Change regulations to allow actively managed ETFs

Johannesburg Stock Exchange (JSE) i South Africa It announced its intention to change the listing requirements on the Johannesburg Stock Exchange to enable the listing of Exchange Traded Funds (ETFs). Actively managed ETFs differ from passive index-tracking ETFs. Fund managers who actively manage managed ETFs select stocks and conduct regular trades to generate returns for investors.

This is an important change that will give institutional and private investors an opportunity to develop beneficial investment strategies. We therefore urge market participants to comment on the proposed changes, says Valden Reddy, Head of Capital Markets at JSE. The last date for comments is Monday 2 May 2022 at 17.00.

There is a growing appetite locally Listed in actively managed ETFs . “This is in line with international trends where demand for active ETFs is growing and is expected to significantly exceed US$300 billion in assets under management in the coming years.” Reddy explains.

JSE has seen significant growth in ETF listings and trading. The change in actively managed ETF listing rules is expected to increase the supply and number of ETF listings in JSE. Above all, ETFs, both passive and active, offer investors an opportunity to diversify their investment portfolios at a cost effective rate. There is a significant trend internationally, particularly in the United States and Canada, for the listing of actively managed ETFs. The first actively managed ETF was listed on the US market in 2008 and to date there are more than 1,000 actively managed products listed all over the world.

To enable the listing of actively managed ETFs, the Johannesburg Stock Exchange intends to extend the existing Section 19 (Specialized Securities) to include specific provisions. Parameter changes with justification are available on the JSE website.

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