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Ballot Voting Procedure in respect of proposed Changes in the Investment Policy and Name of the STXNDQ Portfolio
SATRIX COLLECTIVE INVESTMENT SCHEME
SATRIX NASDAQ 100 FEEDER PORTFOLIO
JSE Code: STXNDQ
ISIN: ZAE000256301
("SATRIXNDQ or STXNDQ")
A portfolio in the Satrix Collective Investment Scheme, registered as
such in terms of the Collective Investment Schemes Control Act, 45 of
2002
Ballot Voting Procedure in respect of proposed Changes in the
Investment Policy and Name of the Satrix Nasdaq 100 Feeder Portfolio
This letter is important and requires your immediate attention.
This letter is important and requires your immediate attention.
The purpose of this letter is to inform you of the proposed
changes to the investment policy of the Satrix Nasdaq 100 Feeder
Portfolio and to provide you with sufficient information to vote on
this proposal.
This ballot amending the investment policy and structure is conducted
at the request of Satrix Managers (RF) (Pty) Ltd (Satrix) (FSP no
15658).
The reason for the ballot is that Satrix wants to change the structure
of the above portfolio from a feeder portfolio to a standard
portfolio. This portfolio was launched in April 2018 and has, since
inception, held approximately 100% of its assets in the iShares Nasdaq
100 UCITS ETF, which is an Irish-domiciled UCITS (Undertakings for
Collective Investment in Transferable Securities).
After much consideration, we have concluded that it would be
beneficial to unitholders to convert this feeder portfolio to a
standard portfolio. These benefits include:
• The Satrix Nasdaq 100 Feeder Portfolio has achieved sufficient
scale (R5.29 billion as at 30 April 2024) to efficiently be able
to track underlying securities directly.
• South Africa has a double taxation agreement with the United States
of America, which allows a 15% withholding tax on dividends as
opposed to the standard 30% withholding tax rate. By holding the
US equities directly, the exchange-traded fund (ETF) can take
advantage of the lower withholding tax rate, thereby passing on
enhanced performance and efficient tracking to clients.
• The bulk of the margin earned with the current feeder ETF is earned
and retained in Ireland by the current underlying ETF manager,
thereby limiting our ability to price the fund competitively in
South Africa where it is distributed. The intention of the
restructure is to reduce the total expense ratio of the fund.
The transition of the portfolio from a feeder portfolio to a standard
portfolio will involve an in-specie transfer of the assets into the
standard portfolio. This will be done over a period of time (in line
with settlement cycles in the applicable market) deemed suitable by
the investment manager.
The name of the portfolio will change from:
Satrix Nasdaq 100 Feeder Portfolio
to
Satrix Nasdaq 100 ETF
The table below lists the current investment policy, as well as the
proposed changes to the new investment policy. The only change is
that the feeder fund will change to a standard fund, and will
therefore hold underlying securities directly, rather than via a
UCITS.
Current Investment Policy New Investment Policy Impact on Investor
3.1 The investment policy of the 3.1 The objective of the Satrix There is no negative
Portfolio shall be to track the Nasdaq 100 ETF is to provide an impact on the
Nasdaq 100 Index (hereinafter investment vehicle for investors investors within the
referred to as "the Index") as wishing to track the movement of Satrix Nasdaq 100
closely as possible, by investing the Nasdaq 100 Index by Feeder Portfolio as a
in iShares Nasdaq 100 UCITS ETF investing in securities of result of the
securities. global companies which are implementation of the
primarily constituents of the proposed restructure.
3.2 The portfolio will apart from Nasdaq 100 Index.
assets in liquid form, and
financial instruments for the 3.2 The portfolio shall seek to
exclusive purpose of hedging achieve this objective by
exchange rate risks - invest in investing as far as is possible
participatory interests of the and practicable in the
iShares Nasdaq 100 UCITS ETF constituents of the Nasdaq 100
(the"Fund") established under the Index as well as assets in
iShares VII Public Limited liquid form and financial
Company approved by the Central instruments for efficient
Bank of Ireland in August 2011. portfolio management purposes.
The investment objective of the The manager intends to use
Fund is to deliver the net total physical tracking techniques
return performance of the such as full replication and,
Benchmark Index (being the Nasdaq where necessary, portfolio
100), less the fees and expenses optimisation in order to achieve
of the Fund. In order to achieve a similar return to the Index.
this investment objective, the It is therefore expected that at
investment policy of the Fund is most times the portfolio will
to invest in a portfolio of equity hold each and every underlying
securities that as far as constituent of the Index in the
possible and practicable consists exact same proportion as their
of the component securities of weightings in the Index.
the Nasdaq 100 Index. The Nasdaq However, from time to time the
100 measures the performance of portfolio may not hold all
100 of the largest US and constituents of the Index. The
international non-financial combination of shares will
stocks listed on the Nasdaq Stock enable the Manager to track the
Market which comply with size and performance of the Nasdaq 100
liquidity criteria. The Fund Index.
intends to replicate the
constituents of the Benchmark 3.3 The Fund endeavours to
Index by holding all the replicate the price return
securities comprising the performance of the Nasdaq 100
Benchmark Index in a similar Index in South African Rand
proportion to their weightings in (ZAR) (un-hedged). When the Fund
the Benchmark Index. is changed it will be holding
the securities directly and will
3.3 The Trustee shall ensure that therefore distribute any income
the investment policy set out in and dividends less fund
the preceding clauses are adhered expenses.
to; provided that nothing
contained in this clause shall 3.4 The Trustee shall ensure that
preclude the Manager from varying the investment policy set out in
the proportions of securities in the preceding clauses are
terms of changing economic adhered to; provided that
factors or market conditions or nothing contained in this clause
from retaining cash in the shall preclude the Manager from
portfolio and/or placing cash on varying the proportions of
deposit. securities in terms of changing
economic factors or market
conditions or from retaining
cash in the portfolio and/or
placing cash on deposit.
Current Fund Name New Fund Name Impact on Investor
Satrix Nasdaq 100 Feeder Satrix Nasdaq 100 ETF No impact
Portfolio
Current Fund Benchmark New Fund Benchmark Impact on Investor
Nasdaq 100 Index Nasdaq 100 Index No change to benchmark
Current TER New TER Impact on Investor
48 bps 42 bps The restructure will
reduce the TER of the
fund.
Distribution Methodology Distribution Methodology Impact on Investor
Total Return Distributing Change in distribution
methodology i.e change
from total return to
distributing provides
the investor the
option to receive
the physical
distribution cash or
reinvest.
Action required from investors
1. Please read this circular on the proposed change to the portfolio, your
rights as an investor and the impact this will have on your investment.
2. A Ballot Form enclosed, is available to all investors, brokers and CSDPs
for completion of the ballot vote.
3. The various Brokers/CSDPs will then submit the ballot responses via email
to our external auditors, KPMG, at satrixballotSTXNDQ@kpmg.co.za on or
before 27 September 2024. Alternatively, the Ballot Form may be emailed
directly to KPMG at satrixballotSTXNDQ@kpmg.co.za by 27 September 2024.
4. Please do not include any other instructions regarding your holdings with
your ballot form, e.g. requests for purchases, switching instructions,
etc. Your ballot form will go directly to our auditors and, should such
instructions be sent to the auditors, we cannot guarantee that any
instruction subsequent to the commencement of the ballot process will be
effected.
5. If you are no longer invested in this portfolio, no action is required.
Approval and Commencements
Subject to the ballot voting procedure being successful and approval
by the Financial Sector Conduct Authority ("the Authority") of
Collective Investment Schemes, the change in the Investment Policy
and name of the Portfolio will be effected.
Timelines for the implementation of the amendments on Satrix NASDAQ 100
Feeder Portfolio ballot:
Date ACTION
Receive investor holdings per STRATE Register (as 08
Friday, 16 August 2024 August 2024)
Friday, 16 August 2024 Release of announcement on JSE SENS
Final date of response to ballot letter (30 business
Friday, 27 September 2024 days after distribution)
Thursday, 17 October 2024 Results of the ballot announcement on SENS
Friday, 25 October 2024 Last day to trade in the old name as an ETF
Monday, 28 October 2024 Trading commences under the new name Satrix Nasdaq
100 ETF
Effective date of change in investment policy and
Monday, 28 October 2024 portfolio name (Satrix Nasdaq 100 ETF)
Wednesday, 30 October Record date
Shareholder accounts at the CSDP's/Broker's updated
Thursday, 31 October 2024 with the new name
Notes:
The long name will change.
The short name, ISIN and alpha code will remain the same.
The instrument will retain its historical trading and reference data.
The Effect on You as Investor
The proposed changes to this fund will not change the nature of the
underlying strategy. The change will convert the feeder ETF to a
standard ETF, and will therefore hold underlying securities directly,
rather than via a UCITS ETF.
Effective Date of Change
The effective date of the proposed changes in the investment policy
and the name of the portfolio will be 28 October 2024, provided that
the necessary consent is obtained from investors and the Financial
Sector Conduct Authority ("FSCA").
Charges, Performance and Unit Pricing
Investors will not be liable for the payment of any additional fees,
charges, taxes or brokerage as a result of the investment policy and
name change.
Special Distribution
No special distributions will be effected nor applicable.
Your Rights as an Investor
The rights of investors are firmly entrenched in the Act. In terms of
Section 98 of CISCA, as read with Clause 59 of the Deed of the Satrix
Collective Investment Scheme in Securities, the Registrar of
Collective Investment Schemes requires that:
• All investors are notified in writing of any proposed material
changes to the collective investment schemes and portfolios in
which they hold units.
• All investors are balloted in order for them to vote on the
proposed changes.
Please note that, in terms of the Act, the Registrar will not consent
to the changes to the portfolio unless satisfied that the changes will
not be detrimental to the interests of any investor.
At least 25% in value of investors, excluding the manager must respond
in writing of which the majority must agree to the amendment.
If you choose not to switch or sell your funds prior to the effective
date of the change of investment structure as set out in this letter
(if approved by investors), the amended investment policy will
automatically apply to your investment.
Should you require further information on the proposed change, or
should you wish to exercise your right to switch or sell any of your
investments, please contact Satrix Managers on 0860 111401, or You
can also send an email to info@satrix.co.za.
16 August 2024
JSE Sponsor
Vunani Sponsors
Date: 16-08-2024 11:20:00
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