Prescient Management Company, an investment fund platform provider in South Africa, has launched the country’s first full-service, co-named platform for both index tracking (passive ETFs) and actively managed ETFs on the Johannesburg Stock Exchange (JSE). Six funds will be listed on the JSE before the end of 2023 and the company has plans to grow this number in 2024.
Prescient Management Company is the platform provider for Prescient Fund Services, a provider of fund administration services both in South Africa and Ireland with some ZAR1 trillion in client assets under administration.
The Prescient ETF platform offers an opportunity to fund managers seeking a complete end-to-end service to launch their own co-named ETF in the market.
“We are excited to partner with fund managers to offer this AMETF solution. The platform was specifically established to assist investment and wealth managers wanting to launch both index tracking and actively managed ETFs, giving them access to administrative services and regulatory fund structures. Managers using the platform will gain benefits from our extensive experience in launching co-named unit trusts and administering ETFs” says Kim Gibb, Head of Investor Services and Product at Prescient Management Company.
“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,” says Gibb.
She adds that Prescient has been working closely with the JSE since FSCA approval, and various other industry service providers, to continue to optimise this offering.
The firm writes that this launch is not only a big win for investors but also the burgeoning local actively managed ETF market. Collective investment schemes and specifically actively managed ETFs, which are booming in popularity in Europe and the United States, are now set to make their mark in South Africa, the firm says.
Prescient’s ETF platform started off with three index tracking ETFs launched by a third-party investment manager, in addition to their existing collective investment schemes, consisting of traditional funds, retail and qualified hedge fund co-named platforms. Prescient’s first actively managed ETF was launched on its platform in September.
Prescient writes that it has been a pioneer in providing administrative support to discretionary financial service providers who were looking to grow their business by setting up co-named funds on its platforms. The global financial services provider set up one of South Africa’s first white labelled ETF administration entities and has provided clients with the tools to construct customised investment portfolios, it writes. Prescient’s experience in the field of ETFs comes from its long-time involvement in investment administration services for reputable fund managers in the market who were seeking co-named ETF solutions for their collective investment schemes, the firm says.
