Satrix opens IPO for first of its kind inclusion and diversity ETF

• Satrix's new ETF invests in the JSE's 30 most diverse and inclusive companies.
• These 30 companies scored the highest on metrics such as gender split, BEE, number of disabled employees, HIV/AIDS policies, day-care, working hours and more.
• Woolworths, Nedbank, BAT, Adcock Ingram and Foschini are among the top scorers.
• The index tracked is based on research by Refinitiv, the world's largest provider of financial markets data.
• Research has shown that companies with diverse workforces perform well in the complex, interconnected digital world.

For the first time ever, investors can invest in the most inclusive and diverse companies on the Johannesburg Stock Exchange (JSE) through a new exchange-traded fund (ETF) from Satrix.

The initial public offering (IPO) of the Satrix Inclusion and Diversity ETF opens today (Tuesday, 20 July 2021).

Like many of the ETFs listed by Satrix over the years, the Satrix Inclusion and Diversity ETF is a South African first. It tracks a unique Diversity and Inclusion index, developed with Refinitiv, the world's largest provider of financial markets data and infrastructure. The index ranks JSE-listed companies according to key metrics, along with specific transformation metrics unique to South Africa, to create a one-of-a-kind ETF of South Africa's most inclusive and diverse organisations.

These metrics include not only gender diversity of the workforce and diversity at board level, but also specifically focus on inclusion by looking at the percentage of employees with disabilities; BEE scorecards; policies on, for instance, HIV/AIDS; day-care, flexible working hours and more.

Woolworths, Nedbank, British American Tobacco, Adcock Ingram and Foschini are among the top scorers in the ETF.

Globally, there is a trend towards recognising inclusion and diversity as a business and investment asset.

Helena Conradie, CEO of Satrix, says there is encouraging evidence that companies that are world leaders in terms of workplace inclusion and diversity are not only good for their employees, but they also make a materially good investment. "The single biggest challenge businesses face today is meeting the needs of an interconnected and layered world. No business can hope to succeed without having a workforce as varied as the world in which it operates. Any company that doesn't take inclusion and diversity seriously is at risk of simply not understanding how to service its markets."

Siyabulela Nomoyi, portfolio manager of the new ETF, adds that not only is the Satrix Inclusion and Diversity ETF based on sound investment principles, the fund is also aligned with Satrix's deep commitment to diversity and inclusion. "A PwC 2020 report on executive directors indicated that women make up only 6% of CEOs of JSE-listed companies. This is a clear example of why South Africa needs an inclusion and diversity ETF that will allow investors to invest in the change they want to see on the JSE."

The IPO will run from 20 July 2021 through to 29 July 2021. During this time, subscribers will pay no brokerage or trading fees. In addition, no buy-sell (bid-offer) spread will apply. Existing clients can take part in the IPO via the SatrixNOW platform. Investors who buy ETFs via another trading platform or their stockbroker can contact their brokers directly for details. Please note that stockbrokers may have different cut-off times for this IPO.

Table 1: Details of the Satrix Inclusion and Diversity ETF

More information on the fund is available on the ETF info sheet and the Satrix Inclusion and Diversity ETF brochure.

Satrix will host a virtual event on the Satrix Inclusion and Diversity ETF on Friday, 23 July 2021 at 10:30am. To attend please register via this link.

The anticipated listing date of the ETF on the JSE is Wednesday, 11 August 2021.