The AMI Big50 ex-SA ETF tracks Africa’s Blue chip companies
The AMI Big50 ex-SA ETF
Election season has been in full swing across Africa this year starting with Mozambique, Mozambique’s opposing party (RENAMO)is calling for votes to be annulled after Ruling party (FRELIMO) wins general elections. We also had elections in Botswana with the ruling party (BDP) winning elections by a landslide. The Big50 share price has rallied due to weaker rand and also due the Sino US-China trade as possible partial deal known as “phase 1” is soon to be met and signed by two of the world’s largest economies at the next APEC summit in Chile. Making headway is our constituent Coml.Intl.Bank (Egypt) has made an acquisition to further mobile payments system in east Africa adding to a total weighting of 15.71% . Ezz Steel weighting has increased by 5.2% along with Elswedy Electric increasing by 3.9% on the back of the EGP exchange with large number of foreign buyers at the end of September. Safaricom after making gains in profit form M-PESA plans for expansion into east Africa making a bid for Ethiopian telecoms and their 100 million population.
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: 22 January 2020
- Closing price per unit: ZAR 11.13
- Reference price: ZAR 13.93(Based on index value)
- Last distribution per unit: ZAR cents tba
- Management fee: 0.35% per annum
- Custody fee in African markets: 0.32% per annum
- Other fund fees: 0.08% per annum
- Total fees: 0.75% 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.