SATRIX

Sanlam Investment Holdings Ltd (SI) 

Sanlam Investment Holdings Ltd (SI), a wholly owned subsidiary of Sanlam Limited and part of the cluster of investment businesses in the listed Sanlam group, has concluded an agreement* to acquire the remaining 50% shareholding in Satrix Managers Pty Ltd (Satrix). SI, which has been the underlying manager for Satrix since inception and previously held a 50% stake, made the strategic move in line with rapid growth in the index tracking market locally and globally.

Johan van der Merwe, CEO of SI, says the passive investment space is an increasingly important one. “According to a Blackrock report, the 2000 to 2010 compound annual growth rate for global ETF assets has been over 30%. This growth is mainly attributable to the fact that ETFs provide fast and efficient access to the financial markets, are liquid, transparent and cost-effective. South Africa has been a relatively late starter with assets growing from R0.25bn in 2000 to R17.5bn in 2008, but local demand is fast gathering steam.”

Van der Merwe said Satrix is synonymous with index tracking in South Africa and is the most sought-after brand in its segment, and he was therefore delighted to have it fully added to the SI stable to complement its strong active management capabilities. “We helped establish Satrix in 2001 as the first ETF in South Africa and it has been a true success story. It currently manages approximately R11.6bn of assets and boasts strong performance: Satrix DIVI fund has returned 74% over the past 3 years and Satrix RAFI which has done 70% over the same period (vs. the top 40 index which is at 52%).”

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http://www.fanews.co.za/article.asp?Company_News_Results~1,Sanlam~1055,Sanlam_Investments_acquires_remaining_stake_in_Satrix_Managers~11901
Graph:  Standard Bank Securities