The NewSA Exchange Traded Fund (ETF) gives investors a unique opportunity to invest in a product designed to invest in broad-based black economic empowerment (B-BBEE) South African companies. NewSA tracks an index designed by Absa Corporate and Investment Banking and calculated by FTSE/JSE.
The portfolio comprises a modified FTSE/JSE Top 40 index, with the weightings determined by the top 40 companies’ empowerment ratings. These ratings are calculated according to the Department of Trade and Industry’s (DTIs) Codes of Good Practice on B-BBEE, which take into account the seven pillars of transformation.
The index is rebalanced quarterly and all dividends are paid from companies in the index to investors, on a quarterly basis, net of costs.
Investing in the NewSA Exchange Traded Fund (ETF) is not only socially responsible, it is an intelligent investment option as highly empowered companies tend to perform better, particularly at a time when the South African government is driving large-scale infrastructural development. It’s also ideal for institutional investors mandated to place funds in B-BBEE companies.