Sustainable Investing 101: Investing with Impact for a Better World
More and more people are aligning their investment choices with their values, with causes close to their hearts and with the chance to help safeguard the future of our planet and people. At Satrix, we have a range of funds that support investors who wish to invest sustainably.
To begin, let’s explore the ins and outs of sustainable investing and how it can make a positive impact on the world.
The Shift towards Sustainable Investing
While the shift to sustainable investing (also often called responsible or ESG – environmental, social, governance - investing) was already underway before Covid-19, it really gathered steam during and after the pandemic. Now the investment landscape is rapidly evolving, with many investors embracing sustainable investing. What exactly is sustainable investing? It is about considering not only your financial returns but also the broader impact your investments have on the world. It contributes to a resilient society. It's about investing in companies that prioritise managing the most pressing environmental, social and governance risks affecting a business or sector, utilising cleaner energy sources and becoming more inclusive.
Benefits of Sustainable Investing
One of the major perks of sustainable investing is the ability to align your financial decisions with your values. It's a chance to make a real difference by using your resources to create a better world for future generations. At Satrix we give you the opportunity to invest in companies that champion climate change, human rights and a whole array of other ESG issues that truly matter to you.
Let's Talk Satrix ETFs for Sustainable Investing
We have a strong line-up of Satrix ETFs tailored specifically for those wishing to invest for good:
- Satrix MSCI World ESG ETF: This fund helps support positive changes in the world. It focuses on investing in companies from developed countries and specifically aims to make an impact towards the climate transition, by reducing the carbon intensity of the portfolio by at least 30% relative to MSCI World and exceeding the minimum technical requirements laid out by EU Climate Transition Benchmarks (CTB). It targets companies with excellent environmental, social, and governance (ESG) practices while managing risks relative to the MSCI World Index. If you want your investments to make a positive impact on the world, this ETF is a strong option.
- Satrix MSCI Emerging Markets ESG ETF: A good choice for investors who are keen on emerging markets and their potential. It similarly offers equity exposure while making an impact towards the climate transition by exceeding the EU CTB requirements. It also maximises exposure to companies that excel in ESG factors, within a predetermined risk budget relative to the MSCI Emerging Markets Index. It's all about growth and sustainability in developing economies.
- Satrix Inclusion and Diversity ETF: Are you passionate about social change in South Africa? With this ETF, you can invest in the 30 most inclusive and diverse companies on the JSE, that are championing social change.
- Satrix Healthcare Innovation ETF: Here's an ETF that combines the power of healthcare and innovation. It includes companies from developed and emerging markets that are pushing boundaries in medical treatment. Each company in the index is carefully screened based on ESG criteria, ensuring responsible investments in cutting-edge sectors.
- Satrix Smart City Infrastructure ETF: This ETF tracks the STOXX Smart City Infrastructure Index, which consists of companies involved in the development and maintenance of efficient, sustainable cities. By investing in this fund, investors support companies that contribute to sustainable urbanisation and align your investments with responsible practices – helping to advance five of the UN Sustainable Development Goals. It's an opportunity to be part of the growing trend of urbanisation while making a positive impact on the environment and society.
With our Satrix ETFs, we've done all the heavy lifting for you. Each of these funds track an index that has been through a rigorous process to offer consistent exposure to a particular theme while incorporating one or more sustainability objectives. All you need to do is choose the ETF that resonates with your investment goals and values.
Kickstart Your Sustainable Investing Journey
Ready to embark on your sustainable investing journey? Education is key! Start by familiarising yourself with some of the general investment terms you will see a lot on our fact sheets:
- Total Expense Ratio (TER): It measures the overall costs of managing an investment plan. Keep an eye on TERs to minimise investment expenses and make your money work harder for you.
- Asset Class: Think of asset classes as groups of investment options that share similar characteristics and behave similarly in the marketplace. There are four main asset classes: equities, bonds, property, and cash. Each comes with its own risk level and potential return, so choose wisely based on your risk profile.
- Exchange Traded Fund (ETF): An ETF is like a basket of stocks that tracks the performance of an underlying index. You can buy or sell ETF shares through a stock exchange in a single trade, offering convenience and diversification.
Armed with this knowledge, you can evaluate your risk profile and choose the asset class that aligns perfectly with your investment strategy and giving-back goals.
Join Satrix on Your Sustainable Investing Journey
At Satrix, we're here to make your sustainable investing journey as simple as possible. So, what are you waiting for? Join us on this exciting adventure of sustainable investing and start shaping a brighter future. You can now own the market, and make a difference.
Satrix Investments (Pty) Ltd is an approved financial service provider in terms of the Financial Advisory and Intermediary Services Act, No 37 of 2002 (“FAIS”). The information above does not constitute financial advice in term of FAIS. Consult your financial adviser before making an investment decision. While every effort has been made to ensure the reasonableness and accuracy of the information contained in this document (“the information”), the FSP, its shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaims all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.
Satrix Managers (RF) (Pty) Ltd (Satrix) a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. With 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. Should the respective portfolio engage in scrip lending, the utility percentage and related counterparties can be viewed on the ETF Minimum Disclosure Document.