Satrix Investors Gain Advantage With Almost 30 Percent Reduction in TER on the Satrix MSCI World ETF

South Africa, 30 September 2025 – Satrix, South Africa’s leading provider of exchange traded funds (ETFs), has announced another landmark Total Expense Ratio (TER) reduction on its flagship Satrix MSCI World ETF. Satrix will reduce the TER for the fund from 0.35% to 0.25%, a significant reduction of nearly 30%. The change, effective 1 October 2025, makes it one of the most cost-effective ways for South African investors to access a diversified portfolio of global companies.

Kingsley Williams, Chief Investment Officer at Satrix*, says the Satrix MSCI World ETF is one of the largest and most popular global ETFs on the Johannesburg Stock Exchange (JSE). He adds that it serves as a core holding for thousands of South Africans seeking to diversify their portfolios internationally. 

“Our purpose has always been to democratise the market and make investing more accessible and affordable for everyone. In an environment where every basis point counts, our 10-basis-point TER reduction represents a powerful saving for investors. A lower cost directly translates to an enhanced net-of-fee tracking outcome for our investors, compounding into significant value over the long term. We are making one of the most crucial global building blocks for a portfolio even more accessible.”

The ‘Double Benefit’ Of Cost-Effective Investing

Williams says this cost reduction highlights what can be described as a ‘double benefit’ for investors who choose Satrix. “The first is the inherent benefit of index investing itself. By tracking the index, investors are already accessing a cost-effective, diversified, and transparent investment strategy. The second benefit comes when we, as the product provider, actively seek out efficiencies and further reduce costs. It’s an additional layer of value that compounds over time, making an already compelling investment even more so.”

He notes that Satrix manages more than R65 billion in assets tracking the MSCI World Index through a range of local and offshore products. This strategy provides strong diversification and serves as a hedge against the rand. Additionally, it reflects the significant and ongoing demand from South African investors for this particular type of global exposure.

Passing On The Benefits Of Scale

Satrix’s substantial cost cut is a direct result of the fund’s significant growth and the economies of scale that Satrix has achieved. 

Yusuf Wadee, Head of Exchange-Traded Products at Satrix, explains the rationale. “This move is driven by our client-centric philosophy. When a fund reaches a certain scale, and when we can find a more efficient way to deliver the same, or better, outcome for clients, we always endeavour to implement the more efficient route. Our clients have shown this fund incredible support, driving its exponential growth. Therefore, our ability to make this change is our way of rewarding that trust and passing on the benefits of that scale.” 

Wadee noted that this is a continuation of Satrix’s long-term strategy. “We are not strangers to making big, proactive moves in the market to benefit investors. This cost reduction follows the move in 2017, when we made a huge decision to cut the cost on our flagship Satrix Top 40 ETF, which helped catalyse broader adoption of low-cost investing in South Africa. More recently, we enhanced our Satrix Nasdaq 100 ETF. This is the next chapter in that story – taking our biggest global ETF and making it even better for our clients.”

Unchanged Strategy, Enhanced Returns

Satrix assures investors that the core investment proposition remains completely unchanged. The fund will continue to track the MSCI World Index with the highest degree of accuracy – allowing Satrix to deliver the same strategy more efficiently.

“South African investors have shown immense demand for global exposure through the MSCI World Index, and for good reason. It’s a difficult index to beat, and the performance numbers bear that out. Our role is to provide the most efficient, reliable, and cost-effective access to it. This TER reduction makes a compelling investment even more attractive and reinforces our core purpose to democratise the market and provide all investors with accessible, cost-effective building blocks to own the world’s leading companies,” concludes Wadee. 

Disclaimer:

*Satrix is a division of Sanlam Investment Management

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