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Ballot Procedures In Respect of the Amendment of the Investment Policy of the Sygnia Itrix Solactive Healthcare 150
Sygnia Itrix (RF) (Proprietary) Limited
Sygnia Itrix Solactive Healthcare 150 ETF
JSE Code: SYGH
ISIN: ZAE000300521
Portfolios in the Sygnia Itrix Collective Investment Scheme registered as such in terms of the
Collective Investment Schemes Control Act, 45 of 2002, managed by Sygnia Itrix (RF)
Proprietary Limited (Sygnia Itrix).
BALLOT PROCEDURES IN RESPECT OF THE AMENDMENT OF THE INVESTMENT
POLICY OF THE SYGNIA ITRIX SOLACTIVE HEALTHCARE 150 ETF
THIS LETTER IS IMPORTANT AND REQUIRES YOUR ATTENTION
Sygnia Itrix (RF) (Pty) Ltd, a Manager appointed in terms of the Collective Investment
Schemes Control Act, No. 45 of 2022 (the Act), hereby effects ballot voting procedures in
terms of Section 59 of the Deed and Section 98 of the Act to obtain approval for:
• An amendment of the investment policy of the Sygnia Itrix Solactive Healthcare 150
ETF (SYGH) changing the fund from a passively managed exchange traded fund
(ETF) to an actively managed ETF. The ETF will no longer aim to replicate the
performance of the index but rather use the index as a benchmark for performance
measurement while the manager actively makes investment decisions.
Motivation for the proposed changes:
Converting the Sygnia Itrix Solactive Healthcare 150 ETF to the Sygnia Itrix Health Innovation
AMETF offers investors a tailored approach to navigating the dynamic healthcare sector. With
healthcare being subject to rapid innovation, regulatory changes, and evolving market trends,
an actively managed ETF can capitalize on emerging opportunities and mitigate risks. By
employing in-depth research and analysis, and efficient portfolio construction methods, the
actively managed healthcare ETF gains the flexibility to overweight subsectors or individual
stocks, potentially outperforming its passive counterpart on a risk adjusted basis. This shift not
only aims to enhance returns but also seeks to protect investors by actively managing
downside risks and capitalizing on market inefficiencies within the healthcare industry.
• Impact on Investors: The impact is changing from Index tracker to actively managed
and this will benefit investors as the portfolio manager will have more flexibility in
selecting investments in healthcare innovations, as well as the weighting of these
investments in the portfolio. The manager, through a number of mechanisms including
portfolio construction and efficient portfolio management, will aim to improve the return
/ risk ratio relative to the benchmark.
• Fees will remain the same.
• The fund name will change to Sygnia Itrix Health Innovation Actively Managed ETF
Important information to note:
1. The JSE code and ISIN of the fund will remain the same;
2. The management fee will remain the same.
Please refer to the below summary indicating the changes before and after the investment
policy change.
List of similarities and differences before and after the proposed changes:
Before After
JSE Code: SYGH SYGH
ISIN: ZAE000300521 ZAE000300521
Fund name: Sygnia Itrix Solactive Healthcare 150 Sygnia Itrix Health Innovation Actively
ETF Managed ETF
Long name: Sygnia Itrix SOL H150 SYGH ActivelyManaged ETF
Abbreviated SYGDMH150 SYGHAMETF
name:
Portfolio Solactive Developed Markets Solactive Developed Markets
benchmark: Healthcare 150 Index Healthcare 150 Index
Investment The objective of the Sygnia Itrix Solactive The portfolio will be an actively managed
policy: Healthcare 150 ETF is to provide an exchange traded fund (AMETF). The
investment vehicle that gives easy access primary objective of Sygnia Itrix Health
to investors who want to achieve long term Innovation Actively Managed ETF is to
capital appreciation in tracking the achieve long-term capital appreciation by
performance of the Solactive Developed investing in a diversified portfolio of
Markets Healthcare 150 Index companies which have direct or indirect
(.SDMH150P) ("benchmark index"). The exposure to the healthcare sector. The fund
Solactive Developed Markets Healthcare aims to outperform its benchmark index,
150 (.SDMH150P) Index tracks the the Solactive Developed Markets
performance of the largest 150 companies Healthcare 150 Index, through active
from the developed market Healthcare management and strategic allocation. The
Industry and is based on the Solactive AMETF will employ an active management
Global Benchmark Series. strategy, leveraging the expertise of
In order to achieve this objective, the portfolio managers to select healthcare
Sygnia Itrix Solactive Healthcare 150 ETF stocks that exhibit strong growth potential.
shall track the Solactive Developed The portfolio will maintain a diversified
Markets Healthcare 150 Index portfolio across various sectors within the
(.SDMH150P) as closely as practically and healthcare industry, including
feasibly possible by buying securities that pharmaceuticals, biotechnology, medical
substantially make up the Index at similar devices, healthcare services, and
weighting as they are included in the Index. healthcare technology. The primary criteria
Whenever the Index gets rebalanced, the for selection will involve identifying sectors
Portfolio will be rebalanced to align its within healthcare that exhibit strong growth
holdings to that of the benchmark and to potential, favourable regulatory
the extent that it's performance will not environments, and technological
deviate from its benchmark. The portfolio innovation.
will be passively managed and provides The portfolio may invest in participatory
investors access to a global, uncorrelated, interests and other forms of participation in
healthcare sector, which will assist in portfolios of collective investment
hedging health care liabilities. No securities schemes, registered in South Africa and
will be bought for the sole purposes of other similar schemes operated in
making a speculative profit by selling them territories with a regulatory environment
at a higher price later, unless this is for the which is to the satisfaction of the manager
purpose of tracking the Index. and trustee of a sufficient standard to
The portfolio will be managed to most provide investor protection at least
effectively give effect to the objectives and equivalent to that in South Africa and which
investment policy by including apart from is consistent with the portfolio's primary
assets in liquid form the use of listed and objective.
unlisted financial instruments (derivatives) The portfolio may also invest in listed and
for the exclusive purpose of efficient unlisted financial instruments, including
portfolio management. The portfolio is derivatives, in accordance with the
passively managed and aims to produce provisions of the Collective Investment
the same level of income as that produced Schemes Control Act and applicable
by the Index. As a further objective, the legislation, as amended from time to time,
securities held by the portfolio may be in order to achieve the portfolio's
investment objective. The Manager may
managed to generate income for the also include unlisted forward currency,
benefit of investors. interest rate, index and exchange rate
The portfolio may invest in participatory swap transactions for efficient portfolio
interests and other forms of participation in management. In selecting securities for the
portfolios of collective investment portfolio, where possible, the manager
schemes, whether listed on an exchange or shall seek to sustain long-term capital
not, registered in South Africa or offshore growth.
with similar schemes operated in territories Portfolio performance will be measured
with a regulatory environment which is to against the Solactive Developed Markets
the satisfaction of the manager and trustee Healthcare 150 Index, with the aim of
of a sufficient standard to provide investor outperforming the index over the long term
protection at least equivalent to that in while managing risk.
South Africa in accordance with the The manager shall have the maximum
provisions of the Collective Investment flexibility to vary allocation between the
Schemes Control Act and applicable various geographical markets and sector
legislation, as amended from time to time, classes to reflect changing economic and
in order to achieve the portfolio's market conditions. The portfolio also
investment objective. It is recorded that the represents Sygnia's best investment view
portfolio's ability to replicate the price and on the optimal combination of securities
yield performance of the Index will be required to achieve superior long-term
affected by the costs and expenses returns at a reasonable level of risk at any
incurred by the portfolio. The Trustee shall time. The portfolio exploits the benefits of
ensure that the Manager complies with the diversification and will change its exposure
investment policy set out in this to different securities and sectors on an
supplemental deed. active basis, based on prevailing market
For the purpose of this portfolio, the conditions.
Manager shall reserve the right to close the The portfolio aims to achieve its investment
portfolio to new investors on a date objectives whilst recognizing that there will
determined by the Manager. This will be be significant short-term volatility and aims
done in order to be able to manage the to protect capital over the medium to long
portfolio in accordance with its mandate. term.
The Manager may, once a portfolio has
been closed, open that portfolio again to
new investors on a date determined by the
Manager.
Charges: Management Fees 0.44% excl VAT Management Fees 0.44% excl VAT
Distribution: June, December June, December
Rebalancing: March, June, September and Not applicable as the fund will no longer
December replicate the index
ASISA Global Equity General Global Equity General
classification
JSE Sector Exchange Traded Fund Actively Managed Exchanged Traded
Fund
Balloting Procedures for the investors in the SYGH portfolio
The ballot will be valid if investors holding no less than 25% in value of the total number
of participatory interests have responded in writing and a majority of the investors who
have responded have voted in favour of the investment policy change. In the event that
a quorum is not achieved, a second ballot will be conducted resulting in a change in
the proposed salient dates.
How does the proposed changes impact your investment?
Please refer to the list of similarities and differences above summarising the changes.
If the ballot is successful and approved by the FSCA, the Sygnia Itrix Solactive Healthcare
150 ETF will be changed from a passively managed ETF to an actively managed ETF. Refer
to the list above for a detailed description of the investment policy of the actively managed
ETF.
The investment policy change will be achieved by means of a Name Change capital event that
will settle through STRATE. In other words, there will be no conversion ratio applicable as
investors will hold the same number of shares in the actively managed ETF as they held in
the ETF. Therefore, a rounding methodology and/or fractions will not apply.
There shall be no tax impact or change in investment value for investors as a result of the
investment policy change.
The investment policy change does not release the trustees, custodian or manager from any
responsibility to the investors.
Your rights as an investor:
All investors in the SYGH portfolio are given an opportunity to vote in favour of, or against, the
proposed investment policy change in terms of clause 98 of the Act.
An independent auditor will verify the outcome of the ballot.
Should you not be comfortable with the proposal in so far as they relate to the portfolio in
which you hold participatory interests, you may elect to redeem your participatory interests at
any time and withdraw your money at the prevailing price in the market, as defined in the Main
Deed, subject to that it is a discretionary investment. By electing to redeem or sell your
participatory interests, it will constitute a CGT event for which you will be liable to pay
CGT at your next income tax assessment.
If you choose not to withdraw your investment, the proposed changes as set out in this
announcement (to the extent that they are approved by investors) will automatically apply to
your investment.
Action required by SYGH investors:
1. Investors are requested to notify their JSE Brokers/CSDPs by no later than Friday,
12 July 2024, as to whether they approve the proposed investment policy change
as set out in this announcement or not;
2. Alternatively, please complete the enclosed Ballot Form and return it to our
registered auditors, Mazars, at ballotsygnia@mazars.co.za on or before Friday, 12
July 2024.
3. If you have disposed of your participatory interests in the portfolio, no action is
required.
Approval and commencements:
Subject to the ballot voting procedure being successful and approval by the FSCA, the
proposed amalgamation will come into effect from commencement of business on
Wednesday, 07 August 2024. Copies of the Sygnia Itrix Solactive Healthcare 150 Index ETF
Pricing Supplement, in English, may be obtained during normal business hours from the office
of Sygnia Itrix (RF) (Proprietary) Limited located at 7th Floor, The Foundry, Cardiff Street,
Greenpoint, 8001 and is available on the website:
Expected timeline for the implementation of the proposed change in the investment
policy:
Salient dates 2024
Record date for the ballot voting procedures Monday, 10 June
Declaration SENS Announcement of the investment policy and Thursday, 13 June
name change
Last day for investors/brokers/CSDPs to respond to the auditors Friday, 12 July
(by 5pm)
Deadline for Auditors to submit their findings report to Sygnia Itrix Monday, 22 July
FSCA issues approval letter Monday, 29 July
SENS announcement confirming the results of the ballot by 11:00 Tuesday, 30 July
Last day to trade in the old name as an ETF Monday, 05 August
Ex-date (trading commences as an AMETF) Tuesday, 06 August
Record date Thursday, 08 August
Accounts at the CSDPs or brokers will be updated with the new Monday, 12 August
name
Note: Any changes to the expected dates above will be announced on SENS.
Index disclaimer:
The index currently tracked by SYGH are products of Solactive AG and has been licensed for
use by Sygnia Itrix. The funds or securities referred to herein are not sponsored, endorsed or
promoted by Solactive AG, and Solactive AG bears no liability with respect to any such funds
or securities or any index on which such funds or securities are based. The complete terms
and conditions of your ETF investment are contained in the fund's Offering Circular and Pre-
Listing Statement and the relevant Supplement.
Should you require any further information, please do not hesitate to contact our Client Contact
Centre on 0860 794 642.
13 June 2024
Manager
Sygnia Itrix (RF) (Proprietary) Limited
Trustee
The Standard Bank of South Africa Limited
JSE Sponsor
Vunani Sponsors
Date: 13-06-2024 10:56:00
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