Surging Demand for Actively Managed ETFs in South Africa

The demand for actively managed ETFs in South Africa is sharply increasing, fueled by investor interest in offshore opportunities. Since the Johannesburg Stock Exchange began allowing these ETFs in 2022, 28 have been introduced, with expectations of more to come as indicated by industry experts.

The actively managed exchange-traded fund (ETF) market in South Africa is experiencing significant growth, driven by increasing investor interest in offshore opportunities. Ben Meyer, managing director at Prescient Structured Products Advisory, indicated that this trend is likely to persist, stating, “I won’t be surprised in the next 12 months if there are another 25 funds listed.” He refrained from disclosing specific fund managers or types of ETFs due to client confidentiality.

Since the Johannesburg Stock Exchange (JSE) permitted the listing of actively managed ETFs in 2022, a total of 28 such funds have been introduced to the stock market. These funds primarily focus on offshore investments, reflecting the growing demand among South African investors for diversified asset classes beyond local markets.

The substantial rise in the actively managed ETF market in South Africa signifies a shift towards offshore investment opportunities among local investors. With the potential for an additional 25 funds to be launched in the near future, the trend indicates a promising outlook for both investors and fund managers alike. This development underscores the evolving landscape of investment choices available in the region.

Original Source: citywire.com