Actively Managed ETFs

An actively managed ETF (AMETF) is a fund you buy and sell on the stock exchange, just like a share in a company.

The key difference lies in how the fund is run. With a traditional (passive) ETF, the fund simply tracks a benchmark index, it holds the same shares as the index, and doesn't change them. You get the index's returns, minus fees.

An AMETF works differently. A professional investment team actively picks which shares and assets to hold, and they adjust the portfolio over time based on their judgment about what will perform well. This active decision-making allows them to respond to market changes and potentially seek better returns than the benchmark index.

Coronation's main fund range consists of unit trusts, which you invest in directly through Coronation or a linked investment platform.

What's the same:

• What you're invested in: Each AMETF invests in the same underlying Coronation global master fund (see links in the 'What are my AMETF fund options' section above) as its corresponding unit trust. The portfolio, the investment team, and the investment philosophy are identical: active, long-term, and valuation-driven. You're simply accessing the same strategy through a different vehicle.
• Regulatory protection: Both are registered and governed under the Collective Investment Schemes Control Act (CISCA), so the investor protections are the same.

What's different:

• How you access it: Unit trusts are bought directly through Coronation or a linked investment platform. AMETFs are listed on the JSE and bought through a stockbroking or share-trading account, the same way you'd buy any listed share.
• How they're priced and traded: Unit trusts are priced once daily; you place an instruction before the daily cut-off time. AMETFs trade throughout the day at a live market price.
• Who provides your day-to-day service: With a unit trust, Coronation is your primary point of contact for reporting, statements, and queries. With an AMETF, your stockbroker or OST platform handles your transaction confirmations and account statements. So Coronation's role is managing your money while your broker or OST platform's role is the trading and account administration.

Choosing an AMETF that fits your goal, time horizon, and risk level is key. Coronation's JSE-listed AMETFs each provide access to a specific global strategy, from dollar-based income to multi-asset and equity growth.

You invest in rands on the JSE, while the underlying portfolio is invested offshore and managed by our global team.

Here's what's on offer:

For detailed information on each fund's portfolio breakdown, historical performance, and risk statistics, see the master fund’s comprehensive fact sheets at the links on the page above, visit Prescient’s website (navigate to Funds > Exchange-traded Funds), or contact our Client Services Team.

Coronation AMETFs charge an annual management fee (calculated daily and included in the price of the funds). Coronation doesn't charge any entry or exit fees. However, when you buy or sell on the JSE, you will pay standard trading costs through your broker, which typically include brokerage fees and a bid/offer spread. The exact costs depend on your broker.

You can find the detailed fees on the respective fact sheets on the page above or on Prescient's website (navigate to Funds > Exchange-traded Funds).

Offshore investments give you access to global opportunities and diversification you can't get locally, but they also come with distinct risks.

• Currency risk
  The value of your AMETF can move up or down with the rand. When the rand strengthens, your returns (in rand) may be negatively impacted. When it weakens, your returns (in rand) may get a boost. This is neither good nor bad, it's just part of investing offshore in a rand-denominated vehicle. If you prefer to match a future liability with the required currency, you can choose to invest in foreign-currency denominated Coronation fund instead.
• Market volatility
  While shares offer superior long-term returns, they come with higher short-term volatility. Your AMETF can suffer capital losses in the short term, and broad market sell-offs can be brutal. Coronation's portfolio managers try to reduce risk through diversification, but they can't insulate you from major downturns. It is always wise to match your fund choice with your investment time horizon and risk tolerance.
• Underlying market disruptions and liquidity
  If major global markets close or suspend trading (during major crises or exceptional circumstances), your ability to value and sell your AMETF may be delayed. For more details, please refer to the Important Information section of the relevant fact sheet on Prescient's website (navigate to Funds > Exchange-traded Funds).
• Concentration risk
  Depending on which AMETF you choose, you may have significant exposure to particular regions, sectors, or asset classes. For example, equity-focused AMETFs will be more volatile than multi-asset ones.

Recommendation: Review the detailed risk section and portfolio holdings in your specific AMETF's fact sheet (available above or from the Prescient website). Understand what you're holding and whether it matches your risk tolerance and time horizon.

Coronation's investment team manages your money. Our experienced and fully integrated global investment team makes all the investment decisions for your AMETF, just as they do for our offshore unit trust funds.

Prescient Management Company [RF] (Pty) Ltd is the management company that hosts and administers the AMETFs on the JSE. We partnered with Prescient because of their proven track record in the fund-hosting and ETF markets, as well as the scale and operational efficiencies they bring.

In short: Coronation invests your money; Prescient handles the administrative and technical infrastructure that allows you to trade it on the JSE like any other share.