Prescient: South African pros expect AMETF growth
A Prescient survey found 88% of South African investment professionals expect meaningful growth in actively managed ETFs over five years; most do not see them as a threat to unit trusts.
Prescient Fund Services’ 2026 Prescient ETF Evolution Report found 88% of South African investment professionals expect meaningful growth in actively managed ETFs (AMETFs) over the next five years. None of the respondents identified AMETFs as a risk to traditional unit trust businesses; most said they view AMETFs as a way to attract new clients and broaden market access.
The report is Prescient’s second annual review of the local ETF market and compiles input from the firm’s platform and management company teams, capital markets specialists and fund services staff.
The study documents a shift in product mix. South Africa’s ETF market is expanding beyond basic passive index trackers into actively managed strategies, income funds, balanced and fixed-income products, and global feeder solutions.
Prescient highlights that product launches alone will not determine ETF growth. The report identifies infrastructure and distribution as key factors and raises practical questions for issuers, including when a feeder fund structure is appropriate, how to seed new strategies and the role of capital markets teams in supporting liquidity and trading.
Operational issues and distribution challenges are listed as barriers managers face when bringing new ETF products to market.
The report also notes changing institutional demand and describes ETFs being used as portfolio management tools: discretionary fund managers can implement model portfolios for multiple clients within a single wrapper, while pension funds can use ETFs to manage short-term cash balances more efficiently.
Craig Mockford, chief executive officer of Prescient Fund Services, noted the 2025 report showed strong interest in the market and added the 2026 edition focuses on practical opportunities, challenges and the infrastructure needed to support ETF growth. Mockford described the firm’s objective as ‘to contribute to a more informed and accessible ETF market.’
The report urges asset managers considering new ETF launches to weigh product design, seeding and capital markets support alongside go-to-market strategies to expand distribution reach and operational capacity.
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