The Itrix FTSE 100 and Itrix DJ Euro Stoxx 50 funds track the FTSE 100 and Dow Jones Euro Stoxx 50 indices respectively, giving investors exposure to the two leading benchmark indices in Europe and the UK.

Following market opening on Monday, the Itrix FTSE 100 traded at a price of 61.70 rand and the Itrix DJ Euro Stoxx 50 at 27.03 rand, with the price tracking the Rand value of 1/1000th of the underlying index levels.

Over the past ten years, the FTSE 100 has experienced growth of 312 percent in rand terms, while the Euro Stoxx 50 has seen growth of 405 percent during the same period, illustrating the benefits to South Africans of both geographic and currency diversification.

Ben Meyer, JSE Trading Division AGM, said R224-million had been raised during the two-week IPO in September, the vast majority of this from private investors. Investor interest in Itrix had been overwhelming, he said, with many more retail investors, as well as institutional funds, expected to trade Itrix on the open market.

Very low cost

Roger Koep, head of investment products for Deutsche Bank, said investor enthusiasm had been expected as Itrix represented the first opportunity for local investors to trade major international indices conveniently via their local stockbroker, and at very low cost.

"Itrix ETFs are the cheapest way for South African investors to get exposure to international markets. Furthermore, as an Itrix ETF is viewed as a bundle of inward listed companies, individual investors can trade in Itrix without exchange control restrictions."

Investors in the Itrix FTSE 100 will track the performance of the 100 largest shares on the London Stock Exchange, including global companies such as BP, HSBC, Vodaphone, Shell and GlaxoSmithKline.

Investors in the Dow Jones Euro Stoxx 50 will track the 50 most liquid blue chip stocks from countries within the Eurozone, such as ABN Amro, Bayer, Deutsche Bank and Deutsche Telekom.

Koep said that Deutsche Bank and the JSE would list two additional Itrix ETFs — tracking major US and Eastern indices — in the first quarter of 2006. "Our aim is to offer South Africans an entire range of international ETFs in the future, enabling investors to manage a truly global investment portfolio on the JSE," he said.

Source: I-Net Bridge