SATRIX changes the game in passive investments again
01 November 2013 | Investments | General | SATRIX
Helena Conradie, chief investment officer at SATRIX.
Twenty years since the launch of the world’s first exchange traded fund, the rapid uptake in passive investing globally is showing no signs of slowing down. Locally SATRIX, a dominant player in the passive space, has launched a number of innovative new products to meet strong demand from individual and institutional investors. The addition of these products means that SATRIX now offers the market a wider range of passive options, at some of the lowest costs.
Notably, SATRIX has just launched the company’s first balanced index fund, a unit trust with a smart beta equity core. The product is competitively priced with annual fees as low as 0.35% for institutions and 0.60% for retail investors. Thomas van Heerden, chief executive of SATRIX, says the fund is a first in a few ways for the company. "We have previously provided only exchange traded funds and are therefore very excited to now offer unit trusts. It is also our first foray into the multi-asset class space, as opposed to the traditional equity-only funds.”
He said the ‘smart investment core’ aspect of the balanced fund offers investors exposure to diversified smart beta equity including equally weighted top 40, dividend plus and momentum. "The fund gives investors exposure to multiple passively tracked asset classes in South Africa and internationally. It offers some rand-hedge protection and aims to grow capital steadily while providing income over the medium to long term.”
SATRIX – 100% owned by Sanlam since August 2012 and managers of R35 billion in assets – also recently launched its MCSI World Equity Index Feeder Fund which offers local investors exposure to developed equity markets in Rand. "This is the perfect vehicle for investors looking to gain exposure to world equity markets, as no foreign exchange tax clearance is required. We have worked hard to bring this product to market at very low fees for an international product - fees will be as low as 0.50% for investors.”
Finally, SATRIX also introduced its Momentum Index Fund, a passively managed equity only unit trust which offers investors exposure to the momentum style of investing. Helena Conradie, chief investment officer at SATRIX, explains: "Our objective is to capture the momentum style that has proven to be one of the factors outperforming the general market over the long term.”
SATRIX says more products will follow in the near future, subject to regulatory approval. Plans include a low equity balanced fund and further international feeder funds offering exposure to other geographies.
