Satrix Dividend Plus Fund

Highveld Steel, Anglo Platinum, Tongaat-Hulett, Pick 'n Pay, Impala Platinum, Reunert, Liberty Group, PPC, Nedbank Group, Nampak, Sanlam, ABSA, Standard Bank, RMB Holdings, African Bank, Metroplitan Life, Allied Technologies, Hulamin, AVI, JD Group, Santam, Woolworths, Massmart, Grindrod, Northam Platinum, Foschini, Astral Food, Telkom, Lewis Group

How would you like to own these shares - and earn tax free dividends? You can - by investing in the Satrix Dividend Plus Fund. The Satrix Divi Fund tracks the FTSE/JSE Dividend Plus Index. This fund consists of 30 companies, selected from the JSE Top 40 and Mid-Cap indices. The unique features of the Satrix Divi are:

• Appeals to investors seeking a high dividend income from shares on the JSE
• Consists of listed shares and is a long-term investment
• Subject to risk and capital loss/gain - investors need to be acutely aware of downside risk on share prices of any equity/share investment
• Ideally suit an investor who is looking for equity exposure but whose prime goal is deriving tax-free dividends

The amount of risk you wish to take will ultimately determine the actual portfolio diversification chosen. Obviously the longer the time horizon of the investment, the more risk you will be able to tolerate. One has to understand the mechanics of risk [volatility] and potential return. If dividend income is not your priority, we still maintain the view that actively managed funds generally outperform passive index-tracking funds over the long term. The graph below illustrates this viewpoint clearly:

As SATRIX Dividend Plus Fund has no track record, we are using the Prudential Dividend Maximiser Fund as a proxy which is in the same category of the new SATRIX Dividend Plus Fund. This gives some interesting results.

Silke Financial Services has the expertise to choose the right funds to suit your tolerance for risk according to your investment time horizon.

If you have any queries regarding the above commentary please contact us on 021 683 3380 or info@silke.co.za