SIM Top Choice Equity Fund’s Conviction Pays Off

The SIM Top Choice Equity Fund is Sanlam Investments’ offering in terms of a concentrated, high conviction portfolio. Only the best ideas and most active positions relative to the FTSE/JSE SWIX Index is included in this fund, and it will never be invested in more than 20 shares. Because of the larger active bets, the portfolio may display higher volatility over the short to medium term. It will often underperform the index over the short term, but has the potential to significantly outperform the same index in the long run.

Performance

For the five years to 30 April 2014, the SIM Top Choice Equity Fund delivered 22.5% p.a. The fund ranked with the top ten best performing funds in the domestic general equity category for the three- and five-year periods to 31 March 2014, out of 96 and 88 funds respectively. More importantly, it continues to beat its benchmark, as shown in the graph below.

How the fund invests your money

• The SIM Top Choice Equity Fund invests in no more than 20 shares listed on the Johannesburg Stock Exchange (JSE).
• The fund manager takes high conviction bets in a concentrated portfolio, implementing Sanlam Investments’ best equity ideas.
• There are no offshore stocks in the portfolio.
• The fund invests in undervalued companies 
in line with Sanlam Investments’ pragmatic value investment philosophy.

Who is this fund for?

The fund is suitable
 for sophisticated investors 
who have investment horizons of longer than five years. The fund is risky and will display volatile returns over the short term. Investors can expect a concentrated portfolio such as this one to deviate significantly from the benchmark over the short term. The SIM Top Choice Equity Fund is for more aggressive investors who desire high-conviction exposure to local shares only.

Risk profile

High

Minimum investment

The minimum required lump sum is R5 000 and the minimum monthly investment is R500.

Click here to view SIM Top Choice Equity Fund Fact Sheet or visit our Smart Invest to invest.