Description
This is a pure equity, sector specific fund which aims to outperform the FTSE/JSE Industrial Index by investing in listed industrial shares. The fund may invest a maximum of 25% of its assets offshore.
Advice fee | Any advice fee is negotiable between the client and their financial advisor. An annual
advice fee negotiated is paid via a repurchase of units from the investor.
Total Expense Ratio (TER) | This fund has a TER of 1.73%. For the period from 01 October 2014
to 30 September 2015 1.73% of the average net asset value of the portfolio was incurred as
charges, levies and fees related to the management of the portfolio. The ratio does not include
transaction costs. A higher TER does not necessarily imply a poor return, nor does a low TER
imply a good return. The current TER cannot be regarded as an indication of future TERs.
The portfolio manager may borrow up to 10% of the market value of the portfolio to bridge
insufficient liquidity. This fund is also available via certain LISPS (Linked Investment Service
Providers), which levy their own fees. Fluctuations or movements in exchange rates may cause
the value of underlying international investments to go up or down.
Top 10 Holdings
Securities % of Portfolio
Naspers -N- 19.22
BTI Group 9.56
Steinhoff Int Hldgs N.v 6.37
Richemont 5.80
MTN 5.21
Curro Holdings Limited 4.68
58.Com Inc 3.70
Pick n Pay 3.64
Foschini 3.58
Medi-Clinic 3.50
Top 10 Holdings as at 31 Dec 2015
Performance (Annualised) as at 31 Dec 2015 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 19.45 15.31
3 year 26.30 22.03
5 year 23.60 22.80
10 year 20.14 20.60
Annualised return is the weighted average compound growth rate over the period measured.
Performance (Cumulative) as at 31 Dec 2015 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 19.45 15.31
3 year 101.47 81.72
5 year 188.46 179.22
10 year 526.63 551.03
Cumulative return is aggregate return of the portfolio for a specified period
Risk statistics: 3 years to 31 Dec 2015
Std Deviation (Ann) 9.40
Sharpe Ratio (Ann) 1.94
Actual highest and lowest annual figures for rolling 10 years
Highest Annual % 39.83
Lowest Annual % (24.45)
Sanlam Investment Management Industrial
Fund
December 2015
(Fund Fact Sheet)
Fund Objective
This is a pure equity, sector specific fund which aims to outperform the FTSE/JSE
Industrial Index by investing in listed industrial shares. The fund may invest a
maximum of 25% of its assets offshore.
Fund Strategy
The focus of this fund is to invest in listed domestic and offshore companies which
engage in industrial activities and display the potential to grow earnings at an above
average rate.
Why choose this fund?
*If you require pure exposure to the industrial sector, then this fund is for you.
*The industrial sector comprises a mix of both Rand hedge and non-Rand hedge
stocks.
*As a result of the SIM pragmatic value investment philosophy, the fund does have a
value bias.
Fund Information
ASISA Fund Classification SA - Equity - Industrial
Risk profile Aggressive
Benchmark FTSE/JSE Industrial Index (J257)
Portfolio launch date 03 Aug 1966
Fee class launch date 01 Jul 2004
Minimum investment Lump sum: R5 000 | Monthly: R200
Portfolio size R1 962.8 million
Last two distributions 31 Dec 2015: 0.00 cents per unit
30 Jun 2015: 4.05 cents per unit
Income decl. dates 30 Jun | 31 Dec
Income price dates 1st working day in July and January
Valuation time of fund 15:00
Transaction cut off time 15:00
Daily price information Local newspaper and
www.sanlamcollectiveinvestments.com
Repurchase period 3 working days
Fees (Incl. VAT)
Retail Class (%)
Advice initial fee (max.) 3.42
Manager initial fee 2.28
Advice annual fee (max.) 1.14
Manager annual fee 1.71
Total Expense Ratio (TER) 1.73
Page 1
This monthly Minimum Disclosure Document should be viewed in conjunction with the Glossary Terms Sheet.
Issue Date: 20 Jan 2016
Asset Allocation
Cash and Money Market Assets
Equity Industrials
Equity Consumer Goods
Equity Health Care
Equity Consumer Services
Equity Telecommunications
Equity Technology
International Assets
00 05 10 15 20 25 30 35 40
4.06
6.47
26.41
5.83
38.65
5.21
4.79
8.58
Portfolio Manager(s) Quarterly Comment - 31 Dec 2015
Market review
The fourth quarter was a volatile one both locally and globally. Geopolitical events
arose in several markets across Europe, the Middle East and Africa. A Russian
plane was shot down over the Sinai province with IS claiming responsibility, followed
by a number of attacks in Paris and then separately in Nigeria where Boko Haram
claimed responsibility. Following the attacks retaliatory moves were instigated by
several authorities.
Economically growth remained modest with ongoing weakness in emerging markets
compounded by weakening though somewhat stabilizing currencies and a
particularly weak commodity environment. The US continued to improve slightly
economically as did the UK but elsewhere conditions remain fragile. Japan’s growth
remains tepid and in China economic growth continues to moderate with
manufacturing under significant pressure. Conditions in Europe are also fragile with
recovery modest at best.
Locally there was considerable news. Following a protracted student strike the
President eventually declared that there would be no increases in fees in 2016.
Market watchers were surprised at the pace at which students were able to mobilise
action, representing a force for change that could manifest itself elsewhere in future.
Economically conditions remained fragile with economic growth modest. Interest
rates were raised a further 25 bps in the period despite the lack of demand as a
defensive measure aimed at curbing future inflation. The rand weakened by 11.6%
vs. the dollar in the period and this was made worse by a series of compounding
issues. Firstly SA’s credit rating was downgraded by most of the credit agencies.
Secondly the political framework was thrown into disarray as the Minister of Finance
was removed to be replaced by an unknown politician - and after considerable
pressure - replaced by Pravin Gordhan, who at least has more market credibility and
went some way to appease the market. The rand nevertheless weakened
considerably and bond yields blew out. Ongoing interference in state owned
enterprises by the Government and their deteriorating finances did little to provide
confidence. Some rebuilding of political form will be necessary in the new year to
restore confidence in what looks to be a particularly vulnerable 2016.
In an environment of weak economic growth which worsened in the period, rising
interest rates, falling commodity prices and a rand weakening considerably against
the dollar and the euro, it is perhaps surprising that the INDI25 index was up for the
period despite broad weakness in emerging markets. This talks to the diversification
evident among the different industrial shares on the JSE and particularly the extent
of shares impacted less by the local economy but instead by global drivers.
In summary then for the quarter, the FTSE/JSE All Share Index was up 1.2%.
Resources was the worst performing sector with the RESI20 down 19.7%.
Industrials performed best with the INDI25 up 6.8%. For the year the FTSE/JSE All
Share Index was up slightly at 1.9%. Resources were down sharply with the RESI20
down 39.4%, Financials were down slightly with the FINI15 down 2.6% while
Industrials performed relatively better assisted by rand weakness, with the INDI25
up 15.1%. (All returns exclude the additional return from dividends.)
SIM action
The fund was not too active in the quarter notwithstanding the volatility we
The fund was not too active in the quarter notwithstanding the volatility we
experienced as we take a long-term view on the positions in the portfolio and avoid
the noise of the short term. In the quarter we added to Naspers, MTN and Datatec.
All are attractively valued. Aspen was re-introduced into the fund after a protracted
period of underperformance. We like the management and the strategy and while
there are some currency headwinds in the short term, we expect the business will
transition through these in time. On the selling side we trimmed our holding in
Steinhoff and Curro Holdings and sold a small portion of Kap. All have done well but
are approaching fair value with the proceeds used for more attractive opportunities.
The fund’s holding in SAB was sold outright following the ABI offer to SAB
shareholders, as we see limited upside to the offer price and, in addition, the pound
has been particularly strong against the rand.
Performance attribution
The fund had a good quarter, outperforming its peers and the industrial benchmark.
Performance was skewed towards the international shares as you would expect in a
period where the rand weakened significantly. There were however some strong
performances in small and mid-caps - particularly in IT and education. For the year
the fund also performed well, outperforming peers and the industrial index. It’s
important to view the fund over the long term and here the fund is consolidating on a
number of years of good performance. In a period of considerable volatility and
considerable weakness in the local economy, the extent to which the industrial
shares have performed is again an indication of investment diversification amongst
industrials.
SIM strategy
The industrial sector as represented by the JSE is composed of a significant number
of diverse investment choices that have both varied geographic and industry
exposure. Within this choice there are areas that look expensive and those that offer
value. It is our job to uncover the best opportunities within this universe using our
extensive experience and broad research capability, centered on our pragmatic
value philosophy. It is within this framework that we aim to deliver the best
performance we are able to. As always we would encourage investors to diversify
their investments.
Portfolio Manager(s)
Andrew Kingston
BCom GDipAcc, CA (SA), CFA
Marlo Scholtz
B.Com (Cum Laude), B.Com (Hons) (Financial Analysis) (Cum Laude), CFA
Management of Investments
The management of investments are outsourced to Sanlam Investment
Management (Pty) Ltd, FSP 579, an authorised Financial Services Provider under
the Financial Advisory and Intermediary Services Act, 2002.
Sanlam Investment Management Industrial
Fund
December 2015
(Fund Fact Sheet)
Page 2
This monthly Minimum Disclosure Document should be viewed in conjunction with the Glossary Terms Sheet.
Issue Date: 20 Jan 2016
Risk Profile (Aggressive)
This is an aggressively managed, high-risk portfolio that aims to deliver capital growth over the
long term (greater than 5 years). It is designed to substantially outperform the markets and
therefore carries a long-term investment horizon (5 years and upwards). The portfolio will be
diversified across all major asset classes with significant exposure to equities, and may include
offshore equities. There may be some capital volatility in the short term, although higher returns
may be expected from five years or beyond.
Additional Information
Although all reasonable steps have been taken to ensure the information on this MDD is accurate,
the Sanlam Collective Investments (RF) (Pty) Ltd (“Sanlam Collective Investments”) does not
accept any responsibility for any claim, damages, loss or expense; however it arises, out of or in
connection with the information. No member of Sanlam gives any representation, warranty or
undertaking, nor accepts any responsibility or liability as to the accuracy of any of this information.
The information to follow does not constitute financial advice as contemplated in terms of the
Financial Advisory and Intermediary Services Act. Use or rely on this information at your own risk.
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. Collective
investment schemes are generally medium- to long-term investments. Please note that past
performances are not necessarily a guide to future performances, and that 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, 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 the 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 instruments which could be accompanied by additional risks as well as potential
limitations on the availability of market information. The Manager has the right to close any
portfolios to new investors to manage them more efficiently in accordance with their mandates.
The portfolio management of all the portfolios is outsourced to financial services providers
authorized in terms of the Financial Advisory and Intermediary Services Act, 2002. Standard Bank
of South Africa Ltd is the appointed trustee of the Sanlam Collective Investments scheme.
Sources of Performance and Risk Data: Morningstar Direct, INET BFA and Bloomberg.
The risk free asset assumed for the calculation of Sharpe ratios: STEFI Composite Index.
The highest and lowest annualised performance numbers are based on 10 non-overlapping one
year periods or the number of non-overlapping one year periods from inception where
performance history does not yet exist for 10 years.
Trustee Information
Standard Bank of South Africa LTD
Tel no.: 021 441 4100, E-mail: [email protected]
Glossary Terms
Annualised total returns
Annualised return is the weighted average compound growth rate over the period measured.
Hedge fund
This is an aggressively managed portfolio of investments that uses advanced investment
strategies such as leveraged, long, short and derivative positions in both domestic and
international markets with the goal of generating high returns (either in an absolute sense or over
a specified market benchmark).Investments in hedge funds are illiquid as they often require
investors keep their money in the fund for at least one year.
LISPS (Linked Investment Service Providers)
A Linked Investment Service Provider is a financial institution which packages, distributes and
administers a broad range of unit trust based investments. Any investment made through these
products provides a client a single entry into a selection of investment elements.
Pure equity fund
This is a fund that invests primarily in higher-risk asset classes such as equities (stocks or shares)
and aims to achieve aggressive capital growth over the long term. This type of fund can
experience volatility in the short term.
Sanlam's Pragmatic Value Investment Style
This is a philosophy which enables our fund managers to make rational - not emotional - decisions
based on in-depth research. This gives them insight into what an asset is truly worth, not what
investors are willing to pay based on greed or fear. We take a more practical (pragmatic) approach
and invest in stocks that are, in our opinion, trading below their fair value but which may not strictly
qualify as value stocks from a theoretical perspective.
Sharpe ratio
The Sharpe ratio measures risk-adjusted performance of an investment or portfolio. It measures
the amount of risk associated with the returns generated by the portfolio and indicates whether a
portfolio’s returns are due to excessive risk or not. The greater a portfolio’s Sharpe ratio, the better
its risk-adjusted performance has been (i.e. a higher return with a contained risk profile, where the
portfolio manager is not taking excessive risk to achieve those returns).
Standard deviation
Standard deviation (also called monthly volatility) is a measure of how much returns on an
investment change from month to month. It is typically used by investors to gauge the amount of
expected volatility in an investment.
Total Expense Ratio (TER)
This is the total costs 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 represents the TER.
Sanlam Investment Management Industrial
Fund
December 2015
(Fund Fact Sheet)
Page 3
Sanlam Collective Investments (RF) (Pty) Ltd Physical address: 2 Strand Road, Bellville 7530, Postal address: PO Box 30, Sanlamhof 7532. Manager Information:
Tel: +27 (21) 916 1800, Fax: +27 (21) 947 8224, Email: [email protected], Website: www.sanlamunittrusts.co.za.
Issue Date: 20 Jan 2016
doc_212269497.pdf
This is a pure equity, sector specific fund which aims to outperform the FTSE/JSE Industrial Index by investing in listed industrial shares. The fund may invest a maximum of 25% of its assets offshore.
Advice fee | Any advice fee is negotiable between the client and their financial advisor. An annual
advice fee negotiated is paid via a repurchase of units from the investor.
Total Expense Ratio (TER) | This fund has a TER of 1.73%. For the period from 01 October 2014
to 30 September 2015 1.73% of the average net asset value of the portfolio was incurred as
charges, levies and fees related to the management of the portfolio. The ratio does not include
transaction costs. A higher TER does not necessarily imply a poor return, nor does a low TER
imply a good return. The current TER cannot be regarded as an indication of future TERs.
The portfolio manager may borrow up to 10% of the market value of the portfolio to bridge
insufficient liquidity. This fund is also available via certain LISPS (Linked Investment Service
Providers), which levy their own fees. Fluctuations or movements in exchange rates may cause
the value of underlying international investments to go up or down.
Top 10 Holdings
Securities % of Portfolio
Naspers -N- 19.22
BTI Group 9.56
Steinhoff Int Hldgs N.v 6.37
Richemont 5.80
MTN 5.21
Curro Holdings Limited 4.68
58.Com Inc 3.70
Pick n Pay 3.64
Foschini 3.58
Medi-Clinic 3.50
Top 10 Holdings as at 31 Dec 2015
Performance (Annualised) as at 31 Dec 2015 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 19.45 15.31
3 year 26.30 22.03
5 year 23.60 22.80
10 year 20.14 20.60
Annualised return is the weighted average compound growth rate over the period measured.
Performance (Cumulative) as at 31 Dec 2015 on a rolling monthly basis
Retail Class Fund (%) Benchmark (%)
1 year 19.45 15.31
3 year 101.47 81.72
5 year 188.46 179.22
10 year 526.63 551.03
Cumulative return is aggregate return of the portfolio for a specified period
Risk statistics: 3 years to 31 Dec 2015
Std Deviation (Ann) 9.40
Sharpe Ratio (Ann) 1.94
Actual highest and lowest annual figures for rolling 10 years
Highest Annual % 39.83
Lowest Annual % (24.45)
Sanlam Investment Management Industrial
Fund
December 2015
(Fund Fact Sheet)
Fund Objective
This is a pure equity, sector specific fund which aims to outperform the FTSE/JSE
Industrial Index by investing in listed industrial shares. The fund may invest a
maximum of 25% of its assets offshore.
Fund Strategy
The focus of this fund is to invest in listed domestic and offshore companies which
engage in industrial activities and display the potential to grow earnings at an above
average rate.
Why choose this fund?
*If you require pure exposure to the industrial sector, then this fund is for you.
*The industrial sector comprises a mix of both Rand hedge and non-Rand hedge
stocks.
*As a result of the SIM pragmatic value investment philosophy, the fund does have a
value bias.
Fund Information
ASISA Fund Classification SA - Equity - Industrial
Risk profile Aggressive
Benchmark FTSE/JSE Industrial Index (J257)
Portfolio launch date 03 Aug 1966
Fee class launch date 01 Jul 2004
Minimum investment Lump sum: R5 000 | Monthly: R200
Portfolio size R1 962.8 million
Last two distributions 31 Dec 2015: 0.00 cents per unit
30 Jun 2015: 4.05 cents per unit
Income decl. dates 30 Jun | 31 Dec
Income price dates 1st working day in July and January
Valuation time of fund 15:00
Transaction cut off time 15:00
Daily price information Local newspaper and
www.sanlamcollectiveinvestments.com
Repurchase period 3 working days
Fees (Incl. VAT)
Retail Class (%)
Advice initial fee (max.) 3.42
Manager initial fee 2.28
Advice annual fee (max.) 1.14
Manager annual fee 1.71
Total Expense Ratio (TER) 1.73
Page 1
This monthly Minimum Disclosure Document should be viewed in conjunction with the Glossary Terms Sheet.
Issue Date: 20 Jan 2016
Asset Allocation
Cash and Money Market Assets
Equity Industrials
Equity Consumer Goods
Equity Health Care
Equity Consumer Services
Equity Telecommunications
Equity Technology
International Assets
00 05 10 15 20 25 30 35 40
4.06
6.47
26.41
5.83
38.65
5.21
4.79
8.58
Portfolio Manager(s) Quarterly Comment - 31 Dec 2015
Market review
The fourth quarter was a volatile one both locally and globally. Geopolitical events
arose in several markets across Europe, the Middle East and Africa. A Russian
plane was shot down over the Sinai province with IS claiming responsibility, followed
by a number of attacks in Paris and then separately in Nigeria where Boko Haram
claimed responsibility. Following the attacks retaliatory moves were instigated by
several authorities.
Economically growth remained modest with ongoing weakness in emerging markets
compounded by weakening though somewhat stabilizing currencies and a
particularly weak commodity environment. The US continued to improve slightly
economically as did the UK but elsewhere conditions remain fragile. Japan’s growth
remains tepid and in China economic growth continues to moderate with
manufacturing under significant pressure. Conditions in Europe are also fragile with
recovery modest at best.
Locally there was considerable news. Following a protracted student strike the
President eventually declared that there would be no increases in fees in 2016.
Market watchers were surprised at the pace at which students were able to mobilise
action, representing a force for change that could manifest itself elsewhere in future.
Economically conditions remained fragile with economic growth modest. Interest
rates were raised a further 25 bps in the period despite the lack of demand as a
defensive measure aimed at curbing future inflation. The rand weakened by 11.6%
vs. the dollar in the period and this was made worse by a series of compounding
issues. Firstly SA’s credit rating was downgraded by most of the credit agencies.
Secondly the political framework was thrown into disarray as the Minister of Finance
was removed to be replaced by an unknown politician - and after considerable
pressure - replaced by Pravin Gordhan, who at least has more market credibility and
went some way to appease the market. The rand nevertheless weakened
considerably and bond yields blew out. Ongoing interference in state owned
enterprises by the Government and their deteriorating finances did little to provide
confidence. Some rebuilding of political form will be necessary in the new year to
restore confidence in what looks to be a particularly vulnerable 2016.
In an environment of weak economic growth which worsened in the period, rising
interest rates, falling commodity prices and a rand weakening considerably against
the dollar and the euro, it is perhaps surprising that the INDI25 index was up for the
period despite broad weakness in emerging markets. This talks to the diversification
evident among the different industrial shares on the JSE and particularly the extent
of shares impacted less by the local economy but instead by global drivers.
In summary then for the quarter, the FTSE/JSE All Share Index was up 1.2%.
Resources was the worst performing sector with the RESI20 down 19.7%.
Industrials performed best with the INDI25 up 6.8%. For the year the FTSE/JSE All
Share Index was up slightly at 1.9%. Resources were down sharply with the RESI20
down 39.4%, Financials were down slightly with the FINI15 down 2.6% while
Industrials performed relatively better assisted by rand weakness, with the INDI25
up 15.1%. (All returns exclude the additional return from dividends.)
SIM action
The fund was not too active in the quarter notwithstanding the volatility we
The fund was not too active in the quarter notwithstanding the volatility we
experienced as we take a long-term view on the positions in the portfolio and avoid
the noise of the short term. In the quarter we added to Naspers, MTN and Datatec.
All are attractively valued. Aspen was re-introduced into the fund after a protracted
period of underperformance. We like the management and the strategy and while
there are some currency headwinds in the short term, we expect the business will
transition through these in time. On the selling side we trimmed our holding in
Steinhoff and Curro Holdings and sold a small portion of Kap. All have done well but
are approaching fair value with the proceeds used for more attractive opportunities.
The fund’s holding in SAB was sold outright following the ABI offer to SAB
shareholders, as we see limited upside to the offer price and, in addition, the pound
has been particularly strong against the rand.
Performance attribution
The fund had a good quarter, outperforming its peers and the industrial benchmark.
Performance was skewed towards the international shares as you would expect in a
period where the rand weakened significantly. There were however some strong
performances in small and mid-caps - particularly in IT and education. For the year
the fund also performed well, outperforming peers and the industrial index. It’s
important to view the fund over the long term and here the fund is consolidating on a
number of years of good performance. In a period of considerable volatility and
considerable weakness in the local economy, the extent to which the industrial
shares have performed is again an indication of investment diversification amongst
industrials.
SIM strategy
The industrial sector as represented by the JSE is composed of a significant number
of diverse investment choices that have both varied geographic and industry
exposure. Within this choice there are areas that look expensive and those that offer
value. It is our job to uncover the best opportunities within this universe using our
extensive experience and broad research capability, centered on our pragmatic
value philosophy. It is within this framework that we aim to deliver the best
performance we are able to. As always we would encourage investors to diversify
their investments.
Portfolio Manager(s)
Andrew Kingston
BCom GDipAcc, CA (SA), CFA
Marlo Scholtz
B.Com (Cum Laude), B.Com (Hons) (Financial Analysis) (Cum Laude), CFA
Management of Investments
The management of investments are outsourced to Sanlam Investment
Management (Pty) Ltd, FSP 579, an authorised Financial Services Provider under
the Financial Advisory and Intermediary Services Act, 2002.
Sanlam Investment Management Industrial
Fund
December 2015
(Fund Fact Sheet)
Page 2
This monthly Minimum Disclosure Document should be viewed in conjunction with the Glossary Terms Sheet.
Issue Date: 20 Jan 2016
Risk Profile (Aggressive)
This is an aggressively managed, high-risk portfolio that aims to deliver capital growth over the
long term (greater than 5 years). It is designed to substantially outperform the markets and
therefore carries a long-term investment horizon (5 years and upwards). The portfolio will be
diversified across all major asset classes with significant exposure to equities, and may include
offshore equities. There may be some capital volatility in the short term, although higher returns
may be expected from five years or beyond.
Additional Information
Although all reasonable steps have been taken to ensure the information on this MDD is accurate,
the Sanlam Collective Investments (RF) (Pty) Ltd (“Sanlam Collective Investments”) does not
accept any responsibility for any claim, damages, loss or expense; however it arises, out of or in
connection with the information. No member of Sanlam gives any representation, warranty or
undertaking, nor accepts any responsibility or liability as to the accuracy of any of this information.
The information to follow does not constitute financial advice as contemplated in terms of the
Financial Advisory and Intermediary Services Act. Use or rely on this information at your own risk.
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. Collective
investment schemes are generally medium- to long-term investments. Please note that past
performances are not necessarily a guide to future performances, and that 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, 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 the 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 instruments which could be accompanied by additional risks as well as potential
limitations on the availability of market information. The Manager has the right to close any
portfolios to new investors to manage them more efficiently in accordance with their mandates.
The portfolio management of all the portfolios is outsourced to financial services providers
authorized in terms of the Financial Advisory and Intermediary Services Act, 2002. Standard Bank
of South Africa Ltd is the appointed trustee of the Sanlam Collective Investments scheme.
Sources of Performance and Risk Data: Morningstar Direct, INET BFA and Bloomberg.
The risk free asset assumed for the calculation of Sharpe ratios: STEFI Composite Index.
The highest and lowest annualised performance numbers are based on 10 non-overlapping one
year periods or the number of non-overlapping one year periods from inception where
performance history does not yet exist for 10 years.
Trustee Information
Standard Bank of South Africa LTD
Tel no.: 021 441 4100, E-mail: [email protected]
Glossary Terms
Annualised total returns
Annualised return is the weighted average compound growth rate over the period measured.
Hedge fund
This is an aggressively managed portfolio of investments that uses advanced investment
strategies such as leveraged, long, short and derivative positions in both domestic and
international markets with the goal of generating high returns (either in an absolute sense or over
a specified market benchmark).Investments in hedge funds are illiquid as they often require
investors keep their money in the fund for at least one year.
LISPS (Linked Investment Service Providers)
A Linked Investment Service Provider is a financial institution which packages, distributes and
administers a broad range of unit trust based investments. Any investment made through these
products provides a client a single entry into a selection of investment elements.
Pure equity fund
This is a fund that invests primarily in higher-risk asset classes such as equities (stocks or shares)
and aims to achieve aggressive capital growth over the long term. This type of fund can
experience volatility in the short term.
Sanlam's Pragmatic Value Investment Style
This is a philosophy which enables our fund managers to make rational - not emotional - decisions
based on in-depth research. This gives them insight into what an asset is truly worth, not what
investors are willing to pay based on greed or fear. We take a more practical (pragmatic) approach
and invest in stocks that are, in our opinion, trading below their fair value but which may not strictly
qualify as value stocks from a theoretical perspective.
Sharpe ratio
The Sharpe ratio measures risk-adjusted performance of an investment or portfolio. It measures
the amount of risk associated with the returns generated by the portfolio and indicates whether a
portfolio’s returns are due to excessive risk or not. The greater a portfolio’s Sharpe ratio, the better
its risk-adjusted performance has been (i.e. a higher return with a contained risk profile, where the
portfolio manager is not taking excessive risk to achieve those returns).
Standard deviation
Standard deviation (also called monthly volatility) is a measure of how much returns on an
investment change from month to month. It is typically used by investors to gauge the amount of
expected volatility in an investment.
Total Expense Ratio (TER)
This is the total costs 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 represents the TER.
Sanlam Investment Management Industrial
Fund
December 2015
(Fund Fact Sheet)
Page 3
Sanlam Collective Investments (RF) (Pty) Ltd Physical address: 2 Strand Road, Bellville 7530, Postal address: PO Box 30, Sanlamhof 7532. Manager Information:
Tel: +27 (21) 916 1800, Fax: +27 (21) 947 8224, Email: [email protected], Website: www.sanlamunittrusts.co.za.
Issue Date: 20 Jan 2016
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