Satrix FINI

By: Satrix  11-11-2011
Keywords: Asset Manager, Portfolio Diversification, Financial Companies

The Satrix FINI endeavours to replicate the performance of the FTSE/JSE Financial 15 index. This index comprises the 15 largest financial shares listed on the JSE.

The asset manager of the Satrix FINI accurately replicates the FTSE/JSE FINI 15 index, by holding the exact weighting and number of shares that constitute this index. Dividends paid by the underlying companies, less expenses incurred by managing the trust, are paid out to Satrix FINI shareholders on a quarterly basis. In this way the holders of Satrix FINI securities replicate the total performance (capital plus dividend yield) of the top 15 financial companies listed on the JSE.

Own the financial sector of the JSE through Satrix FINI

WHY YOU SHOULD OWN SATRIX FINI?

The FTSE/JSE Financial 15 index comprises South Africa´s 5 largest banks, other general financial companies, property companies, plus the main long-term and short-term insurance companies. It provides a diversified spread of the major financial companies listed on the JSE. The rapid assimilation of greater numbers of South Africans into the formal banking and financial system, the funding demands of a growing economy and the challenges of meeting demand for retirement products have made this a high performing sector of the JSE.

Portfolio Diversification

The FTSE/JSE Financial 15 index only constitutes financial companies and therefore provides a dedicated and focused point of entry to this sector of the JSE. The Satrix FINI offers a low cost means of obtaining the total performance of the main financial

Performance  
1 year return15.93%16.84%
3 year return13.45%13.78%
5 year return6.48%6.93%
**Fund established February 2002. Returns calculated for lump sum investments. All dividends reinvested.
Low Cost

Satrix Fini does not charge substantial management fees or other advisory and ongoing costs, common to other managed investments. The income Satrix earns from scrip lending activities further reduces the cost to the investor.

There are two levels of costs that will be incurred by the investor. The first being portfolio expenses and the second being fees that you will incur depending on the investors preferred channel of investment.

Portfolio expenses
Portfolio expenses include fees incurred to run the Satrix Fini portfolio such as management fees paid to Satrix Managers, custodian fees, brokerage, auditor’s fees, bank charges and taxes.
All these fees are permissible deductions from the portfolio and are paid from the dividends that accrue to the portfolio (from the underlying shares in the portfolio) and the other income that accrues to the portfolio (interest and scrip lending income). The balance of the income remaining in the fund after deduction of the permissible fees and costs referred to above is distributed to the holders of the Satrix securities. This distribution is done on a quarterly basis.

Therefore the portfolio expenses are incurred by the investor when the distribution is paid out. For investors to be informed of this cost on a quarterly basis, the unit trust industry uses the concept of a total expense ratio (TER). TER is used to illustrate the costs of portfolios on a comparative basis. Its objective is to endeavour to satisfy the requirement of transparency and to establish an industry standard. The TER of the Satrix Fini for the quarter ended 30 June 2011 is 0.456% (incl. VAT).

In accordance with the industry standard, brokerage and scrip lending income are excluded from the TER. Satrix accordingly also publishes an actual expense ratio (AER), which includes brokerage expenses and scrip lending income.  The AER is therefore the actual cost to the investor. The AER for the quarter ended 30 June 2011 is 0.4274% (incl.VAT)

Satrix Investment Plan and broker fees
Broker fees, financial advisor fees (applicable if a financial advisor has been consulted) and Satrix Investment Plan fees are costs that will be incurred by the investor depending on the investors preferred channel of investment and does not include the portfolio expenses as set out above.

Broker fees and financial advisor fees could vary depending on the broker and/or financial advisor being consulted.

In the case of the Satrix Investment Plan, which is administered by Automated Outsourcing Services (AOSL), transaction costs (brokerage) of 0,1% is levied on purchases and sales of Satrix securities. Annual management fees, charged by AOS, are as follows:


Investment Plan Administration Fees (for both lump sum and debit order investments)
Annual administration fee: (calculated daily and deducted quarterly)

 
R0 to R100 0000.80%
R100 000 to R250 0000.75%
R250 000 to R1 000 0000.70%
R1 000 000 to R3 000 0000.50%
R3 000 000 or more0.45%
Transaction Fees

Debit order fee: R3.50

Stock brokerage fees: 0.10% (buying and selling)

Nominal Strate and Investor Protection levies will also be charged.

Where a financial adviser is used, commissions will be charged (as scheduled in Section 8).

All fees quoted are exclusive of VAT. VAT will be levied where applicable

Satrix FINI is traded all day on the JSE and its price is subject to trading in the marketplace. The price of Satrix securities can be obtained from any media publication that reports JSE prices.

All settlement, registration, recording and guarantee of trade are done through the normal JSE market systems. Official market makers have been appointed by Satrix to ensure that investor´s transactions will be accommodated in the market.

Regulation and Disclosure

Satrix FINI is subject to the same regulations, reporting and compliance requirements of any listed company on the JSE. Satrix FINI is also registered as a Collective Investment Scheme and is therefore subject to the regulation of the Financial Services Board. Satrix Managers (Pty) Ltd is registered as a Financial Services Provider.

Keywords: Asset Manager, Financial Companies, Portfolio Diversification

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