The trustees of the Sanlam Umbrella Fund regularly identify and track risks in the fund, which could ultimately impact the members of the Fund.
One of the recently identified risks relates to the Naspers concentration risk in the Satrix (SWIX) Balanced Tracker Fund. At the end of April 2018, the level of exposure to the Naspers stock in the Satrix (SWIX) Balanced Tracker Fund was 11.15%.
Due to this high concentration towards a single stock and the risk that this poses, Satrix has advised that they will change the local benchmark of the portfolio from the Shareholder Weighted Index (SWIX) to the Capped SWIX with effect from 01 August 2018.
This change will prevent exposure of the portfolio greater than 10% to any one stock. This change will therefore significantly mitigate the concentration risk of the portfolio.
The portfolio will also in future be referred to as the Satrix Enhanced Balanced Tracker Fund.
No action is required from Contracted Benefit Consultants or participating employers.