Media Release: Satrix Announces Satrix MSCI ACWI ETF


Access to developed and developing markets in one fund. The ETF will track the performance of the MSCI All Country World Index (ACWI), which offers investors access to one of the most diversified global equity indices available, offering exposure to over 2 900 companies from developed and emerging markets within a single fund.

 Satrix, South Africa's leading provider of index-tracking products, will add another unique offering for investors by listing the Satrix MSCI ACWI Feeder Exchange Traded Fund (ETF) on the Johannesburg Stock Exchange (JSE)  during the first quarter of 2024, upon approval from the JSE. The ETF will track the performance of the MSCI All Country World Index (ACWI), which offers investors access to one of the most diversified global equity indices available, offering exposure to over 2 900 companies from developed and emerging markets within a single fund.

It will boast a competitive Total Expense Ratio (TER) of 0.35%, making it an attractive option for individual and institutional investors.

Kingsley Williams, Chief Investment Officer at Satrix*, says that unlike the MSCI World Index which only tracks developed markets, this ETF also includes emerging markets. “The mandate of the ETF will be to track the value of the MSCI All Country World Index (ACWI) in ZAR, allowing long-term investors to conveniently diversify their portfolios by tracking the widely used benchmark for global equities with a single trade. In addition to broad developed market exposure, it includes exposure to large and potentially faster-growing countries like China and India.”

He said the fund offers exposure to 23 developed markets and 24 emerging markets giving investors the opportunity to spread their currency risk across different countries, regions, and sectors.

The Satrix MSCI ACWI ETF will track an index that is a traditional market cap index used as a benchmark for global equity funds, providing a core building block for use within an investor's overall portfolio.

The South African Case for the Satrix MSCI ACWI ETF

The Satrix MSCI ACWI ETF provides an efficient, low-cost investment vehicle that tracks the global equity market's movements, offering South African investors a highly diversified rand hedge solution through a single trade.

The ETF combines other well-known major indices, namely the MSCI World Index and the MSCI Emerging Markets Index, which include the liquid and widely covered large- and mid-cap stocks within their respective countries.

“The Satrix MSCI ACWI ETF presents an efficient and low-cost tool that captures thousands of stocks across many jurisdictions, diversifying investors' portfolios. The ETF has been designed for longevity and caters to investors with a long-term investment horizon who are not averse to short-term volatility,” adds Williams.

About the Satrix MSCI ACWI ETF

The Satrix MSCI ACWI ETF comprises 23 developed markets, making up 89% of the index and 24 emerging markets, making up the remaining 11%. The index is well diversified across sectors, holding:

  • 22% Info Tech stocks
  • 15% Financials
  • 12% Health Care
  • 9% in Resources and Energy stocks 
  • and the rest in Industrials.

Just over 60% of the index is US exposure, followed by 12% in Europe excluding the UK, 11% in emerging markets and 14% in other developed markets. Top companies in the index include Apple Inc., Microsoft, Amazon, Meta Platforms A, Alphabet and Tesla – market-leading giants in their respective industries.

“The Satrix MSCI ACWI ETF bridges the gap for South African investors, offering them a gateway to a world of investment opportunities. This ETF is more than just a financial instrument; it's a tool for investors to diversify globally, manage risk, and efficiently gain exposure to both developed and emerging market equities,” concludes Williams.

Visit www.satrix.co.za for more information on the Satrix MSCI ACWI ETF.

*Satrix is a division of Sanlam Investment Management.

Disclaimer

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 terms 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 disclaim 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) is 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 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. 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.

For more information, visit https://satrix.co.za/products