IPO Open: New Satrix MSCI World Islamic ETF

About the Index

• This index reflects sharia investment principles and is designed to measure the performance of large- and mid-cap companies across 23 developed market countries relevant to Islamic investors. 
• The index methodology includes a starting universe which applies screening based on business activity and financial ratios.
• Business activity screening means no investment in companies which are directly active in or derive more than 5% of their revenues from the following (“prohibitive activities”): Adult entertainment, alcohol, cinema, conventional financial services, defence/weapons, hotels, gambling/casinos, music, pork-related products and tobacco.
• Financial ratio screening: No investment in companies deriving significant income from interest or companies that have excessive leverage. Three financial ratios are used to screen such companies: Total debt over total assets, the sum of a company's cash and interest-bearing securities over total assets, and The sum of a company’s accounts receivables and cash over total assets. None of these financial ratios may exceed 33.33% and 30% for new inclusions to the indices.
• Constituents are weighted by free-float-adjusted market capitalisation.
  
  

Dividend Purification Process:

In line with Shariah principles, any income derived from interest or prohibited activities will be deducted from dividends and donated to a charity. The MSCI World Islamic Index includes a "dividend adjustment factor" to purify reinvested dividends.
 

Who Should Invest in this ETF?

This ETF is suitable for investors with a long-term investment horizon who choose to invest in a way that is in line with Islamic Sharia law and practices. Investors should expect and be able to withstand equity volatility over the short term.     
 

How to Invest

Existing investor: You can access the Satrix MSCI World Islamic ETF via SatrixNOW, which requires no minimum investment amount. 

New investor: If you don’t yet have a SatrixNOW account, you can register here.

It will also be available via other investment platforms and personal stockbroking accounts.   

Download the IPO Information Sheet.
 

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”). Satrix Managers (RF) (Pty) Ltd (Satrix) is a registered and approved Manager in Collective Investment Schemes in Securities. The information above does not constitute financial advice in term of FAIS. Consult your financial advisor before making an investment decision. 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. 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.

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