​​​JSE offers investors more choice with the listing of two Satrix ETFs 
New ETFs offer investments in listed property and inflation linked bonds 

Johannesburg, 24 February 2017: The Johannesburg Stock Exchange (JSE) has expanded its product offering to investors with the listing of two new Satrix exchange traded funds (ETFs), which offer investors access to the listed property sector, and a basket of inflation-linked bonds.

“We are committed to offering investors choice and these two Satrix ETFs are a continuation of that journey,” says Donna Nemer, Director of Capital Markets at the JSE.  

ETFs are investments that track the performance of a group or ‘basket’ of shares, bonds or commodities. The Satrix Top 40, for example, is a single investment giving one exposure to the 40 biggest shares on the JSE.  An ETF can be bought or sold on an exchange in the same way as an ordinary share. Offering tax and cost benefits, ETFs also enable an investor to invest in a variety of instruments (for example shares) through buying a single investment product. They are a suitable investment vehicle for those who are new to the world of stock markets but are also used by institutional investors.

On the new ETFs Helena Conradie, CEO of Satrix, says, “Different asset classes tend to behave differently under different economic conditions and investing in a mix of asset classes is one of the chief means of reducing risk and volatility. We wanted to provide this to investors.”

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She clarifies, “South African listed property has offered an attractive yield and strong capital appreciation over the long term. The Satrix Property ETF will track the performance of the S&P SA Composite Property Capped Index, which invests in all companies in the S&P SA Composite Index that are classified as property companies. Currently there are 15 companies included in the index, with three-quarters of the index weight assigned to property companies operating in South Africa, while the rest are domiciled in the United Kingdom, meaning that this index offers exposure to both South African property as well as property in the UK. Importantly, the index is capped at 10 per cent, which means that no single stock weight is more than 10 per cent at each rebalancing date.”

The Satrix ILBI ETF tracks an inflation-linked bond index, the S&P South Africa Sovereign Inflation-linked Bond 1+ Year Index, providing investors with a hedge against inflation. Inflation-linked bonds are designed to help protect investors from the negative impact of inflation by linking the bond’s principal and interest payments to inflation.  Conradie says the index has provided strong risk-adjusted returns relative to traditional South African asset classes over the past 10 years.

“We are pleased to license the S&P SA Composite Property Capped Index and S&P South Africa Sovereign Inflation-linked Bond 1+ Year Index to Satrix,” says Zack Bezuidenhoudt, Head of South Africa and Sub-Saharan Africa, S&P Dow Jones Indices. “We continue to develop innovative indices across multiple asset classes to meet the needs of market participants in South Africa.”

The ETF market has seen steady growth globally as well as in South Africa and these two ETF listings bring the total number of ETFs listed on the JSE to 52, with a total market capitalisation of R69.9 billion.

Nemer concludes, “ETFs are well-regulated by both the JSE and the Financial Services Board (FSB) and can be acquired, like any other listed share, through a stockbroker or online trading account. If the investor does not have a broker, ETFs can be obtained through an investment platform which offers a monthly debit order facility.”​

satrix.jpg Donna Nemer, JSE (L) and Helena Conradie, Satrix (R)

ENDS

​• Please visit http://www.satrix.co.za to read more about the new ETFs.
You can go to https://www.jse.co.za/findastockbroker in order to find a JSE stockbroker.                                
​ABOUT THE JSE 
The Johannesburg Stock Exchange is based in South Africa where it has operated as a market place for the trading of financial products for 130 years. It connects buyers and sellers in equity, derivative and debt markets. The JSE is one of the top 20 exchanges in the world in terms of market capitalisation and is a member of the World Federation of Exchanges (WFE). The JSE offers a fully electronic, efficient, secure market with world class regulation, trading and clearing systems, settlement assurance and risk management. www.jse.co.za 

JSE contact: 
Pheliswa Mayekiso 
Media and Internal Communications Manager
Tel: +27 11 520 7495

H+K Strategies South Africa: 
Vivienne Fouché
Tel: +27 11 463 2198 

The S&P Index(es) (the “Index(es)”) underlying the product provider’s (the “Issuer”) investment products (the “Investment Products”) are proprietary to S&P Dow Jones Indices LLC (“S&P DJI”).  S&P® and the names identifying the Index(es) are trademarks of Standard & Poor’s Financial Services LLC and have been licensed for use by S&P DJI and sublicensed for certain purposes by the Issuer. The Issuer’s Investment Products based on the Index (es) are not in any way sponsored, endorsed, sold or promoted by S&P DJI, its affiliates or licensors and those parties make no representations or warranties, express or implied, regarding the advisability of investing in securities generally or in the Investment Products particularly or the ability of the Index (es) to track general market performance.​