Coronation lists first AMETF on the JSE with more on the horizon

Source: Coronation Fund Managers.

Trading under the share code, COUSDI, the AMETF (Actively Managed Exchange Traded Fund) will provide on-market investors with access to an international managed income fund for the first time.

Their anticipated broader AMETF range will feed into Coronation’s Undertaking for Collective Investment in Transferable Securities (UCITS) funds.

“We are very excited to make Coronation’s well-established and proven global investment strategies available to JSE investors, starting with our market-leading US dollar income fund,” said Pieter Koekemoer, head of personal investments at Coronation.

“Our intended suite of AMETFs is set to provide an easy access point for local on-market investors to some of the best international investment opportunities, managed by experienced investment professionals. Coronation is pleased to be at the forefront of this trend as we announce the listing of six AMETF feeder funds into our well-established offshore range.”

Global income diversification

Coronation’s Global Strategic USD Income Fund will provide investors access to a wide variety of fixed-income assets such as bonds, money-market instruments and other debt securities issued by international governments, banks and other companies or institutions.

“This actively managed approach allows for strategic asset allocation and responsiveness to market changes, offering local investors an opportunity to further diversify their portfolios in a cost-effective manner, while providing improved access to capital.

"As the JSE, we welcome Coronation Fund Managers’ new range of ETFs as they grow their already expansive investment product portfolio,” said Adèle Hattingh, manager of business development and exchange traded products at the JSE.

The firm said earlier this month that its initial AMETF offering – launched in partnership with Prescient Management Company – focuses on its existing international strategies to cover a full range of investor needs, and will be the first of a series of such AMETFs.

Following the recent introduction of a raft of amendments to its listing regulations to cut red tape and improve efficiency, the JSE has seen an increase in the number of issuers that have listed securities such as actively managed certificates (AMCs), ETFs, and sustainability bonds.

The listing of the Coronation Global Strategic USD Income Prescient Feeder AMETF increases the number of ETFs listed on the JSE to 102 with a market cap exceeding R173bn.