David Hufton. Picture: SUPPLIED
David Hufton. Picture: SUPPLIED

Sygnia, the asset manager founded by Magda Wierzycka, has launched a new exchange-traded fund (ETF), giving investors exposure to overseas companies that promote sustainable investment.

Sygnia Itrix S&P Global 1200 ESG ETF was listed on the main board of the JSE on Monday, bringing the number of ETFs listed on the local bourse to 79, with the combined market value of R109.8bn.

The fund is also expected to list on A2X Markets.

"More and more investors are incorporating ESG (environment, social and governance) factors into their decision-making, and that shift is accelerating because of the pandemic," CEO David Hufton said in a statement.

ESG has been a key areas of focus in recent yeas for money managers in particular. In SA, regulation 28 of the Pension Funds Act requires pension fund managers to incorporate ESG when making investment decisions.

The Sygnia Itrix S&P Global 1200 ESG ETF has a 100% strategic allocation to global equities.

The risk in the fund is managed by spreading investments across countries, sectors and individual shares, Sygnia said in a statement. However, the structure of the fund is dictated by the composition of the S&P Global 1200 ESG Index.

JSE director of capital markets Valdene Reddy said the local exchange was pleased to see a socially conscious fund for investors with an interest in portfolios that reflected sustainability principles.

ETFs are listed investment products that track the performance of indices or a single asset such as a commodity. An ETF can be bought or sold in the same way as an ordinary share. Investors save time and money as ETFs enable them to invest in a variety of asset classes through a single listed investment product.


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