SATRIX UNIT TRUST SCHEME

Transcription

1 SATRIX UNIT TRUST SCHEME Abridged Annual Report 2015

2 Director's report Manager s report for the year ended 31 December 2015 The Manager has the pleasure in presenting its report for the year ended 31 December Nature of business The s are registered in terms of the Collective Investment Schemes Control Act ( CISCA ) as set out in the supplemental Trust Deeds. The Satrix Balanced, Satrix Momentum, Satrix Top 40 and Satrix MSCI World Index Feeder ("the s") was launched on 21 October On 7 April 2014, the Sanlam Alsi, Sanlam Bond, SCI Dividend+, SCI Equally Weighted Top 40 Index, SCI Property and the SCI Rafi 40 were amalgamated with the Satrix Alsi, Satrix Bond Index, Satrix Dividend+, Satrix Equally Weighted Top 40, Satrix Property and the Satrix Rafi 40 Index respectively. The Satrix Low Equity Balanced was launched on 2 July 2014 and the Satrix Quality and the Satrix Swix Top 40 were both launched on 28 August The investment objective of the s are as follows: Satrix Balanced The objective of the fund is to aim to provide investors with steady capital growth while providing income over the medium to long term by tracking the proprietary and customised composite multi asset Satrix Balanced Index. The customised multi asset index is accordingly defined as the weighted sum of the following composite indices: Asset class Composite Indices Percentage SA Equity FTSE/JSE Dividend Plus Index 18.33% FTSE/JSE Equally Weighted Top 40 Index 18.33% Satrix Momentum Index 18.33% SA Bonds BEASSA All Bond Total Return Index 8% SA Property FTSE/JSE SA Listed Property Index 6% SA ILBs Barclays BESA South African Inflation-linked Bond Total Return Index 6% SA Cash Alexander Forbes Short Term Fixed Interest Index 5% International Equities MSCI World Index (USD) 15% International Bonds Barclays Global Aggregate Float Adjusted Bond Index USD Hedged 5% Satrix Momentum The investment objective of the fund is to provide investors with income and capital growth in the medium to long term by tracking the proprietary Satrix Momentum Index as closely as possible. It aims to capture the return of the equity market enhanced by the momentum risk premium. This is achieved by constructing a portfolio tilted toward stocks (or equities) that display positive momentum characteristics and away from stocks showing negative momentum characteristics. 1

3 Director's report Satrix Top 40 The investment objective of the fund is to provide a total return equivalent to that of the FTSE/JSE Top 40 Index. The FTSE/JSE Top 40 index provide exposure to the 40 largest shares, by market capitalisation, listed on the JSE. The Satrix Top 40 provides diversified exposure of the top 40 companies which include resources, industrial, retail, telecommunication and financial companies. Satrix MSCI World Index Feeder The objective of the Satrix World Index Feeder is to provide an investment vehicle for investors wishing to track the movement of the MSCI World Equity Index (Developed Markets) by investing in securities of global companies which are primarily constituents of the MSCI World Equity Index (Developed Markets). The Satrix MSCI World Equity Index feeder fund, apart from assets in liquid form, invests in participatory interest of the Sanlam World Equity Tracker, established under the Sanlam Universal s PLC approved by the Irish Regulator. Satrix Alsi The investment objective of the fund is to seek long term capital growth by investing in shares of the FTSE/JSE All Share Index (J203). The index constitutes the 160 largest companies, by market capitalisation, listed on the JSE. The larger the company (by market capitalisation), the larger the weighting of the company s share in the index. Satrix Bond The investment objective of the Satrix Bond is to achieve a return which will equate to the annual return of the fund benchmark which is the BEASSA All Bond Index. The ALBI Index is a composite index containing the top 20 Vanilla Bonds ranked dually by liquidity and market capitalisation. Only conventional listed Vanilla Bonds, with a fixed, even if zero, semi-annual coupon occur in the index. Bonds with a term less than one year are excluded. Satrix Dividend+ The investment objective of the fund is to provide investors with income and capital growth in the medium to long term by tracking the FTSE/JSE Dividend+ Index (J259) as closely as possible. The FTSE/JSE Dividend Plus Index weights the shares according to its forecasted dividend yield. This consists of 30 companies, selected from the FTSE/JSE Top 40 and Mid-Cap indices that are expected to pay the best normal dividends over the forthcoming year. Satrix Equally Weighted Top 40 The investment objective of the fund will be to focus on capital growth and achieving a compound annual return which will equate to the total compound annual return of the FTSE/JSE Equally Weighted Top 40 Index (J110). All constituent companies in this index have the same weighting and therefore the importance of each company in the index does not depend on its market capitalisation. Satrix Property The Satrix Property is a specialist portfolio. In selecting securities for this portfolio, the investment manager shall seek an investment medium for investors which shall have as its main objective the provision of a total compounded annual return of capital and income which substantially matches the notional performance of the FTSE/JSE SA Listed Property Index (J253) as closely as possible. Satrix Rafi 40 The investment objective of the fund is to seek long term capital growth by investing in shares of the FTSE/JSE Rafi 40 Index (J260). The FTSE/JSE RAFI40 index uses a value-based methodology to decide on the relative percentages of the shares in the index. Shares that are deemed to show more value, due to their price to earnings ratio, dividends, sales or cash flow, have a higher weighting in the index. 2

4 Director's report Satrix Low Equity Balanced The investment objective of the fund is to aim to provide investors with a reasonable level of income, while seeking to preserve capital in real terms with lower volatility over the medium to long term by tracking the proprietary and customised composite multi asset Satrix Low Equity Balanced Index. The customised multi asset index is accordingly defined as the weighted sum of the following composite indices: Asset class Composite Indices Percentage SA Equity FTSE/JSE Dividend Plus Index 8.33% FTSE/JSE Equally Weighted Top 40 Index 8.34% Satrix Momentum Index 8.33% SA Bonds BEASSA All Bond Total Return Index 17.5% SA Property FTSE/JSE SA Listed Property Index 12.5% SA ILBs Barclays BESA South African Inflation-linked Bond Total Return Index 15% SA Cash Alexander Forbes Short Term Fixed Interest Index 15% International Equities MSCI World Index (USD) 5% International Bonds Barclays Global Aggregate Float Adjusted Bond Index USD Hedged 5% International Cash USD Deposit 5% Satrix Quality The investment objective of the fund is to provide investors with income and capital growth in the medium to long term by tracking the S&P Quality South Africa Index as closely as possible. The S&P SA Quality index aims to capture the stock performance of high quality South Africa companies based on future profitability, integrity of their earnings and financial robustness. Satrix Swix Top 40 The investment objective of the fund is to provide investors with income and capital growth in the medium to long term by tracking the Shareholder Weighted Top 40 as closely as possible. The Top 40 Shareholder Weighted (SWIX) index consists of the same 40 largest companies by market cap as does the FTSE/JSE Top 40 index however, all constituents are weighted in the SWIX index by applying a SWIX free float factor. The SWIX free float factor represents the proportion of the constituent s share capital that is held in dematerialised form and registered on the South African share register, maintained by Strate. The SWIX free float will not exceed the company free float. Trustee The Trustee at the date of this report is Standard Chartered Bank. Management Company The Management Company at the date of this report is Satrix Managers (RF) Proprietary Limited. Beneficiaries Vested income and capital beneficiaries include all holders of s. Registered address Postal address 4th Floor, Building 2 P.O. Box Alice Lane Benmore Sandton

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7 Satrix Balanced Satrix Momentum Satrix Top 40 Satrix MSCI World Equity Index Feeder CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDING 31 DECEMBER 2015 Income Expenditure ( ) ( ) ( ) ( ) Operating profit/(loss) for the year before finance costs ( ) Distribution of income ( ) ( ) ( ) - Net fair value gains /(losses) on financial instruments ( ) ( ) Change in net assets attributable to unit holders ( ) ( ) DISTRIBUTION PER UNIT - 31 December cent 8.65 cent cent n/a cent cent cent n/a cent cent cent n/a cent 9.33 cent cent n/a cent 9.32 cent cent n/a cent cent cent n/a DISTRIBUTION PER UNIT - 30 June cent cent cent n/a cent cent cent n/a cent cent cent n/a cent cent cent n/a cent cent cent n/a cent cent cent n/a CONDENSED STATEMENT OF FINANCIAL POSITION Net assets attributable to unit holders Trade and other payables Related parties payable Distributions payable Bank overdraft Liabilities other than net assets attributable to unit holders Investments Accrued income & debtors Related parties receivable - Cash and bank balances Total Assets

8 Satrix Balanced Satrix Momentum Satrix Top 40 Satrix MSCI World Equity Index Feeder PORTFOLIO COMPOSITION (%) Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Telecommunications Technology Interest bearing instruments 6.00 Holdings in Collective Investments Schemes - Local Holdings in Collective Investments Schemes - International Liquid Assets 3.17 TOTAL INVESTMENT PERFORMANCE (class A1) (%) 1 Year Year n/a n/a n/a n/a FEES: Service fee (including VAT) (%) Total Expense Ratio (TER) (%) TER

9 Satrix Alsi Index Satrix Bond Index Satrix Dividend+ CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDING 31 DECEMBER 2015 Income Expenditure Operating profit/(loss) for the year before finance costs Distribution of income Net fair value gains /(losses) on financial instruments Change in net assets attributable to unit holders DISTRIBUTION PER UNIT - 31 December 2015 DISTRIBUTION PER UNIT - 30 June 2015 CONDENSED STATEMENT OF FINANCIAL POSITION Net assets attributable to unit holders Trade and other payables Related parties payable Distributions payable Bank overdraft Liabilities other than net assets attributable to unit holders Investments Accrued income & debtors Related parties receivable Cash and bank balances Total Assets ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent

10 Satrix Alsi Index Satrix Bond Index Satrix Dividend+ PORTFOLIO COMPOSITION Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Telecommunications Technology Interest bearing instruments Holdings in Collective Investments Schemes - Local Holdings in Collective Investments Schemes - International Liquid Assets TOTAL INVESTMENT PERFORMANCE (class A1) 1 Year 3 Year FEES: Service fee (including VAT) Total Expense Ratio (TER) TER n/a

11 Satrix Equally Weighted Top 40 Satrix Property Satrix Rafi Top 40 CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDING 31 DECEMBER 2015 Income Expenditure Operating profit/(loss) for the year before finance costs Distribution of income Net fair value gains /(losses) on financial instruments Change in net assets attributable to unit holders DISTRIBUTION PER UNIT - 31 December 2015 DISTRIBUTION PER UNIT - 30 June 2015 CONDENSED STATEMENT OF FINANCIAL POSITION Net assets attributable to unit holders Trade and other payables Related parties payable Distributions payable Bank overdraft Liabilities other than net assets attributable to unit holders Investments Accrued income & debtors Related parties receivable Cash and bank balances Total Assets ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent cent

12 Satrix Equally Weighted Top 40 Satrix Property Satrix Rafi Top 40 PORTFOLIO COMPOSITION Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Telecommunications Technology Interest bearing instruments Holdings in Collective Investments Schemes - Local Holdings in Collective Investments Schemes - International Liquid Assets TOTAL INVESTMENT PERFORMANCE (class A1) 1 Year 3 Year FEES: Service fee (including VAT) Total Expense Ratio (TER) TER

13 Satrix Low Equity Balanced Index Satrix Quality Satrix Swix Top 40 CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDING 31 DECEMBER 2015 Income Expenditure Operating profit/(loss) for the year before finance costs Distribution of income Net fair value gains /(losses) on financial instruments Change in net assets attributable to unit holders DISTRIBUTION PER UNIT - 31 December 2015 DISTRIBUTION PER UNIT - 30 June 2015 CONDENSED STATEMENT OF FINANCIAL POSITION Net assets attributable to unit holders Trade and other payables Related parties payable Distributions payable Bank overdraft Liabilities other than net assets attributable to unit holders Investments Accrued income & debtors Related parties receivable Cash and bank balances Total Assets ( ) ( 7 728) ( ) ( ) ( ) ( ) ( ) ( ) cent cent 8.72 cent cent n/a n/a cent n/a n/a cent cent 8.82 cent cent n/a n/a cent 0.00 cent cent cent n/a n/a cent n/a n/a cent n/a n/a cent n/a n/a cent n/a n/a cent n/a n/a

14 Satrix Low Equity Balanced Index Satrix Quality Satrix Swix Top 40 PORTFOLIO COMPOSITION Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Telecommunications Technology Interest bearing instruments Holdings in Collective Investments Schemes - Local Holdings in Collective Investments Schemes - International Liquid Assets TOTAL INVESTMENT PERFORMANCE (class A1) 1 Year 3 Year FEES: Service fee (including VAT) Total Expense Ratio (TER) TER n/a n/a n/a n/a n/a n/a n/a 0.23 n/a n/a n/a n/a

15 The full annual report is available to all investors. Kindly send your personal details together with your collective investment account number to the following address: PO Box 30 Sanlamhof 7532 or contact our Client Contact Centre at: Our address is: Our internet address is: Collective Investment Schemes (CIS) are generally medium- to long-term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. 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 value of all assets in the portfolio including any income accrual and less any permissible deductions from the portfolio. A schedule of fee charges and maximum commissions is available from the manager/scheme. Commission and incentives may be paid and if so, will be included in the overall costs. Forward pricing is used. The following charges are levied against the portfolio: i.e. annual service fee, brokerage, auditor s fees, bank charges and trustee fees. The Sanlam Group is a full member of the Association for Savings and Investment SA. This Abridged Annual Report contains limited information on the Satrix Unit Trust s. For more detailed information on these funds please visit our website on Copies of the audited financial statements of the manager and of the scheme managed by it, are available free of charge, on request by an investor. 14