Unit Trusts: Sanlam Gilt Fund
This fund is in the bond sector. It has 564 unitholders and assets under management of R225-million. Launched in August 1996, it is managed by Hendrie van Zyl for Sanlam Asset Management
OBJECTIVE: To generate a high income while preserving and increasing the capital within the current interest rate cycle.
TARGET MARKET: Investors requiring a more regular and higher income than generally offered by equity unit trusts, with the opportunity of capital growth.
CHARGES (incl VAT): Compulsory: 0.05%. Initial: 1.66% (on a sliding scale). Annual service fee: 0.85%.
MINIMUM INVESTMENT: Lump sum: R5 000; monthly: R500.
PAST PERFORMANCE (per Micropal):
JSE all-bond index: 20.5% (figure supplied by Sanlam)
Sector average: 37.5%
Performance is calculated on a buy-to-sell basis with income reinvested.
PAST TWO INCOME DISTRIBUTIONS: June 97: 38.1c. December 97: 36.8c.
MATURITY SPREAD: The pie chart depicts the fund's maturity spread. Unlike equity unit trust funds, bond funds have a maturity date. The longer the period of investment, the greater the volatility, so the risk profile of the fund can be assessed from its maturity spread. The higher the cash content, the lower the risk (but this can also indicate an underperforming fund), and the higher the exposure to long bonds, the more risky the fund.
TOLL-FREE: 0800 220 567
ABOUT THE FUND MANAGER
EXPERIENCE: Joined Sanlam 18 years ago. Has been a fixed-interest portfolio manager with Sanlam Asset Management for 10 years. Has managed the fund since last month.
INVESTMENT ATTITUDE: Our investment philosophy is based on quality research and active management of the portfolio. The fund is actively and prudently managed to obtain capital growth when interest rates fall and to preserve capital when they rise.
VIEW ON PAST PERFORMANCE: The fund has a proven track record of superior returns at a low volatility in both a rising and declining interest environment.
THE FUTURE: Present interest rate levels offer value and an investment in bonds should offer good returns over the next 12 months. When economic growth increases, interest rates may start rising, causing bonds' capital values to decline.
Sanlam Unit Trusts appear to have brought their house in order over the past year, and their three fixed income funds have had a good year. This fund has been the top performing gilt fund over the past year. If you are thinking about investing in gilts now that the markets are turbulent, this fund should be considered.
Lucienne Fild 6/98