Portfolio construction is clearly a passion point for Nico Katzke of Satrix. He's also a fan of analogies, so you can expect to learn about whether it's the elephant or the mouse that swings the bridge that they are crossing.

But beneath the fun, there's a serious learning opportunity here about how asset allocation drives the returns in a multi-asset balanced fund. Identifying the elephant is a very important part of the process.

This is true even during a period of heightened geopolitical noise, giving us great reminder about the importance of a long-term lens and an anchored strategy.

With reference to the detailed strategic asset allocation document that Satrix makes available to the market, Nico explains the thinking behind the Satrix Balanced Index Funds.

In this episode:

00:00 Intro

01:30 Setting the scene: Satrix’s balanced funds and multi-asset strategies

03:45 Understanding the top-down process

06:05 How asset allocation drives long-term returns

06:40 The elephant, not the mouse

08:30 Placing balanced funds on the risk spectrum

09:32 Looking at the asset buckets in more detail

11:55 Low-cost vehicles as the building blocks

12:31 Overview of current exposure

15:16 Methodology used to assess different asset classes

19:41 Responding to changes in the geopolitical context

26:17 South Africa’s relative attractiveness

28:37 Closing thoughts

30:07 Disclaimer

This podcast is in partnership with Satrix.

Disclaimer:

Satrix Investments (Pty) Ltd is an approved financial service provider in terms of the Financial Advisory and Intermediary Services Act, No 37 of 2002 (“FAIS”). The information above does not constitute financial advice in term of FAIS.

Satrix Managers (RF) (Pty) Ltd a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. With Unit Trusts, Exchange Traded Funds (ETFs) and Actively-managed ETFs (AMETFs), the investor essentially owns a “proportionate share” (in proportion to the participatory interest held in the fund) of the underlying investments held by the fund. With Unit Trusts, the investor holds participatory units issued by the fund while in the case of an ETFs and AMETFs, the participatory interest, while issued by the fund, comprises a listed security traded on the stock exchange. ETFs and AMETF are registered as a Collective Investment and can be traded by any stockbroker on the stock exchange, LISP platforms and or via online trading platforms. ETFs and AMETFs may incur additional costs due to being listed on the JSE. Past performance is not necessarily a guide to future performance, and the value of investments / units may go up or down. A schedule of fees and charges, and maximum commissions are available on the Minimum Disclosure Document or upon request from the Manager. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. Should the respective portfolio engage in scrip lending, the utility percentage and related counterparties can be viewed on the ETF and AMETF Minimum Disclosure Document. The index, the applicable tracking error and the portfolio performance relative to the index can be viewed on the ETF and AMETF Minimum Disclosure Document.

Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div date. Performance is calculated for the portfolio and the individual investor performance may differ as a result of initial fees, actual investment date, date of reinvestment and dividend withholding tax. Some funds may hold assets in foreign countries and could be exposed to risks such as po...

• (00:00:00) - Intro
• (00:01:30) - Setting the scene: Satrix’s balanced funds and multi-asset strategies
• (00:03:45) - Understanding the top-down process
• (00:06:05) - How asset allocation drives long-term returns
• (00:06:40) - The elephant, not the mouse
• (00:08:30) - Placing balanced funds on the risk spectrum
• (00:09:32) - Looking at the asset buckets in more detail
• (00:11:55) - Low-cost vehicles as the building blocks
• (00:12:31) - Overview of current exposure
• (00:15:16) - Methodology uses to assess different asset classes
• (00:19:41) - Responding to changes in the geopolitical context
• (00:26:17) - South Africa’s relative attractiveness
• (00:28:37) - Closing thoughts
• (00:30:07) - Disclaimer

For more than 25 years, Satrix has helped South Africans access local and global markets through ETFs. Now, the business is taking that expertise beyond the country's borders, with listings in Namibia, Botswana and Kenya as it works to bring simple, low-cost investment solutions to a new generation of African investors.

In this episode of the Ghost Stories podcast, The Finance Ghost is joined by Duma Mxenge, Head of Business and Market Development at Satrix, to unpack the opportunities and challenges of expanding ETFs across the continent.

From navigating regulations and market infrastructure to understanding what investors in different African countries actually want, Duma shares insight into the work being done behind the scenes to build deeper, more accessible capital markets.

We also explore why demand for global exposure is often stronger than demand for local equity products, whether an Africa-focused ETF is realistic any time soon, and what the future may hold for cross-border investing on the continent.

In this episode, we cover:

• Why Satrix believes the time is right to expand beyond South Africa
• The journey from initial research in 2019 to listings in Namibia, Botswana and Kenya
• Why African investors are increasingly looking for global market exposure
• The popularity of products tracking the S&P 500, MSCI World and Nasdaq 100
• How ETFs can help deepen African capital markets
• The regulatory, liquidity and operational challenges of cross-border ETF listings
• Why institutional and retail investors are responding differently to these products
• The importance of education, distribution and local partnerships
• Whether an Africa-wide equity ETF is a realistic prospect
• Alternative ways for South African investors to gain exposure to growth elsewhere on the continent
• The role Satrix hopes to play in building Africa's investment ecosystem over the coming decades

Disclaimer:

Satrix Managers (RF) (Pty) Ltd is a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. With Unit Trusts, Exchange Traded Funds (ETFs) and Actively Managed ETFs (AMETFs), the investor essentially owns a “proportionate share” (in proportion to the participatory interest held in the fund) of the underlying investments held by the fund. With Unit Trusts, the investor holds participatory units issued by the fund while in the case of ETFs and AMETFs, the participatory interest, while issued by the fund, comprises a listed security traded on the stock exchange. ETFs and AMETFs are registered as a Collective Investment and can be traded by any stockbroker on the stock exchange, LISP platforms and / or via online trading platforms. ETFs and AMETFs may incur additional costs due to being listed on the JSE. Past performance is not necessarily a guide to future performance, and the value of investments / units may go up or down. A schedule of fees and charges, and maximum commissions is available on the Minimum Disclosure Document or upon request from the Manager. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. Should the respective portfolio engage in scrip lending, the utility percentage and related counterparties can be viewed on the ETF and AMETF Minimum Disclosure Document. AMETFs are ETFs are actively traded by a Portfolio Manager to adjust the AMETF holdings and asset allocation with the aim to outperform the benchmark. AMETFs differ from ETFs which only track indices. The Manager does not provide any guarantee, either with respect to the capital or the return of a portfolio. The index, the applicable tracking error and the portfolio performance relative to the index can be viewed on the ETF and...

Burstone has evolved from a traditional property company into something very different. Instead of relying on shareholders to fund growth, the company is increasingly using institutional partners and private capital to scale its platform.

But can that model deliver the returns that investors are looking for?

In this episode of Ghost Stories, Andrew Wooler (CEO of Burstone Group) joins The Finance Ghost to unpack the thinking behind the strategy.

This includes details on the launch of the Core Plus platform in South Africa with Nedbank Property Partners, as well as a reflection on the Blackstone journey in Europe.

Along with more technical concepts like first-loss exposure and the ring-fencing of debt, this podcast offers a great insight into how Burstone uses "Other People's Money" to drive returns.

In this episode, we cover:

• Why Burstone moved away from the traditional REIT growth model
• The logic behind the Nedbank Property Partners Core Plus platform
• What went wrong, and what was learned, from the Blackstone partnership
• First-loss exposure, ring-fenced debt and look-through gearing explained
• Whether Burstone's platform strategy can ultimately drive stronger returns for shareholders

This podcast has been sponsored by Burstone, but The Finance Ghost was allowed to ask whichever questions he felt were most pertinent for an investor audience. Please always do your own research and do not treat this as an endorsement of the stock.

• (00:00:00) - Intro
• (00:01:48) - How Burstone evolved from Investec Property Fund
• (00:05:35) - The platform strategy: using partner capital to grow
• (00:10:03) - Private capital vs. public markets
• (00:12:15) - The Core Plus platform in SA explained
• (00:17:54) - What happened in Europe with Blackstone?
• (00:22:14) - First-loss exposure explained
• (00:24:11) - Ring-fenced debt, recourse and the loan-to-value ratios
• (00:28:39) - Burstone’s outlook and long-term strategy