sim intro senate group
TRANSCRIPT
![Page 1: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/1.jpg)
![Page 2: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/2.jpg)
SIM is a philosophically
grounded, multi-specialist,
multi-product house, with one
investment platform that
leverages off the Sanlam leverages off the Sanlam
book and brand.
![Page 3: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/3.jpg)
SanIam Investments Cluster
Capital
Mgt
Investment
Services
Employee
Benefits
Asset
Mgt
Wealth
Mgt
Interna-
tional
SCM
SPE
SMMI
SCI
GR
SUS
SIM
GenX
SPI
Calibre
SIIP
SIM-Global
Mark
Murning
Robert
Roux
Armien
Tyer
Daniel
Kriel
Robert
Roux
Nersan
Naidoo
SPE
Property
Dev.
SSS D
SCI
Simeka
Blue Ink
Octane
SUS
SSS
-EB
Coris
GenX
Africa
Calibre SIM-Global
SAMI
India
Distribution Support
Support: HR | Legal | Finance | Marketing | IT | Distribution Support
![Page 4: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/4.jpg)
4
SIM’s business model has evolved……
Divisionin Life
company
Asset Managementby InvestmentBank (Gensec)
Integrated Insurancebased Asset Manager
(inc. Private Equity
Property etc.)
Multi specialistAsset Manager
Sanlam Investments has provided asset management services to third parties since 1969
company Bank (Gensec)Property etc.)
13yrs
ago(Jan 1997)
12yrs
ago(Jan 1998)
9yrs
ago(Apr 2001)
Today
![Page 5: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/5.jpg)
Pragmatic value investment philosophy
![Page 6: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/6.jpg)
Understanding the value of a business
Aggressivehigh risk
Significant valueattributed to future growth
Conservativelow risk
● Historic info & facts● Book value
Div yield, Low PE
● Future earningspotential
True BenjaminGraham students
AReplacement
value
BContinuing
value
CGrowth
![Page 7: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/7.jpg)
� A belief in long term reversions to the mean
- market ratings (PE)
- growth rates
Superior returns are generated through:
4 tenets of Pragmatic Value Investing
� Value securities with respect to realistic expectations
� Place less emphasis on forecasts and more on fact and track record
� Hold investments for the long term
![Page 8: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/8.jpg)
Multi-Specialist Teams
![Page 9: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/9.jpg)
Chris Hamman
Fixed Income ILB’s
André Roux
AssetLiability
Solutions
Money Market
ActiveIncome
BondPortfolios
Gert Steenkamp
Kashiefa Waggie
Charl Smith
Philip Liebenberg Hansie Myburgh
Erich Maritz
Ntebogeng Mahlare
Chris Hamman
Henriqueco Visser
Ntebogeng Mahlare
Erica Nell
Andre du Toit
Stephen Vlok
Avishal Khusial
Credit
![Page 10: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/10.jpg)
10
Size
SIM can take meaningful stakes in companies
� Influence company boards and management
- unlock value
- encourage good corporate governance
� Fluid access to management teams
� Management teams generally willing to engage
![Page 11: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/11.jpg)
11
Size
Employ a large team of investment professionals
� Very detailed and comprehensive proprietary research
- Dedicated asset allocation research team
- Dedicated small cap research team
� Team members can become specialists
![Page 12: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/12.jpg)
SIM Balanced
Benchmark: Median Morningstar
AA Prudential Variable Equity
SIM Low Equity
Benchmark: Peer
Group Average
Pote
ntial R
etu
rn (
%)
sim.multi-asset class funds
Group Average
SIM Inflation Plus
Benchmark: CPI+4%
over a rolling 3 year
period
Pote
ntial R
etu
rn (
%)
Risk (vol. %)
![Page 13: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/13.jpg)
How
![Page 14: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/14.jpg)
Outlook | Assumptions for Long-term returns: SA - Real
3.0%
6.0%
7.0%
3.0%
4.0%
Bond returns
Property premium
Property returns
Equity Risk premium
Equity returns
2.0%
2.5%
3.0%
0.5%
0.5%
0% 1% 2% 3% 4% 5% 6% 7%
Cash returns
Term premium
ILB returns
Inflation Risk premium
Bond returns
Source : SIM
![Page 15: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/15.jpg)
CPI+5% (Domestic)
Domestic AllocationLong term real
returnWeighted average
Equity 30 7.0 2.1
Property 5 6.0 0.3
Bonds 10 3.0 0.3
Outlook | What could you expect given these RETURN assumptions
Source : SIM
Bonds 10 3.0 0.3
ILB’s 20 2.5 0.5
Cash 35 2.0 0.7
Alpha 1.0
Total 100% 4.9%
![Page 16: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/16.jpg)
Outlook | Risk takers have been compensated …over the very long run
9
8
7
6
5
4
3
2
1900 – 2003, annual real return %
Equities
Bonds
Bills
Source: Siegel, FAJ 2005
Belg
ium
Italy
Germ
any
Fra
nce
Spain
Japan
Sw
itzerland
Irela
nd
Denm
ark
Neth
erlands
United K
ingdom
Canada
United S
tate
s
Austr
alia
Sw
eden
South
Afr
ica
-4
1
0
-1
-2
-3
![Page 17: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/17.jpg)
Asset allocation Overweight Underweight Neutral
GlobalEquity
Property
Bonds
Cash
Outlook | SIM’s current positioning
GlobalProperty Cash
Domestic Inflation Linked Bonds Cash
Nominal Bonds
Equity
Property
1 March 2011
![Page 18: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/18.jpg)
Outlook | SA Equities – NEUTRAL: Price to Intrinsic Value
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0 INDI25 FINI15 RESI SWIX
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
Ja
n 0
7
Ma
r 0
7
Ma
y 0
7
Ju
l 07
Se
p 0
7
No
v 0
7
Ja
n 0
8
Ma
r 0
8
Ma
y 0
8
Ju
l 08
Se
p 0
8
No
v 0
8
Ja
n 0
9
Ma
r 0
9
Ma
y 0
9
Ju
l 09
Se
p 0
9
No
v 0
9
Ja
n 1
0
Ma
r 1
0
Ma
y 1
0
Ju
l 10
Se
p 1
0
No
v 1
0
Ja
n 1
1
Ma
r 11
Source: SIM, 4 March 2011
![Page 19: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/19.jpg)
8
9
10
11
12
Outlook | SA long bonds - NEUTRAL
SA 10YGovernment Bond
4
5
6
7
Jan 0
7
Mar
07
May 0
7
Jul 07
Sep 0
7
Nov 0
7
Jan 0
8
Mar
08
May 0
8
Jul 08
Sep 0
8
Nov 0
8
Jan 0
9
Mar
09
May 0
9
Jul 09
Sep 0
9
Nov 0
9
Jan 1
0
Mar
10
May 1
0
Jul 10
Sep 1
0
Nov 1
0
Jan 1
1
Source : I-Net
Prospective real returnassuming 5.25% inflation 3%
![Page 20: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/20.jpg)
3.0
3.5
4.0
4.5
5.0
5.5
6.0
USA Europe Japan
Outlook | Offshore Equities – OVERWEIGHT: Price to Book
0.0
0.5
1.0
1.5
2.0
2.5
3.0
74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10
Source: Citigroup
![Page 21: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/21.jpg)
Outlook | Yields on global assets
6
8
10
12
Global
10yr ILB 10yr bond MSCI World DY Property DY
Source: Bloomberg
0
2
4
6
04 05 06 07 08 09 10 11
![Page 22: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/22.jpg)
Outlook | Global Property – OVERWEIGHT: Local Currencies
250
300
350
400
450
500
Japan
SA
Source: Bloomberg | 7 March 2011
0
50
100
150
200
00 01 02 03 04 05 06 07 08 09 10 11
Europe ex UK
GlobalAsiaUK
US
![Page 23: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/23.jpg)
Outlook | Active Asset Allocation
0%
2.0%
0%
1.5%
1.0%
0%
1%
2%
3%
4%
5%
Ac
tive
be
t
09 Jan'09 06 Feb'09 02 Mar'09 06 Mar'09 15 May'09 05 Jun'09 02 Jul'0908 Sep'09 12 Oct'09 15 Dec'09 09 Mar'10 20 Apr'10 07 May'10 25 May'1013 Jul'10 30 Jul'10 17 Aug'10 25 Aug'10 8/19 Oct'10 14 Dec'10
0%
0%
0%
-2.0%
-2.0%
-0.5%
-5%
-4%
-3%
-2%
-1%
0%
LocalEquities
LocalBonds
LocalILB's
LocalProperty
LocalCash
ForeignEquity
ForeignBonds
ForeignProperty
ForeignCash
Ac
tive
be
t
Source: SIM
![Page 24: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/24.jpg)
![Page 25: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/25.jpg)
![Page 26: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/26.jpg)
SIM Balanced
Benchmark: Median Morningstar
AA Prudential Variable Equity
SIM Low Equity
Benchmark: Peer
Group Average
Pote
ntial R
etu
rn (
%)
sim.multi-asset class funds
Group Average
SIM Inflation Plus
Benchmark: CPI+4%
over a rolling 3 year
period
Pote
ntial R
etu
rn (
%)
Risk (vol. %)
![Page 27: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/27.jpg)
Pote
ntial R
etu
rn (
%)
sim.multi-asset class funds
SIM Inflation Plus
Disciplined focus on downside risk
High risk-adjusted returns – low volatility
SIM Inflation Plus
Benchmark: CPI+4%
over a rolling 3 year
period
Pote
ntial R
etu
rn (
%)
Risk (vol. %)
Equity component constructed from houseview
SWIX portfolio
Derivatives used to hedge exposure tactically.
![Page 28: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/28.jpg)
SIM Low Equity
Benchmark: Peer
Group Average
Pote
ntial R
etu
rn (
%)
sim.multi-asset class funds
SIM Low Equity
Actively managed
Min 60% in high income yielding
instrumentsGroup Average
Pote
ntial R
etu
rn (
%)
Risk (vol. %)
Stable, low equity balanced fund
Max 40% equities – stock picking
Derivatives used to hedge exposure
tactically
![Page 29: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/29.jpg)
SIM Balanced
Benchmark: Median Morningstar
AA Prudential Variable Equity
Pote
ntial R
etu
rn (
%)
sim.multi-asset class funds
SIM Balanced
Grow capital steadily
Pote
ntial R
etu
rn (
%)
Risk (vol. %)
Grow capital steadily
Long term strategic asset allocation
Specific stock picking equity component
![Page 30: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/30.jpg)
Downside protection | Monthly performance to February 2011
-2%
0%
2%
4%
6%
8%SIM Balanced Fund -A SIM Inflation Plus Fund
Source: MoneyMate
-10%
-8%
-6%
-4%
-2%
Jan 09 Mar 09 May 09 Jul 09 Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 Jan 11
![Page 31: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/31.jpg)
Downside protection | Monthly performance to February 2011
-2%
0%
2%
4%
6%
8%SIM Balanced Fund -A SIM Inflation Plus Fund SIM Low Equity Fund - A1
Source: MoneyMate
-10%
-8%
-6%
-4%
-2%
Jan 09 Mar 09 May 09 Jul 09 Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 Jan 11
![Page 32: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/32.jpg)
SIM Balanced | February 2011
12.1%
15.9%
23.8%
11.3%
17.4%
15%
20%
25%
SIM Balanced Fund - A Asset Alloc Prud Var Eq
Source: MoneyMate
3.9%
12.1%
7.1%
2.7%
9.0%
11.3%
6.1%
0%
5%
10%
3 Months 6 Months 1 Year 2 Years 3 Years
![Page 33: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/33.jpg)
SIM Inflation Plus | February 2011
10.0%
11.9%
7.0%
7.9%
8.8%
10.4%
8%
10%
12%
14%
SIM Inflation Plus Fund CPI+4%
Source: MoneyMate
2.5%
6.1%
2.4%
3.9%
0%
2%
4%
6%
3 Months 6 Months 1 Year 2 Years 3 Years
![Page 34: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/34.jpg)
SIM Low Equity peers
� SIM Low Equity Fund
� Stanlib Balanced Cautious Fund
� Old Mutual Stable Growth Fund
� Coronation Balanced Defensive Fund
� Nedgroup Investment Stable Fund
� RMB Conservative Fund
� Allan Gray Stable Fund
� Investec Cautious Managed Fund
![Page 35: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/35.jpg)
SIM Low Equity | Performance since inception (July 2010)
Performance Rank
SIM Low Equity Fund - A1 11.0% 1
Fund 1 10.5% 2
Fund 2 9.6% 3
Fund 3 9.4% 4
Fund 4 8.9% 5
Source: MoneyMate
Fund 4 8.9% 5
Fund 5 6.6% 6
Fund 6 3.8% 7
Fund 7 2.9% 8
Asset Alloc Prud Low Eq 7.7%NAV to NAV – Local Currency
From: 30 Jun 2010 to 28 Feb 2011
Income Reinvested on payment date
![Page 36: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/36.jpg)
SIM Low Equity (since inception)
8%
10%
12%
14%
Fund 1 Fund 2 Fund 3Fund 4 Fund 5 Fund 6Fund 7 Fund 8 SIM Low Equity Fund
Source: MoneyMate
-2%
0%
2%
4%
6%
July Aug Sep Oct Nov Dec 2011 Jan Feb
![Page 37: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/37.jpg)
![Page 38: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/38.jpg)
![Page 39: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/39.jpg)
Some other exciting stuff…
![Page 40: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/40.jpg)
![Page 41: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/41.jpg)
sim.sanlam.com
![Page 42: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/42.jpg)
Some of our Creative
![Page 43: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/43.jpg)
Some of our Creative
![Page 44: Sim intro senate group](https://reader033.vdocuments.mx/reader033/viewer/2022060117/5584a897d8b42afd5b8b4ba3/html5/thumbnails/44.jpg)