ETFSA, a wealth and investment business focused on Exchange Traded Products, has listed its first Actively Managed Exchange Traded Fund (AMETF), the ETFSA Balanced Foundation Prescient AMETF, on the Johannesburg Stock Exchange (JSE).
Managed in partnership with Prescient Fund Management Services, the ETFSA Balanced Foundation Prescient AMETF, trading under the code ETFSAB, is designed for investors who seek a balanced approach to wealth accumulation.
“By blending stable income-generating assets with growth-oriented investments, both locally and abroad, our AMETF aims to achieve sustainable long-term returns, whilst mitigating downside risks,” says Mike Brown, MD of ETFSA. “The fund will mirror the existing Wealth Default strategy run by ETFSA within its Retirement Annuity (RA) Fund, a fixed asset allocation strategy with scope for some flexibility, if required.”
The low-cost, high-equity fund allocates capital across major asset classes, offering investors exposure to both local and global equities, bonds, listed properties, and cash – with an expected Total Expense Ratio (TER) of approximately 0,52%, which is lower than the typical balanced unit trust.
“The fund introduces a novel approach by combining the benefits of active management with the diversification of a balanced fund, all within an exchange-traded fund framework,” says Adèle Hattingh, manager: business development and exchange traded products at the JSE. “It enhances the diversity of our market offerings, providing investors with more choices in how they can engage with financial markets through the JSE.”