Transcript Satrix Dividend Plus

July/August 2009
Satrix ETF’s Make a Million (!)
Satrix?
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Satrix is designed to give you low-cost exposure to the
JSE. You can instantly invest in a diversified portfolio of
equities with a single low cost investment.
“Your best bet is to opt for an index fund…the type that
uses your money to track a stock market index…those
index funds that are very low cost are investor-friendly
by definition and are the best selection for people who
wish to own equities.” (Warren Buffet)
Satrix listed the first ETF in South Africa in 2001.
Satrix Product Range
Market
access
Indices
AUM
R’000 m
5 702,4
Satrix 40
Replicates the FTSE/JSE Top 40 index including
basic materials, financials, industrials and
telecommunication.
Satrix FINI
Replicates the FTSE/JSE FINI 15 index including
banks, insurance and financial services.
970,2
Satrix INDI
Replicates the FTSE/JSE INDI 25 index including
construction, manufacture and retail.
517,6
Satrix RESI
Replicates the FTSE/JSE RESI 20 index including
mining commodities and oil.
450,9
Satrix Swix
Replicates the FTSE/JSE Swix Top 40 index.
226,1
620,2
Satrix DIVI
Replicates the FTSE/JSE Dividend index
constituted by the top 30 dividend paying
companies.
Satrix RAFI
Replicates the FTSE/JSE RAFI 40 index, based on
fundamental values of underlying constituents.
379,5
Broad market exposure –
market cap indices
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Satrix 40 provides the broad market exposure by replication of the top 40
shares listed on the JSE by market capitalisation.
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Satrix Swix is the shareholder adjusted Top 40 and reduces the weighting
given dual listed stocks (mainly the resource stocks).
50
40
30
20
Satrix 40
Satrix Swix
10
0
Resources
Industrials
Telecomms
Consumer
Financials
Broad market exposure –
fundamental index
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Satrix RAFI is non-market cap weighted index.
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Based on an index calculation methodology called fundamental indexation™
developed by Research Affiliates LLC.
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Underlying constituents are selected by their fundamental values
i.e. sales, cash flow, book value and dividends.
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Dividends are immediately reinvested to provide the total return of the index.
40
30
20
Satrix RAFI
10
0
Resources
Industrials
Consumer
Telecomms
Financials
Utilising an ETF
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An index provides lower risk than single securities:
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Diversification particularly in a broad based index such as Satrix 40
reduces the risk.
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A basket of shares lowers volatility
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Gearing of market views can add considerably to market performance.
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ETF’s are a flexible and low cost way to gain instant exposure to the
market return.
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Market makers provide liquidity in the market.
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No STT is payable.
ETF’s as a core holding
Active
strategy
Active
strategy
ETFs
Active
strategy
Active
strategy
Utilising ETF’s as a passive core
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ETF’s can be utilised as the core of a portfolio by transferring the
‘dead weight’ of the portfolio to provide beta exposure.
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This results in the low cost market exposure.
An asset manager can then enhance the overall portfolio return by
offering active strategies.
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Many institutional investors have embraced the idea that ETF’s can
help them equitise cash, use them for TAA (Tactical Allocation) and it
can be a substitute for a program trade or using futures.
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Similarly ETF’s have internationally also been utilised as satelite
positions for to gain sector exposure as a complement to and active
core.
Total Expense Ratios as at 30 June 09
Total Expense Ratios
(TER)*
Actual Expense Ratios
(AER)**
Satrix 40
45.59
44.21
FINI
45.31
38.17
INDI
45.47
43.86
RESI
51.79
44.58
SWIX
45.57
45.59
DIVI
45.51
51.49
RAFI
53.79
56.87
Fund
* TER (annualised), includes all expenses, but excludes scrip lending
revenue and brokerage.
** AER (annualised), TER, including scrip lending revenue and brokerage.
How do you buy Satrix?
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Satrix investment plan on 086 110 0670
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Accredited Broker
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PSG Online share trading platform
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Satrix Managers directly over a 1million units
Disclaimers
Disclaimer
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The information provided in this document does not constitute investment advice; its sole purpose is to provide a brief description of the product. You should
be aware that certain transactions give rise to substantial risk. Product values may be affected by market values, interest rates, exchange rates, volatility,
dividend yields and issuer credit ratings. These factors are interrelated in complex ways, and as a result, the effect of any one factor may be offset or
magnified by the effect of another factor. Accordingly, certain transactions are not suitable or appropriate for all investors. You should take steps to ensure
that you fully understand any transaction which you intend entering into and have made an independent assessment of the transaction in the light of your
own objectives and circumstances, including the possible risks and benefits of entering into such transaction. You should also consider seeking advice from
your advisers in making this assessment. This Document should not be considered as a recommendation by Satrix Managers (Pty) Limited (“Satrix
Managers”) or any of its affiliates that the Satrix ETFs are a suitable investment. Satrix ETFs may or may not be suitable for all investors. Satrix Managers
and/or any of its affiliates does not guarantee the performance of the Satrix ETFs. Past performance is no guarantee of future returns.
The complete terms and conditions should be taken from the respective offering circular; this, and any supplements, may be obtained free of charge from
Satrix Managers or any of its affiliates. Any investment in a Satrix ETF should be made solely on the basis of the Listing Particulars. All statements of
opinion reflect the current assessment of Satrix Managers or any of its affiliates, which may change without prior notice. Although the information herein has
been obtained from sources believed to be reliable, Satrix Managers or any of its affiliates does not guarantee its accuracy, completeness or fairness.
Satrix Managers or any of its affiliates may make markets or hold units in the Satrix ETFs mentioned in this document or hold positions in the investments in
which Satrix Managers invest.
As set out in the offering circular, the sale of securities is subject to restrictions in some jurisdictions. In particular, any direct or indirect distribution of this
document into the United States, Canada or Japan, or to U.S. persons or U.S. residents, is prohibited
Trading on an exchange may incur additional costs, including trading fees (STRATE), brokerage, administration fees and Securities Transfer Tax (UST).
The price at which a participatory interest trades on an exchange may differ from the price at which a manager repurchases participatory interests and the
price published daily in the press in the listing of “unit trust prices”.
Index Disclaimers
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The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, FTSE, STOXX Limited and/or Dow Jones & Company, Inc
(“Index Providers”) and they bear no liability with respect to any such funds or securities or any index on which such funds or securities are based. The
Offering Circular and the relevant Supplement contain a more detailed description of the limited relationship the Index Providers has with Satrix Managers
and/or any of its affiliates, Satrix ETFs and any related ETFs.
All database rights, copyright and any other intellectual property rights in the Index and constituent list vests in the Index Providers and/or its licensors.
Satrix Managers or any of its affiliates has obtained full license from the Index Providers to use such database rights, copyright and other intellectual
property rights in the creation of this product.
The Index Providers and Satrix Managers or any of its affiliates make no warranty or representation whatsoever either as to the results obtained from use of
the indices and/or the figures at which the said indices stand at any particular day or otherwise. These index sponsors shall not be liable to any person for
any error in their indices and shall not be under any obligation to advise any person of any error therein.
© 2008 Satrix Managers (Pty) Limited.
Satrix Managers is an authorised Financial Services Provider.