Inflation-linked ETF debuts on BSE
Isaac Pinielo | Thursday November 19, 2015 18:00
According to the bank, the ILBI ETF will provide investors in Botswana with the opportunity to invest in the performance of a de facto South African government inflation bond benchmark index.
The listing is the first time that Barclays Africa had listed the ILBI ETF outside South Africa.
George Asante, Africa head of trading at Barclays Africa said the listing of the Inflation-linked Bond Index ETF will provide investors with access to previously unavailable asset classes. He said this will thus improve diversification opportunities, reduce investment risk, and allow the possibility of tracking the South African inflation-linked government bonds.
He reiterated the listing of the ILBI ETF in the country gives local investors direct access to a de facto SA government inflation bond benchmark index while simultaneously increasing the liquidity on the BSE and deepening financial markets in Botswana.
It provides investors with low-cost convenient alternatives to traditional non-listed products as it accesses the underlying investments in an efficient manner.
Barclays Bank Botswana managing director, Reinette van de Merwe said the bank, through its ABSA capital franchise, is a leading originator of Exchange Traded Funds in the South African market, and has 45 percent of the market share based on assets under management.
“The listing of the ETF in Botswana is the first listing of a Barclays Africa ETF outside of South Africa. This joins the two metals ETF products that we have listed on the BSE – New Gold in 2010 and New Platinum last year,” she said. The MD also said the listing of the Inflation–Linked Bond Index Exchange Traded Fund in the country provides investors with a hedge against inflation.
She added it helps investors diversify their investment risks and is suitable for investors seeking low cost, convenient alternatives to traditional non-listed investments.
“This I believe will add on the numerous interventions that we are consistently introducing to our customers in helping them achieve their ambitions in the right way,” said van de Merwe.
Kgotso Bannalotlhe, head of corporate investment banking at Barclays Bank of Botswana stated this development in the market is a sign of growth as well as a clear direction for other banks to follow suit.
“We continue to serve the customers and clients whose needs continue to change thus prompting all of us to come up with solutions that are geared to meet their demands,” he said.