JSE and London Stock Exchange partner to introduce enhanced Fixed Income Indices

By Janice Roberts

The Johannesburg Stock Exchange (JSE) and FTSE Russell (FTSE), a subsidiary of the London Stock Exchange (LSE), have combined forces to launch the FTSE/JSE Fixed Income Indices, which will offer investors enhanced exposure to South African listed debt.

The new benchmark index is an enhancement of the features and benefits of the previous JSE Fixed Income Indices (JSE ALBI and JSE CILI) that provided both local and international investors access to SA listed bonds. 

The JSE Fixed Income Indices have been replaced by a new-generation FTSE/JSE Fixed Income Indices, offering in-depth data that will raise convenience for investors a notch higher. The new FTSE/JSE Fixed Income Indices datasets are delivered in a standardised format which is automation friendly and will save investors time when making investment decisions.   

The JSE and LSE have a long-standing partnership, having jointly launched the FTSE/JSE All Share Index in 2002, it is currently made up of 158 of the largest companies, representing 99% of market capitalisation of the JSE.

Mark Randall, Director of Information Services at the JSE said the introduction of the FTSE/JSE Fixed Income Indices represents an extension of the existing equity index partnership between the JSE and London-based FTSE Russell. FTSE Russell is a global leader in the provision of financial indices and related data and analytics.

“The partnership combines the regional expertise of the JSE in Africa and FTSE Russell’s world-class fixed income index expertise and multi-asset capabilities. Our joint capabilities enable us to provide investors with an enhanced South African fixed income offering and broadens the JSE’s ability to offer multi-asset solutions,” said Randall.

The FTSE/JSE Fixed Income Indices are made up of two main indices, the FTSE/JSE All Bond Index (ALBI20) and FTSE/JSE Inflation-Linked Index (CILI15). These indices will help investors to accurately assess their hedging opportunities, benchmark performance, and passively track the indices. 

The FTSE/JSE ALBI20 is made up of seven issuer class sub-indices and CILI15 consists of eight issuer class sub-indices, bringing to 15 the number of sub-indices in the FTSE/JSE Fixed Income Index range.

As part of the partnership, the JSE will float the index and handle its licensing while FTSE Russell will provide in-depth data that covers weightings, valuations, and information on contributors to Total Return, enabling investors to track performance across main indices and sub-indices.

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