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Portfolio Description and Investment Objective

This is a diversified local equity portfolio which may include both ordinary and preference shares The portfolio aims to invest in shares that offer higher dividend yields than the general market, and which we believe can sustain or grow their dividends over time.

The objective of the portfolio is to provide a combination of income and capital growth, with an emphasis on growing the income stream in real terms over an investment horizon of 3 years. This portfolio is suitable for investors who can withstand potential capital volatility in the shorter term.

Your Personal Equity Portfolio

Sanlam Private Wealth Dividend Income Portfolio is constructed by the Investment Team based on an intensive and rigorous investment process. The model portfolio acts as a guide to your portfolio manager in customising your personal portfolio to suite your individual requirements. It is important to note that the performance on this fact sheet is based on the model portfolio and the performance of your portfolio may vary depending on the level of deviation from the model portfolio and the fees charged.

Why Select a Personal Portfolio

A personal portfolio is suitable to more discerning investors who might have unique factors to consider during the investment process. With a personal portfolio, your investment can be tailored to your unique requirements. You will have the benefit of more direct access to your portfolio manager Your portfolio will not be affected by the cash investment and withdrawals of other investors.

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30 Apr 2020

Portfolio Information

Risk Rating

Aggressive


Inception Date

September 2008


Minimum Investment

R1 Million


Benchmark

70% FTSE/JSE Dividend Plus TR Index30% Stefi Composite Index


Management Company

Sanlam Private Wealth


Portfolio Manager

Renier de Bryun


Initial Fees

Nil


Annual Management

Fee Slider Scale (refer to mandate)


Top 5 Share Holdings

British American Tobacco

9.00%


Vodacom Group

6.90%


Sanlam

4.55%


Exxaro Resources Ltd

4.49%


Bid Corp Ltd

4.34%


Please note:
Your portfolio might vary from this

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

Percentage Returns


portfolio manager's comment

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.

Regards,

Renier de Bruyn

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About Sanlam Private Wealth

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

Mandatory Disclosure

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)

Treating Customers Fairly (TCF)

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.

Contact Us

Tel: 021 950 2770

Email: clientcare@privatewealth.sanlam.co.za

Farm 1, Vineyards Office Estate, 99 Jip de Jager Dr, Welgemoed 7530

Tyger Valley

Tel: 021 950 2300

Claremont

Tel: 021 672 1888

Stellenbosch

Tel: 021 861 3700

Johannesburg

Tel: 011 778 6600

Pretoria

Tel: 012 470 0622

Durban

Tel: 031 560 3600

Knysna

Tel: 044 606 1100

George

Tel: 044 805 5900


About the
portfolio manager

portfolio_manager

Renier de Bruyn

BCom(Hons), CFA

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.

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