Satrix launches new global healthcare ETF
Cape Town, 4 May 2022: Satrix is offering local investors access to the global healthcare market through a new exchange traded fund (ETF), the Satrix Healthcare Innovation Feeder ETF. The IPO for the fund, which will track the STOXX Global Breakthrough Healthcare Index, opened today and JSE listing is planned for 26 May.
The fund will provide alternative sources of portfolio returns through investments in the healthcare industry, which is driven by rapid innovation and disruption. Kingsley Williams, chief investment officer of Satrix says, “This new ETF forms part of a series of thematic investment products which seek to take advantage of megatrends playing out around the world. It is invested in companies across sectors and geographies that are set to benefit from long-term global structural changes such as shifting demographics, an aging population, changing economic power and technological breakthrough. This could lead to above average earnings growth.”
He said the speed of disruption and innovation is typically underestimated by the market. “Spending on healthcare is increasing and minimally dependent on the business cycle. Healthcare therefore has potential to provide increased diversification within portfolios.”
This fund offers highly diversified yet investable exposure to a broad range of companies involved in healthcare innovation globally, and is additionally screened to meet minimum environmental, social and governance (ESG) criteria.
The Satrix Healthcare Innovation Feeder ETF will track a wider healthcare exposure than other healthcare indices and is suitable for investors with a long-term view on their equity allocation or who wish to express an investment view on a specific sector within a broader portfolio.
How to access the IPO
The Satrix Healthcare Innovation Feeder ETF can be accessed via SatrixNOW.co.za
Satrix is the leading provider of index-tracking investment products and exchange traded funds (ETFs) in South Africa, with over R160 billion (source Satrix: December 2021) in assets under management invested in the range of ETFs, index-tracking unit trusts, life pooled and segregated portfolios that are specifically tailored for client-specific mandates or retail funds.
It pioneered index investing in South Africa, launching the flagship Satrix 40 ETF as the first locally listed ETF in November 2000. The business services the institutional, intermediary, and individual investor markets. Satrix has proven expertise in risk management, portfolio analysis and index construction.
A core part of the Satrix purpose is to drive the democratisation of investments for all South Africans, where SatrixNOW, the no-minimum amount online investing platform, is a key enabler to provide access for South Africans to “Own the Market”.
Satrix holds the largest market share in the ETF industry in South Africa at nearly 30% and was the most successful raiser of new capital in 2021, at R4.7 billion. Additionally, the multi-award-winning business has grown assets under management by 50% since the beginning of 2020, under some of the most challenging market conditions in history.
*So far in 2022, Satrix was awarded the title of Morningstar’s Best Large Fund House for the second consecutive year and SALTA’s People’s Choice Award for favourite South African ETF for the fifth consecutive year.
Satrix Investments (Pty) Ltd is an approved FSP in term of the Financial Advisory and Intermediary Services Act (FAIS). The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your financial advisor 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’s, 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 disclaims 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) a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. 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 it 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. 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.
The manager has the right to close the portfolio to new investors in order to manager it more efficiently in accordance with its mandate.
*Full details and basis of the awards are available from the Manager.