Johannesburg, 23 August 2024 – The newly listed 27four SA Multi-Factor Equity AMETF is underpinned by a style rotation strategy that systematically shifts style exposures through the use of machine learning and style momentum. This approach allows the fund to dynamically adjust exposure to different investment styles i.e. value, growth, momentum and quality, aiming to enhance returns while also reducing downside risk.

“The application of a single style investment thesis erodes the core principle of diversification. Style rotation allows for the flexibility to move across the style spectrum in attempt to benefit from the performance variation seen in styles through time. We have developed an approach that leverages data science and machine learning to provide rotation signals, all the while maintaining sufficient exposure to the benchmark.” said Prof. Daniel Page, Head of 27four Beta Solutions at 27four.

The 27four SA Multi-Factor Equity AMETF aims to outperform its benchmark, the Capped SWIX. The fund selects shares through the estimation of future style performance using machine learning in order to enhance performance while being benchmark cognizant. The fund typically invests and holds between 60 to 80 of South Africa's largest and most liquid stocks and is rebalanced quarterly.

"The JSE is committed to innovation and driving transformation. We firmly believe smart technology is an enabler for business. We welcome innovative offerings like the 27four SA Multi-Factor Equity AMETF, which is rooted in data and machine learning, to increase the dynamic offerings available to investors,” said Adèle Hattingh, Business Development & Exchange Traded Products Manager at the JSE.

This AMETF aims to achieve medium to long-term, sustainable capital growth by investing in some of the largest and most stable companies listed on the JSE. By using machine learning and a diversified multi-factor investment strategy, the fund seeks to optimize returns for investors over the long term.

Today’s listing brings the number of ETFs listed on the JSE to 106 with a market capitalisation R179 billion. The JSE continues to demonstrate its vital role in shaping South Africa’s financial landscape and its commitment to offering a robust platform for innovative investment products.

ENDS

ABOUT THE JSE

The Johannesburg Stock Exchange (JSE) has a well-established history of operating as a marketplace for trading financial products. It is a pioneering, globally connected exchange group that enables inclusive economic growth through trusted, world-class, socially responsible products, and services for the investor of the future. It offers secure and efficient primary and secondary capital markets across a diverse range of securities, spanning equities, derivatives, and debt markets. It prides itself on being the market of choice for local and international investors looking to gain exposure to leading capital markets on the African continent.

The JSE is currently ranked in the Top 20 largest stock exchanges in the world by market capitalisation, and is the largest stock exchange in Africa, having been in operation for 137 years. As a leading global exchange, the JSE co-creates, unlocks value and makes real connections happen. www.jse.co.za 

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