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Closure of the Satrix Volatility Managed SA Defensive Equity ETF
Satrix Managers (RF) Pty Ltd
Satrix Volatility Managed SA Defensive Equity ETF
Share code: STXDEQ
ISIN: ZAE000318895
A portfolio in the Satrix Collective Investment Scheme in Securities
No. 2, registered as such in terms of the Collective Investment
Schemes Control Act, 45 of 2002
CLOSURE OF THE SATRIX VOLATILITY MANAGED SA DEFENSIVE EQUITY ETF
This announcement is important and requires your immediate attention.
The purpose of this announcement is to inform you of the closure of
the portfolio and to provide you with sufficient information.
Satrix Managers (RF) Proprietary Limited (“Satrix”) has decided to
wind up the Satrix Volatility Managed SA Defensive Equity ETF (“the
Portfolio”). The Financial Sector Conduct Authority (FSCA) has
approved Satrix’s application to close the Portfolio. The Portfolio’s
scheduled closure date is 26 September 2023.
Reason for the closure
Following the decision by Absa Group Limited and its subsidiaries
(“Absa”) and Sanlam Limited and its subsidiaries (“Sanlam”) to combine
Absa’s investment management business with Sanlam Investment Holdings
(Pty) Ltd (“SIH”), Satrix Managers (RF) Proprietary Limited (“Satrix”)
became the new manager of the Portfolio effective from Wednesday, 01
March 2023.
The Portfolio does not align with Satrix’s strategic objectives. The
Portfolio allows investors to gain varying market exposure based on
volatility, to a universe of 34 liquid JSE-listed equity securities,
selected on a 70/30, 50/50, 0/100 factor specification to momentum
and low volatility characteristics demonstrated in their performance.
This index construction will likely expose investors to significant
active risk relative to the broader market and is inconsistent with
the Satrix approach to constructing factor strategies and risk
management in a concentrated market like South Africa.
Furthermore, Satrix’s investment philosophy is to focus on primary
drivers of long-term return through an appropriately designed
strategic asset allocation.
With current assets of R7.1m it is not cost-effective for investors
to remain in the Portfolio, owing to its lack of scale. Fixed
regulatory fees are levied against total Portfolio units, regardless
of value. The fixed fee costs are borne by fewer Portfolio
investors, thereby impacting performance returns (after-fees),
negatively.
In our opinion, it is in the best interests of investors to wind -up
(close) the Portfolio.
FINAL REDEMPTION SENS ANNOUNCEMENT TIMELINES
Day Date ACTION
Mon 14 August 2023 Publication of declaration data
Tues 26 September 2023 Last day to trade
Wed 27 September 2023 Suspension of STXDEQ
Wed 27 September 2023 Publication of rates by 11am
Fri 29 September 2023 Record date
Mon 02 October 2023 Payment to investors
Tues 03 October 2023 Removal of listing of STXDEQ
Payment to investors will comprise of capital and income and the rates
will be announced on 27 September 2023.
Charges, Management fee, performance and unit pricing
No management fees will be levied on the Portfolio as from August
until its closure date.
Tax Implications
The proceeds from the sale of your securities will be subject to
capital gains tax. However, your actual tax liability (if any) will
depend on your personal circumstances.
Should you decide to remain in the portfolio until it is closed, you
will be deemed as having disposed of your securities on the date of
the closure of the Portfolio.
Your rights as an investor
You can repurchase your investment in the Portfolio before 26
September 2023 through your respective investment platform. Should
you remain in the Portfolio until 26 September 2023, the securities
will be redeemed at the ruling price on 26 September 2023 by your
respective investment platform.
Please note that in line with current regulations, Satrix may not
offer to switch your investment to another portfolio. Should you
need assistance in switching to another Portfolio, it is recommended
that you consult your financial advisor, as Satrix may not provide
any advice on investment decisions.
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.
14 August 2023
JSE Sponsor
Vunani Sponsors
Date: 15-08-2023 07:15:00
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