Following the successful listing of the CoreShares Income Actively Managed Exchange Traded Fund (AMETF) in May 2023, the Johannesburg Stock Exchange (JSE) is pleased to announce the listing of the second AMETF, the CoreShares All Asia AMETF by 10X Investments (APACXJ). This AMETF will allow investors to access key regions in the Asia Pacific (ex-Japan) region to diversify their portfolios.
Through the CoreShares All Asia AMETF, investors will have cost-efficient, diversified, capped exposure to a region that has high growth and is often difficult to access for South African investors.
The CoreShares All Asia AMETF aims to deliver a high level of return through efficient implementation of the investment, with a 0.4% management fee, by selecting the top 100 stocks with a minimum market cap of USD 1 billion out of an investment universe of approximately 1300 shares.
“We are excited to provide efficient and diversified access to key markets and shares across the Asia Pacific region,” says Christopher Rule, Head of Client Solutions at 10X. “The Asia Pacific region represents a substantial portion of global economic growth yet is under-represented in most global equity offerings”.
The country allocation of this fund includes China and Hong Kong (these are grouped and considered one country with proportionate weighting), Taiwan, India, South Korea, Australasia, and Southeast Asia.
The Asia Pacific region has been identified as high growth, with the IMF Regional Economic Outlook predicting that 67.4% of global economic growth will come from the Asia Pacific region. This coupled with the fact that Asia’s GDP is expected to grow by 4.6% in 2023, compared to the global growth rate of 2.8%, makes this an especially attractive investment destination.
“We are thrilled to welcome the second AMETF on the JSE, indicating a growing appetite for this recently launched investment instrument following the amendment of our listing requirements. We look forward to welcoming more AMETFs on the exchange to provide South African investors with new opportunities to diversify their portfolios and grow their wealth. We would also like to congratulate 10X on being at the forefront in driving the growth of the AMETFs in the South African market and look forward to seeing them expand their product offering,” says Adèle Hattingh, Business Development and Exchange Traded Products Manager at the JSE.
Coreshares by 10X is an investment management firm that specialises in developing innovative solutions for South African investors and is committed to providing investors with access to unique and differentiated strategies through the power of ETFs.