JSE welcomes new era with EasyETFs' AMETFs

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These newly formed AMETFs combine the benefits of transparency, cost-efficiency and accessibility, representing a significant advancement in EasyETFs' commitment to making active investment strategies more democratic.

These EasyETFs AMETFs will continue to maintain the investment objectives of the original unit trusts.

The Easy IP Global Equity Fund has transitioned into the EasyETFs Global Equity Actively Managed ETF, focusing on capital appreciation through investments in high-growth global companies.

Similarly, the Easy IP Balanced Fund is now the EasyETFs Balanced Actively Managed ETF, maintaining a diversified portfolio aimed at moderate capital appreciation while complying with Regulation 28.

Redefining active investing

“This is a pivotal moment for EasyETFs and the JSE Actively Managed ETFs product category as a whole. The amalgamation is a testament to our commitment to providing transparent, cost-effective, and easily accessible investment options for all market participants,” said David Oberholzer, business manager of EasyETFs.

"We believe this move not only aligns with global investment trends but also redefines active investing for South African investors. As AMETFs continue to gain traction, this amalgamation positions EasyETFs as a leader in this rapidly evolving market."

The EasyETFs Global Equity AMETF is an actively managed fund that primarily invests in a diversified portfolio of securities listed on recognised exchanges worldwide.

The portfolio, mainly composed of foreign equity shares, also includes investments in bonds, money market instruments, real estate-backed securities, collective investment schemes, liquid assets, and non-equity securities aligned with its goal of capital appreciation.

Globally diversified strategies

Managed in accordance with the Global Equity General ASISA Fund Classification, the fund aims for long-term growth by employing both quantitative and qualitative equity strategies, with limited South African market exposure. The benchmark for this fund is The MSCI All Country World Total Return Index.

Similarly, the EasyETFs Balanced AMETF focuses on moderate capital appreciation with a balanced, globally diversified investment strategy. This actively managed portfolio invests in a mix of South African and international equity shares, bonds, money market instruments, real estate-backed securities, participatory interests in collective investment schemes, and other permissible assets.

The fund follows the ASISA Multi-Asset High Equity Category Average as its benchmark, aiming to provide investors with a stable yet growth-oriented asset mix.

These listings follow closely on the heels of the institution’s initial AMETF, the EasyETFs AI World Actively Managed ETF, which debuted on the JSE last month. This fund was designed to capitalise on emerging opportunities in artificial intelligence and its expected impact across various markets and asset classes.

"Converting traditional unit trusts into AMETFs marks a pivotal moment in the AMETF growth story. This makes it easier and cost effective for investors to access and trade these funds like stocks and enhances price visibility.

"It represents a strategic enhancement of our market offerings, aligning with global investment trends and meeting investor demands for greater flexibility and real-time market responsiveness," said Adèle Hattingh, business development and exchange traded products manager at the JSE.