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JSE amends listing requirements to include actively managed ETFs for trade

4th April 2022

By: Marleny Arnoldi

Online News Editor

     

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The JSE has announced that it will soon amend its listing requirements to enable the listing of actively managed exchange-traded funds (ETFs).

The stock exchange says actively managed ETFs differ from passive, index-tracking ETFs, especially in that the fund managers for actively managed ETFs choose shares and make regular trades to generate returns for investors.

This amendment will allow institutional and retail investors the opportunity to develop beneficial investment strategies.

The JSE is inviting market participants to comment on the proposed amendments by May 2. The marked-up amendments, along with an explanatory memorandum, are available on the JSE’s website.

“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 expected to surpass the current $300-billion in assets under management in coming years,” says JSE capital markets director Valdene Reddy.

Edited by Creamer Media Reporter

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