Satrix RESI

The Satrix RESI endeavours to replicate the performance of the FTSE/JSE Resources 10 index. This index consists solely of resources based stocks, including mining companies, mining holding companies, mining finance and exploration companies and resource based stocks, such as Sasol.

The asset manager of the Satrix RESI accurately replicates the FTSE/JSE Resources 10 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 portfolio, are paid out to Satrix RESI shareholders on a quarterly basis. In this way the holders of Satrix RESI securities replicate the total performance (capital plus dividend yield) of the top 10 major resources companies listed on the JSE.

Own the Resources Section of the JSE through Satrix RESI !!

WHY YOU SHOULD OWN THE SATRIX RESI?

FTSE/JSE Resources 10 Index
Since the introduction of the FTSE/JSE RESI in 1998, it has grown at a pace more than twice that of the JSE All Share Index. Clearly, the conditions in global commodity markets, the impact of the gradual weakening of the rand exchange rate and the dedicated exposure to the South African resources sector have combined to make the RESI 10 index the prime performer amongst the main JSE indices.

Portfolio Diversification
The Satrix RESI provides a weighted spread of locally listed resource companies, thereby offering exposure to the global commodity price boom and also providing a significant rand hedge facility. Investors looking for prime exposure to the South African resources sector, but without the risk of exposure to only one or two shares in this sector, can select the Satrix RESI and obtain exposure to the 10 top companies listed on the JSE in this sector of the market. This diversification reduces risk and provides exposure to a broad basket of commodity producing companies.

Performance

 

Low Cost

Satrix Resi 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 Resi 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 Resi for the quarter ended 31 December 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 31 December 2011 is 0.3939% (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)

 

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 RESI 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 RESI is subject to the same regulations, reporting and compliance requirements of any listed company on the JSE. Satrix RESI 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.