As a result, we got Satrix's MD Mike Brown to respond. Here's an edited version of Brown's response:

Brown answers:

"We are always concerned to hear about investors, who have problems with the administration of Satrix and appreciate the opportunity to respond to your reader?s queries.

"Satrix are securities listed on the JSE that enable investors to receive the total return (capital plus dividends) of an entire portfolio of shares.

"For any investor wishing to buy and sell Satrix securities, this can be done through a stockbroker, in which case, the brokerage and any other charges need to be negotiated with the stockbroker. For clients without stockbroking accounts, which is the great majority of Satrix investors, you can use the Satrix Investment Plan.

The role of AOSL

"The Investment Plan is administered by Automated Outsourcing Services Limited (AOSL), who is a major independent investment administration company and looks after the administration of 15 other investment companies as well as Satrix.

"We shifted the administration of the Investment Plan to AOSL last May in an effort to improve the administration efficiency. For the Investment Plan, AOSL does the back-office function of a stockbroker, to ensure the registration of investments in the name of the investor, reinvests dividends, and sends out quarterly statements and annual tax certificates.

"It also operates a call centre for the Satrix Investment Plan, which was outsourced to Cape Town, but from mid-2007, a dedicated call centre for the Satrix Investment Plan will be operated by AOSL from their head office in Johannesburg. The call centre number remains the same: (086 1100 670).

Is your form complete?

"The processing of the application form is all automated and normally works exceptionally well. The only way the administration of the Satrix Investment Plan can fall down is when application forms are received that are not properly completed; in other words, without the correct FICA documents and without proof of payment if lump sum investments are involved.

"A disappointingly large number of applications are received in non-complete form, in which case the administrators have to contact the client to rectify matters. It is normally at this point that the investment process becomes drawn out.

"The process followed by AOSL is to send an SMS message to the investor that an application form has been received It then goes into the system for processing and within 24 hours the investor will receive another SMS message to say the investment is going ahead, or else some documentation, etc., is missing.

Follow all instructions

"Once the investment has been processed through the JSE (all securities purchased through the JSE take five working days to settle), the investor gets a welcome letter to state their account number, number of shares bought, value etc.

"It is important to include cell phone numbers and email addresses on the application to speed up the contact process. It is also critical to follow all the instructions ? the administrators cannot, by law, process any investment where FICA documentation has been omitted; investments cannot be made, in terms of the Securities Act and JSE regulations until the cash has been received up front; banks will reject debit orders if bank details have not been correctly filled in, etc.

"The second area, where the administration can be critical is in the operation of the call centre. Here we understand there are problems from time to time and Satrix has now resolved to move this call centre, directly under AOSL, to Johannesburg.

Who you should contact...

"Our understanding, from a great number of investors is that the overall administration of the Investment Plan is improving steadily and is now on par with all other administrators, so I am disturbed to hear that there are internet sights criticising the administration ? perhaps they are out of date?

"We believe that there is always room for improvement, and would value any Satrix investors, or prospective investors, contacting us if there are any administration problems or ideas for improvement.

"Your readers can contact Jane Robinson at AOSL, who is their client-relationship manager for Satrix at 011-676-0097 or email: jrobinson@aosl.co.za."

Tell us about your Satrix experiences

My only gripe with Satrix is that as an existing investor, I wish to invest more money, I have to go through the whole FICA process again.

They have all my details. Why must I do it all again? This involves too much repetition of copy making, affidavits etc. etc.

Just some response to Mike Brown's reaction on " Has the Satrix let you down". The admin was previously handled by Absa and was well done. So the move of the admin was not to improve service. He carries on about completing the form in full etc. making it sound as if it's not their fault, but just acting on instructions and returning phonecalls will help.

I recently added to my Satrix investment in the form of increased monthly debit and by way of lump sum deposits.

I filled in the forms as required, included proof of lump sum payments and faxed it off.

I received SMS confirmation within the hour and all documentation of current values, additional investment information was received in the post a week later.

Satrix service is the best I have experienced and puts the likes of ABSA and MTN to shame.

Interesting to see others also had problems with Satrix.

I was in the UK at the time (Feb 2006) and wanted to invest R100 000 in Satrix funds. I submitted all my details to the Satrix consultant, giving my SA address as my parents address. As well as their telephone number.

The stupid consultant proceeded to try to contact me and in the process divulged my investment intentions to my parents which I didn?t want them to know about. There was no level of security offered whatsoever and was so appalled, I cancelled the transaction completely and invested the capital offshore.

I think that Satrix's administration is quite good relative to other fund managers.

However, when I phone the Satrix help line I have to wait far too long.

During my lunch break yesterday at 1.12pm, I faxed details of an additional investment in the Satrix 40 fund. At 2.02pm I received a SMS from Satrix confirming receipt. That is great service by any standard, and is in keeping with what I have experienced since first investing in Satrix three years ago.

The superior investment efficiencies of an index tracking fund, as well as the fact that Satrix administration fees are the lowest in the business, have turned the entire collective investment industry on its head. At the end of the day, investment is all about net earnings.