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New Satrix ETF becomes first fund to track full JSE ALSI universe

18 October 2021 Satrix

- The Satrix Capped All Share Index is the first exchange-traded fund (ETF) to track a full universe of large-, mid-and small-cap SA listed companies
- The initial public offering (IPO) of the Satrix Capped All Share ETF opens at 9 am on 18 October 2021 and closes at 12 pm on 29 October 2021
- Offers broader exposure to the market than other tracker indices
- The ALSI has performed strongly in recent years, outperforming most active managers and the JSE Top 40 Index
- IPO live on 18 October 2021, listing set for 10 November 2021
- 140 stock universe provides broad exposure to the JSE, including 15% exposure to the mid-and small-caps
- Top 10 holdings include BHP Group, Compagnie Financiere Richemont, Anglo American, and Naspers
- To celebrate this market first Satrix to launch this ETF at a 0% TER for the first six months. The targeted TER of 25bps will only come into effect on 1 June 2022.

Satrix has launched the first exchange-traded fund on the JSE to include the full universe of large-, mid-and small-cap South African-listed companies. By tracking the FTSE/JSE All Share Index (ALSI), the Satrix Capped All Share Index (CAPI) gives investors exposure to large multinational companies such as BHP Group, Richemont and the Naspers - Prosus stable, while providing broader exposure to the marker than other tracking indices such as the Top 40 Index.

Nico Katzke, head of portfolio solutions at Satrix Investments, says, “Our new Capped All Share ETF is ideal for investors seeking exposure to the JSE beyond the Top 40 listed shares. Investors looking for stability and outperformance, particularly relative to most active managers, should look closely at this ETF.”

He said each individual share in the portfolio would be capped at 10% to limit single stock exposure. “The fund also includes high offshore exposure – via stocks like BHP, Richemont and Prosus – which provides investors with a good rand hedge, similar to the Top 40 index. The CAPI has delivered a more stable return profile due to improved diversification and capping limits, which means there is lower overall concentration risk and additional upside potential from mid-and small-cap counters. The result has been strong and consistent performance relative to other actively managed SA General Equity unit trust funds over time.”

Katzke adds that since September 2020, Satrix has launched five new ETFs. “Most recently, South Africa’s pioneering ETF business listed the country’s first-ever Inclusion and Diversity ETF, which empowers investors to invest in the JSE’s most inclusive and diverse companies. It also launched the Satrix Global Infrastructure Feeder ETF, which tracks a diverse portfolio of the largest and most liquid infrastructure companies in developed and emerging markets – at a time when developed markets are embarking on large scale infrastructure spending. This also followed the highly successful launch of our China ETF.”

Katzke further points to Satrix’s leading role in pioneering easy to access, low-cost ETFs in South Africa. “Twenty years ago, Satrix launched South Africa’s first-ever ETF, the award-winning Satrix Top 40 ETF, with the intention of making low-cost, diversified investment products cheaper and more accessible. It remains our mission to provide clients with a full spectrum of diversified products to grow future wealth. We continue to pioneer relevant solutions, with deep social impact alongside robust returns. We now manage over R150 billion in assets, making Satrix the largest index tracking business on the continent.”

The Satrix Capped All Share ETF can be accessed via SatrixNOW.co.za, which has no minimum investment amount. It will also be available via other investment platforms and personal stockbroking accounts.

 

Sidebar: Satrix Capped All Share ETF in a nutshell:

INITIAL PUBLIC OFFERING DATE: 18 October 2021, no fees apply until listing
JSE LISTING DATE: 10 November 2021
JSE LISTING CODE: STXCAL
ASISA CATEGORY: South African – Equity – General
TARGETED ANNUAL TER: 0.25% VAT inclusive (Effective from 1 June 2022)
CURRENCY: South African rand
DISTRIBUTION: Quarterly
RISK PROFILE: Aggressive/High
REGULATION 28-COMPLIANT: No. This is an equity fund
INDEX TRACKED: FTSE/JSE Capped All Share Index
NUMBER OF INDEX CONSTITUENTS: 139
ASSET MANAGER: Satrix investment team
MARKET MAKER: Sanlam Private Wealth

Quick Polls

QUESTION

The second draft amendments to Regulation 28 will allow retirement funds to allocate up to 45% of their assets to SA infrastructure, with a further 10% for rest of Africa; but the equity & offshore caps remain unchanged. What are your thoughts on the proposal?

ANSWER

Infrastructure? You mean cash returns with higher risk!?!
Infrastructure cap is way too high
Offshore limit still needs to be raised
Who cares… Reg 28 does not apply to discretionary savings
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