Sim intro senate group

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Sim intro senate group

  1. 1. SIM is a philosophically grounded, multi-specialist, multi-product house, with one investment platform that leverages off the Sanlamleverages off the Sanlam book and brand.
  2. 2. 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
  3. 3. 4 SIM’s business model has evolved…… Division in Life company Asset Management by Investment Bank (Gensec) Integrated Insurance based Asset Manager (inc. Private Equity Property etc.) Multi specialist Asset 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
  4. 4. Pragmatic value investment philosophy
  5. 5. Understanding the value of a business Aggressive high risk Significant value attributed to future growth Conservative low risk ● Historic info & facts ● Book value Div yield, Low PE ● Future earnings potential True Benjamin Graham students A Replacement value B Continuing value C Growth
  6. 6. 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
  7. 7. Multi-Specialist Teams
  8. 8. Chris Hamman Fixed Income ILB’s André Roux Asset Liability Solutions Money Market Active Income Bond Portfolios 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
  9. 9. 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
  10. 10. 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
  11. 11. SIM Balanced Benchmark: Median Morningstar AA Prudential Variable Equity SIM Low Equity Benchmark: Peer Group Average PotentialReturn(%) sim.multi-asset class funds Group Average SIM Inflation Plus Benchmark: CPI+4% over a rolling 3 year period PotentialReturn(%) Risk (vol. %)
  12. 12. How
  13. 13. 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
  14. 14. CPI+5% (Domestic) Domestic Allocation Long term real return Weighted 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%
  15. 15. 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 Belgium Italy Germany France Spain Japan Switzerland Ireland Denmark Netherlands UnitedKingdom Canada UnitedStates Australia Sweden SouthAfrica -4 1 0 -1 -2 -3
  16. 16. Asset allocation Overweight Underweight Neutral Global Equity Property Bonds Cash Outlook | SIM’s current positioning Global Property Cash Domestic Inflation Linked Bonds Cash Nominal Bonds Equity Property 1 March 2011
  17. 17. 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 Jan07 Mar07 May07 Jul07 Sep07 Nov07 Jan08 Mar08 May08 Jul08 Sep08 Nov08 Jan09 Mar09 May09 Jul09 Sep09 Nov09 Jan10 Mar10 May10 Jul10 Sep10 Nov10 Jan11 Mar11 Source: SIM, 4 March 2011
  18. 18. 8 9 10 11 12 Outlook | SA long bonds - NEUTRAL SA 10YGovernment Bond 4 5 6 7 Jan07 Mar07 May07 Jul07 Sep07 Nov07 Jan08 Mar08 May08 Jul08 Sep08 Nov08 Jan09 Mar09 May09 Jul09 Sep09 Nov09 Jan10 Mar10 May10 Jul10 Sep10 Nov10 Jan11 Source : I-Net Prospective real return assuming 5.25% inflation 3%
  19. 19. 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
  20. 20. 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
  21. 21. 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 GlobalAsia UK US
  22. 22. Outlook | Active Asset Allocation 0% 2.0% 0% 1.5% 1.0% 0% 1% 2% 3% 4% 5% Activebet 09 Jan'09 06 Feb'09 02 Mar'09 06 Mar'09 15 May'09 05 Jun'09 02 Jul'09 08 Sep'09 12 Oct'09 15 Dec'09 09 Mar'10 20 Apr'10 07 May'10 25 May'10 13 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% Local Equities Local Bonds Local ILB's Local Property Local Cash Foreign Equity Foreign Bonds Foreign Property Foreign Cash Activebet Source: SIM
  23. 23. SIM Balanced Benchmark: Median Morningstar AA Prudential Variable Equity SIM Low Equity Benchmark: Peer Group Average PotentialReturn(%) sim.multi-asset class funds Group Average SIM Inflation Plus Benchmark: CPI+4% over a rolling 3 year period PotentialReturn(%) Risk (vol. %)
  24. 24. PotentialReturn(%) 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 PotentialReturn(%) Risk (vol. %) Equity component constructed from houseview SWIX portfolio Derivatives used to hedge exposure tactically.
  25. 25. SIM Low Equity Benchmark: Peer Group Average PotentialReturn(%) sim.multi-asset class funds SIM Low Equity Actively managed Min 60% in high income yielding instrumentsGroup Average PotentialReturn(%) Risk (vol. %) Stable, low equity balanced fund Max 40% equities – stock picking Derivatives used to hedge exposure tactically
  26. 26. SIM Balanced Benchmark: Median Morningstar AA Prudential Variable Equity PotentialReturn(%) sim.multi-asset class funds SIM Balanced Grow capital steadily PotentialReturn(%) Risk (vol. %) Grow capital steadily Long term strategic asset allocation Specific stock picking equity component
  27. 27. 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 Mar09 May 09 Jul09 Sep 09 Nov 09 Jan 10 Mar10 May 10 Jul10 Sep 10 Nov 10 Jan 11
  28. 28. 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 Mar09 May 09 Jul09 Sep 09 Nov 09 Jan 10 Mar10 May 10 Jul10 Sep 10 Nov 10 Jan 11
  29. 29. SIM Balanced | February 2011 12.1% 15.9% 23.8% 11.3% 17.4% 15% 20% 25% SIM Balanced Fund -A AssetAlloc Prud VarEq 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
  30. 30. 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
  31. 31. 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
  32. 32. 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
  33. 33. SIM Low Equity (since inception) 8% 10% 12% 14% Fund 1 Fund 2 Fund 3 Fund 4 Fund 5 Fund 6 Fund 7 Fund 8 SIM Low Equity Fund Source: MoneyMate -2% 0% 2% 4% 6% July Aug Sep Oct Nov Dec 2011 Jan Feb
  34. 34. Some other exciting stuff…
  35. 35. sim.sanlam.com
  36. 36. Some of our Creative
  37. 37. Some of our Creative

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