The AMI Big50 ex-SA ETF tracks Africa’s Blue chip companies
The AMI Big50 ex-SA ETF
The Big 50 of Africa still remains resilient to market bears. Markets have taken a hit due to lockdown measures whilst some commodities rise and reverse losses pre-lockdown. The rebalance for the Big 50 has seen a change removing out Egyptian Satellites (EGYSA) and bringing in UNIMED (UMED). Did you know? Cloud Atlas Investing now invests in Tunisia’s first Pharmaceutical laboratory. The Zimbabwean Stock exchange (ZSE) has temporarily suspended trading with only 4.9% exposure in the country we are in discussions to see when the suspension will be lifted and as a result price the exposure at 0%. The weak rand (ZAR) has seen AMIB50 receive additional support as investors opting for yield enter are finding it in stimulus driven developed markets. Lockdown is being eased and economies are reopening AMIB50 is trading at R12.20 at time of print.
The portfolio rebalanced in the month of June 2020. One constituent with a combined weighting of 0.36% has been replaced with a constituent with a combined weighting of 1.15%.
New additions: Unité de Fabrication de Médicaments (1.15%). Removals: Egyptian Satellites (0.36%).
What You Should Know
The Cloud Atlas Big50 ex-SA ETF is an investment product that invests in the 50 most representative companies across the African continent. The 50 companies in this ETF track the Cloud Atlas AMI Big50 ex-SA index (beta+), which is an enhanced index designed to maximize sector and country exposure.
- Pricing date: 18 Sep 2020
- Closing price per unit: ZAR 9.60
- Reference price: ZAR 12.71 (Based on index value)
- Last distribution per unit: ZAR cents tba
- Management fee: 0.50% per annum
- Custody fee in African markets: 0.35% per annum
- Total chargers :0.85% per annum
- The fund re-balances quarterly and has a December year-end.
- ETF Sharecode: AMIB50
- Fund ISIN: ZAE000242582
What You Are Buying
Investing in the Cloud Atlas AMI Big50 ex-SA an investor will get a proportional shareholding in the 50 African companies.
These companies form part of the basket of shares in the index.
To closely track the performance of the AMI Big50 ex-SA index, by investing in the shares of the companies represented by the index. To provide investors exposure to Africa at low fees.
To create an investment product that trades Africa’s Fortune 50 companies. Giving investors exposure to the Blue chips and opportunity companies listed across the continent.
By Investing in the companies represented by the AMI Big50 ex-SA index, we provide investors exposure to many African markets by owning shares in the listed companies. And by owning shares in these companies, we hope to create wealth for the investors and drive overall good governance.
How to buy
Investors will need a brokerage/custody account to trade the Cloud Atlas AMI Big50 ex-SA ETF, as it listed on the stock exchange. It is advisable for institutional investors to trade in basket sizes, which start at ZAR 30 million (U$ 2.3 million), as Cloud Atlas will obtain the liquidity in the primary markets for these basket trades where ETF units are created or redeemed. Where investors trade less than a basket they will need to get liquidity in the secondary market, which is driven by supply and demand dynamics. Cloud Atlas will market make in the secondary market by showing ETF trading prices that are close to the live Net Asset Value of the ETF units through out the day.
Cloud Atlas Investing (Cloud Atlas RF (Pty) Ltd) is a registered manager of the Cloud Atlas Scheme, a Collective Investment Scheme approved by the Financial Services board. Under the Scheme Cloud Atlas Investing is an authorised Exchange Trade Fund Issuer by the Johannesburg Stock Exchange.