FTX2000S
Practical 5: Collective Investment Schemes
Refer to the Satrix Top40 ETF fund fact sheet on the next 2 pages, and answer the following
questions:
1. How many companies are included in the Satrix Top 40 ETF?
2. List the five companies which have the highest allocation in the ETF?
3. What is the total expense ratio for the fund? What does this mean?
4. If you purchase the ETF, when will you receive any dividend distributions?
5. What are any 2 differences between purchasing this Satrix Top40 ETF, and purchasing a
Top40 unit trust?
6. Would you say this ETF is diversified? Explain your answer.
MINIMUM DISCLOSURE DOCUMENT
Satrix Top 40 Index Fund
A1 Class | 31 July 2024
INVESTMENT POLICY SUMMARY TOP 10 HOLDINGS
The fund tracks the performance of the FTSE/JSE Top 40 Index which represents Securities % of Portfolio
the 40 largest companies by market cap. The fund endeavours to accurately
Naspers Ltd 11.60
replicate the index by holding all constituents in the exact index weighting. We
believe that the benchmark choice and resulting returns form the most important Firstrand Ltd 7.68
elements of an equity strategy. By investing in a passive vehicle the returns to
investment strategies are known. By applying a full replication strategy, the fund will Standard Bank Group Ltd 5.50
mirror the composition of the chosen benchmark. The index is rebalanced quarterly Gold Fields Ltd 5.23
and the fund therefore incurs minimal trading fees.
Capitec Bank Holdings Ltd 4.48
WHY CHOOSE THIS FUND? Anglo American Plc 4.23
*Investors who seek general equity market performance through a well-diversified Prosus Nv 3.82
equity portfolio at low cost.
*Investors who seek a core component for the equity portion of their portfolio. British Am. Tobacco Plc 3.05
*Investors who prefer to take a longer term view when building wealth. Compagnie Fin Richemont 3.04
*Investors who are cost conscious.
*This is a pure equity fund and is therefore not Regulation 28 compliant. Anglogold Ashanti Plc 2.97
*This fund is aggressively risk profiled and thus investors should be willing to as at 31 Jul 2024
tolerate potential volatility in the short-term.
PERFORMANCE (ANNUALISED)
FUND INFORMATION
Retail Class Fund (%) Benchmark (%)
ASISA Fund Classification SA - Equity - Large Cap
Risk profile Aggressive 1 year 5.90 6.67
Benchmark FTSE/JSE Top 40 Index (J200) 3 year 9.99 10.78
Portfolio launch date Oct 2013 5 year 11.44 12.29
Fee class launch date Oct 2013 10 year 7.72 8.56
Minimum investment Manual: Lump sum: R10 000 l Monthly: R500 Annualized return is the weighted average compound growth rate over the period measured.
SatrixNOW.co.za: No minimum
Portfolio size R2.4 billion ACTUAL HIGHEST AND LOWEST ANNUAL RETURNS*
Last two distributions 30 Jun 2024: 30.85 cents per unit Highest Annual % 24.49
31 Dec 2023: 26.98 cents per unit Lowest Annual % 0.65
Income decl. dates 30 Jun l 31 Dec
Income price dates 1st working day in July and January
Valuation time of fund 17:00 FEES (INCL. VAT)
Transaction cut off time Manual: 15:00 Retail Class (%)
SatrixNOW.co.za: 13:30
Advice initial fee (max.) N/A
Daily Price Information www.satrix.co.za
Manager initial fee N/A
Repurchase period T+3
Advice annual fee (max.) 1.15
Manager annual fee 0.52
Total Expense Ratio (TER) 0.55
Transaction Cost (TC) 0.14
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. 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.
Total Expense Ratio (TER) | The Management Fee is expressed as an annual percentage of the
daily NAV of the CIS This Fee is net of any scrip lending income and Management Fee waiver,
where applicable.
The Total Expense Ratio (TER) is the charges incurred by the portfolio, for the payment of
services rendered in the administration of the CIS. The TER is expressed as a percentage of the
daily NAV of the CIS and calculated over a period of 3 years on an annualised basis. The
Transaction Cost (TC) is the cost incurred by the portfolio in the buying and selling of underlying
assets. This is expressed as a percentage of the daily NAV of the CIS and calculated over a
period of 3 years on an annualised basis.
The current TER/TC cannot be regarded as an indication of future TER and TC. A higher TER and
TC does not imply a poor return nor does a low TER and TC imply a good return. Obtain the costs
of an investment prior to investing by using the EAC calculator provided at satrix.co.za.
This monthly Minimum Disclosure Document should be viewed in conjunction with the Glossary of Terms sheet which is available on the website.
Issue Date: 20 Aug 2024
Page 1
MINIMUM DISCLOSURE DOCUMENT
Satrix Top 40 Index Fund
A1 Class | 31 July 2024
ASSET ALLOCATION RISK PROFILE (AGGRESSIVE)
This is an aggressively managed, high-risk portfolio that aims to deliver capital
growth over the long term. It is designed to track the benchmark and is a pure equity
Equity All Share Derivatives 1.32
fund. There will be capital volatility in the short- to medium-term, although higher
Equity Energy 0.87 returns should be expected over longer-term periods.
Equity Real Estate 2.18
Equity Technology 15.42 CONTACT DETAILS
Equity Financials 31.77
Manager
Equity Telecommunications 3.78
Equity Health Care 1.81 Satrix Managers (RF) Pty Ltd (Reg. No. 2004/009205/07). 4th Floor, Building 2, 11
Equity Consumer Staples 11.65 Alice Lane, Sandown, 2146.
Equity Consumer Discretionary 5.04
Equity Industrials 2.97
Investment Manager
Equity Basic Materials 22.90 The management of investments are outsourced to Satrix, a division of Sanlam
Cash and Money Market Assets 0.29 Investment Management (Pty) Ltd, FSP 579, an authorised Financial Services
00 05 10 15 20 25 30 35 Provider under the Financial Advisory and Intermediary Services Act, 2002.
PORTFOLIO QUARTERLY COMMENTARY - 30 JUN 2024 Trustee
Following a strong first quarter in terms of equity returns, the second quarter was Standard Chartered Bank, Tel No.: 011 217 6600, E-mail: southafrica.securities-
mixed when considering different jurisdictions and asset classes. Demand for services@sc.com
companies linked to Artificial Intelligence (AI) continued and improvements in
corporate earnings in the US also drove the equity market. In addition, inflation
DISCLAIMER
continued to cool with some areas, like the Eurozone, starting to cut rates. Annual
inflation in the US was up 3.3% and the US Federal Reserve (Fed) held rates Although all reasonable steps have been taken to ensure the information on this
website/advertisement/brochure is accurate. The information to follow does not constitute financial
constant while acknowledging that the anticipated rate cuts were pushed out, to start advice as contemplated in terms of the Financial Advisory and Intermediary Services Act. Use or
perhaps as late as December this year. rely on this information at your own risk. Independent professional financial advice should always
be sought before making an investment decision.
In rand terms, the second quarter of the year saw the MSCI World Index down 1%,
the MSCI Emerging Markets Index up 1.2%, and the MSCI USA Index up 0.2%. The *The highest and lowest annualised performance numbers are based on 10 non-overlapping one
MSCI India Index was up 6.3% during the quarter, while the MSCI China Index was year periods or the number of non-overlapping one year periods from inception where
performance history does not yet exist for 10 years.
also up 3.3%. The MSCI Europe Index was down 3% while the MSCI United
Kingdom Index was flat (-0.01%). 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
A rise in demand for oil and production cuts from OPEC+ influenced inventories, but performances are not necessarily a guide to future performances, and that the value of
oil prices were down during the second quarter. Brent crude oil ended the quarter at investments / units / unit trusts may go down as well as up. A schedule of fees and charges and
US$85 a barrel, a 2.3% drop from the start of the quarter. The gold price reached an maximum commissions is available from the Manager, Satrix Managers (RF) (Pty) Ltd, a
registered and approved Manager in Collective Investment Schemes in Securities. Additional
all-time high and ended the quarter up 4%, at US$2 326.40. After a disastrous US information of the proposed investment, including brochures, application forms and annual or
presidential debate with current president Joe Biden and former president Donald quarterly reports, can be obtained from the Manager, free of charge. Collective investments are
Trump, the projections for a second term started to shift in favour of Trump. His traded at ruling prices and can engage in borrowing and scrip lending. Collective investments are
policies on higher import tariffs, tight immigration laws and possible tax cuts were calculated on a net asset value basis, which is the total market value of all assets in the portfolio
largely seen as inflationary by the markets. During this period the US 20-year including any income accruals and less any deductible expenses such as audit fees, brokerage
Government Bond yield ticked up to 4.68% at the end of the quarter, while investors 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
continued to take guidance from the Fed’s notes on rate cuts and the upcoming US of income as well as dividend withholding tax. Forward pricing is used. The Manager does not
elections. 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.
In local markets, the FTSE/JSE All Share Index (ALSI) was up 8.2% for the second Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div
quarter while the FTSE/JSE Top 40 Index (Top 40) was up 7.9%. The date. Lump sum investment performances are quoted. The portfolio may invest in other unit trust
outperformance was largely driven by local Financials being up 17.1% for the 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
quarter with Industrials and Resources up 4.8% and 3.4% respectively. The South Investment Schemes Control Act, No 45 of 2002 (“CISCA”). The fund may from time to time invest
African 10-year Government Bond yield closed the quarter at 10.2%, while the All in foreign instruments which could be accompanied by additional risks as well as potential
Bond Index (ALBI) was up 7.5%. The cash benchmark, the Alexander Forbes Short- limitations on the availability of market information. The Manager has the right to close any
Term Fixed-Interest (STeFI) Composite Index, delivered positive money market portfolios to new investors to manage them more efficiently in accordance with their mandates.
returns of 2.1%, while the FTSE/JSE SA Listed Property Index (SAPY) was up 5.5% The portfolio management of all the portfolios is outsourced to financial services providers
for the quarter. authorized in terms of the Financial Advisory and Intermediary Services Act, 2002. Standard
Chartered Bank is the appointed trustee of the Satrix Managers Scheme.
President Cyril Ramaphosa was voted in for his second term as president, as This Fund qualifies as a tax free investment according to section 12T of the Income Tax Act, with
several political parties agreed to form a Government of National Unity (GNU) with effect from 1 March 2015. South African individuals qualify for the associated tax benefits namely
the ANC, which later drove a massive recovery in SA Inc. stocks in June. In their last no tax on dividends, income or capital gains whilst still enjoying all the benefits of a unit trust. Note
meeting, the South African Reserve Bank (SARB) kept rates constant again, as they contributions to tax free investments are limited to R36 000 per tax year, with a lifetime limit of
reiterated that interest rates may remain elevated for an extended period as the R500 000. Amounts invested in excess of these permissible thresholds are subject to tax
penalties.
committee was sticking to its mandate of achieving its inflation targets. During the
quarter, the rand appreciated by 3.6% to the US dollar, closing at R18.26 to the
greenback, R23.08 to the pound and at R19.57 to the euro.
Portfolio Performance and Changes
In the second quarter of 2024, the FTSE/JSE Top 40 Index (Top 40) had a return of
7.94%, underperforming the FTSE/JSE ALSI Index, which had a return of 8.19%.
Financials were the star performers during the second quarter with a number of
counters all returning double-digit returns. Banks’ revenue growth benefited from
higher interest rates and the focus of recent years on superior and increasingly
digital customer experiences was leveraged, translating into higher transaction
volumes. Capitec (CPI) (+27.3%), FirstRand (FSR) (+24.5%), Standard Bank (SBK)
(+18.5%) and Nedbank (NED) (+17.19%) had strong positive performance over the
quarter. Sanlam (SLM) (+23.8%) also performed well.
Retailers Mr Price (MRP) (+18.4%) Clicks Group Ltd (CLS) (+17.0%) and Shoprite
Holdings (SHP) (+14.7%) all had strong positive returns for the quarter.
Resource stocks were the hardest hit during the quarter with Anglo American
Platinum (AMS) (-21.7%) being the biggest loser after BHP’s bold bid for Anglo
American, minus its key South African assets which include Anglo American
Platinum, drove the stock price down more than 10%. Other miners including Gold
Fields (GFI) (-10%) and Sibanye-Stillwater (SSW) (-9%) also fared poorly over the
quarter.
At the June 2024 FTSE/JSE index review there were no additions to or deletions
from the index. The one-way turnover was 0.84%.
Issue Date: 20 Aug 2024
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