Deutsche Bank selling its SA ETF business to Sygnia for R325m
Sygnia will initially finance the R325m acquisition of the exchange-traded funds with a loan from Nedbank, which it will later re-pay through a rights offer
Deutsche Bank is selling its South African exchange-traded funds (ETFs) business to Sygnia for R325m, both parties announced on Thursday. Sygnia will be taking over all five of Deutsche Bank’s developed market index-tracking ETFs, branded DBX: Euro Stoxx 50; FTSE 100; and MSCI Japan, US and World. The assets under management in these five ETFs as at February 28 was R11.3bn, Sygnia said. Though Sygnia does not yet offer ETFs, its index-tracking unit trusts and other funds have R16.9bn under management. "The acquisition will enable Sygnia to enter the ETF market with a critical mass of assets and to launch a broader range of ETF products within a short period of time," Sygnia’s statement said.
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