Nedbank Private Wealth’s new Global AMC offers a captivating approach to international investing
As South African investors continue to grapple with a challenging local economic landscape, Nedbank Private Wealth has launched an innovative solution designed to broaden their investment horizons.
The Nedbank Private Wealth Global Actively Managed Certificate (AMC) offers a fresh approach to accessing international markets amid growing concerns about limited domestic opportunities.
Recent years have seen South Africa’s share of global GDP dwindle to less than 1%, while the Johannesburg Stock Exchange has faced increasing concentration and a continuing trend of delistings.
Over the past decade, 240 companies have left the local bourse, further narrowing the field for investors seeking growth and diversification within South Africa’s borders.
According to Jason Binneman, Executive of Investments at Nedbank Private Wealth, the AMC arose from the recognition that in today’s highly connected world, it isn’t in the best interest of investors to limit their investments to a single country.
‘Our Global AMC opens doors to a world of opportunities for investors,’ he says, ‘allowing them to tap into growth sectors and markets that simply don’t exist locally.’
The Global AMC is structured as a JSE-listed instrument that provides exposure to a curated portfolio of 15 to 25 international stocks from diverse markets, including the US, Europe and Asia.
The approach delivers the benefits of professional active management, guided by Nedbank Private Wealth’s proven valuation-based investment process and philosophy.
It also offers investors the simplicity and exposure to global markets without the administrative burden and tax complexities often associated with direct offshore investing.
‘We have designed the Global AMC to be an effective and simple tool for portfolio diversification,’ Binneman explains. ‘It leverages our team’s extensive experience in international markets to deliver a solution that is both sophisticated and user-friendly.’
He emphasises that this expertise and experience is evidenced by the fact that the Nedbank Private Wealth Equity Fund, which houses its offshore exposure, ranked 5th out of 175 in its Association for Savings and Investment South Africa (ASISA) peer group in 2023.
The Global AMC is available at a competitive fee of 0.75%. Investors also benefit from quarterly portfolio updates to stay informed about evolving market opportunities.
With this, it has been designed to be available to investors for up to 28 years, with potential rollovers every 7 years, ensuring sustained international exposure.
In addition, it is regulated under the Banks Act, 94 of 1990, providing an added layer of security and oversight.
‘For South African investors seeking to navigate the challenges of a constrained local market and tap into global growth trends, the Nedbank Private Wealth Global AMC offers a compelling new option that combines the potential for enhanced returns with the comfort of investing through a highly trusted local institution,’ Binneman concludes.
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