Sa­trix to launch ETF that tracks qual­ity listed com­pa­nies

Saturday Star - - INSIGHT -

SA­TRIX, which pi­o­neered ex­change traded funds (ETFs) in South Africa, is list­ing a sixth ETF this year to com­ple­ment its range: the Sa­trix Qual­ity South Africa ETF.

The ini­tial pub­lic of­fer­ing to buy the new ETF opened a week ago, and it is ex­pected to be listed on the JSE on September 26.

The Sa­trix Qual­ity South Africa ETF tracks the S&P Qual­ity South Africa In­dex, which con­sists of high-qual­ity stocks in the South African mar­ket, ranked by a qual­ity score. The score is based on a com­pany’s re­turn on eq­uity, ac­cru­als ra­tio and fi­nan­cial lever­age ra­tio.

The in­dex is re­bal­anced semi­an­nu­ally, and the weight of each con­stituent is capped at 10%.

Ja­son Swartz, the head of port­fo­lio so­lu­tions at Sa­trix, says: “Some in­di­ca­tors of strong qual­ity char­ac­ter­is­tics of com­pa­nies are good man­age­ment, strong bal­ance sheets, high and sus­tain­able lev­els of prof­itabil­ity, and a high level of earn­ings qual­ity.”

The cur­rent top 10 shares on the Qual­ity In­dex are Tiger Brands, Mr Price, Bid­vest, Capitec, Stan­dard Bank, San­lam, Clicks, AVI, RMB Hold­ings and Exxaro.

Mean­while, Sa­trix an­nounced this week it will lower the an­nual man­age­ment fees on its flag­ship Sa­trix 40 ETF from Oc­to­ber 1.

“Al­low­ing all South Africans ac­cess to the mar­kets has al­ways been at the core of what Sa­trix stands for, and to the ex­tent that costs can be low­ered re­spon­si­bly, we will en­deav­our to do so,” says Sa­trix chief ex­ec­u­tive He­lena Con­radie.

The cur­rent to­tal ex­pense ra­tio (TER) of 0.38% will be low­ered to a capped TER of 0.1%. Sa­trix says this will be achieved through low­er­ing the man­age­ment fee. – Staff Re­porter

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