The AMI Big50 ex-SA ETF tracks Africa’s Blue chip companies
The AMI Big50 ex-SA ETF
2019 Q1 COMMENTARY:“The end of 2018, marked the end of a volatile time in equity markets, with African markets returning nearly half of their 2017 gains. In 2019 the markets will be gearing towards election season, most notably Nigeria and South Africa. The democratic process is being observed which is key milestone for African markets which are often viewed through a political lens. The situation in Zimbabwe is being monitored as the market returns have been driven by the hyper-inflation environment that currently exists.
The portfolio re-balanced in the month of December, Nine constituents with a combined weighting of 9.57% have been replaced with constituents with a combined weighting of 9.82%.
New additions: Ibnsina Pharma, Oryx Properties, Global Telecom, Hightech Payement Sys. Ezz Steel, Miniere Touissit, Orascom Development Egypt Sae, Lux Island Resorts, Nampak.
Removals: Choppies Enterprises, Alteo, Palmci, Sdv Saga Ci, Kenolkobil, Total Ci, Telecom Egypt, Crdb Bank, Sodeci.
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: 29 November 2018
- Closing price per unit: ZAR 12.82
- Reference price: ZAR 14.08 (Based on index value)
- Last distribution per unit: ZAR cents 14.315
- 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.