The actively managed ETF market in South Africa is rapidly expanding, with expectations for additional funds to be listed in the near future. Since the JSE allowed their listing in 2022, 28 funds focused on offshore opportunities have been launched, reflecting a strong investor interest in diversifying their portfolios.
The demand for actively managed exchange-traded funds (ETFs) in South Africa is experiencing significant growth as investors seek to harness opportunities in offshore markets. This trend is expected to persist, with professionals in the industry anticipating further increases in the number of funds available.
Ben Meyer, the Managing Director at Prescient Structured Products Advisory, expressed confidence regarding the future listings of actively managed ETFs. He suggested, “I won’t be surprised in the next 12 months if there are another 25 funds listed,” although he refrained from disclosing specific fund managers or ETF styles due to client confidentiality.
Since the Johannesburg Stock Exchange (JSE) permitted actively managed ETFs to be listed in 2022, the market has welcomed 28 new funds, which are primarily focused on facilitating offshore investments. This development marks a significant enhancement in the investment landscape for South African investors seeking diversified opportunities.
In summary, the actively managed ETF market in South Africa is poised for considerable expansion as more investors explore offshore investments. Industry leaders predict the potential listing of numerous additional funds, indicating a robust appetite for this type of investment vehicle. The recent authorization by the JSE has already led to a notable influx of new funds, highlighting the growing significance of actively managed ETFs in the region.
Original Source: citywire.com
