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JSE to include actively managed exchange-traded funds

The stock exchange plans to amend listing requirements. File Image: IOL

The stock exchange plans to amend listing requirements. File Image: IOL

Published Apr 7, 2022

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THE Johannesburg Stock Exchange (JSE) this week announced its intention to amend the JSE Listings Requirements to enable the listing of actively managed exchange-traded funds (ETFs). Actively managed ETFs are different from passive, index-tracking ETFs.

“This is an important change that will allow institutional and retail investors an opportunity to develop beneficial investment strategies. We therefore invite market participants to comment on the proposed amendments,” said Valdene Reddy, a director of Capital Markets at the JSE. The closing date for comments was May 2.

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“There is rising appetite locally for listed actively managed ETFs. This is in line with international trends where demand for active ETFs is growing and is expected to significantly surpass the current $300 billion in assets under management in the coming years,” Reddy said.

The JSE said it had seen significant growth in ETF listings and trading. The Actively Managed ETF listing regulations amendment was expected to increase the offering and number of ETF listings on the JSE. The first actively managed ETF in the US market listed in 2008 and to date, there are more than 1000 actively managed products listed across the globe.

BUSINESS REPORT

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