Helena Conradie, chief investment officer of Satrix, says the current range of seven exchange-traded products will be complemented by new funds – which would give investors exposure to property, bonds as well as local and international equity.
During the first round launch of index-type unit trusts, scheduled for next month, Satrix will add a Balanced Fund, an equity index Momentum Fund as well as a MSCI Developed Market Fund, she says.
In time, the SIM Property Index Fund, the SIM All Bond Fund and the SIM Alsi40 will also be rebranded to Satrix.
Conradie says that following Sanlam Investment Holdings’
decision to buy the remaining 50% shareholding in Satrix (Deutsche Securities owned the other half), the company wanted to expand its footprint in the market for passive investments.
The Satrix ETF assets under management now total around R13 billion.
Conradie says the move to include unit trusts in the Satrix portfolio is also driven by the fact that, due to information technology and logistical issues, ETFs are not available on most linked investment service provider platforms, which are popular among financial advisors. The new unit trusts will, however, be available on these platforms. The new funds will be launched with a management fee of 0.45%, except for Balanced and Rafi40 which will be at 0.60%. This is similar to the total expense ratio on its ETF product, which is 0.45% for all portfolios, except for the Rafi which has a slightly higher expense ratio due to licensing charges.