Satrix style tracker Q3

What worked and what didn’t in Q3 2017

| 8 November 2017

Factor performance review at a glance

All factors delivered positive performance during the third quarter. Notably, Momentum factors – both Price and Earnings Momentum – were the best performing factors during the third quarter, with returns of 13.3% and 9.7% respectively. On the other hand, Value factors performed worst (after being the best performers last quarter), although still with positive performance. Quality factors, in particular Debt to Equity, delivered decent positive returns over the period.

Quintile spread performance: Q3 2017

Quintile spread performance: Q3 2017

What impacted performance in Q3?

The Q3 environment was reasonably friendly towards momentum and growth-orientated strategies. Despite increased political uncertainty in the US (amid rising tensions between the US and North Korea), the Eurozone region experienced robust economic data outcomes. Emerging markets experienced positive economic conditions on the back of steady global growth, modest inflation, US dollar weakness and a continued momentum in the Chinese economy, through a pick-up in
commodity prices.

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Satrix Managers (RF) (Pty) Ltd, a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. Past performance is not necessarily a guide to future performance, and that the value of investments / units / unit trusts may go down as well as up. A schedule of fees and charges and maximum commissions is available from the Manager on request. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The Manager has the right to close the portfolio to new investors in order to manage it more efficiently in accordance with its mandate. The maximum fund charges for the Satrix Balanced Index Fund include (including VAT): An initial advice fee of 0%; annual advice fee of 1.14% and annual manager fee of 0.39%. The latest TER is 0.76%. The performance ranking of the Satrix Balanced Index Fund (3rd in its Asisa category) is according to Morningstar. The return of the fund since inception to end 2017 was 9.69%. The highest and lowest annual returns since inception were 19.04% and 4.03% respectively.
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