New Ashburton Global 1200 ETF will capture 70% of world's market cap

The new Ashburton Global 1200 ETF will provide investors with efficient exposure to global equity markets by tracking the S&P Global 1200.

The S&P Global 1200 index captures approximately 70% of the world market cap, covering seven distinct regions and 30 countries.

It will list on the JSE on Friday 6th October 2017.

It is constructed as a composite of seven headline indices, most of which are accepted benchmarks in their regions. These include the S&P 500 (US), S&P Europe 350, S&P TOPIX 150 (Japan), S&P/TSX 60 (Canada), S&P/ASX All Australian 50, S&P Asia 50 and S&P Latin America 40. Each stock in the index must meet liquidity standards and each component region has appropriate sector representation. The size of each region corresponds to its relative size in the global equity market, based on a float-adjusted market value.

The Ashburton Global 1200 ETF is expected to appeal to South Africans who want an easy way to gain offshore diversification geographically and from a currency perspective. From South African investors' perspective, most benefits will be gained from investing in developed market equities as they would typically have local equity exposure already.

The portfolio tracks a diversified equity index and therefore exhibits a high-risk risk profile that aims to deliver capital growth over the long term (beyond 5 years).

Looking at it's geographic spread, currently the portfolio has its biggest exposures to the US at 57%, followed by 7.8% to Japan and 6.5% to the UK.

Its biggest stock holdings are Apple, Microsoft and Facebook respectively.

It is expected to have a total expense ratio (TER) of 0.45%. Investors who subscribe to the Initial Public Offering ( IPO) will save on brokerage and enter at initial Net Asset Value ( NAV). The fund is currently open for investor who want to invest in the IPO.

The fund is not a feeder fund and will hold underlying physical equities. Local investors will not have to use offshore allowances to invest in the fund.

To see detailed document attached lays out historic returns, further details click here.