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Views Article – Sharenet Wealth

Share Picks, South Africa

AMI Top50 ETF ex-SA IPO

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Cloud Atlas (RF) Proprietary Limited is the approved Management Company of the Cloud Atlas Collective Investment Scheme in Securities, registered with the Financial Services Board in South Africa.

African focussed ETF (Exchange Traded Fund) to be launched on the JSE: AMI Big 50 ex-SA

An exciting new ETF will be coming to town. It is the first of its kind, and will offer investors an opportunity to gain broad exposure to the African market (ex-SA), through an ETF. Cloud Atlas is launching the ETF that will track the AMI Big 50 ex-SA index.

ETF explained, watch Cloud Atlas Investing ETF Introduction here.

The African Continent is readily seen as the next area to experience significant growth. Demographics, infrastructure spending and a rapidly increasing consumer demand all support the story of growth. However, it hasn’t been easy to gain exposure to the market. There are only a few products and these tend to lack in liquidity, and suffer from country and sector concentration risk.

AMI Big 50 ex-SA ETF offers investors the opportunity to gain exposure to 15 different African Exchanges. The largest constituent from every sector on each eligible exchange is included. Historically, African products were skewed to Nigerian banking stocks and Egyptian construction companies, but the AMI Big 50 will ensure diversification, and would offer more exposure to listed stocks in countries like Morocco, Tunisia, Kenya, Zambia and Mauritius. There would still be a bias towards financial stocks however, as an example, almost all Exchanges feature listed financial companies, but not necessarily healthcare.

The ETF will appeal to Institutional and Retail Investors looking for African exposure with a longer term view. The ETF will trade on the JSE in the secondary market and will offer liquidity, although it may not trade daily. 

Important dates:

The Closing date for the IPO: Friday, 31 March 2017

Listing date: Thursday, 20 April 2017

Get in touch:

If you would like to receive more information on the Private Placement, please do get in touch with our Dealing Desk: 

Daniel Nel

daniel@sharenet.co.za

021 700 4800 

Cheyne Anderson

cheyne@sharenet.co.za

021 700 4800

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cheyne

Cheyne Anderson
Portfolio Manager and Securities Trader

Cheyne has spent the last 10 years working in London, holding numerous positions within Equity and Equity Derivatives at various Investment Banks. His main focus has been on South African and Emerging Markets and also gained good exposure to global equity markets and products. He completed both his BCom degree in Economics and his BCom. Honours in Financial Analysis and Portfolio Management at the University of Cape Town. After completing each of the rigorous exams, Cheyne became a CFA Charterholder in 2014.


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