What is the fund objective?
To provide investors with a real rate of return above inflation (CPI), through exposure to a diversified portfolio of government inflation-linked bonds. The Ashburton Inflation ETF invests in bonds based on the value issued by National Treasury and is listed on the JSE.
What is the investment process?
The Ashburton Inflation ETF aims to track the performance of the Government Inflation-Linked Bond Index (GILBx). GILBx is a weighted basket of South African government inflation-linked bonds. The ETF tracks the component bonds of the index in proportion to the index weightings. Inflation returns interest to investors quarterly. The initial amount invested in the ETF will increase in line with inflation, while paying real distributions to investors.
Why invest in in this fund?
Convenient and cost effective
Ashburton ETFs are a convenient, cost-effective method to gain market exposure. Ashburton ETFs allow you to obtain this exposure in an easily tradeable form. ETF units are listed on the JSE and can be traded just like any other share through a stockbroker.
Tracks an index
The asset manager is not mandated, nor incentivised to outperform the index the ETF is tracking. Instead, the goal of the asset manager is to replicate the constituents. The investment is therefore deemed to be passively managed (which is typically more cost effective than an actively managed fund).
Ashburton ETFs are highly transparent — you can see exactly which securities make up each ETF, including the weightings and sectors represented within a highly regulated trading environment.
Possible portfolio core
As Ashburton ETFs are index-based, they can also be used as the core of a portfolio to provide a higher likelihood of returns consistent with the market performance of the index being tracked. You are then able to allocate your remaining investment capital to satellite investment opportunities in the pursuit of above-market related returns.
||South African rand
Annualised performance since 2009:
*Hover on chart to see values