SATRIX DIVI – TOP PERFORMING COLLECTIVE INVESTMENT …

[Pages:2]SATRIX DIVI ? TOP PERFORMING COLLECTIVE INVESTMENT SCHEME PRODUCT OVER PAST THREE YEARS

By Mike Brown, Managing Director, etfSA.co.za 29 September 2010

The Profile Media Group FundsData online web page shows that the top performing all equity fund (including all unit trusts and ETFs) for the past three years (to end September 2010) was the Satrix DIVI Plus Exchange Traded Fund. The Profile FundsData page is reproduced below.

Top Performance Over 3 Years All Equity Funds ? Absolute Performance

Fund

Fund Type

Total Return

Satrix DIVI Plus

ETF

37,46%

Coronation Top 20

Unit Trust

32,65%

Marriot Dividend Growth

Unit Trust

32,22%

Absa Select Equity

Unit Trust

29,13%

Nedbank Investments Value

Unit Trust

28,66%

Source:

Profile Media (29/09/2010)

ETFs are Collective Investment Schemes, listed on the JSE, that track stockmarket indices on a passive basis, i.e. they do not try to outperform the benchmark, as in the case with actively managed unit trusts, but merely look to replicate the exact performance (capital growth plus distribution yields) of the index. Accordingly, it is extremely interesting that a passive fund, such as the Satrix DIVI can display significant leadership in the performance stakes amongst all actively managed unit trusts that are full invested in equities.

More About Satrix DIVI The Satrix DIVI ETF tracks the FTSE/JSE Dividend Plus index, which includes 30 companies, picked from the top 100 (by size) companies listed on the JSE, on the basis that they are forecasted to produce the best sustainable dividend yields over the next year. Typically the market would rerate the companies that provide the best dividend returns, thereby giving investors not only an outperforming fund in terms of capital growth, but also offering average dividend yields.

Accordingly, the Satrix DIVI differs from most other ETFs in that it is, not based on a market cap weighted index, but on an index of shares, specifically selected to offer potential outperformance. That this methodology works well, is shown by the consistently good relative performance of the Satrix DIVI since it was first listed in late 2007 and its current status as South Africa's best performing collective fund over the medium term (3 years).

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SALIENT FACTS ON THE SATRIX DIVI ETF

Portfolio Structure as at 30 June 2010

Telecommunications

9,47%

Financials

28,39%

Consumer Goods

5,60%

Industrials

23,47%

Mining & Basic Materials

5,79%

Consumer Services

27,28%

Fast Facts

Market Capitalisation

R702,5 million

Dividend Yield

3,38%

Total Expense Ratio

46,13bps (0,461%)

Number of investors

10 483

Source: Satrix Managers (Pty) Ltd Fact Sheet (June 2010)

To find out more about the Satrix DIVI, or to buy the Satrix DIVI ETF through the etfSA Investor SchemeTM, visit the etfSA website (etfsa.co.za) or call 0861 383 721.

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