PortfolioMetrix lists first-ever active ETF on JSE
- PortfolioMetrix has listed its first Actively Managed Exchange Traded Fund (AMETF) on the Johannesburg Stock Exchange (JSE).
- The fund aims to provide investors with a high level of income while prioritizing capital preservation.
- The fund invests in interest-bearing securities not easily accessible to JSE investors and is suitable for retirement funds and living annuities.
PortfolioMetrix, a global investment management firm, has listed its first Actively Managed Exchange Traded Fund (AMETF), the PortfolioMetrix Active Income Prescient AMETF, on the Johannesburg Stock Exchange (JSE).
The fund aims to provide investors with a high level of income and to prioritize the preservation of capital. The fund managers actively invest in a broad range of interest-bearing securities typically not easily accessible to JSE investors. With the fund being Regulation 28 compliant, it makes it suitable for retirement funds and living annuities.
“With a current gross yield of 11.8%, the fund is positioned to do well in a falling interest rate environment, which we expect to be the case over the next few years,” said Philip Bradford, PortfolioMetrix’s Head of Investments. “Current bond yields of over inflation +6% create the potential for equity-like returns going forward but with much lower risk. Our Active Income ETF gives professional and retail investors a convenient vehicle to cost-effectively access these high-yielding instruments in a diversified portfolio.”
For retail investors, especially those based outside Africa, who want to invest in Sub-Saharan Africa's economies, it's often a smarter choice to invest through a mutual fund or exchange-traded fund (ETF), whether actively or passively managed. These funds track a diverse group of companies operating in the region, instead of relying on individual stocks or ventures. Investing in ETFs and mutual funds has several advantages, such as being easy to trade (some are traded on U.S. exchanges), offering diversification, and being professionally managed.