Another big win for Satrix at awards for index-tracking funds

Sanlam-owned Satrix Managers walked off with nine of the 26 awards at the sixth annual South African Listed Tracker Funds Awards (Salta) on 30 March.

The accolades, which again made Satrix the company to win the most Saltas, included the People’s Choice Award for the sixth time, as well as awards for capital raising and performance to the end of December 2022.

Satrix, the largest provider of ETPs in South Africa, in November 2000 launched the first locally listed exchange-traded fund (ETF), the Satrix 40 ETF.

Saltas are awarded to the issuing houses of JSE-listed ETFs and exchange-traded notes (ETNs) for investment performance and excellence in providing index-tracking products over the past three to 10 years.

The awards are an initiative by four service providers to the exchange-traded product (ETP) industry: etfSA, Profile Data, the JSE, and the London Stock Exchange Group.

Sygnia, country’s second-largest provider of ETPs, won only three awards, which was fewer than the six won by Absa Capital and 1nvest’s four.

CoreShares won two awards, and FirstRand/First National Bank (FNB) and Union Bank of Switzerland (UBS) won one award each.

The overall results are based on an analysis of daily net asset value (NAV) pricing and other data provided by the administrators of ETPs to local data collectors. This information is used to assess investment performance and other ratios to determine the best providers of ETPs in six award categories. Only quantitative assessments are used to determine the winners in four award categories, according to the organisers.

The exception is the People’s Choice Award, which is decided by the public voting online.

1. Investment performance

In the total return investment category, performance is measured for a lump-sum investment, on a total return, NAV basis, with distributions reinvested. There are three periods of assessment – three, five and 10 years – all to the end of December 2022.

Satrix won four awards:

• The Satrix Capped INDI ETF was the top-performing South African equity ETP over 10 years;
• The Satrix RESI ETF was the top-performing South African equity ETP over five and three years; and
• The Satrix S&P 500 Feeder ETF won for best foreign equity ETP over five years.

1nvest won three awards for performance:

• The 1nvest Rhodium ETF was the top commodity and currency ETP over five and three years; and
• The 1nvest S&P Info Tech Index Feeder Fund ETF was the best foreign equity index-tracking ETP over three years.

The CoreShares Preference Share ETF won two awards, for the best South African non-equity ETP over five and three years.

The Sygnia Itrix MSCI USA Index ETF was the top-performing foreign and commodity ETP over 10 years.

Absa Capital’s NewFunds S&P Namibia Bond ETF was the top foreign non-equity ETPs over three years.

The UBS-sponsored Old Mutual Wealth Global Actively Managed Certificate (AMC) was the top foreign equity AMC over three years.

2. Trading efficiency

The awards in this category recognise the ETPs that traded in the JSE secondary market at the closest prices to NAV over three years to the end of December 2022.

ETPs sponsored by Absa Capital won two awards:

• The NewFunds GOVI ETF in the category for local non-equity ETPs; and
• The NewWave US Dollar Currency ETN in the category for foreign non-equity, commodity and currency ETPs.

The Satrix RESI ETF won in the category for local equity ETPs, while the 1nvest S&P Info Tech Index Feeder Fund ETF won in the category for foreign equity ETPs.

3. Capital raising

The awards for capital raising recognise the ability to raise new capital, either additional capital for existing ETPs or new capital for the listing of new ETPs, over three years. There are five awards, for South African ETPs, for foreign and commodity ETPs, and an award for the ETF issuing house that raised the most net new capital.

Satrix won the award for total capital raised by an issuing house. The Satrix 40 ETF won in the category for local equity ETPs.

Absa Capital’s funds won two awards for capital raising. The NewFunds GOVI ETF in the local non-equity ETP category, and the NewWave Silver ETN in the foreign non-equity ETP category.

The Sygnia Itrix Emerging Markets 50 ETF won in the foreign equity ETP category.

4. Tracking efficiency over three years

These awards recognise the ETPs with the lowest tracking error relative to the specific benchmark tracked over three years. The winners in each of the categories were:

• FNB Top 40 ETF (South African equity ETPs);
• Satrix Property ETF (South African non-equity ETPs);
• Sygnia Itrix MSCI Japan Index ETF (foreign equity ETPs); and
• Absa Capital’s NewPlat ETF (foreign non-equity, commodity and currency ETPs).

Most popular ETP

The public is asked to vote on their personal choice ETP. A dedicated voting page is set up for this purpose.

The Satrix 40 ETF won the People’s Choice Award. The 1nvest Top 40 ETF and the UBS Coherent Capital Commodity Investment Portfolio AMC were the second and third most popular ETPs, respectively.