This review of Sanlam Artificial Intelligence Fund will delve into the features, terms, performance, and pros and cons of investing in artificial intelligence funds.
The Sanlam AI Fund is an offering from Sanlam Investments UK, an international asset management unit of Sanlam Investment Group.
Sanlam Investment Group is one of Africa’s biggest asset management firms.
Both entities are wholly owned by Sanlam Limited.
Structured as a multi-boutique asset management enterprise, Sanlam Investments UK operates out of London.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me ([email protected]) or use WhatsApp (+44-7393-450-837).
As investments always carry risk, it makes sense to seek guidance or advice from an expert.
Now let’s get into the details of the artificial intelligence funds.
Sanlam Global Artificial Intelligence Fund Offerings
Through its active management, the Sanlam Artificial Intelligence Fund seeks to invest in the stock and equity securities of firms across the world that are engaged in the development and production of AI systems and products.
The Fund may invest up to 10% of its net asset value in non-traded or unlisted securities, even though most of its holdings are public or traded on stock exchanges.
The Sanlam AI Fund can also choose to put its money into other types of collective investment schemes, like exchange-traded funds with tech investment.
Launched on June 23, 2017, the Sanlam Global Artificial Intelligence Fund has a total of 1,023,076,809 pounds in assets under management (AUM). Sanlam Asset Management Ireland succeeded Smith & Williamson Investment Management Limited as the fund manager as of July 29, 2022.
Investors need 25 million pounds to subscribe to this AI Fund.
With 6.6% of the Fund’s total assets, NVIDIA Corp. ranks first, followed by Microsoft with 6.0% and Alphabet with 4.1% in terms of the top three largest individual investments within the Fund’s portfolio.
The United States accounts for 67% of the Sanlam Global Artificial Intelligence Fund’s geographic allocation, indicating its primary concentration. With 54.3% of the total, information technology is the most heavily allocated sector.
The Fund has a reasonable fee structure (0.38% yearly management charge and 0.50% continuing charge).
Those looking to invest in companies that are at the forefront of AI or are already reaping its benefits will find it to be a perfect fit.
Sanlam Artificial Intelligence Fund GBP Acc
The Class I fund denominated in British pounds logged growth rates of 6.6% for the past month, 8.8% for the year so far, 36.3% for the past year, 9.6% for three years, 19.8% for five years, and 19.7% since its rollout, according to a February 2024 fact sheet.
According to the Sanlam Artificial Intelligence Fund Class I2 Key Investor Information Document (KIID), the fund had a return of 36.7% in 2023. In addition, investors bear the fees of fund management and administration, which amount to 0.91%.
Sanlam Artificial Intelligence Fund USD Acc
The Class I US Dollar fund logged yearly returns of 5.9% over the past month, 7.9% year-to-date, 42.4% in 2023, 6.0% over three years, 18.6% over five years, and 19.5% since its inception.
For the Sanlam Artificial Intelligence Fund Class I2 unhedged variant, the profit hit 45.2% in 2023. Additionally, the ongoing charge associated with managing this fund stood at 0.92%.
For Class I2 hedged and Class IS2 hedged funds, no sufficient data were available to gage past performance of the funds. Ongoing charges stood at 0.91% for the former and 0.69% for the latter.
Sanlam Artificial Intelligence Fund CHF Acc
Investors pay 0.91% as an ongoing charge for the Class I2 CHF hedged fund. Unfortunately, there isn’t sufficient available data to assess the past performance of this fund.
The Class I3 unhedged fund, in contrast, produced a 30% return in 2023. Investors gained from the gain made during that time even though the ongoing charge for managing this fund was higher at 1.10%.
Sanlam Artificial Intelligence Fund EUR Acc
A continuous fee of 0.93% is paid to investors in the Class I2 hedged fund denominated in euros. A thorough evaluation of the fund’s historical performance, however, is not yet available owing to a lack of data.
The Class I3 unhedged fund also have an ongoing fee of 1.10%. The fund earned 30% in 2023.
How to invest in Sanlam AI Fund
Depending on your investment preferences, you have the option to access Sanlam Investment funds directly or through investment platforms.
To invest directly, fill out an application form and submit it to the appropriate administrator.
Investors can, under certain circumstances, transfer their shares to a different class of shares in the Fund.
Are investments in Sanlam Global AI Fund taxed?
The rules and regulations of Ireland’s tax system apply to this Fund. This can affect your individual tax situation depending on where you now reside.
Pros and cons of Sanlam Global Artificial Intelligence Fund
Pros of Sanlam Artificial Intelligence Fund
- This fund was among the first AI funds in Europe.
- Potential for lower costs compared to traditional funds.
- Potential outperformance could be available from AI funds that are well-managed.
- With the help of artificial intelligence, funds may do better analyses with less human intervention, which could lower expense ratios for investors.
- The fund can complement a well-diversified investment basket.
Cons of Sanlam Artificial Intelligence Fund
- You run the danger of seeing your investment value go up or down; that’s just the nature of investing. Complete loss of invested funds is possible due to the lack of return assurances.
- It is yet uncertain if AI-powered funds can reliably outperform longer-standing investment options, such as the S&P 500 index fund, due to their short-term existence.
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