INVESTORS CHALLENGED TO COMMIT E1BN FOR SD’S 1ST ETF

MBABANE – The new generation of investing called Exchange Traded Funds (ETFs) which is less cost effective and assures investors of protection is coming to the Swazi market.

For local investors to be able to tap into ETF’s, which are similar to unit trusts with the only difference being the fact that they are listed on the Stock Exchange, Swaziland Stock Exchange Manager Joyce Dlamini explained that for ETF providers to bring securities into the Swazi market, a minimum of E1 billion would have to be committed by both institutional and retail investors.  

“We plead with local investors, retail and institutional, to commit into investing in the ETFs after being listed on the stock exchange,” said Dlamini during an interview conducted at the sidelines of the first ETFs seminar convened at Sibane Hotel yesterday.
It should be mentioned that ETF’s allow investors to invest in classes that would have not been easily penetrated in the past such as commodities which include gold and platinum.

Barclays Principal of Exchange Traded Products Micheal Mgwaba explained that ETF’s were fast becoming the most preferred mode of investing throughout the globe because you can buy when you want to and dispose off as and when you want to.
With ETF’s it can also be argued that there is no need for fund managers to analyse markets on behalf of the client primarily because markets are determined by an index. However, some investors may still choose to decide against passive management and continue using active management.

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