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Investment Objective and Strategy

The objective of this portfolio is to provide above average growth in capital over the medium to long term. Income will be of secondary importance. The risk associated with this portfolio will be the same as the risk associated with SA equities as an asset class. Volatility of capital can occur over the short term. The portfolio will invest in assets in liquid form and in shares across all sectors of the JSE Securities Exchange of South African, (JSE Limited). The fund aims to outperform the JSE All Share Index on a total return basis, over an investment horizon of three years or more by investing in companies that are undervalued relative to their intrinsic value. The investments are subject to rigours, in-depth research and adhere to our pragmatic value investment philosophy.

The investment manager will also be allowed to invest in financial instruments as allowed by the Act form time to time in order to achieve its investment objective. The portfolio may also invest in participatory interest of underlying unit trust portfolios. The fund may at any time hold a maximum of 30% in offshore assets.


30 Nov 2019

Portfolio Information

Risk Rating


Issue Date

13 December 2019

Minimum Investment

R30 000

Min monthly recurring



FTSE/JSE All ShareTR Index

ASISA Fund Classification

South African-Equity-General

Management Company

Sanlam Private Wealth

Portfolio Manager

David Lerche

Fund Launch

1 April 2011

Income Distribution Dates

30 June / 31 Dec

Bi-annual Distribution #1

31 December 2018: 20.00 cents per unit

Bi-annual Distribution #2

30 June 2019: 23.49 cents per unit

Income Payment Dates

1st working day in July and January

Portfolio Valuation


Transaction Cut-off



On request

Daily Price Info

Local Newspapers and

Repurchase Period

3 working days

Portfolio Size of Fund

R98.5m as at 30 Nov 2019

Fees (A1 Class)

Initial Fees


Annual Management Fee

1.725 (incl vat)

Annual advise fee

1.15% (incl vat)

Total expense ratio (TER)


Transaction Cost (TC)


Total Investment Charges


Top 5 Share Holdings



BHP Billiton


British American Tobacco




Standard Bank


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

Performance as at 30 September 2019 on a rolling monthly basis

The highest and lowest annualised performance numbers are based on 10 non-overlapping one year periods for the number of non-overlapping one year periods from inception where performance history does not yet exists for 10 years.

portfolio manager's comment

South African equities continued to trade in a wide band between 58 000 and 54 000 points. However, continued poor macro-economic news flow had a negative impact on local share prices as the FTSE/JSE All Share Index (ALSI) declined by 1.8% in the month. This asset class has returned 8.5% since January. On average emerging market equity indexes also traded lower in the month but developed markets bucked the trend as the MSCI World Equity Index advanced by 2.8% in dollar terms during November.

The wide range of performances recorded by the various sectors appears to be entrenched on the local equity market. In November gold shares declined by 13% while fixed-line telecommunications fell 31%. Platinum miners remained on the winning podium as the sector advanced by 7.2% and tobacco recovered well, gaining 8.9%.

Despite the dire fiscal outlook, the All Bond Index managed to remain in positive territory as it gained 0.22% in November, although bonds with a duration of 12-years plus were down by 0.25%. Cash returned 0.55% and listed property advanced by 0.81%. Since January cash has returned 6.7% marginally lagging the 8.3% return of the All Bond Index.

The fund recorded a return of 8.4% for the 12 months to the end of November, underperforming the benchmark return of 13.1%, but ahead of the median peer return of 7.6%. The fund’s material underperformance relative to the benchmark was driven by our lack of exposure to gold miners and the very low average exposure to platinum counters.

When compared to competing general-equity unit trusts, the fund was in the top half of the peer group over the past 12 months and remains in the top quartile of the peer group over five years.

In November, we reduced the exposure to British American Tobacco in the fund. Given the share’s outperformance (30% total return year-to-date), we chose to moderate our company-specific risk, although we remain constructive on the business.

We maintain our focus on value and trust that some of the less fashionable shares we own will recover to produce the performance we believe our clients deserve.


David Lerche


Glossary Terms

Aggressive risk rating

Willingness to take risk is reflected both in the types of securities held and in the concentration of holdings in favoured market sectors. Possible loss of capital is accepted. More active portfolio adjustment is typical.

Collective investment scheme (CIS)

Collective investment schemes (also called unit trusts) are portfolios of assets such as equities, bonds, cash and listed property, in which investors can buy units. They allow private investors to pool their money together in a single fund, thus spreading their risk across a range of investments, getting the benefit of professional fund management, and reducing their costs


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

Net asset value (NAV)

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

(TER) period

1 October 2016 to 30 September 2019

Total Expense Ratio (TER)

1.80% 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

Transaction Cost (TC)

0.17% 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 administrating 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)

1.97% of the value of the Financial Product was incurred as costs relating to the investment of the Financial Product.

Mandatory Disclosure

All reasonable steps have been taken to ensure the information on this MDD 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.

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. Performance is based on NAV to NAV calculation with income reinvestments done on the ex-dive 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 the portfolio to new investors in order to manager it more efficiently in accordance with its mandate. 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. 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 personalised cost estimate before investing by visiting and using our Effective Annual Cost (EAC) calculator. Alternatively, contact us at 0860 100 266

About SPW

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

Contact Us

Tel: 021 950 2770


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

Tyger Valley

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

Manager Information

Sanlam Collective Investments (RF) Pty Ltd

Tel: 021 916 1800

Fax: 021 947 8224




Standard Bank of South Africa Ltd

Tel: 021 441 4100


About the
portfolio manager


David Lerche

BCom(Hons), CFA, CA(SA)

David joined the business in 2016 as senior investment analyst. He is responsible for analysis of a wide range of industrial companies. He began his investment career as a research analyst at Avior Capital Markets, where he spent nine years servicing institutional asset managers in SA, the UK and around the world. He has ten years' investment experience

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