GTrax, Nedgroup Beta Solutions enter amalgamation agreement

Grindrod Bank, via its Exchange Traded Funds (ETF) management company, Grindrod Index Tracker Managers (GTrax), has entered into an amalgamation agreement with Nedgroup Beta Solutions (NBS) to migrate its ETF suite to GTrax.

Should the amalgamation meet with regulatory approval and achieve unit holders’ consent via a favorable balloting outcome, GTrax will incorporate the funds of NBS’s BettaBeta Collective Investment Scheme in its ETF suite. The portfolios, namely the Top40 Equally Weighted ETF (BBET40) and BGREEN ETF (BGREEN), will be rebranded, but the investment objectives and cost structures will remain unchanged.

“This transaction is one of the steps Grindrod Bank is taking to grow its low cost, passive investment offering,” said Gareth Stobie, head of capital markets at Grindrod Bank. GTrax currently manages five ETFs spanning listed property, preference shares and general equity.

“ETFs have proven to be an excellent mechanism to build wealth and save over time. The global ETF market had another record year in 2014 in terms of cash inflows and we would like to mirror this trend in South Africa.”

According to Stobie, “Nedbank has made an excellent contribution to the ETF landscape by introducing the equally weighted, alternative index concept and promoting sustainable investing. We look forward to continue building on the solid track record these portfolios have achieved.”