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Provided by the South African National Department of Health
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
Equity markets recovered strongly in April following the sharp sell-off late in February and in March. As measured by the FTSE/JSE All Share Index (ALSI), SA equities reversed the negative trend, returning 14% on a total return basis. Global markets enjoyed a strong recovery, with developed markets up 11% and emerging markets up 8.1% in US dollar terms as investors reacted to stimulus packages, COVID-19 recovery themes and arguably, rare buying opportunity.
Locally, cyclical sectors recovered remarkably from the carnage in March. Chemicals jumped by 83% off a depleted base, gold shares traded 50% higher and platinum counters enjoyed a 46% bounce. So-called SA Inc shares showed a more muted response to the new-found euphoria. Food and drug retailers declined by 3.6%, while food producers and healthcare services were flat over the month.
Bonds did not protect investors in the equity sell-off given the unique SA circumstances. However, bond prices did recover somewhat in April – the All Bond Index gained 3.9%. Cash provided a return of 0.52% in the month. After sustained pressure on local listed property counters, there was a ‘modest’ recovery of 7% off a very low base.
The Sanlam Private Wealth Dividend Income portfolio returned 9.7% during the month, in line with the benchmark return of 9.9%. Major contributors to performance included Sasol (+136%), Absa (+30%), Investec preference shares (+29%) and Sanlam (+23%). Only Vukile Property Fund (-24%) delivered negative returns during the month.
We added to MAS PLC, Sanlam and Bidcorp in the portfolio during April, funded by reductions in British American Tobacco and Investec preference shares.
Renier de Bruyn
Sanlam Private Wealth is a holistic, integrated wealth management business that provides advice and manages assets for high net worth private individuals, cultural organizations, charitable institutions and similar entities with investable assets of more than R1 million
Participation in the Sanlam Private Wealth’s Dividend Income Model Portfolio is a medium to long-term investment. The value of this portfolio is subject to fluctuation and past performance is not necessarily a guide as to its future performance. Calculations are based on a lump sum investment with gross income reinvested on the ex-dividend date. All performance figures exclude costs. Actual investment performance will differ based on the fees applicable, the actual investment date and the date of reinvestment of income. A schedule of fees and maximum commissions is available from the manager. Sanlam Private Wealth (Pty) Ltd, registration number 2000/023234/07, is a member of the Johannesburg Stock Exchange, a licensed Financial Services Provide (FSP 37473) and a Registered Credit Provide (NCRCP1867)
As a business we are committed to the principles of TCF, practicing a specific business philosophy that is based on client-centricity and treating customers fairly. Our clients can be confident they are dealing with a company where TCF is central to what we do and be reassured that we have a holistic wealth management product offering that is tailored to their needs, and a service that is of a high standard.
Tel: 021 950 2770
Farm 1, Vineyards Office Estate, 99 Jip de Jager Dr, Welgemoed 7530
Tel: 021 950 2300
Tel: 021 672 1888
Tel: 021 861 3700
Tel: 011 778 6600
Tel: 012 470 0622
Tel: 031 560 3600
Tel: 044 606 1100
Tel: 044 805 5900
Renier de Bruyn
Renier joined Sanlam Private Wealth at the start of 2010 as an investment analyst, focusing on financial, retail, media and selected industrial shares. Renier graduated with a BCom Honours in Financial Analysis from the University of Stellenbosch and also has an Advanced Postgraduate Diploma in Financial Planning from the University of the Free State. He is a CFA charterholder.