Navigating Market Trends

During our latest IndexMore webinar, Nico Katzke, Head of Portfolio Solutions at Satrix*, moderated a panel discussion featuring experts from BlackRock and Satrix. The panel included Brett Pybus, CFA, Head of iShares EMEA Product Strategy and Global Co-Head of iShares Fixed Income ETFs at BlackRock, Karim Chedid, Head of the EMEA Investment Strategy Team at BlackRock, and Kingsley Williams, Chief Investment Officer at Satrix*. Together, they discussed key topics such as Fixed Income, Infrastructure, and Emerging Market Equities, providing valuable insights. This webinar also included the Satrix Global Balanced Fund of Funds ETF, the first South African balanced ETF, offering a cost-effective and efficient solution for gaining offshore exposure while diversifying globally. This innovative ETF makes it easy for investors to gain global exposure while hedging the rand effectively. 

Introducing the discussion, Nico Katzke stated that Satrix launched the Global Balanced Fund of Funds ETF, a market first, late last year. “The ETF aims to take some of the guesswork out of asset allocation, particularly when it comes to building a well-diversified global portfolio that is priced in rand. Deciding how to allocate globally is a daunting task, even in calm and predictable periods and even more so in times of uncertainty as we are facing today. This ETF is priced at a very competitive 35 basis point fee and aims to give investors exposure to various global asset classes and provide a very important rand hedge in their portfolio.” 

According to Kingsley Williams, “focusing on what matters most, which is consistency and keeping costs low, is what truly delivers over time. Because of our track record with balanced funds, there have been requests over the years for us to bring a balanced solution in exchange traded fund form. The team then spent a lot of time understanding the market. Recognising that we had a gap in providing an offshore-only balanced fund, coupled with the strong demand that we’ve seen for our offshore-focused funds, it made sense to direct our product development and portfolio construction expertise and efforts in that space.” 

Kingsley went on to outline the thinking behind the construction of the fund. “The approach that we follow for constructing balanced funds is premised on widely-quoted research that confirms that upwards of 90% of an investor’s return or volatility is going to be explained by their strategic asset allocation (SAA). We assess our SAA to ensure that it’s suitably diversified to deliver the most optimal risk-adjusted return over the medium to long term. We also engage investment professionals across the Group to better understand the risk drivers within each asset class. We then combine that information with the risk profile of each asset class. This also involves stress-testing different scenarios. This is underpinned with a deep and humble appreciation that any forward-looking expectations we may have, carry with them a high degree of uncertainty and estimation error. We do the stress testing to ensure that we deliver a compelling return for our clients under any scenario.” 

Read More About the Satrix Global Balanced Fund of Funds 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. 

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.  

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. 

Key Features of the ETF: 

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

 
The ETF is available through the SatrixNOW platform, other investment platforms or JSE listed stockbrokers. 

For more details, visit Satrix. 

Missed the session? You can still catch all the expert insights by watching the full webinar. 

Explore More Insights from the Webinar. Watch the full webinar here.

 
This event is CPD-accredited. Click here to watch the On-Demand recording to qualify for CPD points.

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