South Africa’s actively managed ETF market is booming, with predictions of 25 new fund listings within a year. This growth is driven by investor interest in offshore opportunities and facilitated by regulatory changes at the Johannesburg Stock Exchange since 2022, where 28 ETFs have already been introduced.
South Africa is experiencing significant growth in its actively managed exchange-traded fund (ETF) market as investors increasingly seek offshore investment opportunities. The demand for these financial products is expected to continue evolving. Ben Meyer, managing director at Prescient Structured Products Advisory, predicts that as many as 25 new actively managed ETFs could be introduced within the next year. He refrained from disclosing specific funds or fund managers to maintain client confidentiality.
The Johannesburg Stock Exchange (JSE) has facilitated this growth by allowing the listing of actively managed ETFs since 2022, resulting in a total of 28 ETFs that primarily focus on offshore investments.
The strong demand for actively managed ETFs in South Africa is indicative of a broader trend towards offshore investment strategies. The expectation of new fund listings suggests that the market will continue to expand, providing investors with diverse opportunities in the global financial landscape. The recent regulatory changes by the JSE have played a pivotal role in this growth.
Original Source: citywire.com
