The Johannesburg Stock Exchange is pleased to announce the listing of the first Actively Managed Exchange Traded Fund (AMETF) by 10X Investments, the CoreShares Income Actively Managed Exchange Traded Fund.  This follows the amendment of JSE Listings Requirements in October 2022 after consulting with market participants.  

An AMETF is a Collective Investment Scheme (CIS) that is listed and traded on the market. The new regulations mean that underlying assets or securities of the AMETF must comply with the requirements as determined by the FSCA and must also be deemed “sufficiently liquid for robust pricing”. Investment managers will, therefore, be able to list ETFs with active investment strategies and will no longer be restricted to purely tracking a benchmark.

The CoreShares Income AMETF aims to deliver a high level of income and long-term stability on capital invested, through investing in a combination of asset classes including bonds, money markets, debt and credit.

“The CoreShares Income AMETF will strategically invest in a diversified portfolio of income opportunities, including offshore investment-grade and high-yield debt indices, local credit, government bonds (both nominal  and inflation linked) as well as cash,” says Anton Eser, Chief Investment Officer at 10X. “We’re confident in our ability to provide investors with a high yield and a consistent income stream, with a return profile that is not unlike bonds but, which carries significantly lower risk thanks to diversification and sound risk management frameworks.”

Previously, the only ETFs allowed domestically were those that passively tracked underlying indices, or physical commodities. Yet actively managed ETFs have seen strong growth globally.  According to etfGI, the actively managed ETF industry has increased its assets under management by 7.2% as at end February 2023 to $522bn from $487 billion at the end of 2022.

“We are thrilled to welcome the CoreShares Income Actively Managed ETF. New funds such as these will provide South African investors with an opportunity to further diversify their portfolios in a cost-effective manner and are an indication of JSE efforts to be at the centre of product innovation,” says Valdene Reddy, the Director of Capital Markets at the JSE.

Coreshares by 10X is an investment management firm that specialises in developing innovative solutions for South African investors and is committed to providing investors with access to unique and differentiated strategies through the power of ETFs.

ENDS

ABOUT THE JSE

The Johannesburg Stock Exchange (JSE) has a well-established history of operating as a marketplace for trading financial products. It is a pioneering, globally connected exchange group that enables inclusive economic growth through trusted, world-class, socially responsible products, and services for the investor of the future. It offers secure and efficient primary and secondary capital markets across a diverse range of securities, spanning equities, derivatives, and debt markets. It prides itself on being the market of choice for local and international investors looking to gain exposure to leading capital markets on the African continent.

The JSE is currently ranked in the Top 20 largest stock exchanges in the world by market capitalisation, and is the largest stock exchange in Africa, having been in operation for 135 years. As a leading global exchange, the JSE co-creates unlocks value & makes real connections happen.

www.jse.co.za 

The JSE takes your privacy seriously in accordance with the POPI Act. We endeavour to only send you relevant information that we think will be of interest to you and the media title you work at. No action is required if you are happy to continue receiving JSE news and information. Should you change your mind at any time in the future, please do let us know. If you do not wish to receive JSE news and information, please respond to this email and we will remove you from future distributions.