Property investment management company Reitway Global has listed two new property exchange-traded funds (ETFs) on the JSE through Prescient Management's newly approved co-named ETF platform.
The two new funds are the Reitway Global Property Environmental, Social and Governance (ESG) Prescient ETF, which tracks the Reitway Global Property ESG Index, and the Reitway Global Property Diversified Prescient ETF, which will track the Reitway Global Property Diversified Index.
“The listing of the two Index-tracking Global Property ETFs, together with the existing Satrix Reitway Global Property ETF, is a visible demonstration and a milestone in the implementation of our strategy. This, together with the objective to list an actively managed ETF in due course, will enable us to present investors an array of investment vehicles that extract different performance aspects of the Global Property universe,” says Reitway Global CEO Greg Rawlins.
Prescient’s ETF platform has been specifically established to assist investment management and wealth managers wanting to launch both index tracking and actively managed ETFs, giving them access to administrative services, regulatory fund structures and fund distribution.
The partnership with Prescient enables Reitway Global to benefit from Prescient’s extensive experience in launching co-named Collective Investment Schemes Control Act unit trusts and administering ETFs, while delivering their ETF-based solutions to local clients.
Further, the Reitway Global Property ESG Index’s objective is to deliver a credible absolute and relative performance, while still maintaining a minimum ESG ranking of 90%, Reitway Global adds.
The real estate investment trust ESG ranking comprises five categories computed and maintained by accredited ESG ranking agency the Global Real Estate Sustainability Benchmark. The five categories include disclosure methods, governance of sustainability, implementation, operational performance and stakeholder engagement.
ETFs are an excellent option for passive investors looking for long-term returns, says JSE exchange products manager Adèle Hattingh.
“It is encouraging to see more ETFs listing on the JSE to give individual investors a diverse range of products to include in their portfolios. We welcome the Reitway Global Property ESG Prescient ETF and Reitway Global Property Diversified Prescient ETF funds, as they expose investors to sustainable investment and property assets,” she notes.