Author Topic: STX40 vs RMBT40 (read this before you buy Satrix 40)  (Read 6311 times)

yossarian

  • Jr. Member
  • **
  • Posts: 55
  • Karma: +2/-0
    • View Profile
STX40 vs RMBT40 (read this before you buy Satrix 40)
« on: October 03, 2013, 12:31:23 pm »
Seems like a no brainer?  STX40 has a TER of (at least) 0.45% while RMBT40 runs at 0.2%.  Am I missing something here?

yossarian

  • Jr. Member
  • **
  • Posts: 55
  • Karma: +2/-0
    • View Profile
Re: STX40 vs RMBT40 (read this before you buy Satrix 40)
« Reply #1 on: October 03, 2013, 03:06:42 pm »
R100 000 invested in STX40 or RMB40 for 10 years with an annual return of 15%

Year
STX40
RMBT40
ROE S40
ROE RMB40
Delta
0   100 000   100 000
1   114 483   114 770   14.5%   14.8%   0.3%
2   131 062   131 722   31.1%   31.7%   0.7%
3   150 044   151 177   50.0%   51.2%   1.1%
4   171 774   173 506   71.8%   73.5%   1.7%
5   196 651   199 132   96.7%   99.1%   2.5%
6   225 131   228 544   125.1%   128.5%   3.4%
7   257 735   262 300   157.7%   162.3%   4.6%
8   295 062   301 042   195.1%   201.0%   6.0%
9   337 794   345 506   237.8%   245.5%   7.7%
10   386 715   396 537   286.7%   296.5%   9.8%
               
               

Patrick

  • Administrator
  • Hero Member
  • *****
  • Posts: 2393
  • Karma: +40/-2
    • View Profile
Re: STX40 vs RMBT40 (read this before you buy Satrix 40)
« Reply #2 on: October 04, 2013, 09:16:06 am »
Thanks for working that out. Costs make a huge difference! Mind if I ask where you got the TER numbers from?

yossarian

  • Jr. Member
  • **
  • Posts: 55
  • Karma: +2/-0
    • View Profile
Re: STX40 vs RMBT40 (read this before you buy Satrix 40)
« Reply #3 on: October 04, 2013, 09:36:35 am »
Mind if I ask where you got the TER numbers from?

Exactly the sort of question I would have asked!  I definitely don't mind!

There is some sort of standard as to how they report TER.  Whilst past performance doesn't guarantee future performance I can only see RMBT40's expenses going down as they scale up and their Scrip lending income increases.  Satrix looks a bit fat and lazy.

Update:  RMB's fee outline:

  • A management fee of 0.1% per annum, is payable to the Manager monthly.
  • The manager must give not less than three months’ written notice to investors of any change in the manager’s fee or any change in the method of calculation thereof that could result in a change in fees.
  • An upfront fee may be charged in connection with the expenditure incurred and administration performed in respect of the creation, issue and sale of Securities. Such fees will be expressed as a percentage of the consideration received from an investor and charged on a sliding scale dependent on the size of the
    investment.
  • An exit fee may be charged in connection with the expenditure incurred and administration performed in respect of the repurchase of Securities. These fees will be expressed as a percentage of the proceeds from the sale by the investor of Bips TOP 40 Securities and charged on a sliding scale.

(ref http://www.rmb.co.za/PDFs/etfs/BipsTop40Supplement20081002.pdf)

Update 2:

According to Satrix's 2012 financial statements:

  • A management fee of 34.7m on average assests of 7.38b (0.47%)
  • A management fee of 34.7m on income of 191m (18%)

Update 3:

Similar calc done to RMB T40's financials:

  • Total fees of 1.3m on average assests of 543m (0.24%)
  • Total fees of 1.3m on income of 16m (8%)

Please check my assumptions and calculations!
« Last Edit: October 04, 2013, 10:25:47 am by yossarian »