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Provided by the South African National Department of Health
The Feeder Fund aims to provide capital growth over the longer term by investing in the Sanlam Global High Quality Fund
The Feeder Fund will invest in the Sanlam Global High Quality Fund (established under the Sanlam Universal PLC), an actively managed portfolio of global equities with a high quality bias. The Global High Quality Fund is high conviction and benchmark agnostic, with sector and regional positioning driven by bottom-up stock selection. Its allocation to emerging markets listed companies is limited to no more than 30% of the assets. The Fund typically invests in companies that have strong balance sheets, high cash returns on assets, relatively low capital requirements, a high market share in their chosen product of service lines, short customer repurchase systems and long predict cycles. The Fund can hold up to 22% of its total net assets in cash or cash equivalents should the investment manager feel it appropriate
This Fund qualifies as a tax free investment according to section 12T of the Income Tax Act, with effect from 1 March 2015. South African individuals qualify for the associated tax benefits namely no tax on dividends, income or capital gains whilst still enjoying all the benefits of a unit trust. Note contributions to tax fee investments are limited to R33 000 per tax year, with a lifetime limint of R500 000. Amounts invested in excess of these permissible thresholds are taxable.
31 Dec 2019
ASISA Fund Classification
Global-Equity-General
Risk Profile
Aggressive
Return Profile
Long Term
Benchmark
MSCI Daily World Total Return Net World Index
Launch Date
1 July 2017
Issue Date
6 February 2020
Minimum Investment
Lump Sum: R30 000 / Monthly: R500
Portfolio Size (as at 31/12/2019)
R222.4m
Income Decl Dates
December
Income Payment Date
1st Working Day January
Annual Distribution 2018
N/A
Valuation Time of Fund
15:00
transaction Cut Off Time
15:00
Repurchase Period
3 Working Days
Fees (Incl VAT) A1 - Class
Advice Initial Fee (max)
3.45%
Manager Initial Fee
N/A
Advice Annual Fee (max)
1.15%
Manager Annual Fee
0.57%
Total Expense Ratio (TER)
1.61%
Transaction Cost
0.23%
Total Investment Cost
1.84%
Top 10 Equity Holdings
Bayer
4.1%
Medtronic
3.9%
Tencent Holdings
3.8%
Alphabet
3.8%
3.8%
Samsung Electronics
3.6%
Booking Holdings
3.6%
British American Tobacco
3.6%
Johnson & Johnson
3.5%
InterContinental Holdings
3.3%
portfolio manager's comment
The Sanlam Global High Quality Fund underperformed the MSCI World Index during the month by 2.1%, with the fund gaining 0.1%.
The best performer of the month was Samsung (+11.4%). There were a number of factors at play here. Firstly, this month saw a rally for the more cyclical end of the market with the “momentum trade” finally coming unstuck. Given that Samsung’s largest division is semi-conductors, they partook in this reversal. Secondly, the market thinks that if the Trump trade war continues to escalate, then Samsung could be beneficiaries. The reason for this is that the US will increasingly look to non-Chinese companies to provide their memory chips. This puts Samsung in the driving seat. Thirdly, a smaller competitor, under ever increasing pressure due to the pressure on pricing, finally decided to cut production, which is good news for their competitors, including Samsung.
Philip Morris (+7%) and Roche (+6.5%) were other strong performers. Philip Morris responded well to news that their talks with Altria over a prospective merger were called off. Roche continues to do well as the market gets more comfortable with their biosimilar offering.
In terms of the laggards Imperial Brands (-13.1%) and Unilever (-4.9%) struggled. Imperial surprised
Risk Profile
You can afford to take on a higher level of risk (i.e will have a greater exposure to equities in your portfolio) because of your investment time horizon or appetite for risk. You know that in taking the risk, you need to be patient if you want to achieve the results. So you are willing to invest for the long-term and are prepared to tolerate some volatility in the short term, in anticipation of the higher returns you expect to receive in five years or beyond.
Glossary Terms
Aggressive Risk Rating: Willingness to take risk is reflected both in the types of securities held and in the concentration of holding in favoured market sectors. Possible loss of capital is accepted. More active portfolio adjustment is typical.
Full Annualised Total Returns: Annualised return is the weighted average compound growth rate over the period measured.
Collective Investment Scheme: 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 into a single fund, thus spreading their risk across a range of investments, getting the benefit of professional fund management, and reducing their costs.
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
Feeder Fund: a feeder fund is a portfolio that invests in a single portfolio of a collective investment scheme, which levies its own charges and which could result in a higher fee structure for the feeder fund.
Liquidity: The ability to easily turn assets or investments into cash.
Total Expense Ratio Period: 1 April 2016 to 31 july 2019
Total Expense Ratio (TER): 1.62% 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. The TER and Transaction Costs cannot be determined accurately because of the short life span of the Financial Product. Calculated are based on the actual data where possible and best estimates where actual data is not available.
Transaction Cost (TC): 0.22% 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): 1.84% of the value of the Financial Product was incurred as costs relating to the investment of the Financial Product
Participatory Interest: When you buy a unit trust, your money is polled with that of many other investors. The total value of the pool of investment money in a unit trust fund is split into equal portions called participatory interests or units. When you invest your money in a unit trust, you buy a portion of the participatory interests in the total unit trust portfolio. Participatory interests are therefore the number of units you have in a particular unit trust portfolio.
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 Association 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 calculations with income reinvestments done on the ex-div date.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.
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. 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. Flucuations or movements in exchange rates may cause the value of the underlying international investments to go up or down. Standard Bank of South Africa Ltd is the appointed trustee of the Sanlam Collective Investments scheme.
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
Contact & Other Information
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
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
Manager Information
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
Trustee
Standard Bank of South African Ltd
Tel: +27 (21) 441 4100
Email: compliance-SANLAM@standardbank.co.za
About the
portfolio manager
Pieter Fourie
CFA CA (SA)
As Head of Global Equities, Pieter is the lead fund manager for Sanlam Global High Quality Fund and the Clime International Equity Fund having joined the firm in mid 2012. His responsibilities include the design, management and implementation of our global equity client offering including segregated mandates for high net worth individuals. Pieter oversees a team of five analysts focusing on global and UK equities across multiple industries. Current assets under managed managed by the investment team in direct global and UK equity mandates is more than $0.7bn