The Johannesburg Stock Exchange has listed the Benguela EasyETFs Global AI Revolution Actively Managed ETF on its Main Board, giving South African investors a new way to gain exposure to companies driving the global artificial intelligence industry.

The fund, which trades under the share code BGFMAI, invests primarily in global companies operating in or benefiting from the adoption of AI and related technologies.

Unlike a broad market tracker, the actively managed fund is designed to take a more focused approach, with investments selected through research into economic conditions, business trends and market developments.

Fund targets AI-linked sectors

The portfolio will mainly hold international equities and units in pooled investment vehicles, including exchange-traded funds. Its investment universe covers areas such as semiconductors, telecommunications, media and technology, automation, robotics and genomics.

Zwelakhe Mguni, chief investment officer and co-founder of Benguela, said the fund was designed to complement the global exposure many South African investors already have through passive and actively managed funds.

“Most South African investors already own global beta through passive world trackers and large global active funds, and they should,” Mguni said. “What almost none own is a specialist investment that can extract alpha in support of that beta by going where a generalist structurally cannot.”

He said BGFMAI gives local investors a listed and liquid way to gain more targeted exposure to companies benefiting from the growth of AI.

Adèle Hattingh, manager of specialist securities at the JSE, said AI is changing industries, business models and economies worldwide.

“Through the listing of the Benguela EasyETFs Global AI Revolution AMETF, South African investors can access a professionally managed portfolio positioned to capture opportunities arising from this transformational trend,” Hattingh said.

JSE ETF market continues to grow

The listing comes as companies across industries increase their use of AI to improve productivity, efficiency and product development. For investors, that has created growing demand for funds offering targeted exposure to the technology and businesses supporting its expansion.

The new fund brings the total number of ETFs listed on the JSE to 134, with combined market capitalization of more than R273 billion ($16.9 billion).

AI ETF adds to EasyETFs lineup

EasyETFs, a registered manager of collective investment schemes backed by Purple Group, the company behind EasyEquities, offers ETFs and actively managed ETFs that trade on the exchange during normal market hours.

The Benguela fund seeks long-term capital growth by investing primarily in international companies involved in AI and related technological innovation. Its managers can invest across global equities and selected collective investment schemes while adjusting the portfolio as market conditions change.

The JSE, Africa’s largest stock exchange by market capitalization, has operated for 139 years and provides markets for equities, bonds, derivatives and other financial products. The exchange says it remains focused on expanding access to investment opportunities for both local and international investors.