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 Absa Capital lists Component Exchange Traded Funds Suite includes first ever money market, inflation-linked and equity momentum tracker 

 
As the leading provider of Exchange Traded Funds (ETFs) in the South African market Absa Capital, the investment banking division of Absa Bank Ltd (Absa) and affiliated to Barclays Capital, today listed five new Component ETFs, designed to act as investment building blocks for institutional investors.

“The listing today of these products is in line with Absa Capital’s ambitions to provide investors with low cost alternatives to traditional products, which they can access in a convenient way,” said Vladimir Nedeljkovic, Head of Investments at Absa Capital. The series of five Component ETFs that listed this morning, and that are now available to investors, are:
  • NewFunds SWIX 40 ETF Portfolio
  • NewFunds GOVI ETF Portfolio
  • NewFunds ILBI ETF Portfolio
  • NewFunds TRACI 3m ETF Portfolio
  • NewFunds Equity Momentum ETF Portfolio
In general, the Component ETFs are designed to offer investors cost effective access to major asset classes – equities, nominal bonds, inflation linked bonds and money market – as well as to investment themes and risk factors, such as equity momentum.

The SWIX 40 ETF is designed to track the performance of the FTSE/JSE SWIX 40 Total Return Index, while the GOVI ETF will track the South African Government Bond Total Return Index i.e. bonds issued by the South African Government.

The innovative ILBI ETF provides investors with a convenient and cost efficient way to get exposure to the performance of the de facto South African Government inflation bond benchmark index – the Barclays Capital / Absa Capital South African Government Inflation-linked Bond index (the ILBI Index).

The first-to-market Equity Momentum ETF aims to capture returns from the short term price momentum observed in the South African equity market, while the first ever money market ETF, the TRACI 3m ETF, tracks the performance of Barclays Capital / Absa Capital ZAR Tradable Cash (TRACI) Index (three month).

“The exciting thing about these new ETFs is that investors can use any of the components or asset classes to construct their own tailored investment products,” said Nedeljkovic.

“With these component ETFs, investors will be able to determine their own portfolio weightings and components, essentially making the products the ‘building blocks’ of their portfolio construction,” added Nedeljkovic.

The Component ETFs are structured as Collective Investment Scheme portfolios (unit trusts) and are issued out of the NewFunds CIS.

Ends

Note to the editor:

Photos available on request.

About Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) are open-ended investment vehicles tracking performance of market indices or other portfolios of assets that are listed and traded on stock exchanges like stocks. ETFs combine the benefits of index tracking funds (market diversification, lower costs, simplicity, consistency, full transparency), with those of listed securities (real-time access to markets, full liquidity due to the presence of a market maker, no counterparty risk).

For more information on the Component Exchange Traded Fund please visit http://etf.absacapital.com

About Absa Capital

Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African corporate and investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.

Absa Capital is a leading provider of ETFs in the South African market and is credited for several innovations and market-firsts in the space, including the first ETF based on a customised, equally weighted index (NewRand), the first commodity backed ETF in South Africa (NewGold), the first family of ETFs based on fundamental indexation (eRAFI™), as well as the first and only family of multi-asset ETFs in SA (MAPPSTM).

Issued by:
FTI Consulting
Lauren Thys
+27 11 214 2420
+27 82 309 0788
lauren.thys@fticonsulting.com


For further information contact:
Graeme Coetzee
Associate Principal
Marketing and Corporate Communications
Absa Capital
+27 11 895 6695
+27 79 695 9798
graeme.coetzee@absacapital.com
Copyright 2013 Corporate and Investment Banking, Absa. All Rights Reserved. Corporate and Investment Banking is a division of Absa Bank Limited, Reg No. 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider Reg No NCRCP7.