JSE lists six new AMCs, boosting South African investing options

The JSE announced today that six Actively Managed Certificates (AMCs) would be listed on the stock exchange, providing investors access to local and offshore equity strategies. 

Unum Capital’s Small and Mid-Cap AMCs are among the new AMCs listed.

These AMCs will provide investors with access to local and offshore small and mid-cap shares, the JSE said.

This follows the successful listing of the Unum Capital Quadmatic Equity (UUQUAD) AMC, a systematic, rules-based general equity solution, in June 2023.

“Having successfully launched our flagship, core equity AMCs, we are excited to add the Small and Mid-Cap portfolios to our investment suite,” said Unum Capital CEO Mark Weetman.

“Investors will be able to combine these equity AMCs to form a local and offshore diversified equity portfolio.”

These AMCs will allow retail investors to access the best local and offshore small and mid-cap shares, selected by the highly regarded small-cap analyst Keith McLachlan of Integral Asset Management, he said.

According to Keith, “Local and global mid and small-cap indices present compelling value, with local segments trading at a 9 times PE and over 5% dividend yields. Despite historical outperformance, these segments are undervalued compared to large caps.”

The Unum domestic AMC (UUSMC) highlights the resilience and growth of local small caps, while the Unum global AMC (UUGSMC) emphasises the vast opportunities in the international small and mid-cap arena. 

In addition, the UBS AG London Branch has issued the following portfolios:

• Efficient Private Clients (EFPC) Model Portfolio (EUFPCL)
• Cast Iron Global Special Situation Equity Portfolio (UCIGEP)
• AnBro World’s Biggest Brands Portfolio (BRNDZ)
• Capital Link Partners Asia Growth Portfolio (ASIAGR)

The EFPC Model Portfolio (EUFPCL) AMC will include shares listed in developed markets and on the JSE. The portfolio will employ a momentum-based strategy to outperform the JSE All Share Index. 

The Cast Iron Global Special Situation Equity Portfolio (UCIGEP) AMC strategy aims to identify and leverage special situations that arise occasionally. 

The AMC offers investors access to shares from companies with clear catalysts, which include company re-organisations and spin-offs, share buy-backs, special dividends, and more.

AnBro World’s Biggest Brands Portfolio (BRNDZ) AMC is focused on investing in companies that have demonstrated proven success and longevity over time and often are household name brands. 

The portfolio invests in stable and reliable companies with a global presence, with strong cash flows that can be used for reinvestment, brand loyalty, Blue Chip status, and that are considered liquid and less volatile. 

To capitalise on Capital Link Partners’ (CLP) achievements in Asia and extend the benefits to South African investors, CLP has formulated a targeted strategy with a primary focus on Asian markets. 

CLP Asia Growth Portfolio (ASIAGR) AMC is focused on Asia and is allocated in countries according to the size and growth of their gross domestic product.

“The growing demand for AMCs is indicative of investors’ need for reliable and efficient investment management services in a listed product,” said Business Development and Exchange Traded Products Manager at the JSE Adèle Hattingh. 

“With the complexity of financial markets and the rising demand for sophisticated investment products, AMCs have become a viable option for individual investors looking to access the listed financial markets’ benefits.”

An AMC allows investors to make returns on a basket of securities that a portfolio manager actively manages according to their specific investment agreement. 

AMCs may reference portfolios with underlying assets such as local and offshore liquid securities, derivatives, commodities, and currencies.