SOUTH AFRICA: Satrix, a provider of index-tracking products, has announced the opening of its initial public offering (IPO) for the Satrix MSCI World Islamic ETF on the 19th September 2024, marking the launch of South Africa’s first Shariah compliant ETF with offshore exposure. The ETF is set to list on the Johannesburg Stock Exchange on the 22nd October 2024 and close on the 9th October 2024.
The currency in focus is the South African Rand, with distributions occurring semi-annually. The asset management is handled by the Satrix Investment Team, while Sanlam Private Wealth acts as the market maker for this investment.
Additionally, the ETF tracks the MSCI World Islamic Index, which reflects Shariah investment principles and measures the performance of large- and mid-cap companies from 23 developed market countries.
Previously, Satrix established its Satrix Shariah Top 40 Index ETF in 2009, an investment instrument that complies with Islamic ethical investing. A decade later, in 2019, Momentum Securities launched a global Shariah portfolio that invests in MSCI World Islamic Index companies.
South Africa has in the past few years made moves to attract more Islamic investors into the market through its asset management segments, with 11 companies offering Shariah instruments and over 20 Islamic funds, including at least three ETFs.
Other funds in the market include Old Mutual’s 10-year close-ended African Agri Farmland Fund and the Rasmala Trade Finance Fund by UK-owned and Dubai-based Rasmala Investment Bank.
Meanwhile, in 2022, WealthPoint launched Shari’ah Wealth, the Shariah compliant version of its global real estate investment platform and in February 2024, Sentio Capital Management launched its Sentio SCI Hikma Shariah Income fund on the Glacier by the Sanlam platform.
