Satrix expands its portfolio of index tracking cautious investors - CNBC Africa

Satrix expands its portfolio of index tracking cautious investors


by Trust Matsilele 0

Satrix expands its portfolio of index tracking unit trusts. PHOTO; sanlamintelligence

The company is also among the leading providers of passive investment products in South Africa.

“Satrix offers investors easy, cost effective access to the markets through a wide range of passively managed investment products,” noted the organisation.

“The fund is a low equity multi-asset class portfolio aimed at cautious investors requiring income and capital growth in the medium to long term.”

(WATCH VIDEO: Satrix offers clients passively managed investment products)

The fund has a minimum contribution of five hundred rand with a 10,000 rand lump sum.

Chief executive officer of Satrix, Helena Conradie says the fund is useful in providing a reasonable income among others.

“It aims to provide a reasonable level of income whilst seeking to preserve capital, in real terms with lower volatility, over a medium to long term period,” she said.

The company says it is convinced that diversified market exposure can be achieved at a relatively low cost, without necessarily compromising on investment performance.

The fund will also in tracking the performance of Satrix’s low equity balanced index.

“The Satrix Balanced Index Fund is a regulation 28-compliant fund which offers diversified exposure to all the key local and international asset classes, with a smart SA equity core,” the company said in a statement.

(WATCH VIDEOMerits of using passive funds)

“The fund tracks the proprietary or custom Satrix Balanced Index. The fund invests in a range of underlying smart equity indices.”

Satrix says there are two ways to invest in a Satrix tracker fund, either through a unit trust or an exchange-traded fund.

“Both products offer investors access to the performance of an underlying pool of assets via a single transaction. These assets, depending on the index being tracked, can include shares, bonds, cash or property.”