Satrix is offering local investors access to the global healthcare market through a new exchange traded fund (ETF), the Satrix Healthcare Innovation Feeder ETF. The IPO for the fund, which will track the STOXX Global Breakthrough Healthcare Index, opened yesterday and JSE listing is planned for 26 May.
The fund will provide alternative sources of portfolio returns through investments in the healthcare industry, which is driven by rapid innovation and disruption. Kingsley Williams, chief investment officer of Satrix says, “This new ETF forms part of a series of thematic investment products which seek to take advantage of megatrends playing out around the world. It is invested in companies across sectors and geographies that are set to benefit from long-term global structural changes such as shifting demographics, an aging population, changing economic power and technological breakthrough. This could lead to above average earnings growth.”
He said the speed of disruption and innovation is typically underestimated by the market. “Spending on healthcare is increasing and minimally dependent on the business cycle. Healthcare therefore has potential to provide increased diversification within portfolios.”
This fund offers highly diversified yet investable exposure to a broad range of companies involved in healthcare innovation globally, and is additionally screened to meet minimum environmental, social and governance (ESG) criteria.
The Satrix Healthcare Innovation Feeder ETF will track a wider healthcare exposure than other healthcare indices and is suitable for investors with a long-term view on their equity allocation or who wish to express an investment view on a specific sector within a broader portfolio.
How to access the IPO
The Satrix Healthcare Innovation Feeder ETF can be accessed via SatrixNOW.co.za.