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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: R2 016.1 million
Benchmark: FTSE/JSE All Share Index
Time Horizon: 5 years+
Quick Facts: Download
*As at 30 April 2018
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 1.76%
Fees: View Fees
Launch Date: 01 October 1998
Fund Size: R2 016.1 million
Benchmark: FTSE/JSE All Share Index
Time Horizon: 5 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): 1.74%
Fees: View Fees
*As at 30 April 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 30 April 2018)
Retail Class Fund (%) Benchmark (%)
1 year -2.16 10.36
3 year -2.08 4.94
5 year 6.07 11.53
10 year 8.29 9.69

Annualised return is the weighted average compound growth rate over the period measured
Highest and Lowest Annual Returns over 10 years
Highest Annual % 48.74
Lowest Annual % -21.37

Minimum Disclosure Document (Fund Fact Sheet)

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. Anglos5.98%
2. Naspers -N-5.24%
3. Old Mutual4.41%
4. Combined Motor4.33%
5. Sanlam Global Best Ideas Universal Fund E4.06%
6. Barclays Group Africa4.02%
7. Stanbank3.83%
8. Investec3.09%
9. Italtile3.04%
10. Reinet Investments S.C.A2.96%
Cash And Money Market Assets
Equity Investment Products
International Assets
Equity Technology
Equity Financials
Equity Consumer Services
Equity Consumer Goods
Equity Industrials
Equity Basic Materials
Equity Telecommunications
Equity Health Care
1. Anglos5.98%
2. Naspers -N-5.24%
3. Old Mutual4.41%
4. Combined Motor4.33%
5. Sanlam Global Best Ideas Universal Fund E4.06%
6. Barclays Group Africa4.02%
7. Stanbank3.83%
8. Investec3.09%
9. Italtile3.04%
10. Reinet Investments S.C.A2.96%

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.

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 own.

Total Expense Ratio (TER) | PERIOD: 01 January 2015 to 31 December 2017

Total Expense Ratio (TER) | 1.76% 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 1.76%, a performance fee of 0.18% 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) | 2.04% 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: 1.53%, Fee at Benchmark: 1.53%, Fee hurdle: FTSE/JSE All Share Index, Sharing ratio: 20%, Minimum fee: 1.53%, Maximum fee: 3.42%, Fee example: 1.53% 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 Frequently Asked Questions can be obtained from our website: 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 overview

After the euphoric end to the markets in 2017, the first quarter of 2018 was the worst quarter in over eight years. The biggest contributors to the 6% fall in the FTSE/JSE All Share Index were Naspers (-16%), British American Tobacco (-15%) and Reinet (-16%).

Continued strength in the currency also impacted the rand basket prices for both platinum and gold producers resulting in these sectors falling 21% and 13% respectively. The contagion from the Resilient group of real estate companies did not help the real estate indices, which underperformed the market. The strong momentum of SA Inc. stocks continued in the first quarter with strong performances from general retailers (+9%), automobiles and parts (+7%), construction and materials (+6%) and banks (+4.2%).

Performance

The fund materially outperformed its benchmark in the first quarter. Big contributors to the outperformance came from our investments in Hudaco (+16.5%), AECI (+15.5%), Anglo American (+10.5%) and Shoprite (+15%). Stocks which detracted from performance were Northam (-30%), Reinet (-16%) and Capital & Counties (- 16%).

Outlook

We have seen a number of positive developments since the ANC elective conference in December 2017, which bodes well for improving consumer and investor confidence. This has supported Moody’s maintaining South Africa’s investment-grade rating (with a stable outlook). In addition, the 25-basis point cut in interest rates will help offset the negative impact of a higher VAT rate and higher petrol prices on consumers.

There is certainly light at the end of the tunnel, we are just not sure how long the tunnel is. Share prices have reacted sharply to a potential economic recovery and while GDP growth forecasts have been revised upwards we should not be naïve to the structural reform challenges required to get South Africa back on a sustainable, long-term growth path. There is much to look forward to when one looks at other countries such as India and Brazil, which recently went through positive regime changes. These countries experienced P/E multiple expansion which, together with a recovery in corporate profits, provided strong tailwinds for equity returns. We are well positioned to benefit from an improving outlook with significant exposure to underpriced domestic cyclical and smaller-cap stocks. Because value does well in environments where growth is abundant, we think that the recovery in value currently represents the best contrarian trade in the market. This is supported by the extremely attractive discount at which value trades. The P/E discount of the MSCI South Africa Value Index versus the MSCI South Africa Growth Index is the widest it’s been in over 20 years.

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