NAV on 2019/11/19
|NAV on 2019/11/18
|52 week high on 2019/02/06
|52 week low on 2019/09/02
|Total Expense Ratio on 2019/09/30
|Total Expense Ratio (performance fee) on 2019/09/30
Satrix Managers (Pty) Ltd.
South African--Real Estate--General
FTSE/JSE SA Listed Property Index (J253)
Johann has 24 years investment experience of which 14 years was spent as an equity analyst. The last 10 years were spent as a portfolio manager.
He was one of the founder members of the large cap team and played a role in designing the large cap investment process.
He is currently a member of the equity selection group at Sanlam Investment Management.
Jenny joined Sanlam Investment Management in the client services department (1998 - 2002). In January 2003 she joined the SIM's Investment Professional Development Program (IPDP) and was permanently appointed to the SIM quant team during 2004. Her responsibilities include index fund management, quantitative analysis and portfolio construction.
Satrix Investment Team
Satrix Property Index Comment - Sep 19
The SA Listed Property Index (SAPY) realised a return of -4.4% during the third quarter of 2019. This was against the positive return it managed over the first half of 2019. This three-month performance was in line with that of the FTSE/JSE All Share Index’s -4.6%. Bonds (0.8%) and cash (1.8%) were the only asset classes showing positive returns. On a year-to-date basis, SA bonds were the outperformers with returns of 8.44%, followed by SA equities (7.08%), SA cash (5.45%) and SA property (1.34%). The SA Listed Property (SAPY) and the All Property (ALPI) Indices continue to underperform other asset classes over a rolling 12-month period.
The best performing shares in the SAPY for the last quarter included Sirius (19%), Resilient (9%), Investec Australia (8%) and Liberty 2 Degrees (3%). By contrast, the worst performers were Hospitality B (-16%), Fortress B (-15%), Redefine (-13%) and Mas Plc (-13%).
A key theme prevalent in the retail sector both locally and offshore is the need to consistently invest in your retail assets in order to attract the best tenants with their flagship offering, especially in an environment of oversupply and high mobility of consumers who are spoilt for choice.
The All Property index has underperformed the SA Listed Property index this year due to its larger exposure to the UK and its concomitant Brexit risk, together with its exposure to smaller SA property companies.
The current quarter was again somewhat quiet on the corporate action front, but much busier on the reporting of financial results. During the September 2019 FTSE/JSE SAPY rebalance there was one constituent deletion, namely Accelerate Property Fund, and one addition, which was Stor-age Property Reit. The one-way turnover was somewhat higher than the recent past at 2.5%.
Your fund performed in line with the SAPY benchmark. Any deviations from the benchmark could solely be attributed to cash flows.
Following the weak returns for the last 12 months, the SAPY index has de-rated to an interestingly high historic yield of 9.77%. The yield-to-maturity (YTM) on the longterm South African government bond (RLRS) de-rated by 9bps, ending the month at 8.90% (compared to 8.81% on 30 August 2019).
Despite the weak outlook for local property fundamentals and downward revisions to earnings growth over the medium term, should dividends remain intact and growth return over the medium to long term, SA listed real estate remains attractively priced. On average, SA centric companies are trading at forward yields above the long-term South African Government Bond proxy (RLRS).
The Satrix Property Index Fund 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), after taking into consideration all costs and regulatory compliance requirements.In order to achieve these objectives, the securities normally to be acquired in the Sanlam Investment Management Property Index Fund portfolio shall consist of those shares, at fair market prices, which substantially make up the FTSE/JSE SA Listed Property Index (J253) with due regard to the weightings defined therein. Other securities (derivatives) and assets in liquid form may be included from time to time to account for liquidity and index fluctuations. Apart from the above, the portfolio may also invest in participatory interests of portfolios of collective investment schemes registered in the Republic of South Africa or of participatory interest in collective investment schemes or other similar schemes operated in territories with a regulatory environment which is to the satisfaction of the manager and the trustee of a sufficient standard to provide for investor protection which is at least equivalent to that in South Africa. The underlying CIS portfolios will always be property tracker portfolios.