Sygnia, the asset manager cofounded by Magda Wierzycka, has listed a new exchange traded fund (ETF) that provides investors with access to clean energy and space exploration.
The Sygnia Itrix Sustainable Economy ETF (SYGSE), which listed on the JSE on Tuesday, will track the S&P Kensho sustainable technologies index, which is designed to measure the performance of companies that provide products and services that mitigate climate change. That includes companies with exposure to sustainable agriculture, clean power, space exploration, smart transport and manufacturing, intelligent infrastructure and an array of technologies that enable remote working.
“Finding themes that provide growth in a low-growth world is critical to successful investing, and innovation stocks focused on building a sustainable economy present key opportunities,” said Kyle Hulett, head of investments at Sygnia.
The listing of Sygnia’s latest passive investment solution comes as the JSE prepares to usher in new amendments to its listings requirements that will pave the way for issuers to list and trade actively managed ETFs for the first time in the bourse’s history. The investment manager uses an active investment strategy to produce a return for the investor instead of passively tracking an index or other type of asset in the same way as traditional ETF solutions.
The amendments will come into effect on October 14 and are expected to boost the JSE’s burgeoning ETF offering, which now stands at 94 with a combined market capitalisation of more than R114bn.
“The JSE is a magnet for ETF issuers who take seriously their responsibility to strike a balance between generating returns for investors and addressing ESG-related concerns,” said Valdene Reddy, director of capital markets at the JSE. “Investors have the opportunity to invest in ETFs like SYGSE and gain exposure to the underlying companies who contribute towards growing a sustainable economy.”
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