Bloomberg News

Deutsche Bank South Africa Starts Exchange-Traded Notes

July 05, 2011

(Updates with ETNs under management in fourth paragraph.)

July 5 (Bloomberg) -- Deutsche Bank AG’s South African unit introduced three exchange-traded notes aimed at local investors seeking to channel their money into the rest of continent, China and other emerging markets.

The notes started trading today on Johannesburg’s stock exchange, Africa’s largest bourse, Mike Gresty, head of research at Deutsche Bank’s South African brokerage, told reporters in Johannesburg. The ETNs track the MSCI Emerging Markets Total Return Index, MSCI China Total Return Index and MSCI Africa Top 50 Capped Total Return Index.

There is a “secular shift to emerging markets where investible capital is growing,” Gresty said. U.S. and European pension funds hold less than 5 percent in emerging-market equities and less than 2 percent of their debt, he said.

Deutsche Bank’s South African unit has about 1.6 billion rand ($237 million) under management in its five offshore ETFs and 11.5 billion rand in its seven Satrix exchange-trade funds, said Kari van Rensburg, head of equity derivatives.

ETNs are contracts that give investors a return linked to the performance of a market index. They don’t pay dividends.

--With assistance from Vernon Wessels in Johannesburg. Editors: Ana Monteiro, Linda Shen, John Kohut.

To contact the reporter on this story: Stephen Gunnion in Johannesburg at sgunnion@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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