Beginning immediately, FTSE and the JSE will undertake a review of the existing JSE equity and derivative indices, with an objective of bringing them in line with international investment standards. This will include the introduction of many additional benefits for market users, including the implementation of free float, total return indices, the FTSE Global Classification System, as well as an expanded range of benchmark and tradable index products. The updated indices will become part of the new index family, the FTSE/JSE Africa Series. FTSE will calculate the FTSE/JSE Africa series on behalf of the JSE. The review process is expected to be completed by the end of 2001.
An Advisory Committee will be appointed to oversee the introduction and management of the FTSE/JSE Africa Series. This Advisory Committee will be chaired by Anton Botha, the Chairman of Gensec Bank Limited.
Russell Loubser, CEO of JSE said, “The agreement with FTSE signals the JSE’s ongoing commitment to provide world class services and products to its users. FTSE’s involvement means that the indices will meet international investment standards. The agreement is another exciting step towards the implementation of the JSE’s vision of providing a Gateway integrating Southern Africa into global financial markets by making it easier for investment funds to track Southern African securities.”
Mark Makepeace, FTSE Chief Executive commented, “Working with the JSE, FTSE will update and enhance the existing South African indices to provide a wide range of world-class domestic and international indices for South African and international investors.”
Further indices in the series are expected to be announced before the end of 2001.
