SATRIX NEWS

SATRIX CAPPED ALL SHARE INDEX ETF

Article by Satrix Investments

Satrix Capped All Share Index ETF is the first fund to track the full JSE ALSI universe 

  • The Satrix Capped All Share Index is the first exchange traded fund (ETF) to track a full universe of large-, mid- and small-cap SA listed companies
  • Offers broader exposure to the market than other tracker indices
  • The ALSI has performed strongly in recent years, outperforming most active managers and the JSE Top 40 Index
  • Listing set for 10 November
  • 140 stock universe provides broad exposure to the JSE, including 25% exposure to the mid- and small- caps
  • Top 10 holdings include BHP Group, Compagnie Financiere Richemont, Anglo American, and Naspers
  • To celebrate this market first, this ETF has a 0% TER until 31 December 2022. The targeted TER of 25bps will only come into effect on 1 June 2022.

Satrix launched the first exchange traded fund on the JSE to include the full universe of large-, mid- and small-cap South African-listed companies in November 2021.  By tracking the FTSE/JSE All Share Index (ALSI), the Satrix Capped All Share Index (CAPI) gives investors exposure to large multinational companies such as BHP Group, Richemont and the Naspers - Prosus stable, while providing broader exposure to the marker than other tracking indices such as the Top 40 Index.

Nico Katzke, head of portfolio solutions at Satrix Investments, says, “Our Capped All Share ETF is ideal for investors seeking exposure to the JSE beyond the Top 40 listed shares. Investors looking for stability and outperformance, particularly relative to most active managers, should look closely at this ETF.”

He said each individual share in the portfolio will be capped at 10% to limit single stock exposure. “The fund also includes high offshore exposure – via stocks like BHP, Richemont and Prosus – which provides investors with a good rand hedge, similar to the Top 40 index. The CAPI has delivered a more stable return profile due to improved diversification and capping limits, which means there is lower overall concentration risk and additional upside potential from mid- and small-cap counters. The result has been strong and consistent performance relative to other actively managed SA General Equity unit trust funds over time.”

Katzke further points to Satrix’s leading role in pioneering easy to access, low-cost ETFs in South Africa. “Twenty two years ago, Satrix launched South Africa’s first-ever ETF, the award winning Satrix Top 40 ETF, with the intention of making low-cost, diversified investment products cheaper and more accessible. It remains our mission to provide clients with a full spectrum of diversified products with which to grow future wealth and we continue to pioneer solutions that are relevant, with deep social impact alongside robust returns. We now manage over R160 billion in assets, making Satrix the largest index tracking business on the continent.”

HOW TO ACCESS

Investors can access the Satrix CAPI ETF via SatrixNOW.co.za, which has no minimum investment amount.

If you don't have an account yet you can register here.

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

Download the information sheet

POSTED : 19 OCTOBER 2021

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