A2X welcomes new health ETF

A2X, a leading stock exchange platform, is set to welcome a new health Exchange Traded Fund (ETF) from Signia, a JSE-listed asset manager. The ETF will provide local investors with access to international assets, offering them a wider range of investment opportunities. In an exclusive interview with CNBC Africa, Kevin Brady, A2X CEO, shed light on the significance of this new listing and the positive impact it will have on investors. Kevin Brady highlighted the benefits of the new ETF, mentioning that it will enhance liquidity and reduce spreads, ultimately leading to cost savings for investors. With the increasing demand for ETFs globally, A2X is tapping into this trend by providing local investors with a gateway to international healthcare investments. This move comes at a time when market volatility and uncertainty have driven investors to seek diversified and stable investment options. Brady discussed the growing interest in actively managed ETFs in South Africa and mentioned ongoing conversations with institutions to introduce such offerings in the local market. While A2X mainly offers secondary listings, they are working towards enabling more investment options for South African investors by engaging with relevant authorities and stakeholders. Regarding A2X's listing pipeline, Brady expressed optimism about upcoming listings in the second half of the year. Despite economic and pandemic headwinds, A2X has seen steady growth, with a total of 54 securities listed and 15 new listings this year. The CEO hinted at potential big names entering the market soon, especially in the financial and retail sectors. As A2X continues to expand its offerings, it aims to maintain momentum and attract a diverse range of companies across various industries. With 36 companies already listed on the platform, A2X has positioned itself as a key player in the African market, boasting a market capital of 4.3 trillion. Brady also touched on the impact of delistings from the Johannesburg Stock Exchange (JSE) on A2X, noting that smaller companies are facing challenges in finding value in traditional listings. He emphasized the importance of capital markets players adapting to international best practices and fostering a supportive environment for companies to thrive. In response to the JSE's initiative to help smaller companies raise capital more efficiently, Brady acknowledged the need for industry players to collaborate and enhance the market ecosystem. While A2X focuses on secondary listings, the platform recognizes the importance of aligning with global standards and regulations to facilitate sustainable growth and investor protection. Overall, A2X's collaboration with Signia to introduce a new health ETF exemplifies the platform's commitment to diversifying investment options and promoting financial inclusion. As the market landscape evolves, A2X remains at the forefront of driving innovation and expanding access to international assets for South African investors.