Changes to the fund structure of the Ashburton Global 1200 Equity ETF

Ashburton Investments is always looking for ways to help clients reach their investment goals more effectively. Which is why we have started a process of changing the structure of the Ashburton Global 1200 Equity ETF to be an even more cost-effective product for clients. 

The fund structure will be amended to a fund of fund structure that invests in underlying ETFs that represent the seven regional headline indices (United States, Europe, Japan, Canada, Australia, Asia and Latin America) representing the S&P Global 1200 Index, which is the fund’s benchmark. Currently the Ashburton Global 1200 Equity ETF invests directly in the component equities of the index.

The change will mean that the fund will no longer buy and hold underlying constituents of the S&P Global 1200 Index but only hold the respective iShares ETFs and SPDR ETFs that represent the constituent indices. There is a ballot process underway and once the regulatory approval of the amendment has been obtained the management fee will reduce from 0.37% to 0.25% per annum (exclusive of VAT). The management of the portfolio, income distributions, risk profile and ASISA classification will all remain as is and will not be changed.

Since inception of the portfolio the costs, as expressed by the Total Investment Charges (TIC), are 0.66% and annualised tracking difference compared to the index since inception is 0.67%. The expected TIC after the changes have been implemented will be 0.49%.

About the fund
The objective of the fund is to track the economic performance of the underlying index, the S&P Global 1200 Index as closely as possible and to focus on achieving a total compound annual return which will substantially equate to the compound annual return of the portfolio benchmark, as adjusted to take into account transaction and other costs and assets in liquid form.

It is a passively managed portfolio in which a manager will not buy or sell securities based on economic financial and/or market analysis but rather, will buy and sell securities solely for the purpose of ensuring that the portfolio tracks the S&P Global 1200 Index.

Should you require additional information regarding this change, please contact your broker or financial advisor, and institutional investors can contact the Ashburton Indexation desk directly Vicki Tagg Vicki.Tagg@ashburton.co.za or Ben Meyer Ben.Meyer@ashburton.co.za

Related documents
Ballot procedure and memorandum