Cape Town, 2 September 2026 – Active asset managers no longer view exchange-traded funds (ETFs) as a competitive threat. A new survey of South African investment professionals by Prescient Fund Services found that no survey respondents view actively managed ETFs (AMETFs) as a risk to traditional unit trust businesses. 

Instead, a majority view them as a vehicle to attract new clients and broaden market access.
These survey findings form the anchor of the 2026 Prescient ETF Evolution Report published by Prescient Fund Services. The annual report reveals that 88% of South African investment professionals surveyed expect AMETFs to experience meaningful growth over the next five years, transforming them into a core portfolio building block alongside traditional unit trusts and passive index trackers.

This highlights a structural shift in South Africa’s market, which is rapidly expanding beyond basic passive index tracking into actively managed, income, balanced, fixed income, and global feeder solutions.

Now in its second year, the 2026 Prescient ETF Evolution Report expands on this changing environment to offer fresh insights into the development of South Africa’s ETF market. Carrying views from Prescient’s platform and management company, capital markets and fund services specialists, the report explores how ETFs and AMETFs are increasingly reshaping South Africa’s investment landscape.

“The response to our first Prescient ETF Evolution Report in 2025 demonstrated a genuine appetite for greater understanding of this rapidly developing market,” says Craig Mockford, chief executive officer of Prescient Fund Services. “This year’s report takes the conversation further by focusing on the practical opportunities, challenges and infrastructure needed to support the next phase of ETF growth.”

 

Practical insights for a changing investment landscape

The 2026 Prescient ETF Evolution Report explores several of the most important developments influencing the market, including the growing adoption of AMETFs, the increasing role of ETFs within institutional portfolios, retail investor participation, distribution challenges and the operational considerations facing asset managers looking to bring new products to market.

While product innovation continues to broaden investor choice, the report emphasises that the next chapter of ETF growth will depend as much on infrastructure and distribution as on new product launches.
Specifically, the report addresses a number of key questions that issuers of both ETFs and AMETFs face, such as when a feeder fund structure is most appropriate, the key role that capital markets teams play, and considerations when seeding a new strategy.

It also looks at how ETFs are evolving from investment   products into portfolio management tools for institutional investors. From providing DFMs with a way to implement model portfolios for multiple clients through a single wrapper, to allowing pension funds to manage cash balances more effectively, ETFs are fulfilling multiple roles as efficiency tools.

“Our objective is to contribute to a more informed and accessible ETF market,” says Mockford. “As the industry continues to evolve, greater understanding of how these products can be structured, distributed and used in portfolios will be essential in creating long-term value for both investors and investment managers.”
The 2026 ETF Evolution Report is designed as a practical industry reference for investment professionals, asset managers, advisers, investors, and anyone seeking a deeper understanding of the opportunities shaping South Africa’s ETF market.

The report is available for download from the Prescient website: https://www.prescient.co.za/prescient-etf-evolution-report-2026/ 
 

Disclaimer:

Prescient Fund Services is an authorised Financial Services Provider (FSP no 43191)

About the Report

This report is an educational initiative by Prescient Fund Services to educate and empower the South African investment community on the evolving landscape of Exchange Traded Funds (ETFs). Drawing on the expertise of our ETF specialists and enriched by market data, client insights, and global perspectives, the report offers an exploration of South Africa’s ETF ecosystem – from its origins to its emerging frontiers.

About Prescient Fund Services

Prescient Fund Services is a global full-suite fund services firm that has been a reliable and trusted investment-related fund platform, administration and management company partner to successful investment managers worldwide for over 27 years. Supporting more than 135 investment manager clients across South Africa, Ireland, the United Kingdom and Guernsey, Prescient Fund Services delivers a comprehensive range of platform, administration, management company and capital markets solutions. 

Prescient Fund Services (Pty) Ltd is licensed with the Financial Sector Conduct Authority in South Africa as a Category I Financial Services Provider (FSP No. 43191), authorised to provide intermediary services.