PortfolioMetrix, a global investment management firm, listed its first Actively Managed Exchange Traded Fund (AMETF), the PortfolioMetrix Active Income Prescient AMETF, on the JSE yesterday.
The fund aims to provide investors with a high level of income and to prioritise the preservation of capital. The fund managers invest in interest-bearing securities typically not easily accessible to JSE investors.
Philip Bradford, PortfolioMetrix’s head of investments, said in a statement, “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.”
“Current bond yields of over inflation +6% creates the potential for equity-like returns going forward, but with much lower risk,” he said.
The PortfolioMetrix Active Income Prescient AMET will largely replicate the PortfolioMetrix BCI Dynamic Income Fund, the top-performing fund across all SA income categories for the last three years.
Since its inception at the end of 2020, that portfolio has returned 9.1% per annum, outperforming the ASISA Multi-asset Income category average of 7.4% for this period.
Adèle Hattingh, business development & exchange traded products manager at the JSE, said, “We are pleased to welcome PortfolioMetrix's AMETF to the JSE. This listing reflects the growing demand for diverse and innovative investment options within the South African market.”
Yesterday’s listing marked the 100th ETF to list on the JSE, boasting a market cap of close to R150 billion.