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SATRIX COLLECTIVE INVESTMENT SCHEME - Notification To Investors Management Fee Increase

Release Date: 31/05/2024 17:00
Code(s): STXNAM     PDF:  
Wrap Text
Notification To Investors – Management Fee Increase

ISIN: ZAE000318275
("Satrixnam or Satrixnnam")

A portfolio in the Satrix Collective Investment Scheme in Securities
2, registered as such in terms of the Collective Investment Schemes
Control Act, 45 of 2002


This letter is important and requires your immediate attention.

As part of the ongoing review of our product range, where we
consider adding new offerings to our suite, we also weigh up whether
our funds are commercially viable to continue offering to investors.
Where a fund is deemed commercially unviable, this is generally due
to limited demand (insufficient flows into a product), resulting in
the product being subscale from assets under management perspective.

In the case of the Satrix S&P Namibia Bond ETF (STXNAM), previously
administered by NewFunds MANCO, the situation is a little more
complex. While the fund has achieved a reasonable size, the current
fee meant it was unlikely to ever be commercially viable. Instead of
closing the fund, we believe it is in investors best interests to
amend the fee to ensure they have a fund with which to invest in the
Namibian bond market.

For comparison the range of Satrix fixed-income ETFs are currently
priced as follows:

Fund and Class                            JSE Code   Fee
Satrix S&P Namibia Bond ETF               STXNAM     0.10%
Satrix SA Bond ETF                        STXGOV     0.25%
Satrix ILBI ETF                           STXILB     0.25%
Satrix GOVI ETF                           STXGVI     0.32%
Satrix Global Aggregate Bond Feeder ETF   STXGBD     0.40%

From the above table, we see that ETFs with South African Government
bond exposures (STXGOV, STXILB, STXGVI) are priced in the range of
between 0.25% and 0.32%. SA bonds are liquid and this pricing is
both market-related and competitive. Additionally, the Satrix Global
Aggregate Bond Feeder ETF is priced at 0.40% signifying the slightly
more challenging task of trading bonds that span the wide range of
global developed markets. Against this backdrop, it becomes clear
that STXNAM (at 0.10%) is not priced at a market-related rate,
especially given the challenges involved in trading Namibian bonds.
This pricing exercise aims to address and align the fee for STXNAM.
We hereby provide notification that the annual management fee for
the Satrix S&P Namibia Bond ETF (STXNAM) will be increasing with
effect from 2 September 2024.

Please find a table below setting out the change. The base fee rate
of 0.10% per annum will be increased to 0.30% per annum. The below
fees are shown including VAT.

Fund and Class            JSE Code   Current Fee   New Fee   Fee increase
Satrix S&P Namibia Bond   STXNAM     0.10%         0.30%     0.20%

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 email
us on

31 May 2024

JSE Sponsor
Vunani Sponsors

NSX Sponsor
Cirrus Securities

Date: 31-05-2024 05:00:00
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