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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

Sanlam Private Wealth was appointed as the Investment Manager to the fund from 1 March 2017. We have implemented some changes to the performance reporting in order to align this to our standard reporting procedures. The performance graph has been changed to show a since inception figure vs. benchmark. Benchmark was CPI + 4% until 30 April 2017 and changed to (ASISA) South African MA High Equity from 2 May 2017

The performance graph includes all distributions reinvested - "Value of R100 invested at inception with all distributions reinvested".


30 Sep 2019

Portfolio Information

Fund Launch

01 October 2019

Originally launched under MET CIS scheme. Transition to Sanlam on3 November 2014

Issue Date

22 October 2019

Portfolio Size of Fund

R578.7m as at 30 September 2019

NAV Price (Fund Inception)

100.00 (cpu)

NAV Price (30 Sept 2019)

200.63 (cpu)

JSE Code


ISIN Number


ASISA Fund Classification

SA - Multi Asset High Equity


Average of the SA Multi Asset High Equity category

Minimum Investments

Lump sum R20 000 / Monthly R500

Portfolio Valuation Time


Transaction Cut-off Time


Daily Price Information

Local newspapers and

Repurchase Period

3 working days

Income Declaration

31 December 2018: 1.80 cents per unit

Income Declaration

30 June 2019: 1.95 cents per unit

Income payment

First working day of Jul/Jun

Fees (incl VAT)

Initial Fee


Asset Management Fee


Total Expense Ratio (TER)


Transaction Cost


Total Investment Charges


Top Equity Holdings



BHP Group


British American Tobacco




Standard Bank








Anglo American




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

In a highly volatile month for local equities, the asset class managed to keep head above water with a total return of 0.19% for the month as measured by the FTSE/JSE All Share Index (ALSI). The general trend in the market continued to be dictated by macro news flow and geopolitical events.

The lacklustre performance in the month could not rescue the ALSI from a material decline of 4.6% for the quarter. Globally, shares followed a similar pattern. Emerging markets were down by 4.1% on average in the quarter, while developed markets managed to stay in the blue (+0.7%), largely driven by a strong performance by US and Japanese equities.

Some recently underperforming sectors bounced in the month and some previous winners retreated. Key sector leaders were pharmaceuticals (read Aspen), which appreciated by 7.5%, and tobacco, up by 5%. The biggest laggards were the gold miners – down 15%.

Listed property was up by 0.31% in the month but could not escape the negative sentiment over the quarter as it retreated by 4.4%.

Cash returned 0.59%. South African bonds gained 0.51% in the month and 0.7% over the quarter. Bonds and cash returned 8.4% and 5.5% respectively year to date.

The fund delivered a return of 2.5% for the twelve months ending September, out-performing the peer-group average of 2.0%. The portfolio’s out-performance relative to peers can be ascribed largely to asset allocation and the portfolio’s relatively lower exposure to SA equities.

When compared to competing high-equity unit trusts, the portfolio was in the top half of the peer group over the last 12 months.

The equity exposure in the portfolio was maintained at around 54% in September. Since we hold the view that we are in an advanced stage of a global equity bull market, the equity position is underweight relative to the maximum allowable equity exposure of 75%. We maintained the property holdings in the portfolio.

The fixed interest exposure remains conservatively positioned.




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. The portfolio’s equity exposure will range between 0% and 75% of the total portfolio net asset value. The portfolio shall comply with prudential guidelines.

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 of Terms

Effective Annual Cost (EAC)

Obtain a personalized cost estimate before investing by visiting 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)

1.94% 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)

2.06% 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


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.


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 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. 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. 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

The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The performance of the portfolio depends on the underlying assets and variable market factors. Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div date. 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 portfolio manager may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. The manager has the right to close any portfolios to new investors to manage them more efficiently in accordance with their mandates. Standard Bank of South Africa Ltd is the appointed trustee of the Sanlam Collective Investments scheme.

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 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).

Contact & Other Information


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



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



Standard Bank of South African Ltd

Tel: +27 (21) 441 4100


About the
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.

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