Stay abreast of COVID-19 information and developments here

Provided by the South African National Department of Health     

Portfolio Objective and Strategy

The Sanlam Private Wealth Balanced Fund is a managed prudential portfolio seeking to deliver long term capital growth and income normally associated with the investment structure of a moderate risk profile retirement fund. In order to benefit from postie market conditions to provide a limited measure of capital and income protection during negative market conditions, the Manager will manage the portfolio's equity, property and fixed interest asset allocation actively to align the portfolio with the Manager's outlook of such conditions

portfolio_information_icon

30 Sep 2019

Portfolio Information

Fund Launch

01 October 2019


Originally launched under MET CIS scheme. Transition to Sanlam on 3 November 2014


B2 Class Launch Date

1 June 2017


Issue Date

22 October 2019


Portfolio Size of Fund

R578.7m as at 30 September 2019


NAV Price (Fund Inception)

187.23 (cpu)


NAV Price (30 September 2019)

199.49 (cpu)


JSE Code

SPWB2


ISIN Number

ZAE000244661


ASISA Fund Classification

SA - Multi Asset High Equity


Benchmark

Average of the SA Multi Asset High Equity category


Minimum Investments

LISPS minimums apply


Portfolio Valuation Time

15:00


Transaction Cut-off Time

15:00


Daily Price Information

http://www.sanlamunittrusts.co.za/


Repurchase Period

3 working days


Income Declaration

31 December 2018: 2.66 cents per unit


Income Declaration

30 June 2019: 2.80 cents per unit


Income payment

First working day of Jul/Jun


Fees (incl VAT)

Initial Fee

0.00%


Asset Management Fee

0.86%


Total Expense Ratio (TER)

1.04%


Transaction Cost

0.08


Total Investment Charges

1.12%


Top Equity Holdings

Naspers

5.77%


BHP Group

4.55%


British American Tobacco

2.94%


Mondi

2.82%


Standard Bank

2.82%


Prosus

2.78%


Richemont

2.56%


Remgro

2.49%


Anglo American

2.43%


Bidcorp

2.08%

1. The net of fee calculation assumes a 1.15% Annual Management Charge and a Total Trading Costs of 1% (both inclusive of vat) on the value of actual portfolio turnover

Performance as at 30 September 2019 on a rolling monthly basis

Actual Highest and Lowest Annual Figures

Regulation 28 - Compliant: Yes


portfolio manager's comment

The fund recorded a return of 11.2% for the 12 months to the end of March, compared to the average peer group return of 5.8%. The 12-month performance is somewhat flattering as it is measured off a low base.

However, this performance clearly illustrates that the fun largely avoided most of the potholes that littered the investment landscape during the period. The outperformance relative to the peer group can be ascribed mainly to good stock selection within SA equities and global over the last 12 months.

The equity exposure in the fund (including offshore equities) remained largely unchanged at 66% at month-end.

Since we hold the view that we are in an advanced stage of equity bull market, the equity position is marginally underweight measured against the maximum allowable equity exposure of 75%.

The SA Fixed interest exposure remains conservatively positioned

Regards

signature.png

Policy

Investments to be acquired for the portfolio will cover the full spectrum of securities, and will include equities, participatory interests in collective investment schemes in property, loan stock listed on exchanges, non-equity securities, preference shares, bonds, money market instruments and assets in liquid form

The Manager may make active use of derivatives to reduce the risk that a general decline in the value of equity markets may have on the value of the portfolio. The portfolio may also invest in local or offshore collective investment schemes operated in territories with a regulatory environment which is to the satisfaction of the manager and trustee of a sufficient standard to provide investor protection at least equivalent to that in South African and which is consistent with the portfolio’s primary objective.

Limits & Constraints

  • Maximum exposure limits as per the ASISA fund classification structure
  • Maximum exposure of 30% to offshore investments plus maximum of 10% in Africa
  • The portfolio’s equity exposure will range between 0% and 75% of the total net asset value
  • The portfolio shall comply with prudential guidelines

Glossary Terms

Effective Annual Cost (EAC)

Obtain a personalized cost estimate before investing by visiting www.sanlamunittrustsmdd.co.za and using our Effect Annual Cost (EAC) calculator. Alternatively, contact us at 0860 100 266

Total Expense Ratio

Period: 1 January 2016 to 31 December 2018

Total Expense Ratio (TER)

1.95% 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 in the TER of 1.95%, a performance fee of 0.02% of the net asset value of the class of Financial Product was recovered

Transaction Cost (TC)

0.12% 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 necessary cost in administering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may b e 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)

2.07% of the value of the Financial Product was incurred as costs relating to the investment of the Financial Product

Moderate Risk Profile

You want to protect yourself from the ups and downs as much as possible and, in so doing, have as smooth a ride as is possible. But you know you need to take some risk to grow your capital.

You have a medium to long-term investment horizon; you are looking for a diversified portfolio (i.e a portfolio that invests in a number of different asset classes to spread your risk), and one that offers real (after inflation) returns but with lower volatility.

This fund would appeal to anyone nearing retirement (in the capital accumulation phase) and as well as after retirement (in the de-accumulation or capital preservation phase).

Capital Growth

Capital growth is the profit made on an investment, measured by the increase in its market value over the invested amount or cost price. It is also called capital appreciation

Equities

An equity or share represents an institution/individual’s ownership in a listed company and is the vehicle through which they are able to ‘share’ in the profits made by that company. As the company grows, and the expectation of improved profits increases, the market price of the share will increase and this translate into a capital gain for the shareholder. Similarly, negative sentiment about the company will result in the share price falling.

Shares/equities are usually considered to have the potential for the highest return of all the investment classes but with a higher level of risk i.e share investments have the most volatile returns over the short term. An investment in this type of asset should be viewed with a 7 to 10 year horizon.

Bond

A bond is an interest-bearing debt instrument, traditionally issued by governments as part of their budget funding sources and now also issued by local authorities (municipalities), parastatals (Eskom) and companies. Bonds issued by the central government are often called “gilts”. Bond issuers pay interest (called the “coupon”) to the bondholder every 6 months. The price/value of a bond has an inverse relationship to the prevailing interest rate, so if the interest rate goes up, the value goes down and vice versa. Bonds / gilts generally have a lower risk than shares because the holder of a gilt has security of knowing that the gilt will be repaid in full by government or semi-government authorities at a specific time in the future. An investment in this type of asset should be viewed with a 3 to 6 year horizon.

Preference Shares

Preference shares rank higher than ordinary shares in terms of dividends and capital, if the company goes into liquidation. They do not have voting rights. Dividends on preference shares are normally a predetermined percentage of the nominal value of the share.

Money Market Instrument

A money market instrument is a low risk, highly liquid, short-term (one year or less) debt instrument, issued by financial institutions or governments that tend to have lower returns than high-risk investments

Liquid assets

Liquid assets are shares that can easily be bought or sold.

Derivatives

Derivatives are instruments generally used as an instrument to protect against risk (capital losses), but can also be used for speculative purposes. Examples are futures, options and swaps.

Net asset value (NAV)

Net asset value (NAV) is the value of a fund’s asset less the value of its liabilities per unit.

Total Expense Ratio (TER)

This is the total cost associated with managing and operating an investment (excluding administration, financial planning and servicing fees). These costs consist primarily of management fees and additional expenses such as trading fees, legal fees, auditor fees and other operational expenses. The total cost of the fund is divided by the fund’s total assets under management to arrive at a percentage amount, which is represents the TER

Mandatory Disclosure

All reasonable steps have been taken to ensure the information on this minimum disclosure document is accurate. The information to follow does not constitute financial advice as contemplated in terms of the Financial Advisory and Intermediary Services Act. Independent professional financial advice should always be sought before making an investment decision.

The Sanlam Group is a full member of the Associate for Savings and Investment SA. Sanlam Collective Investments (RF) (Pty) Ltd is a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. Past performance is not necessarily a guide to future performance, and the value of investments / units / unit trusts may go down as well as up. A schedule of fees and charges and maximum commissions is available from the Manager on request. Sanlam Collective Investments (RF) Pty Ltd, a registered and approved Manager in Collective Investment Schemes in Securities.

Additional information of the proposed investment, including brochures, application forms and annual or quarterly reports, can be obtained from the Manager, free of charge. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio.

Collective investments are calculated on a net asset value basis, which is the total market value of all assets in the portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Forward pricing is used.

Actual investment performance of the portfolio and investor will differ depending on the initial fees applicable, the actual investment date, and the date of reinvestment of income as well as dividend withholding tax. Forward pricing is used. Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div date.

Performance is calculated for the portfolio and the individual investor performance may differ as a result of initial fees, actual investment date, date of reinvestment and dividend withholding tax. The manager has the right to close any portfolios to new investors to manage them more efficiently in accordance with their mandates. The performance of the portfolio depends on the underlying assets and variable market factors. Lump sum investment performances are quoted. The portfolio may invest in other unit trust portfolios which levy their own fees and may result is a higher fee structure for our portfolio. All the portfolio options presented are approved collective investment schemes in terms of Collective Investment Schemes Control Act, No 45 of 2002 (“CISCA”).

The fund may from time to time invest in foreign countries and therefore it may have risks regarding liquidity, the repatriation of funds, political and macroeconomic situations, foreign exchange, tax, settlement, and the availability of information.

The management of investments is outsourced to Sanlam Private Wealth (Pty) Ltd (2000/023234/07) is a member of the Johannesburg Stock Exchange, a licensed Financial Services Provider (FSP 37473) under the Financial Advisory and Intermediary Services Act, 2002 and a Registered Credit Provider (NCRCP1867). The Manager retains full legal responsibility for the co-named portfolio. Sanlam Private Wealth (Pty) Ltd is responsible for the management of the investments held in the Fund. The portfolio manager may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down.

Obtain a personalized 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.

Contact & Other Information

Scheme

Sanlam Collective Investments Scheme

Management Company

Sanlam Collective Investments (RF) (Pty) Ltd

2 Strand Road, Belville 7530

PO Box 30, Sanlamhof 7532

Telephone: +27 (21) 916- 1800

Facsimile: +27 (21) 947-8224

Email: service@sanlaminvestments.com

Website: www.sanlamunittrust.co.za

Registration No: 1967/002865/07

Investment Manager

Sanlam Private Wealth (Pty) Ltd

Farm 1, Vineyards Office Estate, 99 Jip de Jager Dr, Welgemoed

Telephone: 021 950 2770

Email: clientcare@privatewealth.sanlam.co.za

Trustee

Standard Bank of South African Ltd

Tel: +27 (21) 441 4100

Email: compliance-SANLAM@standardbank.co.za


About the
portfolio manager

portfolio_manager

Alwyn van der Merwe

B.Com(Hons), MBA

Alwyn was appointed as Director of Investments for Sanlam Private Wealth in 2007. He has over 24 years' investment industry experience and managed institutional and unit trust portfolios successfully for 14 years. Alwyn leads and chairs Sanlam Private Wealth's formal investment committee.

Thank you for your email, we'll get back to you shortly