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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.

Quick Facts About The Fund*

Sanlam Investment Management (SIM) Value Fund

Launch Date: 01 October 1998
Fund Size: R2 277.3 million
Benchmark: FTSE/JSE All Share Index
Time Horizon: 5 years+
*As at 31 August 2017
Risk Profile: Aggressive
Fund Classification: SA - Equity - General
Min Investment Amount: Lump sum: R10 000 | Monthly: R500
Total Expense Ratio (TER): 1.79%
Launch Date: 01 October 1998
Fund Size: R2 277.3 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): %
*As at 31 August 2017

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.


Cumulative Growth Over Time

Performance

Annualised Total Return as at 31 August 2017 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year -1.83 10.15
3 year 0.20 6.56
5 year 8.44 13.10
10 year 8.07 10.18

Annualised return is the weighted average compound growth rate over the period measured
Highest and lowest annual returns over since inception
Highest Annual % 22.54
Lowest Annual % -11.57

Minimum Disclosure Document (Fund Fact Sheet)

Performance Fees FAQ

Cumulative Growth Over Time

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

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.

1. Steinhoff Int Hldgs N.v 5.03%
2. Sanlam Global Best Ideas Universal Fund E 4.83%
3. Anglos 4.24%
4. Allied Electronics Corp A 4.13%
5. Reinet Investments 3.94%
6. Oracle Corp 3.69%
7. Old Mutual 3.57%
8. Combined Motor 3.22%
9. Investec 2.89%
10. Stanbank 2.86%
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
Property
Equity Health Care
1. Steinhoff Int Hldgs N.v 5.03%
2. Sanlam Global Best Ideas Universal Fund E 4.83%
3. Anglos 4.24%
4. Allied Electronics Corp A 4.13%
5. Reinet Investments 3.94%
6. Oracle Corp 3.69%
7. Old Mutual 3.57%
8. Combined Motor 3.22%
9. Investec 2.89%
10. Stanbank 2.86%

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.) 3.00%
Manager initial fee N/A
Advice annual fee (max.) 1.14%
Manager annual fee 1.53%
Total Expense Ratio (TER) 1.79%

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 own.

Total Expense Ratio (TER) | PERIOD: 1 April 2014 to 31 March 2017
Total Expense Ratio (TER) | 1.79% 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 1.79%, a performance fee of 0.21% of the net asset value of the class of participatory interest of the portfolio was recovered.

Transaction Cost (TC) | 0.31% 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) | 2.10% 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 FAQ is available on www.sanlamunittrusts.co.za.

Total Expense Ratio (TER) | PERIOD: 1 April 2014 to 31 March 2017
Total Expense Ratio (TER) | 1.79% 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 1.79%, a performance fee of 0.21% of the net asset value of the class of participatory interest of the portfolio was recovered.

Transaction Cost (TC) | 0.31% 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) | 2.10% 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 FAQ is available on www.sanlamunittrusts.co.za.

When you invest online

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

  • 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 last quarter has proven to be extremely challenging. The announcement of the Cabinet reshuffle on 30 March was another nail in the coffin for the South African economy. The damage that this has done to both consumer and business confidence cannot be underestimated. The subsequent credit rating downgrades and the announcement of Mosebenzi Zwane’s poorly structured Mining Charter is adding fuel to an already raging fire. It is, therefore, no surprise that we have drifted into a recession. The impact of the political travails should not be underestimated. If one excludes the impact of Naspers on the FTSE/JSE Shareholder Weighted and All Share Indices, the indices are down 2.24% and 2.23% respectively for the quarter.

Let’s, however, not be overly pessimistic. CEOs of corporate South Africa have faced many challenges in the past and, undoubtedly, they will navigate these choppy waters and probably come out of this a lot stronger. Surprisingly, the rand has been extremely resilient and most of the relative strength can probably be ascribed to the real yields that investors are able to earn in South Africa relative to most developed and emerging markets.

The lower growth outlook for South Africa is likely to support the call to potentially cut interest rates (or at worst leave rates unchanged for some time). Assuming inflation remains benign, the likelihood of interest rate cuts will increase. In turn, this may be supportive of improving consumer confidence levels.

As we move into the second half of the year and approach the ANC Elective Conference in December, we may get an early Christmas present with the hope that sanity about the future of a democratic South Africa will prevail. The portfolio remains well diversified. We have exposure to a number of rand hedges that are trading well below intrinsic value (like Capital & Counties, Brait, Aspen, Reinet and Steinhoff). There is a healthy balance between domestic defensive stocks (like Shoprite, Tiger Brands and Rhodes Food Group) and other domestic small and mid-cap stocks (like Hudaco, Italtile, Altron and EOH) that offer significant upside to intrinsic value. Our select resources exposure like Anglo, BHP Billiton, Northam and Sasol also offers attractive upside with rand hedge qualities. We have a number of high-quality businesses that generate returns well above their weighted average costs of capital that will continue to grow their intrinsic value over time (like Woolies, recently added Pick n Pay, Foschini and Shoprite).

Performance

We have had an extremely tough quarter, one of the toughest since the onslaught of the Global Finance Crises. This is extremely frustrating, especially following a fantastic calendar year 2016 performance when the portfolio was up 12%. The biggest contributor to the performance was our investment in the Naspers stub (core Naspers assets excluding Tencent). This detracted approximately 3.2%. The implied negative value on the Naspers assets (excluding their holding in Tencent) is now the widest it has ever been at a negative US$30 billion - this is more than the market capitalisation of Sasol and Remgro combined! Our assessment of the value of the assets that comprise the Naspers stub is a positive US$12 billion (conservatively). To put this into context, one of the assets in the stub includes MultiChoice South Africa, which alone generates US$738 million (almost R10 billion) of operating profits. There are also a number of classified e-commerce assets that generate profit margins (EBITDA margins) in excess of 45%. We believe there is substantial upside but it is likely to take the market some time to recognise this value. upside but it is likely to take the market some time to recognise this value. Post the announcement of the Cabinet reshuffle, domestic SA stocks continued to come under pressure over the quarter. Our holdings in Hudaco (which has been one of the larger positive contributors over the past 12 months) gave back some of the good performance. In addition, Stefanutti Stocks and Pioneer Foods Group contributed to the tough quarter.

On the positive side, Steinhoff showed a steady recovery, while Altron continued its positive contribution to overall performance with the stock up 4% for the quarter. Combined Motor Holdings was up 22.6% over the quarter. In addition, some of our international holdings performed extremely well. Our investment in the Sanlam Global Financial Fund (managed by Denker Capital) was up 5%, while our investments in both Samsung and Oracle (both up 10% over the quarter) also made a positive contribution.

Outlook

While we’ve had a challenging quarter, we are resolute in our pursuit of generating positive returns for our clients and ensuring that we exceed our clients’ expectations as long-term investors.

Your portfolio has significant upside to its intrinsic value. This is evidenced by the attractive valuation metrics at the aggregate level relative to the market. The portfolio is well diversified with a number of attractively valued rand hedges, good quality defensive stocks that generate returns well above their cost of capital (and hence grow shareholder value over time). Your portfolio is also differentiated relative to many of its peers given its exposure to a number of mid and small-cap stocks - an area of the market that we believe is extremely mispriced and therefore offers some of the most attractive upside.

The international exposure of the portfolio is currently at its maximum of 25%.

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

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