The AMI Big50 ex-SA ETF tracks Africa’s Blue chip companies
The AMI Big50 ex-SA ETF
NOVEMBER COMMENTARY:“Nigeria will be witnessing groundbreaking history. By early next year, the largest offshore vessel will start pumping crude from a deposit deep beneath the seabed, boosting the African oil output by 10%. Our Nigeria oil exposure remains at 0%. Whether Nigeria will accept the $ 70 per barrel price in implementing the offshore drilling strategy ahead of the OPEC December meeting remains to be seen.
In Botswana SeedCo listing has raised closed to $19.2Mil as they seek to unbundle 71% of their Seed Co International represented, the company has returned 11.5% YTD and entered the Big50 portfolio in 2018Q1 at 0.81%. Seed Co is involved in providing seedlings to farmers in the SADC nations. We see the move as a means of escaping the foreign currency shortages in Zimbabwe and looking for a captive source of funds for expansion plans.
Kenya has introduced Cryptocurrency for poorer communities and this speaks volumes to the story of Safaricom, a Big50 stalwart, which allowed remittances into rural areas from 2007 and is now turning over U$ 3billion a quarter.
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: 06 November 2018
- NAV price per unit: ZAR
- Reference price: ZAR 14.37 (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.