It broadens its offering of indexed funds through which investors can obtain exposure to a range of geographic regions and investment strategies in an affordable manner.

The Ashburton World Government Bond ETF will track the Citi WorldGovernment Bond Index (WGBI), which invests in fixed-rate, local currency, investment grade sovereign bonds.

The WGBI consists of over 20 developed and emerging market countries that meet specific criteria for market size, credit quality and barriers to
entry.

These include the Australia, Canada, France, Germany, Japan, South Africa, United Kingdom and United States.

Local investors will be able to invest in Rand and also offer retail investors the benefit of not having to use their offshore allowances to invest in the ETF.

Prejelin Naggan, Head of Primary Markets at the JSE, said, “The JSE is excited to add its first global bond ETF to the market, and proud to be the first exchange to list the Ashburton WGBI ETF.”

Naggan said the local ETF industry had demonstrated its ability to continue evolving and broaden its offering in line with investors’ needs and demand, at an affordable cost.

ETFs are investment products which comprise an investment portfolio of shares or other assets, such as bonds and commodities based on a predetermined method.

Samantha Schoeman, Head of Index Solutions at Ashburton Investments, said they were expanding the range of worldwide investment options available to local investors and giving the South African retail and institutional market the opportunity to diversify their portfolios.

“We are confident this will add depth to the credit investment opportunity set available locally,” she said.

Tuesday’s listing will bring the number of ETFs listed on the JSE to 67, exceeding the total market capitalization of R73 billion (US$ 6,19 billion).
– CAJ News