FAQs

How can you use RMB ETNs as part of your investment portfolio?

RMB ETNs allow for convenient exposure to market benchmarks, indices or strategies, less investor fees. RMB ETNs typically seek to offer cost-effective investments in previously expensive or difficult-to-access sectors of the market.

How do RMB ETNs generate returns?

Investors may trade RMB ETNs on the Johannesburg Stock Exchange at market price or receive a payment upon maturity or early redemption, based on index or strategy performance, less investor fees.

How can you buy and sell RMB ETNs?

RMB ETNs are listed on the JSE. You can buy and sell RMB ETNs through a stockbroker at any time and will be subject to brokerage commissions. You may sell RMB ETNs in several ways. You can sell the RMB ETNs in the secondary market during trading hours. You may also choose early redemption if you own a large block of RMB ETNs and redeem the block directly to FirstRand Bank Limited. A redemption charge and certain redemption conditions may apply to certain RMB ETNs. Alternatively, you may hold the RMB ETNs until maturity and receive a cash payment from the issuer based upon the positive or negative performance of the underlying index, less investor fees.

Where are RMB ETNs listed?

The RMB ETNs currently available are listed on the Johannesburg Stock Exchange.

When can I buy or sell RMB ETNs?

RMB ETNs can be bought or sold anytime during market hours.

Is there a minimum trade size for RMB ETNs?

No. RMB ETNs can be bought and sold at their market price on the secondary market similar to other exchange traded securities.

Do RMB ETNs have a net asset value (NAV)?

Because RMB ETNs are debt securities and not unit trusts or exchange-traded funds, they do not have a net asset value (NAV). Each will, however, have an Intraday Indicative Value (or Index value), meant to approximate their intrinsic economic value which will be published daily on this website.

The actual trading price of RMB ETNs may differ from their Intraday Indicative Value as the trading price takes into account all relevant factors including the RMB ETN's expected total return, the creditworthiness of the issuer, and liquidity in the marketplace.

If FirstRand Limited's credit rating is downgraded, what happens to the indicative value?

The indicative value calculation of the RMB ETNs will not change in response to a FirstRand Ltd credit event. However, the trading price of the RMB ETNs may be impacted.