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General Category => Shares => Topic started by: yossarian on October 03, 2013, 12:31:23 pm

Title: STX40 vs RMBT40 (read this before you buy Satrix 40)
Post by: yossarian 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?

Title: Re: STX40 vs RMBT40 (read this before you buy Satrix 40)
Post by: yossarian 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%

Title: Re: STX40 vs RMBT40 (read this before you buy Satrix 40)
Post by: Patrick 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?

Title: Re: STX40 vs RMBT40 (read this before you buy Satrix 40)
Post by: yossarian on October 04, 2013, 09:36:35 am

Quote from: Patrick on October 04, 2013, 09:16:06 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!

• RMBT40 August fact sheet (http://www.rmb.co.za/investments/pdf/RMB_Top40_EFT_Aug_2013.pdf) 
• Satrix40 August fact sheet (http://satrix.co.za/documents/august%202013%20-%20august%202013%20-%20satrix%2040%20-%202013/09/10%20-%20quarterly%20fact%20statement.pdf)

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

Update 2:

According to Satrix's 2012 financial statements (http://satrix.co.za/documents/satrix%2040%20portfolio%202012%20-%20satrix%2040%20portfolio%202012%20-%20satrix%2040%20-%202013/03/27%20-%20annual%20financial%20statements.pdf):

• 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 (http://www.rmb.co.za/PDFs/etfs/RMBTop40_AFS_30Jun2012.pdf):

• 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!