Prescient launches new Global Income Provider AMETF

Cape Town  - Prescient Investment Management has launched its new Global Income Provider Actively managed Exchange Traded Fund (AMETF), providing investors with an offshore solution that delivers consistent income, capital preservation, and enhanced yield opportunities amidst a high-interest rate environment. This AMETF is specifically designed to outperform traditional money market funds while minimising risk, making it an ideal product for conservative investors seeking to diversify their portfolios.

The AMETF launch comes at a time when global financial markets are seeing historic highs in investment inflows. In the first eight months of 2024 alone, the global ETF industry grew by 12.9%, with total assets under management reaching $13.14 trillion. Fixed-income ETFs, such as the one Prescient Investment Management is offering, have attracted net inflows of over $138 billion in the same period, signalling investor confidence in stable income-generating products.

"Given the global interest rate environment, which is expected to remain elevated for a while longer, investors can take advantage of short-duration, low-risk global income instruments like our AMETF,” explains Henk Kotze Head of Cash and Income at Prescient Investment Management.

Kotze adds: “We’re offering 5-7% in dollar-denominated returns, which is significantly higher than typical money market funds, and we're doing so with a focus on capital preservation.”

The Global Income Provider AMETF targets investors who want to earn better-than-cash returns while maintaining a conservative risk profile.

This strategy ensures stable returns without exposing investors to excessive risk or volatility, making it an excellent alternative to riskier equity markets.

Prescient Investment Management’s new AMETF follows a systematic, data-driven approach. The Fund aims to deliver US CPI plus 1.5%, focusing on achieving real returns while prioritising risk management. Capital preservation remains a key feature of the fund, with a mandate to avoid any losses over a 12-month period.

The global ETF landscape: A growing opportunity

The launch of the Prescient Global Income Provider AMETF comes amid rapid growth in the global ETF market, which has seen record inflows in 2024. According to recent data, 12,420 ETFs are now listed worldwide across 80 exchanges, and over $126 billion in new inflows were recorded in May alone. The growing appeal of ETFs, particularly in fixed-income assets, reflects a broader shift among investors towards products that offer both stability and yield in uncertain economic times.

Optimised for diversification and capital protection

One of the distinguishing features of Prescient’s latest AMETF is its strong focus on global diversification. The fund taps into a broad universe of income-generating assets, spanning from US Treasuries to corporate bonds and it even includes emerging market instruments.

By leveraging short-duration, high-quality assets, the AMETF ensures liquidity and protection from excessive volatility.

Furthermore, Prescient Investment Management has enhanced the portfolio construction process to ensure optimal asset allocation. This systematic, evidence-based investment philosophy helps protect capital and manage risks, which is essential for investors who wish to avoid the instability that can come with equity market exposure.

“Our strategy is based on asset allocation, which we believe explains over 95% of portfolio returns. By focusing on this, we ensure that the AMETF provides the best risk-adjusted returns possible while maintaining the strong capital preservation our clients expect,” concludes Kotze.