(Fund Fact Sheet)
Sanlam Multi Managed Protection Solution 3
Fund of Funds
January 2016
Fund Objective
Fund Strategy
The fund aims to protect capital at low levels of risk. This portfolio is suitable for
investors who require stable growth or low levels of income and have an investment
horizon of at least three years or more. The fund has a maximum equity component
of 40%. It aims not to lose money over any one year period. Performance will
mainly be derived from interest and dividends but a lower level of capital growth
can also be generated. The fund is compliant with Regulation 28 of the Pension
Funds Act.
Securities (%)
Fund Strategy
31-Jan
Coronation Fixed Income
16.1
Nedgroup Global Equity
14.4
SMMI Flexible Equity (Truffle)
12.3
SMMI Flexible Income (SIM)
10.1
Prescient Bonds
8.5
The manager strives to achieve the fund objective through investing in the shares
of companies that are offering relatively high dividend yields and are well
established, have healthy balance sheets, generate strong cash flows and have
demonstrated a commitment to paying regular dividends.
SMMI Flexible Equity (Foord)
7.4
SIM Value
5.8
Sentio Absolute
5.6
Why choose this fund?
Satrix Property Tracker
4.1
‡The fund aims to provide investors with a steady growth in capital over the longer
term.
‡The fund is diversified across the major asset classes.
‡The fund is managed by a combination of leading South African investment
managers.
‡The underlying fund managers manage exposure to the various asset classes.
‡The fund¶s asset allocation is appropriate for a conservative to cautious investor.
Futuregrowth Bonds
3.9
Cash (RSA)
3.3
Truffle Flexible Property
3.0
Ginsglobal Equity Index
2.6
Ginsglobal Emerging Markets
2.5
Cash (International)
0.4
Fund Information
ASISA Fund Classification
South African - Multi Asset - Low Equity
Risk Profile
Cautious
Benchmark
CPI + 3%
Retail-class
Fund (%)
Benchmark (%)
03 January 2011
1 Year
6.60
8.77
Portfolio Launch date
01 November 2006
3 Year
9.57
8.33
Minimum investment
LISP minimums apply
5 Year
8.90
8.52
Portfolio Size
R 161 million
Since inception
12.23
8.52
Quarterly Distributions
31/12/15: 11.98 cents per unit
30/09/15: 14.06 cents per unit
30/06/15: 9.6 cents per unit
31/03/15: 8.53 cents per unit
An annualised rate of return is the average rate of return per year, measured over a period either
longer or shorter than one year, such as a month, or two years, annualised for comparison with a
one-year return.
Income decl. dates
31/3 | 30/06 | 30/09 | 31/12
Performance (Cumulative) as at 31 Jan 2016 on a rolling monthly basis*
Income price dates
Retail-class
*Portfolio valuation time
1st working day after declaration (distributed on
the following working day)
17:00
Transaction cut off time
15:00
Fee Class Launch date
Daily price information
Repurchase period
Fees (Incl. VAT)
Performance (Annualised) as at 31 Jan 2016 on a rolling monthly basis*
The Local newspaper and
www.sanlamcollectiveinvestments.com
3 working days
Fund (%)
Benchmark (%)
1 Year
6.60
8.77
3 Year
31.56
27.11
5 Year
53.15
50.51
Since inception
79.80
51.53
Cumulative return is the aggregate return of the portfolio for a specified period.
Retail-class (%)
Advice initial fee (max.)
3.42
Manager initial fee (max.)
1.25
Advice annual fee (max.)
1.14
Manager annual fee (max.)
0.85
Total Expense Ratio (TER)
1.59
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) | The TER has been calculated using data from "01 October 2014
until 30 September 2015". The TER is disclosed as % of the average Net Asset Value of the
portfolio that were incurred as charges, levies and fees related to the management of the portfolio
and underlying portfolios. The TER is calculated quarterly but may additionally be re-calculated
with effect from any significant portfolio restructurings and/or fee changes occurring. A higher TER
ratio 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 TER¶s.
Risk statistics: 3 years to 31 Jan 2016
Std Deviation (Ann)
4.12
Sharpe Ratio (Ann)
0.85
Actual highest and lowest annual figures for rolling 10 years*
Highest Annual %
11.33
Lowest Annual %
5.69
The lowest and highest 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.
*Performance figures sourced from Morningstar.
A fund of fund unit trust only invests in other unit trusts, which levy their own charges, which could
result in a higher fee structure for these funds. The fund 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. This fund is
also available via certain LISPS (Linked Investment Services Providers), who levy their own fees.
This Monthly Minimum Disclosure Document should be viewed in conjunction with the Glossary Terms Sheet.
Issue date: 19 February 2016
(Fund Fact Sheet)
Sanlam Multi Managed Protection Solution 3
Fund of Funds
January 2016
Asset Allocation
Portfolio Manager(s)
Rafiq Taylor
BCom (Hons) in Financial Planning and Portfolio Analysis
BCom (Economics)
Portfolio Manager Disclaimer
The management of investments are outsourced to Sanlam Multi Managers
International (Pty) Ltd, FSP 845, an authorised Financial Services Provider under
the Financial Advisory and Intermediary Services Act, 2002.
Portfolio Manager(s) Comment
The fourth quarter of 2015 was dominated by the US Federal Reserve as investors
waited to see if they would increase interest rates. The decision to delay this in
September meant that the 4th quarter began very well and so, when interest rates
were finally increased for the first time since 2006, markets appeared ready with
only a small sell-off in December. The MSCI World Index returned 5.5% (USD)
during Q4 while emerging markets also managed positive returns with the MSCI
Emerging Markets Index returning 0.7% (USD). Global bonds sold off slightly, with
the Barclays Capital Global Aggregate Index returning -1.1% (USD).
Locally, Q4 was dominated by the shock axing of the Finance Minister in December
by President Zuma, which sent South African markets reeling, particularly fixed
interest markets. The South African equity market rose slightly overall, with the
ALSI returning 1.7% (ZAR). The All Bond Index, however, slumped -6.4% (ZAR)
while listed property returned -4.7% (ZAR). The rand also got hammered as it
ended the quarter 10.8% weaker against the US dollar. Confidence in the South
African economy has been hit and this latest move unfortunately cost South Africa
many billions of rands. The risk of a downgrade to junk status is now significantly
higher and the national budget in February is paramount to staving off a downgrade
to junk.
The fund performed admirably over the quarter, outperforming its target in very
difficult market conditions. Foreign equity remains our favoured asset class and the
portfolio has benefitted from this. From a fundamental perspective, the rand is
severely undervalued and any strengthening of the currency could hamper returns
gained from this asset class. Global bonds remain expensive but are good
insurance against very negative events. Domestic property detracted from
performance and continues to be very expensive. The new flexible property
portfolio contributed positively to performance, producing positive returns in a tough
market environment. Domestic equity is expensive as well, with domestic
companies likely to struggle to grow earnings within South Africa. Bonds look
attractive after the recent sell-off in December, and sit on very good yields.
Market valuations remain high and this is concerning. There are also many
geopolitical risks which could flare up in 2016, and these could cause a spike in
volatility in financial markets. Certainly the prospects for markets in the near term
look murky at best. South Africa is in an election year and this also brings the
normal associated risks. Prudence remains key when positioning portfolios as
opportunities will present themselves.
This Monthly Minimum Disclosure Document should be viewed in conjunction with the Glossary Terms Sheet.
Issue date: 19 February 2016
(Fund Fact Sheet)
Sanlam Multi Managed Protection Solution 3
Fund of Funds
January 2016
Risk Profile (Cautious)
Glossary Terms
This portfolio aims to protect capital in real (after inflation) terms, while providing a
reasonable level of income. The portfolio displays low volatility levels, designed to
reduce the probability of capital losses. This portfolio has limited or no exposure to
equities. It is designed for maximum capital protection and aims to ensure a stable
income and/or income growth.
Annualised total returns
Annualised return is the weighted average compound growth rate over the period
measured.
Trustee Information
Capital growth
Capital growth is the profit made on an investment, measured by the increase in its
market value over the invested amount or cost price. It is also called capital
appreciation.
Standard Bank of South Africa Ltd
Tel no.: 021 441 4100, E-mail: Compliance-SANLAM@standardbank.co.za
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 ³Sanlam
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 performance is not necessarily a guide to future
performance, 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
³CISCA´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.
Manager information:
Issue date: 19 February 2016
Fund of funds
A "fund of funds" is an investment strategy of holding a portfolio of other investment
funds rather than investing directly in stocks, bonds or other securities. This type of
investing is often referred to as multi-manager investment.
Investing in a fund of funds may achieve greater diversification. The benefit of
diversification is that it can reduce volatility and the overall risk in the portfolio, while
maintaining returns.
Liquidity
The ability to easily turn assets or investments into cash.
LISP (Linked Investment Service Provider)
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 gives an investor a single point of entry
into a selection of different investments.
Regulation 28
Regulation 28 of the Pension Funds Act sets out prudent investment limits on
certain asset classes in investment funds. It applies specifically to investments in
Retirement Annuities and Preservation Funds.
The allowed maximum exposures to certain asset classes are:
75% for equities; 25% for property; 25% for foreign (offshore) assets +5% to African
assets.
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.
Unit trusts
Unit trusts (also called a collective investment scheme) 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.
Sanlam Collective Investments (RF)(Pty.) Ltd. Physical address: 2 Strand Road, Bellville 7530, Postal address: PO Box 30, Sanlamhof 7532
Tel: +27 (21) 916 1800, Fax: +27 (21) 947 8224, Email: service@sci.sanlam.com, Website: www.sanlamcollectiveinvestments.co.za