CAPE TOWN – Standard Bank, STANLIB and Liberty have collaborated to form 1nvest, a specialist index tracking fund provider, the Standard bank Group announced on Tuesday.
Africa’s largest financial services group said 1nvest combined existing index funds, experience and expertise to provide clients with a comprehensive range of 28 index tracing funds across multiple asset classes and geographies.
“Geared specifically to provide simple, transparent and cost-effective passive investment products, 1nvest specialises in index tracking unit trusts and exchange-traded funds,” the group said in a statement.
Index tracking funds do exactly what the name suggests – they track or replicate a particular index, according to Satrix. A tracker fund which uses full physical replication simply holds the same shares that are contained in the index in the same weighting as they appear in the index.
Index investing or passive investing has seen enormous uptake in more developed markets. According to Moody’s Investor Services, the adoption of passive investing in the US continues unabated with US passive investment funds set to overtake active funds by 2021.