Prescient lists active ETF on Johannesburg Stock Exchange

Daba Finance/Prescient lists active ETF on JSE

AFRICAN STOCKS AND FINANCEDecember 9, 2023 at 10:13 PM UTC

Prescient Management has listed its inaugural Actively Managed Exchange Traded Fund (AMETF), named the Prescient Income Provider Feeder Actively Managed ETF, on the Johannesburg Stock Exchange (JSE). This recent addition, marking the sixth AMETF on the JSE in the current year, emphasizes the ongoing dedication to broadening investment prospects within South Africa's dynamic financial market.

The ETF is a diverse multi-asset portfolio with a nuanced investment strategy. It centers on a varied array of income-generating assets, encompassing preference and listed property shares, interest-bearing stocks, and various financial instruments. The fund exhibits flexibility in investing in both local and offshore markets.

Anticipated to be driven by a blend of strategies, the AMETF's performance is expected to hinge on factors such as interest rate adjustments, yield enhancement through credit instruments, asset allocation, offshore exposure, and the utilization of derivatives.

Key Takeaways

The cumulative market capitalization of AMETFs on the JSE has surpassed R1.7 billion, affirming the stock exchange's pivotal role in shaping South Africa's financial landscape. 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.

Prescient Management

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AMETF

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South Africa