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Ballot Voting Procedure - Proposed changes to the investment policy STXPRO
Satrix Managers (RF) Pty Ltd
SATRIX PROPERTY PORTFOLIO
Share code: STXPRO
ISIN: ZAE000240131
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 changes to the investment policy of
the Satrix Property Portfolio and amending the portfolio name to the
Satrix Property ETF.
This letter is important and requires your immediate attention.
The purpose of this letter is to inform you of the proposed changes
to the Satrix Property 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.
Satrix intends to transition the benchmark index for the Satrix
Property Portfolio from the S&P South Africa Composite Property Capped
Index ("S&P Property Index") to the FTSE/JSE SA All Property Index
("ALPI") (J803). Additionally, the portfolio will be renamed the
Satrix Property ETF.
In terms of Section 98 of the Collective Investment Schemes Control
Act, 45 of 2002 ("the Act"), the proposed changes will proceed if the
majority of investors vote in favour of the changes by way of the
enclosed ballot.
The 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.
Reason for the Proposed Changes
Satrix is committed to provide focused, efficient, and thematically
aligned access to the South African listed property market. The
transition in benchmark is intended to align the fund with the widely
recognised FTSE/JSE All Property Index (J803), which offers enhanced
liquidity and more comprehensive exposure to the South African
property sector.
Key Benefits to moving into the FTSE/JSE All Property Index (J803)
Index
• Broader but Aligned Exposure to the S&P Property (SPSAPCZP) Index:
The FTSE/JSE All Property Index (J803) uses the Real Estate sector of
the JSE All Share as a constituent universe. Due to the screening
requirements of the S&P Property index, a smaller constituent universe
is eligible for inclusion in the index, meaning that a shift to the
ALPI (J803) would broaden the exposure to the wider property market.
• Capping methodology: The capping methodology of the S&P Property
index is set to 10%, where the ALPI (J803) index makes use of a 15%
cap. The lower cap of the S&P Property (SPSAPCZP) index means that
smaller and less liquid counters are more heavily upweighted in the
index, leading to smaller counters having a larger effect on the index
than they normally would. The shift to the ALPI (J803) index will
allow a more focused allocation to the top constituents in the market
while ensuring concentration risk is managed at a more reasonable
level.
• Liquidity: As a result of the capping and other factors, the S&P
Property (SPSAPCZP) index has seen worsening liquidity. The ALPI
(J803) index has improved liquidity in comparison and also has a
broader constituent base. The proposed possible shift for the ALPI
(J803) to include fledgling constituents does not negatively affect
the liquidity of the index where the inclusion of the fledglings in
the index aligns with the current S&P property (SPSAPCZP) index which
already has some fledglings in the index.
• Tax Considerations: Moving to the ALPI (J803) index would further
align fund management with local withholding tax treatment, making
the treatment of withholding and other forms of tax more synonymous
with South African investors. The current S&P Property (SPSAPCZP)
index managed by the international S&P Indices group manage their
indices according to global standards that do not take into account
local anomalies with dual-listed property counters. This change would
prevent future complications when tracking a property index.
Key Commonalities
The table below shows similarities between the two benchmarks:
Category S&P Property (SPSAPCZP) All Property (ALPI)
Universe S&P South Africa All Share:
Composite: Real Estate (8600)
Liquid (>$50m p.a.)
Property
Companies (>$100m in free
float market cap)
Constituents 20 22
Capping 10% 15%
Foreign 43% 47%
Exposure
Risk and Return on Past Performance
The statistics below are based on the historical performance of the
indices considered.
To Dec 2025 S&P Property (SPSAPCZP) All Property (ALPI)
YTD 31.72% 30.56%
1 Year 31.72% 30.56%
3 Year 24.29% 23.34%
Since April 20.30% 19.83%
2021
Volatility 13.97% 13.51%
p.a.
Although the ALPI (J803) Index has delivered slightly weaker returns
compared to the S&P Property (SPSAPCZP) Index since April 2021, it
stands out as the better choice for investors seeking a more balanced
risk-return profile. The ALPI (J803) Index exhibits lower annual
volatility (13.51% vs. 13.97% p.a.), which offers a smoother
investment experience with less pronounced ups and downs. This reduced
volatility is a direct result of its broader diversification, which
helps reduce the impact of any single security's poor performance on
the overall index.
Investable Universe of Securities
The ALPI (J803) index provides a relatively similar exposure to the
S&P Property (SPSAPCZP) index as seen in figure 2 below. The larger
number of constituents, as well as the larger 15% cap seen in the ALPI
(J803) index ultimately results in slightly lower weights for the
smaller constituents common to both indices.
The S&P Property (SPSAPCZP) index aims to provide a tailored exposure
to property issuers in South Africa. While the ALPI (J803) index has a
slightly lower return profile, this broader constituent universe allows
investors to structurally shift away from a concentrated exposure to
an index more representative and generally accepted as the de facto
benchmark of the South African listed property sector.
Change in name
The name of the portfolio will change from Satrix Property Portfolio
to Satrix Property ETF. The JSE code, ISIN, as well as the short name
remains unchanged, and the history data will be retained.
Differences in Investment Policies
The table below lists the current and proposed investment policies:
Current Proposed Changes and
impact
Investment Policy Investment Policy
3.1. The investment policy of 3.1. The investment
the Portfolio shall be to objective of the Portfolio The portfolio
track the S&P South Africa is to provide an investment will no longer
Composite Property Capped vehicle for investors track the S&P
Index (hereinafter referred wishing to track the South Africa
to as "the Index") as closely movement of the FTSE/JSE All Composite
as possible, by; Property Index (J803) ("the Property Capped
Index") as closely as Index, but will
Buying only constituents possible, by investing track the
securities in the same predominantly in equity movement of the
weightings in which they are securities of companies FTSE/JSE All
included in the Index and which are primarily Property Index
selling only securities constituents of the Index. (J803).
which are excluded from the
Index from time to time as a
result of periodic Index
reviews or corporate actions 3.2. The Portfolio shall seek
or which are required to be to achieve this objective by
sold to ensure that the investing as far as is
Portfolio holds securities possible and practicable in
in the same weightings as the constituents of the
they are included in the Index as well as assets in
Index. liquid form and financial
instruments for efficient
3.2. The portfolio shall not portfolio management
buy or sell securities for purposes. The manager
the purpose of making a intends to use physical
profit nor for any purpose tracking techniques such as
other than tracking the full replication and where
Index. necessary portfolio
optimisation in order to
3.3. It is anticipated that achieve a similar return to
assets in liquid form will the Index. It is therefore
not form a substantial part expected that at most times
of the portfolio's assets. the Portfolio will hold each
However, any liquid assets and every underlying
that the portfolio holds may constituent of the Index in
be invested in short-term the exact same proportion as
investments such as banker's their weightings in the
acceptances and certificates Index. However, from time to
of deposit. time the Portfolio may not
hold all constituents of the
3.4. As a further objective, Index. The combination of
the securities held by the shares will enable the
portfolio shall be managed Manager to track the
to generate income for the performance of the Index.
benefit of investors.
3.5. Investors can obtain
participatory interests in 3.3. The Portfolio
in the portfolio on the endeavours to replicate the
secondary market or by price return performance of
subscribing for new the Index in South African
Current Proposed Changes and
impact
participatory interest in Rand (ZAR).
the portfolio on the primary
market. In order to achieve
this objective the manager
may, subject to the Act and 3.4. The Portfolio's ability
the Deed, create and issue an to track the price return
unlimited number of performance of the Index
participatory interests in will be affected by, amongst
the portfolio. others, the costs and
expenses incurred by the
3.6. The portfolio will not Portfolio and the exposure
be managed according to to liquid assets.
traditional methods of
active management, which
involve the buying and
selling of securities based 3.5. The Trustee shall ensure
on economic, financial and that the investment policy
market analysis and set out in the preceding
investing judgment. Instead, clauses is adhered to;
the investment objective and provided that nothing
style will be full contained herein shall
preclude the Manager from
replication of the Index. As varying the proportions of
a result, the financial or securities in terms of
other condition of any changing economic factors or
company or entity included market conditions or from
from time to time in the retaining cash in the
Index will not result in the Portfolio and/or placing
elimination of its cash on deposit.
securities from the
portfolio unless the
securities of such company
or entity are removed from
the Property Index itself.
3.7. The portfolio will
acquire and hold a portfolio
of securities that
substantially represents all
of the component securities
of the Index in
substantially the same
weighting as in the Index.
However, the portfolio shall
also be entitled, in its
discretion and only on a
temporary basis, to employ
such other investment
techniques and instruments
as will most effectively
give effect to the object or
the investment policies of
the portfolio.
3.8. The composition of the
portfolio will be adjusted
periodically to conform to
changes in the composition
and weighting of the
securities in the Index so as
Current Proposed Changes and
impact
to ensure that the
composition and weighting of
the portfolio are a
reflection of the
composition and weighting of
the securities contained in
the Property Index.
3.9. The portfolio will hold
securities purely for the
economic rights and benefits
attaching thereto, and
accordingly if a takeover
bid is made for shares of a
company included in the
Index, the portfolio will
not tender shares in respect
thereof. Securities held by
the portfolio which are
subject to a takeover bid
will only be surrendered if
such surrender is mandatory
(and then only to the extent
of such mandatory surrender)
in terms of applicable law or
under the rules of a
regulatory authority or body
having jurisdiction. If a
takeover bid results in a
company no longer qualifying
for inclusion in the Index,
any shares of the company
held by the portfolio after
the takeover bid will be
disposed of by the
portfolio, and the proceeds
will be applied in effecting
the appropriate adjustments
to the portfolio.
3.10. The portfolio's
ability to replicate the
price and yield performance
of the Index will be affected
by the costs and expenses
incurred by the portfolio.
Portfolio Benchmark Portfolio Benchmark
Change of
S&P South Africa Composite FTSE/JSE SA All Property Portfolio
Property Capped Index Index (J803) Benchmark
Distribution Methodology Distribution Methodology
Distributing quarterly Distributing quarterly No change
Total Expense Ratio Total Expense Ratio No change
Current Proposed Changes and
impact
0.35% 0.35%
Long Name Long Name Long name change
Satrix Property Portfolio Satrix Property ETF
The Effect on you as Investor
The proposed change to this portfolio will change investors' exposure
from equity securities, included in the S&P South Africa Composite
Property Capped Index, to equity securities included in the FTSE/JSE
SA All Property Index (J803).
Transaction Costs
The change could result in additional trading costs being incurred
when the portfolio is rebalanced to align with the new methodology.
Satrix does not provide tax advice, but there should be no tax impact
for investors who remain in the fund.
Special Distribution
No special distributions will be affected or applicable.
Taxation implications
Satrix does not provide tax advice, but there should be no tax impact
for investors who remain in the fund.
Effective date and approval of change
Details of the final salient dates will be announced after Financial
Sector Conduct Authority ("FSCA")("the Authority") approval.
Proposed timeline for the implementation of the proposed ballot:
Weekday Date Action
Friday 12 December 2025 Approval from FSCA
Tuesday 03 March 2026 Receive investor holdings per STRATE
Register (as 27 February 2026)
Wednesday 04 March 2026 Release of announcement on JSE SENS
Thursday 16 April 2026 Final date of response to ballot
letter (30 business days after
distribution)
Thursday 30 April 2026 Satrix submit audit report to FSCA
Wednesday 20 May 2026 FSCA approve audit report
Wednesday 27 May 2026 FSCA approve supplemental deed
Friday 29 May 2026 JSE formal approval
Publication of ballot results and
Wednesday 03 June 2026
declaration data
Wednesday 10 June 2026 Finalisation announcement
Last day to trade (LDT) under long
Thursday 18 June 2026 name 'Satrix Property Portfolio'
Friday 19 June 2026 List and trade new shares:
JSE code: STXPRO
ISIN: ZAE000240131
New Long Name: Satrix Property ETF
Tuesday 23 June 2026 Record date
Issue of new securities and update of
Wednesday 24 June 2026
shareholder accounts
Action Required
1. Please read this circular on the proposed change to the fund, 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 satrixballotSTXPRO@kpmg.co.za on
or before 16 April 2026.
3. Please do not include any additional instructions regarding your
holdings with your ballot form, such as requests for purchases or
switching instructions. Your ballot form will be sent directly to
our auditors. Should instructions be sent to the auditors after the
commencement of the ballot process, we cannot guarantee that they
will be implemented.
4. If you are no longer invested in this fund, no action is required.
Your Rights as An Investor
The rights of investors are firmly entrenched in the Act. In terms
of Section 98 of CISCA, as read with Clause 59 of the Deed of the
Satrix Collective Investment Scheme in Securities, the Authority
requires that:
• All investors are notified in writing of any proposed material
changes to the collective investment schemes and portfolios in
which they hold units.
• All investors are balloted to vote on the proposed changes.
• An independent auditor will verify the outcome of the ballot.
Please note that under the Act, the Authority will not consent to
changes to the portfolio unless satisfied that such changes will not
be detrimental to the interests of any investor.
If you choose not to switch or sell your funds prior to the effective
date of the change of the investment policy as set out in this letter
(if approved by investors), the amended investment policy will
automatically apply to your investment.
Should you require further information on the proposed change please
contact Satrix Managers via email to info@satrix.co.za.
JSE Sponsor
Vunani Sponsors
04 March 2026
Date: 04-03-2026 01:42:00
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