The demand for actively managed ETFs is rising sharply in South Africa as investors seek offshore opportunities. Ben Meyer predicts the listing of 25 additional funds within the next year. Since 2022, 28 actively managed ETFs have been listed on the Johannesburg Stock Exchange, primarily focused on international investments.
The actively managed exchange-traded fund (ETF) market in South Africa is witnessing a remarkable increase in demand, as investors seek to take advantage of international investment prospects. Ben Meyer, managing director at Prescient Structured Products Advisory, expressed confidence, stating, “I won’t be surprised in the next 12 months if there are another 25 funds listed.” He refrained from revealing specific fund managers or types of ETFs anticipated in the market to maintain client confidentiality.
Since the Johannesburg Stock Exchange (JSE) commenced allowing the listing of actively managed ETFs in 2022, there have been 28 funds introduced to the stock exchange. These funds are primarily focused on offshore investment opportunities, reflecting a shifting interest among South African investors towards global assets.
The actively managed ETF market in South Africa is showing significant growth, driven by investor interest in offshore opportunities. The potential for further expansion within the next year is promising, with expectations of additional funds being listed. This trend indicates a robust shift in investment strategies among South African investors, aiming for diversification and exposure to global markets.
Original Source: citywire.com
