Two more actively managed exchange traded funds (AMETFs) listed on the JSE on Friday, adding a further set of globally recognised options to the bourse’s portfolio.
This marks the first AMETF listings for both Sygnia Itrix alongside specialist global listed real estate investment manager Reitway Global.
AMETFs are collective investment schemes that are traded on the market whereby the investment manager uses an actively managed investment strategy to produce a return for the investor rather than utilising a passive investment strategy.
The AMETF from Sygnia is their first issuance of its kind in the market and will predominantly invest in global technology equity securities and assets in liquid form.
A minimum of 5 000 000 securities will be listed by Sygnia with an issue price of R10 each.
The portfolio’s actively managed holdings will depend on a few factors including the underlying benchmark – the NYSE FANG Index.
“The objective of the Sygnia Itrix FANG AI Actively Managed ETF (SYFANG) is to provide a simple vehicle to investors who wish to gain investment exposure to companies that use advanced technologies to acquire and retain users, including industry-disrupting technologies such as artificial intelligence, large language models, cloud storage, big data, social media, and e-commerce tools,” Sygnia’s head: Institutional Business, Iva Madjarova, said in a statement.
The listing from Reitway is the first actively managed global property ETF on the JSE. The AMETF replicates the same actively managed global real estate portfolio created by the Reitway team and found in other actively managed Reitway Global Property Funds.
The Reitway Global Property Actively Managed Prescient ETF comes after the listing of their Reitway Global Property ESG Prescient ETF, which tracks the Reitway Global Property ESG Index, and the Reitway Global Property Diversified Prescient ETF, which tracks the Reitway Global Property Diversified Index in June 2023.
“This listing is another component of Reitway Global’s aim to provide investors with an array of investment vehicles to address their property allocation in their portfolios. The ultimate strategy being that we ‘acknowledge passive and embrace the active’ investment styles” said Reitway CEO Greg Rawlins.
These listings come shortly after the recent listing of six new AMCs (actively managed certificates) providing access to local and offshore equity strategies, indicating an increasing appetite for actively managed products.
JSE Business Development and Exchange Traded Products manager Adèle Hattingh said they were encouraged by the growth of AMETFs and AMCs on the JSE following the amendment to listing requirements as this enabled investors to diversify their portfolios with sophisticated investment products.