NAV on 2019/09/16
|NAV on 2019/09/13
|52 week high on 2019/08/14
|52 week low on 2018/12/28
|Total Expense Ratio on 2019/06/30
|Total Expense Ratio (performance fee) on 2019/06/30
Satrix Managers (Pty) Ltd.
MSCI World Equity Index (Developed Markets)
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.
Satrix Investment Team
Satrix MSCI World Equity Index Feeder Fund-Jun 19
Global equities rebounded in June as the US-China trade war ebbed and Trump backed off on some of his threats. Global growth data remained negative with further declines in PMIs. Although the 19 June Federal Open Market Committee meeting saw no rate change, it delivered a strong statement virtually promising a rate cut at the 31 July meeting.
During the second quarter 2019, the MSCI World Index realised a return of just more than 4%, outperforming the MSCI Emerging Markets Index, which managed a very modest return of 0.6% over the same period. Global bond yields continued to rally with US 10-year yields down to 2.01% and trading sub-2% for the first time since late 2016. US 10-year yields are down more than 125 basis points since November 2018.
In the first half of 2019, the MSCI World Index delivered a net return of 16.98%, outperforming Emerging Markets (+10.8%). Within MSCI World, North America was the best performing region with a return of 18.9%, followed by Europe’s 16.5% and the Pacific region’s 11.3%.
Our Feeder fund buys and sells units in a ‘parent fund’ called the Satrix MSCI World Index fund, which tracks 23 developed countries with more than 1 600 shares included in the index. We track this index through a process of optimisation with an ex-ante tracking error varying between 15 and 18 basis points.
The MSCI World Index (in Rand terms) managed a return of about 1.7% (+4% in US Dollar) over the last three months. This difference in return was mainly due to the Rand strengthening by more than 2.5% against the Dollar over this period.
For the year 2019, the Rand return for this index was around 14.7% (+17% in US Dollar), with Rand depreciation playing a major role.
The renewed central bank easing bias propelled global equity markets up over 6%, the best June performance on record and up close to 15% year to date in Dollar terms. And yet, the International Monetary Fund cut back the global growth outlook towards the 3% mark at the beginning of the quarter with global growth expected to be generally weaker this year. Global manufacturing continues to weaken, consistent with global growth.
Investors, at this stage, are betting on some fiscal stimulus to reverse the current softening trend in global growth rates.
The objective of the Satrix MSCI World Equity Index Feeder Fund 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 portfolio will apart from assets in liquid form, invest in participatory interests of the Sanlam World Equity Tracker Fund established under the Sanlam Universal Funds PLC approved by the Irish Regulator in August 2011. The Sanlam World Equity Tracker Fund will employ replication, sampling and optimisation techniques and, subject to the limits and within the conditions laid down by the Central Bank of Ireland, may use financial derivative instruments for efficient portfolio management purposes to track the performance of the MSCI World Equity Index (Developed Markets), rather than attempting to hold all of the securities in the MSCI World Equity Index (DevelopedMarkets). The Sanlam World Equity Tracker Fund may also invest indirectly in such securities through quoted investment vehicles, such as Exchange Traded Funds, and holdings in UCITS funds domiciled in a Member State and other open-ended collective investment schemes that satisfy the requirements of the Central Bank of Ireland.