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DB x-trackers to be sold
Valued Contributor

DB x-trackers to be sold

db.jpeg

 

Last Thursday lost in all the noise of shuffles Sygnia (JSE code: SYG) announced they have bought the five Deutsche Bank x-trackers for R325million. This covers;

  • DBXUS*
  • DBXUK
  • DBXEU
  • DBXWD*
  • DBXJP

For holders of any of these ETFs this is not an issue. They will continue to be traded on the JSE and will continue to track the same underlying indices with all the previous protection for investors still in place. They will very likely under go a name change shortly afte the deal is concluded, but that's just about branding.

 

Importantly the Exchange Traded Funds (ETNs) are not included and I susect if Deutsche Bank is unable to sell them they may be closed and holders will be paid out the net asset value of each unit.

 

Purchased on a PE of around 10x this is a good deal for Sygnia, not only in terms of earnings from these ETFs, but also as they will now have in house products they can use as apposed to buying in third party products for some of their funds.

 

Simon

* I hold DBXUS and DBXWD