest in any listed share, but focuses on financially sound companies which offer exceptional value. This portfolio may invest in derivatives for efficient portfolio management. This portfolio may also invest in participatory interests of underlying unit trust portfolios.


Illustrative Cumulative Growth of an investment of R100

Performance

Annualised Total Return on a rolling monthly basis
(as at 31 October 2018)
Retail Class Fund (%) Benchmark (%)
1 year -8.33 -8.24
3 year -1.86 2.1
5 year 1.8 5.99
10 year 17.39 15.23

Annualised return is the weighted average compound growth rate over the period measured
Highest and Lowest Annual Returns over 10 years
Highest Annual % 37.73
Lowest Annual % -8.33

Fund Factsheet

Performance Fees FAQ

Illustrative Cumulative Growth of an investment of R100

Sanlam Investment Management (SIM) Value 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- 6.02%
2. Anglos5.43%
3. Sanlam Global Best Ideas Universal Fund E 4.80%
4. Sasol 4.09%
5. Altron3.77%
6. Combined Motor3.66%
7. Oracle Corp 3.54%
8. Italtile3.39%
9. BTI Group 3.18%
10. ABSA Group Limited3.18%
Cash And Money Market Assets
International Assets
Equity Technology
Equity Financials
Equity Information Technology
Equity Consumer Services
Equity Consumer Goods
Equity Industrials
Equity Basic Materials
Equity Telecommunications
Equity Health Care
1. Naspers -N- 6.02%
2. Anglos5.43%
3. Sanlam Global Best Ideas Universal Fund E 4.80%
4. Sasol 4.09%
5. Altron3.77%
6. Combined Motor3.66%
7. Oracle Corp 3.54%
8. Italtile3.39%
9. BTI Group 3.18%
10. ABSA Group Limited3.18%

Claude Van Cuyck

Portfolio Manager - B.Com (Hons); CFA

Claude began his career in 1993 when he worked for Karlein Investments (a private client investment company). He first joined Sanlam Asset Management in 1994 as an equity analyst. After five and a half years of service he worked as an analyst and portfolio manager with Gryphon Asset Management, where he was responsible for running unit trusts and pension fund portfolios, as well as retaining research responsibilities. He returned to SIM in 2002, where he became the Head of Equities and also successfully ran the Sanlam Investment Management General Equity unit trust for five years from January 2006, achieving consistent top-quartile performance for each of the five years during which the fund was under his management. Before that, he ran the SIM Industrial Fund, which achieved S&P and a Raging Bull award. Claude co-founded SIM Unconstrained Capital Partners with Ricco Friedrich in 2011.

Claude Van Cuyck

Portfolio Manager - B.Com (Hons); CFA

Claude began his career in 1993 when he worked for Karlein Investments (a private client investment company). He first joined Sanlam Asset Management in 1994 as an equity analyst. After five and a half years of service he worked as an analyst and portfolio manager with Gryphon Asset Management, where he was responsible for running unit trusts and pension fund portfolios, as well as retaining research responsibilities. He returned to SIM in 2002, where he became the Head of Equities and also successfully ran the Sanlam Investment Management General Equity unit trust for five years from January 2006, achieving consistent top-quartile performance for each of the five years during which the fund was under his management. Before that, he ran the SIM Industrial Fund, which achieved S&P and a Raging Bull award. Claude co-founded SIM Unconstrained Capital Partners with Ricco Friedrich in 2011.

Traditional Investing (when you invest via a financial adviser or other)

Retail Class (%)

Advice initial fee (max.) 3.45%
Manager initial fee N/A
Advice annual fee (max.) 1.15%
Manager annual fee 1.55%
Total Expense Ratio (TER) 1.76%

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.

Advice fee

Any advice fee is negotiable between the client and their financial adviser. An annual advice fee negotiated is paid via a repurchase of units from the investor.

Total Expense Ratio (TER)

This is the percentage of the value of the Financial Product that 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)

This is the percentage of the value of the Financial Product that 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)

This is the percentage of the value of the Financial Product that was incurred as costs relating to the investment of the Financial Product.

For more detail please view the fund factsheet

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 overview

The FTSE/JSE headline indices had varying levels of performance in Q2 2018. Although the FTSE/JSE Shareholder Weighted All Share Index (SWIX) was up 2% (influenced by the large weighting of Naspers), the FTSE/JSE Capped SWIX was down 0.8% for Q2. On a year-to-date (YTD) basis, the SWIX and Capped SWIX indices were down 4.8% and 5.9% respectively. The large-cap (measured by the FTSE/JSE Top 40 Index), mid-cap and small-cap segments of the market have fallen by 0.49%, 10.3% and 5.7% respectively on a YTD basis.

SA resources performed well in Q2, returning 19.6% (Q1: -3.8%), SA industrials returned 4% in Q2 (Q1: -8%) while financials lost 6% in Q2 (Q1: -3.6%).

Global markets have been spooked by the fears and uncertainties surrounding the US-China trade wars and the impact that this could have on global growth.

In South Africa, the initial euphoria after the Ramaphosa win at the ANC elective conference has been dampened by the realities facing the country. We indicated in our Q1 quarterly report that we are not naive to the challenges that lie ahead. GDP growth has disappointed and the initial boost in business confidence has taken a reality check. It will take time for us to see the benefits of the government’s initiatives around dealing with corruption, sorting out the challenges of the state-owned enterprises and addressing the challenges of government policies (including the Mining Charter). All of this uncertainty has further been reflected in a 10% depreciation of the Rand on a YTD basis. We think that we’ll slowly see the benefits come through in further recovery in business and consumer confidence, which will eventually filter into an improved economic growth outlook. Patience will be required.

Performance

Notwithstanding the volatility of the market, the fund outperformed its benchmark in Q2 while materially outperforming its benchmark on a YTD basis. From a stockpicking perspective, we have managed to add alpha across all sectors.

Big contributors to the outperformance were our investments in Altron (+29.4%), BHP Billiton (+27.4%), Anglo American (+22.7%), Stefanutti (+29.5%), Hudaco (+7.7%) and AECI (+9%). Stocks which detracted from performance were Northam (-30%), Reinet (-12%) and Tiger Brands (-26%). Outperforming the market comes not just from stocks that you own, it also comes from avoiding disasters. Overall, we have done well to avoid a number of stocks and sectors that have performed poorly this year including real estate development and services (down 27.4%), industrial transport (down 21.3%), industrial metals (down 20.2%) and gold mining (down 18.2%). We have no exposure to these sectors.

Outlook

The breadth of opportunities has increased dramatically this year relative to the high level of concentration in the market’s performance last year (which was dominated by the performance of a few large stocks, including the Rand hedges). The increased breadth of the market creates more opportunities for stock pickers. This suits our investment approach. We continue to see value in the small-cap and midcap sectors. In addition, we are now seeing some good quality stocks that were previously expensive start to derate and come back into more attractive value territory.

The portfolio remains well balanced with opportunities in both South African-based stocks, where we see value, and in select Rand hedges. Due to the balanced bottom-up stock-picking approach, the portfolio is sufficiently well diversified and less affected by big macro events. We believe our long-term approach to picking undervalued stocks will serve our clients well.

Watch Video

Ricco Friedrich and Claude van Cuyck are co-managers of the SIM Value Fund, a fund that aims to provide investors with returns in excess of the market over the long term. Ricco discusses how they manage the risk of the portfolio while striving for market-beating returns.

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