SatrixNOW Products: Pick Your Own Squad

It’s November, which means the Qatar Soccer World Cup frenzy is here!

SatrixNOW Products: Pick Your Own Squad

It’s November, which means the Qatar Soccer World Cup frenzy is here. In sport, individual performance counts, but in the end, especially in football, it’s teamwork that takes you to the finals. The same principle applies to your investment portfolio. When you invest, there’s a goal in mind and to achieve that goal you need certain players - in this case ETFs/unit trusts. You pick your own squad and have a mix of investment products that are there to defend your savings when the going gets tough, while they can strike when there are opportunities in the market.

At the world cup, each country gets to send a squad of maximum 26 players and Satrix has listed 26 ETFs on the JSE, so there’s your full squad. Similarly to a football manager, you need to pick your players diligently and know which player to substitute when, so that your squad is of good quality and can maximise your chance of minimising losses in market turmoil. How you pick your squad depends on your risk appetite as well. The younger you are the more time you have in the market so you can take more risks and play a more attacking game, while with age you tend to become more defensive and risk-averse. So, what is available for your squad?

This is your last line of defence for risk-averse investors. The Satrix Money Market Fund, which tracks the STeFI composite index, always has its gloves on. Even if your strikers try to score an own-goal, the money market interest-like rates you get from this fund will cushion the blows, protecting your savings while trying to keep up with inflation. To illustrate, the All Share index is down 5.7% this year while the STeFI index is up 4.1%. Talk about a goalkeeper with a clean sheet! A possible substitute here is the Satrix Low Equity Balanced Index Fund, a goalkeeper that’s not afraid to go forward and put in a header to score a goal at the last minute of injury time.

These are the gate keepers that offer protection against the erosive effects of high inflation, and are willing to take on medium risk. The Satrix Local Bond and the Satrix Inflation-Linked Bond Funds are the ones who call the shots in this line of defence. Sometimes, to be defensive is to get exposure to asset classes which behave a bit differently from equities and bonds, and the Satrix Global Infrastructure Feeder ETF sprovides this, as discussed in our last Fund Focus mailer.

If anything goes wrong at the front, your midfielders are the first ones to correct it. They can play defence or push forward when needed. The Satrix Balanced Index Fund is a mixed asset fund which provides overall diversification, and is an all-rounder that can be seen as the best midfielder available.

There is a huge number of available strikers on the SatrixNOW platform and they are mostly equity strategies. Local equity ETFs like the Satrix Divi, tracking an index which was up 3.2% in October, bring a unique sense of style to your portfolio and have the ability to strike and hit the target. The Satrix Top 40 ETF is another well-known local hero and trusted striker along with its sibling, the Satrix Capped All Share ETF. These equity funds can complement each other sometimes, when one ETF performs very well while the other needs to be subbed for poor performance or when it receives a red card. There are world-class strikers as well who play abroad, like the Satrix MSCI World ETF (9.6%) and the Satrix Nasdaq 100 (6.3%). 

Be careful when choosing your squad. Some players tend to play the same style as the others so don’t have them in the squad at the same time. Rather spread your risk by choosing players with different styles. And depending on the markets and your age, you can move between playing a defensive or an attacking game. Enjoy the World Cup!


Stand a Chance to Win During Our Birthday Month 

November 27th marks our 22nd birthday – over two decades of leading the local indexation industry, making investing effortless for South Africans! To celebrate our milestone with you, our investors, we are excited to announce that any current Satrix investor (as of 1st November 2022) stands the chance to win a R22,000 SatrixNOW investment voucher during our birthday month! For more information and how to enter > click here.   
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Satrix Managers (RF) (Pty) Ltd (Satrix) is an authorised Financial Service Provider (FSP no 15658) and a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. Unit Trusts and ETFs the investor essentially owns a “proportionate share” (in proportion to the participatory interest held in the fund) of the underlying investments held by the fund. With Unit Trusts, the investor holds participatory units issued by the fund while in the case of an ETF, the participatory interest, while issued by the fund, comprises a listed security traded on the stock exchange. ETFs are index tracking funds, registered as a Collective Investment and can be traded by any stockbroker on the stock exchange or via Investment Plans and online trading platforms. ETFs may incur additional costs due to it being listed on the JSE. Past performance is not necessarily a guide to future performance and the value of investments / units may go up or down. A schedule of fees and charges, and maximum commissions are available on the Minimum Disclosure Document or upon request from the Manager. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. A feeder fund is a portfolio that invests in a single portfolio of a collective investment scheme, which levies its own charges and which could result in a higher fee structure for the feeder fund. International investments or investments in foreign securities could be accompanied by additional risks such as potential constraints on liquidity and repatriation of funds, macroeconomic risk, political risk, foreign exchange risk, tax risk, settlement risk as well as potential limitations on the availability of market information. The manager has the right to close the portfolio to new investors in order to manager it more efficiently in accordance with its mandate. Satrix Investments (Pty) Ltd is an authorised Financial Service Provider (FSP no 43670).