Ninety One to list active ETFs

MORE CHOICE: 2 DIVERSIFIED INCOME FUNDS HAVE SAME FEES AS UNIT TRUST EQUIVALENTS

- Liesl Peyper

Global asset manager Ninety One will on Wednesday list two actively managed exchange-traded funds (ETFs) on the JSE.

The Diversified Income ETF and Global Diversified Income ETF are modelled on Ninety One's established unit trusts, targeting steady income and a bias toward preserving capital.

Income funds are suited to investors seeking stability and returns above cash in uncertain markets. They aim to preserve capital while limiting exposure to excessive risk.

Ninety One's Actively Managed ETF strategy lead Trinisha Chanka says the firm's new income-focused ETFs serve that objective.

The two ETFs

The Diversified Income ETF is a South African portfolio that invests across bonds, credit, property and offshore assets. It has a strong focus on income generation and capital preservation.

The Global Diversified Income ETF offers exposure to a global multi-asset strategy that aims to achieve US dollar cash plus 1.5% over rolling 12-month periods. The fund combines fixed income assets and builtin currency diversification.