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Ballot Voting Procedure - Proposed Amalgamation of the STXMAP ETF with the STXGLB ETF
Satrix Managers (RF) Pty Ltd
Satrix Multi Asset Passive Portfolio Solutions Protect ETF
Share code: STXMAP
ISIN: ZAE000318358
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
Ballot Voting Procedure - Proposed Amalgamation of the Satrix Multi
Asset Passive Portfolio Solutions Protect ETF with the Satrix Global
Balanced Fund of Funds ETF
This letter is important and requires your immediate attention.
The purpose of this letter is to inform you of the proposed
amalgamation of the Satrix Multi Asset Passive Portfolio Solutions
Protect ETF (source portfolio) with the Satrix Global Balanced Fund
of Funds (target portfolio) and to provide you with sufficient
information to vote on this proposal – including your rights as an
investor and the impact this will have on your investment.
In terms of Section 99 of the Collective Investment Schemes Control
Act, 45 of 2002 ("the Act"), the proposed amalgamation will proceed
if the majority of investors vote in favour of the amalgamation by
way of the enclosed ballot. Absence of a response will be regarded as
a vote in favour of the amalgamation.
The amalgamation ballot is conducted at the request of Satrix Managers
(RF) (Pty) Ltd ("Satrix"), FSP 15658, the manager of the Satrix
Collective investment Scheme in Securities and the Satrix Collective
Investment Scheme in Securities 2.
Reason for the Proposed Amalgamation
Satrix intends to amalgamate the Satrix Multi Asset Passive Portfolio
Solutions Protect ETF (JSE Code: STXMAP) ("Satrix MAPPS Protect ETF"),
previously known as the "NewFunds Multi Asset Passive Portfolio
Solutions Protect Exchange Traded Fund Portfolio", into the Satrix
Global Balanced Fund of Fund ETF ("Satrix Global Balanced FoF ETF").
The Satrix MAPPS Protect ETF is designed to give investors exposure
to the South African market through investments in equities,
government bonds, inflation-linked bonds, and cash. This ETF is
suitable for investors with a shorter time horizon due to its lower
equity allocation.
The current asset allocation for the Satrix MAPPS Protect ETF is:
Asset Class Weight %
SA Equity 40%
SA Government Bonds 15%
SA Inflation-linked Bonds 35%
Local Cash 10%
In contrast, the Satrix Global Balanced FoF ETF aims to provide local
investors with exposure to a diversified global basket of ETFs, priced
in ZAR. This ETF covers a broader range of markets, sectors, and asset
classes, thereby potentially reducing the risks associated with
investing in a single country, although introducing foreign currency
exposure risks.
The Satrix Global Balanced FoF ETF tracks the Satrix Global Balanced
Index as closely as possible. The current asset allocation for the
Satrix Global Balanced Index is:
Asset Class Benchmark Index Weight
%
Developed Equity MSCI World 45%
Global Bonds Bloomberg Global Aggregate 15%
Global Infrastructure FTSE Global Core 10%
Infrastructure
Emerging Equity MSCI Emerging Markets 10%
Global Inflation-Linked Bonds Bloomberg US Government 5%
Inflation-Linked Bond
Global Credit Markit iBoxx USD Liquid 5%
Investment Grade 0-5
Global Reits FTSE EPRA/NAREIT Developed 5%
Global Cash Secured Overnight Financing 5%
Rate (SOFR)
Performance Comparison
Since its listing in May 2011, the Satrix MAPPS Protect ETF has
struggled to deliver returns above SA CPI+3%. In contrast, the Satrix
Global Balanced Index offers the potential for CPI+3% and higher
returns, as shown by cumulative returns since 2011.
Further analysis of 12, 36, and 60-month rolling returns reveals that
the Satrix MAPPS Protect ETF ("STXMAP") only outperformed CPI+3% less
than 40% of the time across all these periods. Conversely, the Satrix
Global Balanced Index consistently outperformed SA CPI+3% more than
70% of the time across the same periods.
The graph below shows the 60-month rolling returns, this illustrates
the Satrix Global Balanced Index achieving returns in excess of SA
CPI+3% in comparison to STXMAP.
Currency fluctuations, particularly the volatility of the South
African rand, were also considered. The Satrix Global Balanced Index
outperformed CPI+3% over 90% of the time in weak currency
environments, demonstrating its potential for higher returns and
better protection against local inflation compared to STXMAP. Even in
strong currency environments, it still outperformed CPI+3% more
consistently than STXMAP over longer periods.
The following tables illustrate the outperformance of the ETFs against
CPI+3% during weak and strong currency periods:
Rolling Returns vs CPI+3%
Outperformance % (Weak Currency) 12 Months 36 Months 60 Months
Satrix MAPPS Protect ETF 27.59% 75.00% 47.37%
Satrix Global Balanced Index 96.55% 100.00% 100.00%
Rolling Returns vs CPI+3%
Outperformance % (Strong Currency) 12 Months 36 Months 60 Months
Satrix MAPPS Protect ETF 55.17% 16.67% 0.00%
Satrix Global Balanced Index 20.69% 45.83% 94.74%
Although the Satrix MAPPS Protect ETF has provided returns above CPI
for investors, amalgamating it into the Satrix Global Balanced FoF
ETF offers several advantages:
• By investing globally, investors are able to spread their risks
across multiple economies, which has the potential to enhance
the stability and performance of their portfolio.
• Access to a wider range of asset classes and investment
strategies globally.
• Investors can achieve returns in excess of CPI+3% without taking
concentrated risk in one country
• Lower cost: The TER of the Satrix Global Balanced FoF ETF is
0.35% compared to the TER of 0.40% for the Satrix MAPPS Protect
ETF.
The table below lists the investment policies of both ETFs:
Satrix MAPPS PROTECT ETF Satrix Global Balanced Changes and
Fund of Funds ETF impact
Investment Policy Investment Policy Change due to
4.1 The investment policy 3.1 The investment objective of amalgamation
of the Portfolio shall be to - the Portfolio shall be to track
4.1.1 track the Index as the Satrix Global Balanced Index
closely as possible, to the (hereinafter referred to as "the
fullest extent possible, - Index") as closely as possible,
by predominantly investing in
4.1.1.1 buying only constituent participatory interests or any
securities in the weightings in other form of participation in
which they have been included in offshore listed exchange traded
the Index; and funds which each individually
4.1.1.2 selling only securities track a component of the Index.
which are excluded from the The underlying exchange traded
Index from time to time as a funds invest in a diversified
result of the quarterly Index blend of international asset
reviews or corporate actions, so classes, including, but not
as to ensure that at all times limited to, equities, bonds,
the Portfolio holds constituent inflation-linked bonds, credit,
securities in the same listed property and listed
weightings as they are included infrastructure securities.
in the Index; and 3.2 Where the aforementioned
exchange traded funds are
Satrix MAPPS PROTECT ETF Satrix Global Balanced Changes and
Fund of Funds ETF impact
4.1.2 as a further objective, to operated in territories other
manage the securities held by than South Africa,
the Portfolio to generate income participatory interests or any
for the benefit of investors. other form of participation in
these exchange traded funds will
4.2 The Portfolio shall not be included in the Portfolio
buy or sell securities for the only where the regulatory
purpose of making a profit nor environment is, to the
for any purpose other than satisfaction of the Manager and
tracking the Index. the Trustee, of a sufficient
standard to provide investor
4.3 Investors may obtain protection at least equal to
participatory interests in the that in South Africa.
Portfolio on the secondary 3.3 The Portfolio may also
market or by subscribing for new utilise listed and unlisted
participatory interests in the financial instruments, for the
Portfolio on the primary market. purposes of hedging exchange
In order to achieve this rate risk, and may hold assets
objective the manager may, in liquid form from time to
subject to the Act and the Deed, time. It is anticipated that
create and issue an unlimited assets in liquid form will not
number of participatory form a substantial part of the
interests in the Portfolio. Portfolio's assets.
3.4 The Portfolio shall not buy
4.4 The Portfolio will be or sell securities for the
passively managed in that the purpose of making a profit nor
manager will not buy and sell for any purpose other than
securities based on economic, tracking the Index.
financial and/or market 3.5 Investors can obtain
analysis but rather, will buy participatory interests in the
and sell securities solely for Portfolio on the secondary
the purpose of ensuring that the market or by subscribing for new
Portfolio tracks the Index. As participatory interest in the
such the investment objective portfolio on the primary market.
and style of the Portfolio In order to achieve this
will be full replication of the objective the Manager may,
Index. Accordingly the subject to the Act and the Deed,
financial or other condition of create and issue an unlimited
any company or entity included number of participatory
from time to time in the Index interests in the Portfolio.
will not result in the 3.6 The Portfolio will not be
elimination of its securities managed according to
from the Portfolio, unless the traditional methods of active
securities of such company or management, which involve the
entity are removed from the buying and selling of securities
Index itself. based on the economic, financial
and market analysis and
4.5 The composition of the investing judgement. Instead,
Portfolio will be adjusted the investment objective and
quarterly to conform with style will be to best represent
changes in the composition in the tracking of the Index and
the Index. its components through
4.6 The Portfolio shall hold investing in the underlying
securities purely for the exchange traded funds. As a
economic rights and benefits result, the exchange traded
attaching thereto and, funds included from time to time
accordingly, if there is any will be scrutinised to ensure it
takeover bid or other corporate best represent the Index
action that occurs in relation components, and where
Satrix MAPPS PROTECT ETF Satrix Global Balanced Changes and
Fund of Funds ETF impact
to any constituent company or necessary, may be replaced with
entity the securities of which more appropriate exchange
are included in the Portfolio, traded funds.
the Portfolio shall not 3.7 The composition of the
surrender any securities held by Portfolio will be adjusted
the Portfolio which may be periodically to conform to
subject to such takeover bid or changes in the composition of
other corporate action, unless the Index and the weighting of
such surrender is mandatory (and the components of the Index so
then only to the extent of such as to ensure that the
mandatory surrender) in terms of composition and weighting of the
any applicable law or under the Portfolio's investments reflect
rules of a regulatory authority the composition and weightings
or body having jurisdiction over of the components of the Index.
the Portfolio and/or the 3.8 The Portfolio's ability to
applicable securities. However, track the Index will be affected
if any such takeover bid or by, amongst others, the costs
corporate action results in a and expenses incurred by the
company or entity previously Portfolio and the exposure to
included in the Index no longer liquid assets.
qualifying for inclusion in the 3.9 The Trustee shall ensure
Index, any securities in such that the investment policy set
constituent company or entity out in the preceding clauses is
held by the Portfolio, shall be adhered to.
disposed of by the Portfolio and
the proceeds derived from such
disposal shall be applied in
effecting the appropriate
adjustments to the Portfolio so
as to ensure same tracks the
Index.
4.7 No assets in liquid
form will make part of the
Portfolio other than proportion
as provided for in the Index.
4.8 The Portfolio's ability
to replicate the price and yield
performance of the Index shall
be affected by the costs and
expenses incurred by the
Portfolio.
Portfolio Benchmark Portfolio Benchmark Change due to
MAPPS Protect Index Satrix Global Balanced Index amalgamation
Distribution Methodology Distribution Methodology Change due to
Reinvesting quarterly Distributing quarterly amalgamation
Total Expense Ratio Total Expense Ratio Change due to
40 bps 35 bps amalgamation
Impact of Change – Additional Information
Satrix MAPPS Protect ETF Satrix Global Balanced FoF ETF
Description
(Source portfolio) (Target portfolio)
JSE Code STXMAP STXGLB
South African – Multi Global – Multi Asset – High
ASISA Classification
Asset – Low Equity Equity
Risk Profile Moderate Moderate - Aggressive
Currency Risk No Yes
Geographical,
Limited to the South Diversified outside of the
Political & Economic
African market only South African market
Risk
Global Developed Equity -
45%
Global Emerging Equity - 10%
SA Equity - 40%
Global Listed Infrastructure
SA Government Bonds -
- 10%
Strategic Asset 15%
Global Real Estate - 5%
allocation SA Inflation-Linked
Global Bonds - 15%
Bonds - 35%
Global Inflation-Linked
SA Cash -10%
Bonds - 5%
Global Credit - 5%
Global Cash - 5%
MSCI World
MSCI Emerging Markets
FTSE Global Core
FTSE/JSE SWIX 40 Infrastructure
FTSE/JSE All SA FTSE EPRA/NAREIT Developed
Benchmark Indices Government Bonds Bloomberg Global Aggregate
tracked Bloomberg SA Inflation- Bloomberg US Government
Linked Bonds Inflation-Linked Bond
Local Cash Markit iBoxx USD Liquid
Investment Grade 0-5
Secured Overnight Financing
Rate (SOFR)
Predominantly investing in
participatory interests or
any other form of
Direct exposure to local
participation in offshore
Portfolio Holdings equites, bonds and ILBs
listed exchange traded funds
that track the index
which each individually
track a component of the
Satrix Global Balanced Index
Fund Denomination ZAR ZAR
Index Calculation
RisCura RisCura
Agent
Index Rebalancing to
Quarterly Semi-annually
SAA
3rd Friday in March,
3rd Friday in March and
Rebalancing dates June, September and
September
December
Total Return / Payout Gross return Net Total Return
How the Amalgamation Impacts Your Investment
Replacement participatory interests
When the source portfolio, Satrix Multi Asset Passive Portfolio
Solutions Protect ETF is absorbed into and amalgamated with the
targeted portfolio, the Satrix Global Balanced Fund of Funds ETF,
investors will be issued with replacement participatory interests
(shares) in the new amalgamated fund. The replacement shares will be
equal in market/monetary value to the shares held prior to the
amalgamation, although the number of shares held may change. The
Satrix Multi Asset Passive Portfolio Solutions Protect ETF (source
portfolio) will cease to exist.
This is in accordance with Section 99 (3) (a) of the Act, which
stipulates that on the effective date, every investor:
"…shall… hold in the new scheme or portfolio, such participatory
interests with an aggregate money value which is not less than
the lower of the net asset value or market value, as may be fair
and reasonable in the circumstances, of the participatory
interests which such investor, immediately before the date on
which the proposed transaction becomes effective, held in an
original scheme or portfolio;"
Details of the distribution and amalgamation salient dates will be
announced after Financial Sector Conduct Authority ("FSCA")("the
Authority") approval.
Transaction Costs
The change would result in once-off trading costs being incurred
within the source portfolio when the portfolio is liquidated to align
with the targeted portfolio. Investors will benefit from a reduced
TER thereafter.
Taxation implications
Satrix does not provide tax advice, but there should be no tax impact
for investors who remain in the fund.
Special distribution
The FSCA requires that all accrued income in funds to be transferred
be distributed prior to the transfer taking place. In line with this
requirement, both the source and targeted portfolios will declare a
special income distribution.
Effective Date of Change
The effective date of the proposed amalgamation of the funds will be
01 July 2025, provided that the necessary consent is obtained from
investors and the FSCA.
Approval and commencements
Subject to the ballot voting procedure being successful and approval
by the FSCA, the proposed amalgamation will be with effect from
commencement of business on Tuesday,01 July 2025, any changes to the
effective date will be released on SENS effectively.
Expected timeline for the implementation of the proposed
amalgamation:
Weekday Action
Monday, 31 March
2025 Approval from FSCA
Request STRATE register holdings ((Cut-off
Monday, 14 April date for investors on record to be balloted
2025 as at 11 April 2025)
Thursday, 17 April
2025 Release of SENS announcement
Deadline for returned ballots (30 business
Monday, 02 June 2025 days after SENS announcement)
Thursday, 05 June
2025 Submission of auditors report to FSCA
Tuesday, 17 June
2025 FSCA approve Supplemental Deed
SENS announcement confirming the results of the
Tuesday 17 June 2025 ballot and declaration announcement
Action Required
1. Please read this circular on the proposed amalgamation, your rights
as an investor and the impact this will have on your investment.
2. Please complete the enclosed ballot form and email it directly to
our external auditors, KPMG, at satrixballotSTXMAP@kpmg.co.za on
or before 02 June 2025. If you do not participate in the ballot in
time, you will be deemed to have voted in favour of the
amalgamation.
3. 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.
4. If you are no longer invested in the Satrix MAPPS Protect ETF, no
action is required.
Your Rights As An Investor
The rights of investors are firmly entrenched in the Act. In terms
of Section 99 of CISCA, as read with Clause 59 of the Deed of the
Satrix Collective Investment Scheme in Securities 2, the Authority
requires that:
• All investors in the affected source portfolios will be informed
in writing on the details of the proposed amalgamation of the
portfolios.
• All source portfolio investors are given an opportunity to vote
in favour of, or against, the proposed amalgamation.
• An independent auditor will verify the outcome of the ballot.
• All investors will be notified in writing of any proposed
material changes to the collective investment schemes and
portfolios in which they hold units, and
• All investors will be given the opportunity to vote on the
proposed changes.
If investors do not respond before the cut-off date, they will be
deemed to have voted in favour of the change.
If the ballot is successful and you do not want your investment to be
included in the amalgamation, you may elect to sell your securities
at any time before the amalgamation effective date and withdraw your
funds at the prevailing market price of the Satrix MAPPS Protect ETF.
Please note that such sale transaction may trigger a CGT event and
that you may be liable for CGT at your next income tax assessment,
and such transaction may also attract brokerage cost.
If you choose not to sell your funds prior to the effective date of
the amalgamation, the amalgamation proposals, as set out in this
letter (if approved by investors), will automatically apply to your
investment.
Should you require further information on the proposed change you
can also email us on info@satrix.co.za.
JSE Sponsor
Vunani Sponsors
17 April 2025
Date: 17-04-2025 09:50:00
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