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DBX Trackers | Deutsche Bank ETFs

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3 April 2017. Deutsche Bank have sold their ETFs listed on the JSE to Sygnia Asset Management. To recall, in February 2012 Deutsche Bank listed the following Exchange Traded Funds on the JSE:

These offer a quick & convenient method of gaining exposure to the above international indices.

Deutsche Bank also own some Exchange Traded Notes, which are not being sold to Sygnia.


When purchasing these on the JSE, you'll pay brokerage & other exchange-related & regulatory fees.

Then, according to the offering circular, management fees of up to 2% p.a. are mentioned, although there is an allowance to "introduce additional charges" should Deutsche Bank find the 2% p.a. insufficient. Out of the goodness of their hearts, Deutsche Bank is currently only charging a fee on a sliding scale of 0.68% to 1.14% p.a. (including VAT).

Deutsche Bank is also entitled to charge an upfront fee or an exit fee when creating, issuing or repurchasing participatory interests. Again, out of Deutsche's own generosity, they are not charging this at the moment.

According to the offering circular, there is also an annual listing fee of 0.01% of the value of the ETN up to a maximum of R285,000; as well as sponsor fees of R80,000 p.a.


For simplicity's sake, let's start off by considering what the discount to NAV would need to be to make it worthwhile to purchase DBX Trackers relative to purchasing the underlying securities directly (which in practise would be very difficult, but the exercise gives an idea of the long-term cost differential).

The present value of an expense ratio of 1.14% p.a. at a 10% discount rate is 11.4%

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