The Johannesburg Stock Exchange (JSE) is pleased to announce the listing of six Actively Managed Certificates (AMCs) which will provide investors with access to local and offshore equity strategies.
In particular, it is an exciting event to launch Unum Capital’s Small and Mid-Cap AMCs which will provide investors with access to local and offshore Small and Mid-Cap shares. 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,” says Mark Weetman, CEO at Unum Capital. “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.
According to Keith, “Local and Global Mid and Small-Cap indices present compelling value, with local segments trading at a 9x 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, 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 in order to attempt 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 companies that are stable and reliable; have a global presence; have strong cash flows that can be used for reinvestment; maintain brand loyalty; have Blue Chip status; and 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 (ex. Japan) 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. 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,” said Adèle Hattingh, Business Development and Exchange Traded Products Manager at the JSE.
“UBS is thrilled to announce the issuance and listing of six new AMCs on the JSE. This marks not just an expansion of our extensive product range, but also underlines our dedication to innovative global investment solutions for local investors. The UBS AMC solution comes with an unparallel blend of benefits designed to meet the complex demands of portfolio managers,” says Aveshen Pillay, Head of Global Markets for UBS in South Africa. “One of the most compelling features of our value proposition is the seamless integration with our award-winning UBS Neo AMC Platform which offers a holistic, streamlined approach to investment management.”
An AMC allows investors to make returns on a basket of securities that is actively managed by a portfolio manager, according to their specific investment agreement. AMCs may reference portfolios with underlying assets such as local and/or offshore liquid securities, derivatives, commodities, and currencies.