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Fund Spotlight: Satrix Launches Low Equity Balanced Index Fund

| 1 August 2014

Satrix has expanded its portfolio of index tracking unit trusts with the launch of the SATRIX Low Equity Balanced Index Fund. The fund is a low equity multi-asset class portfolio aimed at cautious investors who require income and capital growth in the medium to long term. The fund will track the performance of the SATRIX Low Equity Balanced Index (calculated by an independent third party).

The portfolio is designed to give investors diversified exposure to all major asset classes, including offshore exposure. It aims to provide a reasonable level of income while seeking to preserve capital in real terms with lower volatility over the medium to long term. Because of its lower exposure to equity, the SATRIX Low Equity Balanced Index Fund is a more conservative portfolio than the SATRIX Balanced Index Fund launched in October 2013.

“In line with our client-centric core approach, we wanted to ensure that SATRIX meets the expectations of all its clients,” says Helena Conradie, CEO at SATRIX.

Certain clients, especially those who are close to retirement age, or those who don’t have a big appetite for risk, need a portfolio with cautious exposure. They don’t necessarily want a fixed interest or cash fund, but they also don’t want full equity risk exposure. The SATRIX Low Equity Balanced Index Fund is designed for them.

The new fund offers investors exposure to multiple passively tracked asset classes in South Africa and internationally. Investors will benefit from significant global and local diversification, and the 20% international portion of the fund offers some rand hedge protection.

The SATRIX Low Equity Balanced Index Fund is one of a number of new passive products launched recently by SATRIX to meet strong demand from individual and institutional investors. SATRIX – 100% owned by Sanlam since May 2012 with R40 billion in assets under management – now offers one of the widest ranges of both exchange traded funds (ETFs) and index tracking unit trusts in South Africa, at some of the lowest costs. Further launches are to follow in the next few months, including new international feeder funds.

The SATRIX Low Equity Balanced Index Fund meets the requirements of Regulation 28 of the Pension Funds Act, which sets out investment limits on certain asset categories in investment funds.

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