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for private investors can be accessed on the Personal area of our site. Terms & conditions.
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
Minimum Disclosure Document (Fund Fact Sheet)
Performance Fees FAQ
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.
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.
Retail Class (%)
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: 1 October 2014 to 30 September 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) | 0.29% 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) | 2.05% 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.
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.
Without a doubt, 2017 was an eventful year full of surprises for South Africans. With
elevated levels of government corruption, further cabinet reshuffles, a ballooning
budget deficit, business and consumer confidence at extremely low levels, credit
downgrades, ailing GDP growth, the Steinhoff debacle and finally, a ray of sunshine
with the election of Cyril Ramaphosa as the next ANC president. Although there is a
clear split in the top six candidates of the National Executive Committee (NEC), with
half in the Ramaphosa camp and half in the Nkosazana Dlamini-Zuma camp, we are
hopeful that Ramaphosa will be able to reduce government corruption and influence
government policy in the right direction.
With all the challenges we faced in 2017, who would have guessed that the rand
would have been the sixth best performing emerging market currency in the world,
appreciating by 10.9% relative to the dollar (even though that 9.5%, was achieved in
the fourth quarter). The reality is, as has been evidenced in the past, markets preempt
bad news so the fear of credit downgrades, political challenges and the weak
economy were priced into the rand a while ago.
From an equity market perspective, the FTSE/JSE Capped Shareholders Weighted
All Share Index (Capped Swix) was up 16.5% for the year and 8.4% for the quarter.
The FTSE/JSE Shareholders Weighted All Share Index (Swix) and the FTSE/JSE All
Share Index (Alsi) were up 21.2% and 21% respectively for the year and 9.6% and
7.4% respectively for the quarter. Once again, Naspers had a massive impact on the
overall markets return for the year with its share price up 71.8%. Excluding Naspers,
the Swix and Alsi returns were 11.26% and 12.96% respectively.
The small and mid cap sectors lagged the overall returns of the market with small
caps up 3% for the year and mid cap shares up 7.4%. This highlights the extent of
the concentration of the market’s overall returns in large cap shares, driven by the
Top 40 shares that were up 23.1% for the year. To further understand the
concentration of returns in the market it is important to note that of the 176 stocks
that make up the Alsi 41 stocks (i.e. 23%) outperformed the market. This means that
77% of the stocks on the JSE underperformed. A total of 59 stocks (34%) had
negative returns in 2017. The median return of the 176 stocks was a meagre 1.35%.
From a sector perspective, the quarter was dominated by the performance of
financials post the outcome of the ANC elective conference. A Ramaphosa win saw
financials return 16% over the quarter, while resources and industrials lagged with
returns of 4.9% and 4.7% respectively.
Global markets performed well with the MSCI World Index increasing by 24.6% (in
US dollars). In US dollar terms, returns in markets excluding the US were generally
flattered by the weaker dollar. When translated into rand terms returns were less
flattering, negated by the rand that strengthened by 10.9% over the year.
The portfolio returns lagged the overall market as a result of our underweight
position in Naspers and the underperformance of our investment in the Naspers
core assets. The announcement by Steinhoff of the resignation of the CEO, Markus
Jooste, together with the announcement that they had appointed PWC to perform an
independent investigation into accounting irregularities took us and the market by
surprise. We acted swiftly and immediately sold out of our investment. Our decision
was based on the inability to assess the true value of the business on the basis of
not being able to rely on the audited financial statements. We sold out at an average
price of approximately 1880 cents per share. The valuation underpin, in our opinion,
was the value of Steinhoff’s holding in PSG, KAP and Steinhoff Africa Retail (three
was the value of Steinhoff’s holding in PSG, KAP and Steinhoff Africa Retail (three
listed investments that it owns). This closely equates to the exit price of our
On a more positive note, Ramaphosa being elected was generally positive for many
of the domestic SA stocks that we hold in the portfolio. For the quarter, Barclays
Group Africa was up by 29.7%, Foschini was up 44.8%, and Standard Bank rose
24.2%, while Tiger Brands and Pick n Pay rose 21.9% and 21.2% respectively.
Some of our small cap holdings like Adcorp and Italtile rose 20.6% and 12%
Over the 12-month period ending December 2017, two of our core resources
holdings performed well. Northam Platinum rose 29.7% and Anglo American was up
34.2%. Our best performing small cap holdings were Altron and Hudaco, up 34%
and 31% respectively. Some of the global stocks in the portfolio also performed well
in US dollar terms. Samsung and Oracle rose 55.9% and 22.6% respectively,
although these returns were lower when translated into rand (given the strong rand
over the period).
A Ramaphosa victory was crucial, in our opinion, for South Africa. This is likely to
result in a gradual improvement in both business and consumer confidence over
time. We must, however, not expect a swift recovery. Much damage has been done
to the economy due to the high levels of corruption and poor execution of economic
policies that have weighed heavily on the growth outlook in South Africa in a period
where the rest of the world has shown synchronised growth. The synchronised
global recovery, however, will likely provide much needed support to the SA
economy and together with a more stable rand and deft leadership from
Ramaphosa, the domestic outlook for 2018 is likely to be more encouraging than
Commodity prices remain strong with copper prices up 30.5% in 2017, iron ore
prices have been surprisingly strong given increased supply and while platinum
prices are only up by 2.8% in 2017 ($ prices), the palladium price is up by 56%. The
oil price has also been strong, rising by 12.5% in 2017. Commodity prices remain
supportive of a more stable rand and we would expect our resource stocks to
continue to see earnings upgrades as analysts factor in the higher commodity
prices. This should be positive for our holdings in Anglo American, BHP Billiton,
Northam Platinum and Sasol.
The many conversations that we had with management teams last year pointed to a
“wait and see” approach to the outcome of the ANC elective conference. Corporate
SA was reluctant to invest additional capital in an uncertain political environment.
Although the ANC elective conference concluded with somewhat of a compromised
NEC we believe the Ramaphosa win, and the fact that there is greater certainty now
that the elective conference is behind us, will result in Corporate SA being more
decisive in their capital allocation decisions. This, we believe will be more supportive
of some of the small and mid cap shares that have lagged the overall markets
returns over the last few years. This will be positive for our clients’ portfolios.
Should the rand remain stronger and more stable in 2018, we could expect some of
the larger rand hedges to tread water and show more modest returns in 2018.
However, this is a general statement and returns will clearly be determined by the
underlying performance of the companies we own in the portfolio. We believe that
the outlook for British American Tobacco, Reinet and Richemont remains positive
and supports our holdings in these rand hedges.
Overall, we believe that the portfolio is well positioned for 2018, especially in the
environment that we have described above. We see significant value in domestic SA
stocks, in particular in the small and mid cap sectors. The portfolio remains well
diversified with broad exposure to small, mid and large cap shares as well as
domestic SA and select rand hedges where we see long-term value.