Investment fund management platform provider Prescient Management Company has launched South Africa’s first passive and actively managed exchange-traded funds (ETF) platform.
The full-service, co-named platform is designed for index tracking (passive ETFs) and actively managed exchange traded funds (AMETFs) on the Johannesburg Stock Exchange (JSE).
This will allow fund managers to launch their own co-named ETF using a complete, end-to-end service, the company says. It will help to support South Africa’s local actively managed ETF market, which the firm notes has seen recent growth.
Three index tracking ETFs have been launched on the platform by a third-party investment manager, with the first actively managed ETF launched in September. Six funds will be listed on the JSE before the end of the year, the company says, with further growth expected in 2024.
Kim Gibb, head of investor services and product at Prescient Management Company, says: “Managers using the platform will gain benefits from our extensive experience in launching co-named unit trusts and administering ETFs. The newly-launched service is also a win for small and medium-sized asset managers who do not have their own management companies and wish to set up new ETFs.
“Through this service, we help fund managers to resolve critical challenges that include anti-money laundering checks, intra-day, real-time cash management requirements and offshore exchange-control requirements.”
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