Satrix SmartCore™ Index Fund

SmartCore™, Satrix’s flagship index fund, turns three this month. 

Since inception, the Satrix SmartCore Index Fund has delivered exceptional returns, comfortably outperforming the Capped SWIX benchmark that it tracks (2% annualised), as well as delivering top quartile performance compared to its general equity retail competitors over this period.

Vanilla index trackers, like the S&P 500 or the Satrix Top 40 Index, use size as the determinant for asset inclusion and weights, implying the larger and more expensive a company is, the more of it you will hold in your portfolio. This makes vanilla index trackers de facto factor strategies – albeit simple in design.

Multi-factor funds, like Satrix SmartCore, target more refined factors, or company features, to decide which companies to hold and in what proportion. These features include good quality balance sheets, strong price- and earning momentum and attractive valuations, and have been shown in academic research to be key attributes associated with outperforming companies. Satrix SmartCore thus enables investors to harvest factor return premiums through time – offering an attractive middle ground between traditional active and passive strategies: being active in its design, but passive in its rules-based implementation. Investors therefore enjoy the fee benefits they’ve come to expect from Satrix’s index tracker fund range, while enjoying the upside potential that established factor definitions offer.

To learn more about factor strategies and how Satrix constructs SmartCore, download the summary here. This report aims to demystify what factor investing is – showing that it is, at its core, a refined index tracking approach.

For further information on Satrix SmartCore visit the fund page here.

Satrix Managers (RF) (Pty) Ltd (Satrix) a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. Unit Trusts and ETFs the investor essentially owns a “proportionate share” (in proportion to the participatory interest held in the fund) of the underlying investments held by the fund. With Unit Trusts, the investor holds participatory units issued by the fund while in the case of an ETF, the participatory interest, while issued by the fund, comprises a listed security traded on the stock exchange. ETFs are index tracking funds, registered as a Collective Investment and can be traded by any stockbroker on the stock exchange or via Investment Plans and online trading platforms. ETFs may incur additional costs due to it being listed on the JSE. Past performance is not necessarily a guide to future performance and the value of investments / units may go up or down. A schedule of fees and charges, and maximum commissions are available on the Minimum Disclosure Document or upon request from the Manager. Collective investments are traded at ruling prices. International investments or investments in foreign securities could be accompanied by additional risks such as potential constraints on liquidity and repatriation of funds, macroeconomic risk, political risk, foreign exchange risk, tax risk, settlement risk as well as potential limitations on the availability of market information. The manager has the right to close the portfolio to new investors in order to manager it more efficiently in accordance with its mandate.