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Ballot Voting Procedure - Proposed Amalgamation Of The Satrix TRACI 3 Month ETF With The Satrix Income AMETF
Satrix Managers (RF) Pty Ltd
Satrix TRACI 3 Month ETF
Share code: STXTRA
ISIN: ZAE000318903
A portfolio in the Satrix Collective Investment Scheme in Securities, registered as such in terms of the
Collective Investment Schemes Control Act, 45 of 2002
Ballot Voting Procedure - Proposed Amalgamation of the Satrix TRACI 3 Month ETF (source
portfolio) with the Satrix Income AMETF (target portfolio)
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 TRACI 3 Month
ETF (source portfolio) with the Satrix Income AMETF (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 2.
Reason for the Proposed Amalgamation
Satrix intends to amalgamate the Satrix TRACI 3 Month ETF (JSE Code: STXTRA) into the Satrix Income
AMETF (JSE Code: STXINC).
The Satrix TRACI 3 Month ETF was originally designed as a cash adjacent ETF, providing short duration
exposure to interest bearing instruments. However, developments in the South African ETF ecosystem,
particularly the emergence of actively managed income AMETFs, have materially changed the
competitive and functional relevance of such products.
Internal analysis has shown that, the Satrix TRACI 3 Month ETF is increasingly perceived by investors
as an inferior cash solution relative to newer income focused products, while secondary market activity
and net flows suggest waning investor demand.
The Satrix Income AMETF invests across short duration South African interest-bearing assets, with
flexibility to allocate where risk adjusted returns are most attractive. It is not constrained by money market
definitions, allowing it to deliver a meaningful yield pickup without compromising capital prudence. Satrix
Income AMETF has a clearly articulated benchmark and return objective, supported by a credible,
experienced investment manager.
Benefits to the proposed amalgamation
a) Superior Investor Outcomes: Where shorter duration money market assets offer the best
opportunity, the Satrix Income AMETF has the flexibility to allocate accordingly, while also having
the flexibility to allocate to longer duration income generating instruments where these offer better
risk-adjusted returns – effectively offering “the best of both worlds”.
b) Clear Market Demand: Satrix has observed strong industry wide demand for multi asset and
income-oriented solutions, while there is no evidence of a defined client pipeline for the Satrix
TRACI 3 Month ETF.
c) Regulatory and Product Suite Rationalisation: The amalgamation simplifies the Satrix ETF product
range, while reducing investor confusion. Satrix already has a Satrix Money Market Fund in unit
trust form that investors are already comfortable using should they require a pure money market
fund. The amalgamation will align with FSCA objectives of clear product disclosure, appropriate
categorisation, and efficient use of CIS structures.
Differences in Investment Policies
Satrix TRACI 3 Month ETF Satrix Income AMETF Changes and Impact
4.1. The investment policy of the 3.1. The objective of the Satrix Investment Objective:
Portfolio shall be to: Income Actively Managed ETF is to Investors should expect the portfolio
seek high levels of income and to focus on achieving attractive
4.1.1. track the index as closely as maximise returns by actively income and total-return outcomes
possible by, to the fullest extent positioning the portfolio’s income rather than simply tracking a cash
possible: yielding securities depending on the index. This may result in periods of
investment manager’s view of outperformance or
4.1.1.1. apart from investment of interest rate cycles. underperformance relative to cash-
residual cash in a suitable call based benchmarks.
account as referred to in 4.2, 3.2. Securities to be included are
investing only in securities predominantly assets in liquid form, Investment Management Style:
included in the index; and fixed interest securities, preference Investors will move from a rules-
shares, and other non-equity based index-tracking strategy to an
4.1.1.2. disinvesting only from securities. The portfolio may also actively managed strategy. This
securities which are excluded have limited exposure to equities allows the manager greater flexibility
from time to time as a result of and property securities as per the to identify attractive income
the monthly Index rebalancing ASISA fund category. opportunities and respond to
so as to ensure that at all times changing market conditions.
the Portfolio holds only such 3.3. The portfolio will be managed in Returns may therefore differ more
securities as are included in the accordance with regulations significantly from period to period,
Index; and governing retirement funds in South depending on the investment
Africa and may invest in foreign decisions taken by the manager.
4.1.2 as a further objective, manage assets as legislation permits.
the securities held by the Portfolio to Investment Universe:
generate income for the benefit of 3.4. The portfolio may also invest in Investors will gain exposure to a
investors. listed and unlisted financial wider range of income-producing
instruments. assets. This broader opportunity set
4.2 Due to the fact that an may enhance income and return
investment in a money market 3.5. The portfolio may also include potential over time but may also
deposit (Negotiable Certificate of participatory interest of collective expose investors to additional
Deposits) must be for a minimum investment schemes registered in market, credit and valuation risks
amount of R1,000,000.00 there will the Republic of South Africa or any not typically associated with a
be, from time to time, residual cash other form of participatory interests money market portfolio.
in the Portfolio available for of collective investment schemes or
investment. Such residual cash will similar schemes operated in Duration and Interest Rate
be invested by the Manager in a territories with a regulatory Exposure:
suitable Call Deposit Account. Such environment which is to the The portfolio may be more sensitive
investment in a Call Deposit satisfaction of the Manager and to changes in interest rates than the
Account will form part of the Trustee of sufficient standard to source portfolio. While this creates
securities held in the Portfolio. provide investor protection at least opportunities to earn higher levels of
equivalent to that in South Africa. income, the value of underlying
4.3 The Portfolio shall not invest in investments may fluctuate more
securities for the purpose of making 3.6. Nothing contained herein shall when interest rates change.
a profit nor for any purpose other preclude the Manager from varying
than tracking the Index. the proportions of securities in terms Portfolio Construction Flexibility:
of changing economic factors or Investors may benefit from the
4.4 The Portfolio will be passively market conditions or from retaining manager's ability to adapt the
managed in that the manager will cash in the portfolio and/or placing portfolio to changing economic
not invest in securities based on cash on deposit. conditions. However, investment
economic, financial and/or market performance will depend on the
analysis but rather, will buy and sell 3.7. The Portfolio will be an actively effectiveness of those investment
securities solely for the purpose of managed exchange traded fund decisions and may differ materially
ensuring that the Portfolio tracks the (AMETF). from money market returns.
Satrix TRACI 3 Month ETF Satrix Income AMETF Changes and Impact
Index. As such the investment
objective and style of the Portfolio
will be full replication of the Index.
4.5. Investors can obtain
participatory interests in the
Portfolio on the secondary market or
by subscribing for new participatory
interest in the Portfolio on the
primary market. In order to achieve
this objective the manager may,
subject to the Act and the Deed,
create and issue an unlimited
number of participatory interests in
the Portfolio.
4.6. The manager shall further be
entitled, its discretion on only on a
temporary basis, to employ such
other investment techniques and
instruments as will most effectively
give effect to the object or
investment policies of the Portfolio,
subject to the provisions of the
Deed and the Act from time to time.
4.7. The composition of the Portfolio
will be adjusted periodically to
conform to changes in the
composition of the securities in the
Index so as to ensure that the
composition of the Portfolio is a
reflection of the composition of the
securities contained in the Index.
4.8. The Portfolio’s ability to
replicate the price and yield
performance of the Index will be
affected by costs and expenses
incurred by the Portfolio.
4.9 Since the Manager will not be
distributing to the investors any
income (including interest) in the
Portfolio, the manager will disclose
in the Portfolio Supplements that
such income will be reinvested in
the Portfolio.
Portfolio Benchmark Portfolio Benchmark
The benchmark will change from
Barclays Capital/Absa Capital ZAR South African Repo Rate + 0.75% an index to an objective-based
Tradable Cash Index 3 Month reference rate. The impact is that
performance will no longer be
assessed on how closely it
replicates a cash index, but on the
manager’s ability to deliver
income and returns relative to the
stated reference rate, which may
result in higher (or lower)
deviations versus the benchmark
at times.
Satrix TRACI 3 Month ETF Satrix Income AMETF Changes and Impact
Risk Profile Risk Profile
Conservative Conservative Although both portfolios are
classified as conservative,
investors should expect the risk
characteristics to change. The
Satrix TRACI 3 Month ETF is a
cash-adjacent, short-duration,
index-tracking portfolio, whereas
the Satrix Income AMETF may
actively allocate across a broader
range of income instruments and
can take more duration and credit
exposure when appropriate. This
may result in slightly higher
variability in returns compared to a
pure money market approach,
while remaining within a
conservative risk band.
Distribution Methodology Distribution Methodology
Distributing Monthly - Reinvested Distributing Quarterly Distribution will shift from monthly
reinvestment to quarterly payouts.
Total Expense Ratio Total Expense Ratio
The Satrix Income AMETF has a
35 bps 46 bps higher TER as it is an actively
managed and more flexible
income solution than the Satrix
TRACI 3 Month ETF. Its broader
range of investments and flexibility
are expected to deliver better risk-
adjusted returns and improve
income for investors over time.
Impact of Change – Additional Information
Description Satrix Traci 3 Month ETF Satrix Income AMETF
JSE Code STXTRA STXINC
South African - Interest Bearing - SA South African – Multi-Asset –
ASISA Classification
Money Market Income
Risk Profile Conservative Conservative
Currency Risk No No
Assets in liquid form, fixed
interest securities, preference
Asset allocation Cash and Money Market Assets shares, and other non-equity
securities
Barclays Capital/Absa Capital ZAR
Benchmark South African Repo Rate + 0.75%
Tradable Cash Index 3 Month
Fund Denomination ZAR ZAR
TER 0.35% 0.46%
Distribution Reinvesting Monthly Payout Quarterly
AUM R245mil R222mil
How the Amalgamation Impacts Your Investment:
a) Replacement participatory interests
When the source portfolio, Satrix TRACI 3 Month ETF is absorbed into and amalgamated with the targeted
portfolio, the Satrix Income AMETF, 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
TRACI 3 Month 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.
b) 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.
c) Taxation implications
Satrix does not provide tax advice, but there should be no tax impact for investors who remain in the fund.
d) Special distribution
All accrued income in the source portfolio will be distributed before the transfer takes place.
e) Effective date and approval of change
The effective date for the proposed amalgamation of the funds will be communicated via SENS, contingent
upon a successful ballot and receipt of the requisite approval from the FSCA.
Expected timeline for the implementation of the proposed amalgamation:
Weekday Date Action
Friday 15 July 2026 Received No objection letter from FSCA
Tuesday 01 September 2026 Receive investor holdings per STRATE Register
(as 28 August 2026)
Wednesday 02 September 2026 Release of announcement on JSE SENS
Thursday 15 October 2026 Final date of response to ballot letter
(30 business days after distribution)
Thursday 22 October 2026 Satrix submit audit report and supplemental deeds to
FSCA
Monday 09 November 2026 FSCA approve supplemental deeds
Wednesday 18 November 2026 Announcement of amalgamation on JSE SENS
Thursday 26 November 2026 Effective date of amalgamation
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
satrixballotSTXTRA@kpmg.co.za on or before 15 October 2026. 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 TRACI 3 Month 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, 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 TRACI 3 Month 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 before 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 at
info@satrix.co.za.
JSE Sponsor Vunani
Sponsors
2 September 2026
Date: 02/09/2026 09:00:00
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