Satrix Balanced Index Fund

The Satrix Balanced Index Fund is the first unit trust fund run by Satrix. Funds previously launched by Satrix have all been electronically traded funds (ETFs). The Satrix Balanced Index Fund is also a passively managed fund but, unlike previous Satrix solutions, it allows the investor multi-asset class exposure. In addition, its equity component consists of a smart beta core.

Smart beta

The domestic equity component of the fund invests in a range of underlying smart equity indices:

• Dividend plus (exposure to value style investing)

The investor enjoys exposure to the 30 large- and mid-cap companies that are expected to pay the highest dividends.

• Equally weighted top 40 (size exposure)

The top 40 shares are equally-weighted rather than market-cap weighted, giving the investor a more balanced exposure to the 40 largest, most liquid shares listed on the JSE.

• Momentum (exposure to momentum style investing)

Stocks that are performing better than their peers in terms of price and earnings measures are selected.

Asset allocation

The fund needs to remain within the regulation 28 asset class limits at all times. It tracks the following long-term strategic asset composition, and is rebalanced twice a year.

When would you choose this fund?

You would choose this fund if:

• You are looking for a portfolio that is diversified across all main local and international asset classes and uses a fixed strategic asset allocation, i.e. not a multi-asset class fund where the portfolio manager changes the fund’s allocation according to his view on the value offered by certain classes.

• You are comfortable with a significant exposure to equities – an asset class that is more volatile than others, but has proved itself as the top performing asset class over the long term.

• You require steady capital growth over the long term, with some income over the medium to long term.

• You require some rand-hedge protection (20% of the portfolio in this case)

Fund objective: The fund offers diversified exposure to all the main local and international asset classes.

Risk profile: Moderate

Minimum investment: Currently, the minimum required lump sum is R10 000 and the minimum monthly investment allowed is R500.

Annual management fee: The annual management fee is 0.68%.

The fund is available on the following platforms:

Direct through Sanlam Collective Investments

Glacier

Cumulus

Performance data: The fund was launched on 21 October 2013 and does not yet have a one-year performance figure.

Click here to view more on the fund.