You can now invest in global infrastructure via new ETF
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EXCHANGE traded fund (ETF) pioneer Satrix has launched a fund that tracks a diversified portfolio of the largest and most liquid infrastructure companies in developed and emerging markets: the Satrix Global Infrastructure Feeder ETF.
The ETF, which listed on the JSE this week, tracks the performance of the FTSE Global Core Infrastructure Index. The underlying asset in the portfolio is the iShares Global Infrastructure Ucits ETF, part of a family of ETFs managed by global investment firm BlackRock.
Valdene Reddy, the director of capital markets at the JSE, welcomed the listing of the ETF, saying it would provide investors with an opportunity to diversify their portfolios.
“This ETF allows investors to contribute towards the provision of infrastructure in the form of roads, railway transportation, ports, airports, power, and telecommunications, which are necessary for economies to work efficiently and to be globally connected through a basket of shares that offer offshore diversification at an affordable cost,” said Reddy.
Kingsley Williams, the chief investment officer at Satrix, said there is increasing demand from investors to access infrastructure and the types of returns infrastructure typically offers, especially when investing offshore.
“Infrastructure investing aims to offer investors exposure to assets with lower volatility, more stable returns, access to higher yielding investments and an ability to hedge against inflation.These are sought-after features, which further serve to diversify portfolios,” he said.