South African asset manager Stanlib has launched a new exchange-traded fund designed to track the performance of the FTSE/JSE South Africa-listed property index (SPY).
According to a regulatory filing, the new Stanlib Property ETF – the third to be launched by Stanlib – will “generally invest in all of the component securities of the index in proportion to their weighting in the index and will under normal circumstances aim to invest at least 90 per cent of its total assets in the shares, or equivalent securities, composing the index.”
Where this is not possible, because of costs and expenses involved as well as the illiquidity of securities, the investment adviser may use “quantitative techniques to hold a representative sample of the index”.
Stanlib’s property ETF is the second product to track the FTSE/JSE Sapy index and will compete for business with the PropTrax Sapy index ETF.
The fee structure of the new ETF comprises an asset management fee of 0.15 per cent plus costs, making it a “very competitive offering,” according to Stanlib.