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Markets & Investment News South Africa

PortfolioMetrix launches high-yield AMETF on JSE

PortfolioMetrix, a leading global investment management firm, has successfully listed its first Actively Managed Exchange Traded Fund (AMETF), the PortfolioMetrix Active Income Prescient AMETF, on the Johannesburg Stock Exchange (JSE).
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The fund aims to provide investors with a high level of income and to prioritise the preservation of capital. The fund managers actively invest in a broad range of interest-bearing securities typically not easily accessible to JSE investors. With the fund being Regulation 28 compliant, it makes it suitable for retirement funds and living annuities.

“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,” said Philip Bradford, PortfolioMetrix’s head of investments.

“Current bond yields of over inflation +6% creates the potential for equity-like returns going forward, but with much lower risk. Our Active Income ETF gives professional and retail investors a convenient vehicle to cost effectively access these high-yielding instruments in a diversified portfolio.”

The PortfolioMetrix Active Income Prescient AMETF (alpha code: PMXINC) 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, comfortably 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, expressed enthusiasm about the new listing, stating, "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."

Today’s listing highlights a significant milestone in the ETF market as it marks the 100th ETF to list on the JSE, boasting a market cap of close to R150bn. This demonstrates that ETFs continue to be an integral part of many investors’ portfolios and remains an attractive and diverse opportunity for both seasoned and novice investors.

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