Increased choice and competition are reducing the cost of easy-to-use index-tracking offshore investments. After many years of a relatively narrow range of seven exchange-traded funds and index-tracking unit trust funds - offering low-cost exposure to offshore markets without having to convert rands into foreign currency - five new funds have launched over the past year, including three Satrix ETFs with a low targeted cost of between 0.25% and 0.4% a year. The Satrix funds track the Morgan Stanley Capital World index, the MSCI Emerging Markets Investable Market index and the S&P500. And the Financial Services Board and the JSE are processing a number of applications for new ETFs tracking offshore indices. Among them are applications from Sygnia, which last month took over Deutsche Bank's five ETFs - the db X-trackers - that were for many years the only rand-denominated ETFs offering exposure to major equity market indices around the world. Approval sought Sygnia CEO Magda Wierzycka ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.