Media Release: Satrix Launches Industry First Global Balanced ETF

Satrix is proud to announce the listing of its newest fund – the Satrix Global Balanced Fund of Funds Exchange Traded Fund (ETF).

Balanced funds offer investors diversified exposure to different asset classes in an optimal blend. Satrix has been successfully managing balanced funds for more than a decade, with their Satrix Balanced Index Fund outperforming industry peers more than 90% of the time on a rolling three-year basis since inception^. They’re now using their portfolio design skills and index tracking capabilities to introduce a global balanced fund in a low-cost ETF vehicle, a first for the local market.

The fund is designed to cater to those looking to hedge against rand weakness and participate in offshore markets through a well-diversified, long-term strategy.

Nico Katzke, Head of Portfolio Solutions at Satrix*, says, “Satrix has a venerable track record in managing balanced funds, and this new global fund follows the same approach. We’ve applied our in-depth research and focus on strategic asset allocation to build a well-diversified, offshore portfolio for South African investors. The goal is to offer a balanced, risk-diversified global blend of asset classes, including equities, bonds, listed infrastructure, and listed property. Investing globally can be daunting for ordinary investors, with this ETF being an ideal low-cost solution for those seeking balanced exposure to global assets with a long-term investment horizon.”

The ETF consists of a 45% allocation to the MSCI World Index, 10% to emerging markets, 5% to global listed property and 10% to infrastructure, with the property and infrastructure providing the ETF with real asset exposure. 

“We see strong tailwinds for emerging markets, particularly with the rise of economies like India and China. Our preference for listed infrastructure is based on the defensive return profile it offers, coupled with the benefits offered by real assets in a rate-cutting cycle. Property and infrastructure companies tend to benefit from lower interest rates due to their leveraged structures, making this an opportune time for both yield and capital appreciation,” Katzke says.

The ETF is structured to provide global exposure at a highly cost-effective access point, a core feature that makes it particularly attractive for investors looking for long-term, diversified offshore investments. “For us, it’s about balancing risk and yield, offering exposure to offshore returns in a well-diversified manner at a very competitive cost,” Katzke adds.

Key Features of the ETF:

• Strategic Asset Allocation: The fund offers medium- to long-term global exposure through a diversified portfolio, carefully curated using Satrix's strategic asset allocation methodology.
• No Minimum Investment Requirement: As with previous Satrix offerings, there is no minimum investment, making the ETF accessible to a broad range of investors.
• Low Cost, High Efficiency: Investors gain the advantage of offshore exposure without having to manage the complexities of direct offshore investment.
• Dividend Withholding Tax Benefit: A key differentiator is the fund’s ability to access lower dividend withholding tax rates, allowing investors to benefit from enhanced returns.

Why Invest in the Satrix Global Balanced Fund of Funds ETF?

Yusuf Wadee, Head of Exchange Traded Products at Satrix* says, “We are very excited to bring to market the Satrix Global Balanced Fund of Funds ETF. The fund represents a great option for investors who are keen to invest globally but are perhaps daunted by the range of offshore assets available. The Satrix Global Balanced FoF ETF offers a well-diversified and robust collection of offshore exposures – all via a single ETF. Like all other Satrix ETFs listed on the JSE, this ETF is priced and listed in rand – investors therefore benefit directly both from the positive performance in offshore assets as well as from dollar strength (or rand weakness) – thus making the ETF a great diversifying option for investors looking to spread their risk between South African and offshore investments.

The ETF is available through the SatrixNOW platform, or via the JSE and other investment platforms.

For more details, visit Satrix.

^ASISA category median used on a rolling 36-month basis up to end of September 2024.

The performance history of the Satrix Balanced Index Fund can be found on the Minimum Disclosure Document.

Disclaimer

*Satrix is a division of Sanlam Investment Management

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 and an authorised financial services provider in terms of the FAIS. 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. Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div date. Performance is calculated for the portfolio and the individual investor performance may differ as a result of initial fees, actual investment date, date of reinvestment and dividend withholding tax. 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 fund of funds portfolio is a portfolio that invests in portfolios of collective investment schemes that levy their own charges, which could result in a higher fee structure for the fund of funds. 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